Showing posts with label water policy politics. Show all posts
Showing posts with label water policy politics. Show all posts
Monday 30 April 2018
What the Australian Government didn’t want the UN to publish
During Nationals MP for New England Barnaby Joyce’s
disastrous sojourn as Australian Deputy Prime Minister and Minister for
Agriculture and Water Resources the federal government began a successfull campaign
to have the United Nations delete
all criticism of Australia’s $13bn effort to restore the ailing Murray-Darling
river system from a published study.
It seems the Turnbull Government did not want the
world to know, or Australian voters to be reminded, that it had placed long
term water sustainability in four of its eight states and territories in jeopardy.
The Food and Agricultural Organisation of the United
Nations draft report in question was the following:
C.J. Perry and Pasquale
Steduto, (25 May 2017), DOES IMPROVED IRRIGATION TECHNOLOGY SAVE
WATER? A review of the evidence: Discussion paper on irrigation
and sustainable water
resources management in the
Near East and North Africa
Abstract
The
Near East and North Africa (NENA) Region has the lowest per-capita fresh water
resource availability among all Regions of the world. Already naturally exposed
to chronic shortage of water, NENA will face severe intensification of water
scarcity in the coming decades due to several drivers related to demography,
food security policies, overall socio-economic development and climate change.
Irrigated agriculture in the Region, which already consumes more than 85
percent of renewable fresh water resources, will face strong challenges in
meeting augmented national food demand and supporting economic development in
rural areas. Countries of the NENA Region promote efficient and productive
irrigation as well as the protection and sustainable management of scarce and
fragile natural resources, particularly water, in their national plans. Through
the Regional Initiative on Water Scarcity, FAO is providing support and focus
to efforts in confronting the fast-widening gap between availability and demand
for fresh water resources. A key question to address is: how can countries
simultaneously reduce this gap, promote sustainable water resources management
and contribute effectively to food security and enhanced nutrition? The
traditional assumption has been that increasing irrigation efficiency through
the adoption of modern technologies, like drip irrigation, leads to substantial
water savings, releasing the saved water to the environment or to other uses.
The evidence from research and field measurements shows that this is not the
case. The benefit at the local “on-farm” scale may appear dramatic, but when
properly accounted at basin scale, total water consumption by irrigation tends
to increase instead of decreasing. The potential to increase water
productivity— more “crop per drop”—is also quite modest for the most important
crops. These findings suggest that reductions in water consumption by irrigated
agriculture will not come from the technology itself. Rather, measures like
limiting water allocation will be needed to ensure a sustainable level of water
use. The present report provides the evidence needed to open up a discussion
with all major stakeholders dealing with water resources management on the
proper and scientifically sound framework required to address jointly water
scarcity, sustainability and food security problems. A discussion that has been
disregarded for too long.
C.J.
Perry stated at Research
Gate on 25 April 2018 that:
Government representatives from the Australian Embassy in Rome disagreed
with the research findings for the Australia section summarised in the original
report. FAO, in response, welcomed the opportunity to improve the report.
Dissemination was put on hold and the report was removed from the FAO website
pending inclusion of additional material relevant to the Australian section. In a series of exchanges, no empirical evidence was presented to support
the Australian authorities’ claim that the investment program in the Murray
Darling Basin has generated substantial water savings and environmental
benefits. This left the global principles
and conclusions set out in the original report unchallenged, while the results
from Australia remained contentious. Therefore, it was decided that the best
solution to the matter was to withdraw the Australian section from the
publication and let the Discussion Paper to be available again on the web. The
original and current versions of the report both invite submissions of additional
case studies, information and analysis to WSI@fao.org. Cases documenting technical or policy interventions
where irrigation water has been released to environmental or other uses will be
particularly valuable.
The
suppressed section in the original draft of this UN report would have been
identical or very similar to this version of the text:
4.1 AUSTRALIA
Document(s)
System of Environmental-Economic Accounting for Water (SEEA-Water)
(United Nations Statistics Division, 2012); Water Account Australia 2004–05,
(Australian Bureau of Statistics, 2006); Droughtand the rebound effect: A
Murray–Darling basin example (Loch and Adamson, 2015); Understanding irrigation
water use efficiency at different scales for better policy reform: A case study
of the Murray-Darling Basin, Australia (Qureshi et al., 2011); Water Reform and
Planning in the Murray–Darling Basin, Australia (Grafton, 2017)
…………………………………...........................................................................................
