UNITED NATIONS GENERAL ASSEMBLY
Statement by Dr O’Connell
Deputy Secretary
Department of Environment and Heritage
12th Session of the
Commission on Sustainable Development
Australia’s experience in managing freshwater resources
New York
19 April 2004
Mr Chair,
Let me share some current Australian thinking and experience in managing freshwater resources:
• planning for integrated water resource management;
• establishing robust and effective water governance arrangements; and
• recognizing and supporting communities of users, and other interested parties, in the management of water resources.
Australia’s background
First, some Australian background. There are some features of water resources that we share with many developing countries – as described in the Secretary-General’s reports.
Of all continents, Australia has the least amount of water in its rivers. Droughts are a natural feature of our landscape.
Our national average rainfall is low - at around 470 mm per year.
Evaporation rates are high. On average, only 12% of our rainfall collects in our rivers compared with 65% as a world average.
Around 75% of Australia’s managed water is used in irrigated agriculture, 20% for urban and industrial uses - and around 5% for other rural uses such as stock and domestic needs.
Irrigation has given us enormous economic and social gains. But, until recently there has been insufficient understanding of downside impacts.
For example, the Murray-Darling River Basin is the heartland of Australian agriculture. Agricultural output from the Basin is around AD$10 billion a year (about US$7.5 billion), founded on the expansion of irrigation. This is nearly one third of the value of Australia’s total annual agriculture output.
One result is that the average flow at the mouth of our River Murray is now around 30% of the natural flow levels. And flow patterns have been changed. The effects of this, combined with land use change, includes increased salinity of rivers and of the land, toxic algal blooms, and reduced biodiversity.
National Water Initiative
In Australia we will maintain and increase our agricultural economic performance - through well managed irrigation.
With greater efficiency through integrated water resource management, we can do this while supporting improved ecological outcomes.
In August 2003 Australia announced the development of a National Water Initiative, building on earlier reforms. This Initiative will:
• improve the security of water access entitlements;
• encourage the expansion of water markets;
• enable best practice water pricing;
• ensure ecosystem health and protect environmental assets;
• improve measuring, monitoring and information; and
• encourage water conservation in our cities.
The details of our National Water Initiative are still to be settled – it is currently work-in-progress – but I’ll share our current thinking.
We believe that unless water access entitlements are secure, private investment will be constrained. We are proposing to grant permanent (or perpetual) access entitlements to water users.
These will be entitlements to a share of the water resource that is made available for use. The size of the water resource pool will be set by open and transparent water planning processes for catchments and aquifers.
We believe that private investment - including in public/private partnerships - is encouraged where risk profiles are clear. We will identify the risks of change to the available pool of water – and assign those risks clearly to users, government and the environment.
For example: Users could carry the risk of changes resulting from normal climatic variation. Government could carry the risk of changes from new policy decisions - reflecting changing community preferences - and so compensate water entitlement holders for any economic loss.
Irrigation investment decisions would then be made with minimum sovereign risk - while reflecting the real variability of the natural resource.
The water planning processes will engage the community of water users and those with legitimate interests in environmental and social outcomes. They will be supported by the best available science.
• Water sharing plans will set environmental outcomes - including necessary flow regimes - that are no less secure than those provided to water users.
• The water sharing plans will be integrated with wider natural resource use planning that promotes sustainable agriculture and protects environmental assets.
The permanent water access entitlements will be tradeable, leaseable and mortgageable - and will have title registration.
• Water will be tradeable to its highest economic value.
• This will encourage the most efficient use of water.
• Water trading rules and local/regional conditions on use will manage third party and environmental impacts of trading water. These may reflect agreed local geographical variations and values.
Robust reporting and accounting procedures will support the access entitlements, as well as better resource management and market information.
Farmers will not need to have water access entitlements for their domestic use or for watering their stock.
• These will be rights that will be factored into the water sharing plans.
We expect to manage our water bodies to meet agreed objectives.
• Some water catchments may remain undeveloped – for instance if they are water sources for major urban areas, or where we want undisturbed environmental values.
• For working river catchments, we will seek agreed and transparent trade-offs between environmental values and agricultural or industrial production.
Our planning processes will integrate the economic, social and environmental aspirations of the community.
• This recognizes that for farmers and irrigators, a healthy river is the basis for their economic activities –
• Just as a vibrant economy is necessary for environmental protection.
This integration is at the heart of sustainable development for our rural landscape.
Our urban populations will also contribute to the improved national management of water resources.
• An agenda for water efficiency labeling for appliances is agreed.
• Cost recovery and clearer price signals still need further work.
• Open challenges that remain for us include minimum standards for water efficiency for appliances, standards for stormwater use, water reuse and recycling, as well as encouraging greater water sensitive urban design in our developing cities.
In parallel with the development of our National Water Initiative, Australia is taking a further action to rebalance the Murray Darling Basin outcomes.
• We will correct over-allocation of the Basin’s water resources
• And we will take our First Step to rehabilitate the River Murray and several of its wetlands that are listed under the Ramsar Convention.
Conclusions
Mr Chair
Through Australia’s National Water Initiative we are now:
• planning for integrated water resource management - at catchment, basin and aquifer levels - within the broader context of natural resource management;
• establishing robust and effective water governance arrangements - that are scaled to national and local circumstances; and
• recognizing and supporting communities of users, and other interested parties - to identify and integrate objectives for water bodies, water users and the environment.
Obviously, one size does not fit all countries. As different countries develop their Integrated Water Resource Management programs, there may be aspects of our experience that are useful.
• The approaches we are taking in Australia are scaleable – and different aspects can be emphasized for different national contexts.
• For example, assisting communities of water users and others to identify objectives for catchments could be a foundation step.
In Australia, we hope to improve our water management continuously.
• Through this review session of the Commission, I look forward to learning from the experiences of others.
Footnote
As a footnote – in a side-event on Monday 26 April we will be displaying more information about Australia’s experiences in water management. Several of our experts will be able to join you over refreshments to discuss water policy and management.
Thank you.