Water
Home > Our Agenda > The Economy > Water
ACCI Stands For:
Sustainable Water Resource Policies
That promote security of access & supply
Policy Objectives:
- Carefully considered water reform that guarantees
the improved health of Australia’s river systems and
ensures that all Australians have access to clean usable
water
- No 'rush to reform' by government which leads to less
integrity of the reform process. Reform that is ill-
conceived may be costly to the Australian taxpayer,may
result in significant unintended/inadvertent transfers of
wealth and may not achieve the desired long-term
environmental outcomes
- An integrated approach to reform of both groundwater
and surface water conservation and management
- Recognises that the management of groundwater supplies
(the aquifer) is as important as surface water management,
as there is a risk to the long-term health of ecosystems if
the aquifer supplies are depleted and mismanaged
- Recognises that as a consumer of water, and a party dependent
on sound environmental flows, especially in regional Australia,
business will be a significant stakeholder in the reform process
- Policy reforms that allow industry to actively respond to
water reform but do not place an unreasonable burden on business. Business, as a member
of the Australian community, has a role to play in addressing the issues. But reform should
not unnecessarily impede the competitiveness of Australian trade-exposed industries, should
attempt to minimise cost differentials between and across jurisdictions and should be
commensurate with industry’s contribution to the problem
- Governments to provide an institutional framework conducive to improved water conservation
and management. Governments should introduce incentives such as grants and subsidies
and provide general demand-management information to encourage the uptake of new technology,
greater innovation and to promote the commercialisation of improved water management
- Recognises that governments will need to determine targets or levels for water quality and flows
for catchments, but that the principal responsibility for managing and meeting those targets
should lie with the local community
- The development of re-use strategies in the short-term that promote safe re-use and
recycling of waste water for non-drinking purposes, such as irrigation, residential garden
watering, toilet flushing, fire protection and industrial uses including cooling water and for
drinking purposes in the longer term. Any strategies must address the purpose and standards
for re-use, the costs and any subsidies, and how those subsidies are allocated
- Arrangements for stable, well-defined water access entitlement regimes to create
certainty, promote investment in water consumption and to achieve the maximum potential
economic gains from a nationally-consistent water-trading regime. These arrangements
should contain sufficiently long terms for entitlements to encourage security in tenure (ACCI
proposes 10 years), a general presumption that they will be transferable and clear specifications
so entitlement holders are fully aware of their obligations and the processes that determine and
influence their allocations
- Water access allocations to be initiated from a planning process that determines
the balance between ‘consumptive use’ and the quantity of water that needs to be allocated for
environmental purposes
- An approach whereby the amount of resource to be allocated for consumption in a
particular catchment or zone is reassessed in light of changing environmental conditions.
- The amount of resource that an entitlement holder takes from the ‘consumptive pool’ should
move proportionally to the increase or decrease in the size of this pool over time
- Governments to determine the size of the ‘consumptive pool’ and ‘environmental
pool’ through quality economic and scientific analysis and extensive community consultation
- Governments to consider the sequencing of water policy reform. The transition to a
nationally-consistent system for specifying water access entitlements, water use conditions
and trading must be properly sequenced to mitigate against unnecessary costs
- Flexible water trading arrangements that take into account the unique
conditions of different environmental zones in Australia and as a means of facilitating the
movement of water to its highest value use. However, there must be common principles that
underpin a nationally consistent approach. Any trading price should take into the account the
true value of water consumption (including all associated externalities) and the price that is
paid for water equates to the opportunity cost of additional water for the environment
- Water reform to complement other broad government policies, notably regional development,
innovation and climate change.