Context
Australia
has led the world in the introduction of water rights in a context of extreme
resource variability.
This in turn
has provided the basis for managed trading between sectors and locations, and
valuable lessons regarding potential problems as previously under-utilized entitlements
are sold and used, and of “stranded assets” if significant volumes of water are
traded out of an area. More recently, evidence suggests that subsidy programmes
to “save” water seem to have been ineffective, poorly conceived and
un-prioritized.
…………………………………...........................................................................................
Highlights
The Murray
Darling Basin (MDB) is widely recognized for its advanced standards in water
resources management—in particular the system of tradable water rights that
allows transfer of water on short term or permanent leases subject to
evaluation of third party impacts by the regulatory authorities.
Australia
participated in the formulation of the United Nations (UN) System of
Environmental-Economic Accounting for Water. This framework accounts for water
withdrawn from “the environment” (rivers, aquifers), use of that water in
various sectors, including transfer between sectors (for example a water utility
supplying a factory or town), consumption through ET, and direct and indirect
return flows to the environment and to sinks. Trial implementation of the
framework was planned in Australia, and the Australian Bureau of Statistics had
already in 2006 issued guidelines referencing the System of Environmental-Economic
Accounting for Water (UN- System of Environmental-Economic Accounting for
Water
(SEEAW) system), which was to be applied to the reporting of the 2004-5
national water accounts.
However, the
following statement from the introduction to Chapter 4 of the 2004-5 National
Water Accounts for Australia5 is apparently at variance with one critical
element of the SEEAW approach—namely the distinction between consumptive and
non-consumptive uses:
This chapter examines the use of water within the AGRICULTURE industry
in Australia. Water used by this industry includes livestock drinking water and
water applied through irrigation to crops and pastures. Since the AGRICULTURE
industry does not use water in-stream, or supply water to other users, total
water use is equal to water consumption.
Elsewhere in
the Accounting Standards it is stated that:
It is believed that leakage to landscape from surface water resources
such as rivers and storages occurs in the MDB region; however, reliable volumes
are not available, and currently there is no suitable quantification approach
to estimate these volumes.
Does this
assumption of zero return flows matter? Indeed it does: Australia is now
embarked on a massive (AUS$ 10bn) programme to save water for the environment,
including subsidies to farmers for hi-tech on farm investment. Savings are
estimated on the basis of typical application efficiencies (e.g. flood irrigation
50 percent, drip 90 percent), so a farmer with a water entitlement of 100 water
units, switching from flood to drip would be assumed to consume 50 units at
present, which would require a delivery of only 50/0.9 (55.5) units after
conversion. The “saving” of 44.5 units are then divided between the farmer and
the environment. Of the 22.25 units going to the farmer, he consumes (with the
new technology) approximately extra 20 units. So on-farm water consumption is
expected to increase from 50 units to 70
units (and return flows are diminished by approximately the same amount), in
apparent direct contradiction to the programme objectives. In some cases, such
return flows will be non-recoverable outflows to saline groundwater; in other
cases, where irrigation is close to rivers or where groundwater is usable, the
return flows are recoverable and cannot be counted as “savings”. However, the
current evaluation of investments includes no apparent basis for assessing whether
subsidized introduction of hi-tech systems will actually release water to
alternative uses, or simply increase consumption by the extra amount allocated
to the farmer. A more comprehensive implementation of UN-SEEAW—where return
flows to the environment are specifically accounted for—would have addressed
this problem.
Other
authors have identified the issue. Qureshi et al. (2011) point to the problem
of ignoring return flows, and the danger of focussing on local “efficiency”,
while Loch and Adamson (2015) go on to identify the “rebound effect” whereby
when water deliveries to the farm are more valuable, the demand for water
actually increases.
