Submission to the Senate Rural and Regional Affairs and Transport References Committee Inquiry: The integrity of the water market in the Murray-Darling Basin

Abstract

The integrity of Australia’s water markets is important because of the significant public funding invested into their creation, development and sustainability over the last 30 years. Water markets have played a critical role in assisting Australia achieve actual water for the environment, and farmers to manage their own responses to water supply risk, and markets are expected to help farmers to continually adapt to future water supply uncertainty. Finally, any threat—perceived or real—to the integrity of the MDB water markets poses a very real risk to the success of the Murray-Darling Basin Plan. This submission focuses on a couple of the key terms of reference raised by the inquiry into the integrity of water markets in the MDB. Our objectives are simple: to reflect on the development history of water markets in the MDB; the role water markets have played in providing greater risk management options to farmers and the environment in recent years; the risks posed to future market confidence and stability that could emerge if unlawful extraction of water persists; and the clear need in Australia for an independent water reform and market oversight organisation—with the power to enforce compliance and require restitution for any infringements on agreed rights and conditions.