The Lower Lakes has been a natural part of the River Murray for thousands of years. Evaporation from these Lakes is part of the natural watercycle, it is not a resource or commodity but water, that is part of a water cycle, to be nurtured and respected. Building dams is destroying our environmental inheritance, the public amenity and utility of our water ways and it is time, once and for all, we stood together to demand a fair share of the River Murray for South Australia under all conditions. We don't need more weirs we need better management of the entire Murray-Darling Basin.
Your submission does not address what I believe is the core issue, the privatisation of water itself by Governments who never asked or disclosed to the public the true nature of their plans and actions. Rather it has been simply referred to as water reform. Parliament has been misled and South Australians have been misled by a process that was initiated by COAG in 1994. I believe it has become the biggest scandal and disaster of our time, and in South Australia the scale exceeds the State Bank Disaster given its economic, social and environmental implications.
State governments are responsible for water licensing and setting allocations. They have also been responsible for setting up the new water market. Markets need demand and they also need water. One way of creating demand is to cut allocations more than what they need to be and one way to obtain water is to cut off areas deemed of no real economic value, such as the Lower Lakes.
The continuing drought has provided the perfect cover to establish the new water market to create demand. Water to the Lower Lakes was cut-off in early 2007. South Australian irrigators were allowed to purchase as much water as they need provided they had the financial resouces to do so. Of course this also means that the State Government did not act in their, and our best interests by cutting allocations in the first place, when water was clearly available. It is also clear this action was used in part to help facilitate the creation of the new water market. The South Australian government has then used these low flows to justify the actions being taken in the Lower Lakes. The water market itself has been allowed to florish. If this is not fraud I don't know what is.
Allocations in the past have been set in response to the non-availability of water. However the operation of the new water market in the MDB has exposed that there is water, but only as much as you can afford to buy. On the very day that Maude Barlow gave her speech in Sydney on 1st April 2009, American investors purchased 10 GL of high reliability water for $20 million which they planned to lease back to farmers. This is not right and is totally unacceptable to the Australian people. In 2007/08 when total water diversions from the MDB was a low 3,913 GL, the National Water Commission proudly announced in December 2008 in its first market report that over 2,515 GL of water was traded of which 1,594 GL was temporary water. Something is not right.
In the eleven years since 1996/97 the total volume of water diverted is approximately 97,824 GL and South Australia's share of this diversion was a meagre 6% or an average of 549 GL/year for a total of 6,037 GL. There are 65 major storages and 600,000 private dams in the MDB capable of diverting one and half times the average flow of every river in the basin and 25,560 km of irrigation supply and drainage channels. Clearly there are too many channels and all of the storage capacity of the entire basin should be used to meet an emergency to prioritise it's use.
Of course it is not just irrigators of South Australia who have been conned by this government but the people of Adelaide have also been conned into building a desalination plant it does not need. Adelaide Coastal Waters doesn't need a new source of pollution as it is already an environmental disaster caused by years of pollution from wastewater and stormwater. The priority for Government in Adelaide is water conservation to save Adelaide Coastal Waters and recycle as much stormwater and wastewater as possible. There is significant upside to this approach and now is the time to do it.
The same governments have allowed the unbundling of water licenses from property. These licenses were originally granted for free so water can be traded, be turned into a commodity for financial markets to add to growth and to make money from. State governments have also guaranteed the transfer of water that is bought and sold. Here in South Australia water is very simply privatised by the signature of the Minister when water allocation plans are approved without a whimper from Parliament. The public have made and continue to make substantial investments in the infrastructure of the Murray-Darling Basin. It should not be used to give the market a free ride.
Frankly the Rann Labor Government should resign over the mess it is making over water and the environment. South Australians need to demand both a National State of Emergency Commission to take over management of the MDB and a National Royal Commission to inquiry into its management. There are many questions to be answered; the public has been kept in the dark for too long. The water market should be immediately suspended and irrigators paid just compensation for any water diverted to meet higher order priorities. Put simply Australian domestic needs must come first before water is used for export markets, and above all, the river must be allowed to flow to the sea. The river should not need to pay for the water it needs for its ecosystems to survive.
South Australia also needs a Royal Commission to inquiry into the management of water and the environment. We also need a referendum on whether we want water to be privatised or held in public trust for the common good as intended by our founding fathers who prepared the Australian Constitution and specifically section 100. South Australians need to know where our politicians and their political parties stand on these issues, particularly whether water should be privatised or held as a public trust. This we must know before the next election.
Cheers,
John Caldecott
Convener
Water Action Coalition