Most
recently, writing in a Special Issue of Water Economics and Policy that
addressed many of the complexities of managing water scarcity in the Murray
Darling basin, Grafton (2017) made the following key observations regarding the
Australian experience with providing subsidies for on-farm improvements in
irrigation technology:
* About USD 2.5 billion of taxpayers’ funds used for improving farm irrigation
has primarily benefitted private individuals;
* These investments have had no discernible impact in terms of reduced
water use on a per-hectare basis, or release of water to alternative users;
* The buyback of water rights from willing sellers was the most effective
use of taxpayer funds to release water to alternative uses;
* Investments in irrigation to raise “crop-per-drop” productivity
had failed to deliver water savings on a basin scale.
NOTE: Full draft report Does
improved irrigation technology save water.pdf
Thursday 26 April 2018
Everytime someone buys a bottle of water in Australia it has consequences for a community somewhere in the world
By November 2017 Tweed Shire's est. 93,458 residents faced a water security trifecta.
Floods in the first quarter of the year had affected water quality and local infrastructure, a tidal anomaly in August had caused saltwater to enter the Bray Park Weir, the following month Terranora Lagoon was contaminated by raw sewerage from the treatment plant and the walls of Clarrie Hall dam still needed raising to cope with urban water needs.
Water sustainability still remains an issue in 2018.
In this case it appears to be Black Mount Pty Ltd and Mt. Warning Spring Water Company's commercial water supply needs which are the main culprit.......
Echo
NetDaily, 13
April 2018:
A call for the halt of
water mining in the Tweed Valley has been made by NSW Greens MP and North
Coast spokesperson, Dawn Walker in state parliament this week and is
supported by the Tweed Water Alliance. Concerns over the
impact on underground water resources, alleged poor compliance with
extraction licenses and the damage caused by heavy vehicles have all been
raised.
‘Water is our most
precious resource and gigalitres of water beneath Tweed Valley are being sucked
up and bottled for commercial profit, leaving the community high and dry with
the impacts. Water mining licences are being handed out by the government without
adequate monitoring and in many cases, water meters haven’t even been
installed,’ said Ms Walker.
Water mining licences
are controlled by the state government while work on the property and
permission for truck movements are controlled by the local council.
‘We certainly support
the ban,’ said Jeremy Tager, spokesperson for the Tweed
water alliance
who believes the water extraction companies are ‘operating lawlessly’.
‘Extracting water is a
lose lose prospect for here and most other places. Water is taken away from
local users; it creates little or no employment as most of the operators are
water transporters. That means the trucks come in and get filled up and then
are taken away to be bottled elsewhere.
‘They only pay a a small
road contribution to drive these big trucks on rural roads that were never
designed for them.’
In December 2017 the
Tweed council voted to amend their LEP (local environment plan) 2014 to remove
the clause that the previous council had put in to allow water extraction for
bottling water in the Tweed shire. This has been sent to the state government
for approval as part of the Gateway process. If the state government decide
that the change can proceed then Tweed council will be able to put the LEP
amendment on public display.
The state government can
also request that a ‘savings clause’ be put in that would allow current
applications that are waring to be assessed to be allowed.
Echonetdaily asked
the state government what the time frame for responding to the Tweeds request
for removing the water mining clause from the LEP was and if they would request
the inclusion of a ‘savings clause’.
A spokesperson for the
department of planning and environment responded stating that; ‘The department
is currently in the early stages of assessing a proposal from Tweed Shire
council to remove the water extraction and bottling clause to the Tweed Shire
2014 LEP.
Local extractor takes
council to court
Larry Karlos, a local
water extractor, is currently taking the Tweed Council to the Land and
Environment court to appeal their decision not to allow them to increase the
size of the trucks they use to transport water from six meters to nineteen
meters.
‘The council refused the
application for 19m trucks because they felt that the road was no suitable for
that size truck,’ said Tweed Mayor Katie Milne.
‘Urlip Road is really
narrow and in some places it is only one lane. There are also areas where it is
very steep on one side and has a steep drop off on the other.
ABC
News, 21
March 2018:
It's the new battle in
the bush — the bottled water wars.
On one side is
Australia's $800-million-a-year bottled water industry and its suppliers, on
the other, rural residents who fear their most precious resource, groundwater,
is being squandered.
