The importance of water information to national water reform

Water Information Seminar Series - CanberraJames HorneDeputy Secretary, DEWHA15 October 2009

Outline of presentation

• The water scarcity challenge

• National water reform and supporting programs

• The criticality of water information

• Role of AWIAC

Water Availability –Decline or Variability?

0

100

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100019

1119

1319

1519

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05

Tota

l Ann

ual*

Inflo

w to

Per

th D

ams*

* (G

L

Annual Total 1911-1974 av (338 GL)1975 - 1996 av (177 GL)1997 -2005 av (114 GL)

Notes: - A year is taken as May to April - 2005/06 inflow to 30th August 2006

2006

Water Availability –Decline or Variability?

River Murray System Inflows 1891 -2009(Including inflows to Menindee & excluding Snowy Releases)

4,900

2,000 0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

50 000

55 000

1892

1895

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2009

Year Ending May

Ann

ual I

nflo

w (G

L)

Average 1891- 2000/01 11,500 GL/y Average 2001/02- 2009

3,800 GL/y(33% of previous average)

Average 1891 - 2009 11,000 GL/y

Capital City Storage Levels

Adelaide 79.0%

Canberra 45.5%

Melbourne 28.4%

Perth 44.4%

South East Queensland 76.0%

Sydney 59.9%

As at 1 September 2009

Annual inflows to Canberra’s storages

Gig

alitr

es

187 GLlong term average inflow 1871 – 2008

68 GL average inflow 2000 - 2008 is 37% of long term average

45% 48%

31%31%

56%

14%

30%35%

67%

Murray system inflows

MDBA water storage volumes (River Murray System)

The Water Scarcity Challenge

• Australia has a water scarcity challenge that is being addressed through new water policy, regulatory, investment and management strategies

High quality water information is critical their success

NWI Objectives

• Clear property rights framework

• Transparent, statutory-based water planning, recognising connectivity between surface and ground water

• Statutory provision for environmental and other public benefit outcomes, and improved environmental management practices

• Strong open markets

• Return to sustainable levels of extraction

• Clear assignment of risk arising from future changes in water availability

• Water Accounting able to meet the information needs in respect to planning, monitoring, trading, environmental management and on-farm

• Policy settings which facilitate water use efficiency and innovation in urban and rural areas

Water for the Future

A 10 year $12.9b investment by the Commonwealth in

• Institutional reform (MDBA (and Basin Plan), ACCC, BOM)

• Water purchases for the environment

• Modernising water delivery infrastructure

• Urban water reform

• Strengthening markets (water pricing, market and charge rules, water trading)

• Water information (Bureau of Meteorology)

Recap of past 18 months

• IGA on the MDB put in place, Water Act amendments passed

• New institutions created (MDBA, New Minco, BOC)

• Water purchases significantly accelerated

• Irrigation modernising planning undertaken

• New on and off farm irrigation investment programs established

• Market and charge rules made

• Strengthening Basin Communities commenced

• National Water Market System construction started

• Significant progress on Water Information

Some basic observations

• Limits on water use should be based on sustainability principles

– Future water availability, not historical water use

• Contingency planning must be in place for extreme dry conditions

– Not risk free but risk management principles

• Accurate price signals and effective water markets are necessary

– To ensure water moves to highest value uses

– And to facilitate adjustment

The questions we need to answer

• How much water is available in different parts of the country today (and how does it compare with history)?

• How much water is likely to be available in the coming days, weeks, months and years? (i.e. forecast)

• How much water is the environment getting?

• How is water quality changing?

• How much water is being intercepted by farm dams and various land management changes?

The water information goal

• Australia is well equipped to manage water scarcity, water quality and flood risk through ready access to high quality water information– A key role for the BOM

Role of AWIAC (Australian Water Information Advisory Council)

• Provide strategic advice to the Bureau on emerging water information needs across the water sector

• Advise the Bureau on how to maximize the value of its water information activities across the water sector

• Guide the Bureau’s approach to address key national water reform objectives

• Assist the Bureau by providing advocacy across the water sector for its new water information mission

AWIAC members

• Russell Mein (Chair)

• James Horne (DEWHA)

• Ken Matthews (NWC)

• Rob Freeman (MDBA)

• Warwick Watkins (Department of Lands, NSW)

• Ross Young (Water Services Association of Australia)

• Chris Bennett (Irrigation Australia Limited)

Conclusion

• Water availability pressures have become a part of Australian life

• An active national water reform process is well in train

• All governments have committed to considerable reform, though the Biennial Assessment indicates many are lagging behind these commitments

• The Australian Government is investing heavily to accelerate reform

• High quality water information is a vital ingredient in the process