"It's dividing the
local community," said Larry Karlos, one of half a dozen water extractors
in the Tweed Valley in northern New South Wales.
He's been pumping water
from an aquifer beneath his property for 16 years.
But his recent bid to
increase the amount he sells to bottling companies has ignited local
opposition.
Fourth-generation farmer
Patrick O'Brien fears his children's future is being jeopardised for the profit
of the water industry.
"If they don't stop
this type of thing then, you know, what's going to be left?" he told 7.30.
“What's going to left
for future generations? No-one was really worried when they were trucking the
water out in small amounts, but then they want more, they want more trips, they
want bigger trucks."
Friday 13 April 2018
Alleged irrigator water theft heading for the courts?
A cousin by marriage of the current Australian Minister for Agriculture and Water Resources David Littleproud, John Norman, finds his agricultural business practices under scrutiny.....
The
Guardian, 9
April 2018:
Fraud charges are
expected to be laid against one of Queensland’s biggest cotton irrigators, John
Norman, within a matter of weeks.
If the trial of the
owner-operator of Norman Farming, and former cotton
farmer of the year goes ahead, it is likely to draw attention to the
links between the irrigator’s family and that of the federal minister for
agriculture and water resources, David Littleproud.
If the charges are laid,
they will also throw the spotlight on the Queensland government’s failure
in administering a key plank of the $13bn Murray-Darling basin plan, how it
withheld critical information about the alleged crimes, and how it raises
queries as to whether it lied about its own investigation.
For the past 18 months,
an expanding team of undercover detectives, cybercrime experts and forensic
accountants have been investigating Norman’s business on the Queensland/New
South Wales border, an irrigated cotton aggregate stretching 45km north from
the McIntyre river.
The investigation has
focused on whether Norman Farming misused upwards of $25m in
Murray-Darling basin infrastructure funds that were supposed to make the
irrigator more efficient and deliver water back to the ailing river system
downstream.
The plan for the basin
is funded by the commonwealth and administered by state governments. But
allegations that the $150m Healthy Headwaters Water Use Efficiency
projects in Queensland, part of the MDB plan, lacked any genuinely independent
checks on projects, means it may have been left open to corruption.
“It’s been a
loosey-goosey slush fund helping irrigators get richer,” according to Chris
Lamey, a dry-land farmer who’s seeking compensation from Norman, his neighbour.
“It’s achieved the opposite of what was intended. There’s a lot of water not
getting into NSW now and it’s backed up in dams next door to me.”
Queensland’s covert
police investigation into Norman Farming went
public in October 2017, when dozens of major crime squad detectives holding
multiple subpoenas fanned out from Goondiwindi in early-morning high-speed
convoys, heading across the floodplain to the irrigator’s properties and
several of its contractors in and around the border river town…..
Tuesday 27 March 2018
Just because Nationsls MP for New England Barnaby Joyce is now sitting on the backbenches in disgrace doesn't mean the Turnbull Government can ignore all those dodgy water deals he made
Example of a dodgy water deal par excellence where a Cayman Islands corporation can pocket $78.8 million from a suspect water sale in the beleaguered Murray-Darling Basin........
Eastern Australia Agriculture Pty
Ltd (EAA) was
incorporated in 2007 and is based in St George, Australia. It operates as a
subsidiary of Eastern Australian
Irrigation Limited.
According to The
Courier Mail on 21 March 2018; the company is based in the tax haven of the
Cayman Islands.
The
Land reported
on 19 October2011 that; EAA shareholders are based in Grand Cayman
in the Cayman Islands. Its directors include former Ridley Corporation managing
director Matthew Bickford-Smith and former Colly Farms's grower services
manager Peter Cottle.
EEA’s portfolio
comprises two properties - “Kia Ora” (7km south of St. George) and
“Clyde”
(10km south-west of Dirranbandi) totalling 37,590ha made up of
12,800ha of cotton producing irrigation land with further areas of development
potential.
These
properties are close to the notorious water harvester,“Cubbie Station”, in the Condamine-Balonne Valley.
EAA’s entire
properties, including the water licences were reported to have been independently valued at est. $107m in 2017.
In 2017
the Turnbull Government agreed to purchase over 29
gigalitres of water for $80,041,455 from
EEA, which originally insisted on $2,200 per megalitre. But after negotiation,
the Government paid a higher price - $2,745 per megalitre.
Then Deputy Prime Minister and Minister for Water, Barnaby Joyce, approved the final purchase of 29,159 megalitres of OLF licences in May 2017 - 14,969 ML from “Clyde” and 14,190 from “Kia Ora”.
Department of
Agriculture and Water Resources (DAWR) due diligence later reduced the total volume to 28,740 megalitres and the price paid to $78,891,300.
The water purchased was
for Over Land Flow (OLF) licences, which cannot be traded between irrigators,
because they are attached to land. They have no legal status or any recognition
at a location other than where they were originally purchased. That is, there
appears to be no legal basis for the Commonwealth to ensure it gets to the
places it is intended to be used. [The Australia Institute, March 2018, “That’s
not how you haggle”, p.3]
The sale of
EAA’s OLF licences represented 74% of the value of both EAA properties.
EAA recorded a $52m gain on the sale in their 2017 Annual Report. [ibid, p.8]
The purchase appears to
be in breach of the Commonwealth Procurement Rules because it was not made
available to all licence holders in the valley…. [ibid,
p.3]
Tuesday 13 March 2018
Only a handful of NSW landowners to face court over Murray-Darling Basin water theft allegations?
ABC News, 8 March 2018:
The NSW Government will
prosecute several people over alleged water theft on the Barwon-Darling, eight
months after Four Corners investigated the issue.
WaterNSW has named the
people it is taking to the Land and Environment Court over alleged breaches of
water management rules.
They are prominent
irrigator Peter Harris and his wife Jane Harris, who own a major cotton farm
near Brewarrina in the state's north-west and were named in the Four
Corners story.
The couple have been
accused of taking water when the flow conditions did not permit it, and
breaching licence and approval conditions.
Three members of another
prominent family are also facing charges: cotton grower Anthony Barlow from
Mungindi near Moree and Frederick and Margaret Barlow.
The Barlows have been
accused of pumping during an embargo and pumping while metering equipment was
not working.
WaterNSW gave false
figures: Ombudsman
WaterNSW announced the
prosecutions an hour before the NSW Ombudsman released a scathing report saying
the agency had given the Government incorrect figures on its enforcement
actions.
The state's ombudsman,
Michael Barnes, found WaterNSW gave incorrect figures when it provided
statistics that showed there had been a significant increase in enforcements
between July 2016 and November 2017.
"The information
provided to us indicated that the updated statistical information from WaterNSW
that we'd published was significantly incorrect," he said.
"There had, in
fact, been no referrals for prosecutions and no penalty infringement notices
issued in the relevant period."
Mr Barnes said he
initiated a separate investigation after his office received complaints about
the figures, and he found WaterNSW had inflated the statistics.
"As part of our
investigation, we confirmed with Revenue NSW that no penalty infringement
notices were issued by WaterNSW in the relevant period," he said.
The ombudsman said he
raised the issue with WaterNSW, which has admitted to the mistake and
apologised.
Mr Barnes also said he
believed the error was unintentional.
The agency's CEO, David
Harris, said staff have now manually reviewed all actions taken.
"Some of the detail
WaterNSW provided was incorrect and, although it was revised, it is not
acceptable and we are acting to ensure it does not happen again," he said……
NSW
Ombudsman, Correcting the record: Investigation
into water compliance and enforcement 2007-17: A special report to Parliament
under sections 26 and 31 of the Ombudsman Act 1974, 8 March 2018, Amended enforcement outcome
statistics:
Thursday 8 March 2018
Murray-Darling Basin: water mismanagement just keeps rolling on
Image sourced from Twitter
Having miserably failed to enforce even the most basic of safeguards against widespread water theft in the Murray Darling Basin - such as not allowing unmetered water extraction - the Murray Darling Basin Authority and then water resources minister and now humble Nationals backbencher Barnaby Joyce have left us having to rely on leaks to the media to find out the true state of play in the national water wars.
The
Sydney Morning Herald,
4 March 2018:
The ailing state of the
Darling River has been traced to man-made water extraction, according to a
leaked report by the agency charged with overseeing its health.
The "hydrologic
investigation", dated last November and obtained by Fairfax Media,
analysed more than 2000 low-flow events from 1990-2017 on the
Barwon-Darling River between Mungindi near the NSW-Queensland border down to
Wilcannia in far-western NSW .
The draft report – a
version of which is understood to have been sent to the Turnbull government for
comment – comes days after WaterNSW issued a
red alert for blue-green algae on the Lower Darling River at Pooncarie
and Burtundy.
Bourke
is among towns also on stage-two water restrictions as the Darling
dries up in places
The paper by
Murray-Darling Basin Authority's (MDBA) own scientists found flow behaviour had
changed since 2000, particularly in mid-sections of the river such as between
the towns of Walgett and Brewarrina.
On that section, low or
no-flow periods were "difficult to reconcile with impacts purely caused by
climate", the scientists said.
Indeed, dry periods on
the river downstream from Bourke were "significantly longer than
pre-2000", with the dry spells during the millennium drought continuing
afterwards.
Water resource
development – also described as "anthropogenic impact" – must also
play "a critical role" in the low flows between Walgett and
Brewarrina, the report said.
The revelations
come after
the Senate last month voted to disallow changes to the $13 billion
Murray-Darling Basin Plan that would have cut annual environmental water savings
by 70 billion litres…..
A spokeswoman for the
authority said the report was "undergoing quality assurance processes
prior to publication", with a formal release on its website likely in
coming days.
The MDBA commissioned
the internal team to "address some of the specific concerns raised"
by its own compliance reviews and those of the Berejiklian government, she
said.
Terry Korn, president
of the Australian Floodplain Association, said the report confirmed
what his group's members had known since the O'Farrell government changed the
river's water-sharing plan in 2012 to allow irrigators to pump even during
low-flow periods.
Poor policy had been
compounded by "totally inadequate monitoring and compliance systems",
Mr Korn said.
"Some irrigators
have capitalised on this poor management by the NSW government to such an
extent that their removal of critical low flows has denied downstream
landholders and communities their basic riparian rights to fresh clean
water," he said. "This is totally unacceptable."….
Fairfax Media also
sought comment from federal Agriculture Minister David Littleproud.
Once publicly outed for sitting on the review report the Murray Darling Basin Authority finally decided to publish it this week.
https://www.scribd.com/document/372999806/Murray-Darling-Basn-Compliance-Review-Final-Report-November-2017Once publicly outed for sitting on the review report the Murray Darling Basin Authority finally decided to publish it this week.
The
Sydney Morning Herald,
20 February 2018:
The NSW government
intervened to urge the purchase of water rights from a large irrigator on the
Darling River that delivered a one-off $37 million profit to its owner while
leaving downstream users struggling with stagnant flows.
Gavin Hanlon, the senior
NSW water official who
resigned last September amid multiple inquiries into allegations of
water theft and poor compliance by some large irrigators, wrote to his federal
counterparts in the Agriculture and Water Resources Department, then
headed by Barnaby Joyce, in late December 2016 urging the buyback of water from
Tandou property to proceed.
The Tandou water
purchase proposal "should be progressed...given the high cost of the
alternative water supply solution" for the property south-east of Broken
Hill, Mr Hanlon wrote, according to a document sent on December 23, 2016 and
obtained by Fairfax Media.
Early in 2017, the
Australian Bureau of Agricultural and Resource Economics and Sciences estimated
the property's annual water entitlements of 21.9 billion litres to be
$24,786,750 "based on recent trade values", according to another
document listed as "Commercial in Confidence".
Despite this valuation,
the federal government by 16 March, 2017 would pay Tandou's owner Webster Ltd
more than $78 million. At its announcement on 21 June last year, Webster said
in a statement it "expects to record a net profit on disposal in the order
of $36-37 million".
The transfer of the
water rights are apparently the subject of inquiries by the NSW Independent
Commission Against Corruption, with several people saying they have discussed
their knowledge of the deal with the agency. An ICAC spokeswoman declined to
comment.
Webster Ltd
styles itself as a leading
Australian agribusiness company with a rich, diverse history spanning over 180
years.
Liberal Party donor Christopher
Darcy “Chris” Corrigan is Executive Chairman and a significant shareholder in this company
Tuesday 27 February 2018
The mess that Barnaby left
Environmental Defender’s Office NSW, undated 2017:
EDO NSW, on behalf of
its client the Inland Rivers Network, has commenced civil enforcement
proceedings in the NSW Land and Environment Court in relation to allegations of
unlawful water pumping by a large-scale irrigator on the Barwon-Darling River.
The two water access
licences at the centre of these allegations allow the licence holder to pump
water from the Barwon-Darling River in accordance with specified licence
conditions, as well as rules set out in the relevant ‘water sharing plan’. The
conditions and rules specify – amongst other things – how much water can be
legally pumped in a water accounting year (which is the same as the financial
year) and at what times pumping is permissible (which depends on the volume of
water flowing in the river at any given time).
Our client alleges that
the holder of these licences pumped water in contravention of some of these
conditions and rules, thereby breaching relevant provisions of the Water
Management Act 2000 (NSW) (WM Act). The allegations are based on licence
data obtained by EDO NSW earlier in 2017 from Water NSW, a state-owned
corporation charged with the responsibility of regulating compliance with the
WM Act.
Analysis of this data,
along with the relevant rules and publicly available information on river
heights, indicates that the licence holder may have pumped significantly more
water than was permissible on one licence during the 2014-15 water year, and
taken a significant amount of water under another licence during a period of
low flow when pumping was not permitted in the 2015-16 water year. Despite
being made aware of these allegations by EDO NSW on two occasions, in April and
August 2017, and having had access to the data since at least July 2016, Water
NSW has not provided any indication that it intends to take compliance action
against the licence holder.
Both allegations concern
the potentially unlawful pumping of significant volumes of water, which may
have had serious impacts on environmental flows in the river and downstream
water users. However, our client is particularly concerned by the alleged
over-extraction in the 2014/15 water year, as this period was so dry that the
Menindee Lakes – which are filled by flows from the Barwon-Darling River – fell
to 4 percent of their total storage capacity. This in turn threatened Broken
Hill’s water security and led the NSW Government to impose an embargo on water
extractions during part of that year in order to improve flows down the
Barwon-Darling into the Lakes and Lower Darling River.
In these proceedings,
the Inland Rivers Network is seeking, amongst other things, an injunction
preventing the licence holder from continuing to breach the relevant licence
conditions. In addition, and in order to make good any depletion of
environmental flows caused by the alleged unlawful pumping, our client is also
asking the Court to require the licence holder to return to the river system an
equivalent volume of water to that alleged to have been unlawfully taken, or to
restrain the licence holder from pumping such a volume from the river system,
during the next period of low flows in the river system. Failure to comply with
a court order constitutes contempt of court, which is a criminal offence.
EDO NSW is grateful to
barristers Tom Howard SC and Natasha Hammond for their assistance in this
matter.
Brendan Dobbie, Senior
Solicitor at EDO NSW, has carriage of this matter for IRN.
The Australia Institute, Moving
targets: Barnaby Joyce, Warrego valley buybacks and amendments to the Murray
Darling Basin Plan, February 2018:
In 2008, then Senator
Joyce criticised the Labor government’s purchase of water in the Warrego
valley: that is going to have no effect whatsoever in solving the problems of
the lower Murray-Darling, and especially the southern states.
Despite the now Deputy
Prime Minister and Water Minister’s own fierce criticism of that purchase, he
approved the $16,977,600 purchase of another 10.611 gigalitres of water in the
Warrego valley in March 2017 at more than twice the price paid by the Labor
government. Questions should be raised about what changed the Deputy Prime
Minister’s mind and whether that purchase was value for money.
This purchase also has
serious implications for the recent amendments to the Basin Plan that was
disallowed by the Senate on 14 February 2018.
This purchase was not
required to meet the water recovery target in the Warrego under the
Murray-Darling Basin Plan. Instead, it was intended to count towards the water
recovery target in the Border Rivers. This swap required an amendment to s6.05
of the Basin Plan, which was tabled in parliament and disallowed by the Senate.
Yet, the Warrego purchase was not reflected in the Sustainable Diversion Limits
(SDLs) put to Parliament as part of the amendments.
Murray-Darling Basin
Authority (MDBA) is required to base its recommendations to change SDLs based
on best available science, but the proposed amendments allowed MDBA and States
to subsequently change the SDLs in a valley without any consideration of the
science.
While MDBA was seeking
public submissions on changes to valley SDLs, based on science; the Department
of Agriculture and Water Resources (DAWR) was in negotiations to change those
valley targets, not based on science.
Parliament was asked to
pass an amendment to the Basin Plan with SDLs that would have been changed
based on a deal agreed over a year earlier, if the amendment had passed.
Given that the new SDLs
were known and agreed by governments, it is not apparent why the MDBA did not
include the new SDLs in the amendment put to parliament.
Monday 15 January 2018
Remember the man who spent millions unsuccessfully seeding clouds and more money chasing the myth that NSW coastal rivers could be turned inland?
In 2007 Malcolm Bligh Turnbull as federal water minister squandered $10 million on an aerial rain dance and also spent money on an ill-fated, flawed desktop study for the damming and diversion of at least one NSW Coastal river.
Well, Mr. Turnbull as Australian Prime Minister returned to his favourite pastime last year - spending other people’s money on dubious water projects - and is holding fast to yet another hare-brained proposal, Snowy 2.0.
Financial Review, 4 January 2018:
Nine months ago Snowy Hydro, the electricity generator and retailer owned by the Commonwealth, Victoria and NSW governments, announced that it would be carrying out a feasibility study into a massive expansion of the Snowy hydro generation system to add 2000 megawatts of pumped hydro generation capacity. Snowy Hydro's announcement of the feasibility study followed an earlier announcement from the Prime Minister that Snowy 2.0 was expected to cost $2 billion.
The feasibility study was published shortly before Christmas and the final investment decision is expected by the end of 2018. All economic analysis has been excluded from the public version of the feasibility study. But the publicly available version does report the "base cost" of Snowy 2.0 (to Snowy Hydro) is likely to be in the range from $3.8 billion to $4.5 billion. This "base cost" excludes land and developments costs, funding and financing costs, GST, project management or hedging costs. And the feasibility study warns that there are risks, opportunities and contingency amounts that significantly affect this range.
In addition to the costs that Snowy Hydro incurs, Snowy 2.0 will be the largest point connection in the National Electricity Market's history and will require massive transmission expansion along the Great Dividing Range. TransGrid in NSW provided early estimates of transmission costs in NSW related to Snowy 2.0 of $0.6 billion to $1.4 billion. Estimates of the requirement in Victoria are not yet known but are likely to be even higher because the necessary upgrade to Victoria will be even larger.
So, in round numbers, a conservative estimate of the total capital outlay attributable to Snowy Hydro 2.0 will be at least $8 billion, four times more than the prime minister suggested when announcing this project. It would be surprising if the estimate at the time of the final investment decision is any lower than this, and the actual build cost will surely be yet higher, quite possibly significantly so.
Will it nonetheless be money well spent? This is very unlikely. Pumped hydro is an inefficient storage technology. Australia already has significant pumped hydro capacity – 900 megawatts (MW) at Tumut 3 in Snowy and 500 MW at Wivenhoe in Queensland. Both are rarely used because they are inefficient.
The feasibility study says that at capacity, Snowy 2.0 will only produce about 1 kilowatt hour for each 1.5 kilowatt hours needed to pump water to the top reservoir. Add to that 10 per cent for losses in transmitting electricity from generators in the Hunter and Latrobe valleys to pump the water uphill. And then add another 10 per cent for losses in transmitting the stored electricity back to the main load centres in Sydney and Melbourne where most of it will be consumed. In other words, Snowy 2.0 will use about 1.8 kilowatt hours for each kilowatt hour that it actually delivers to consumers. By comparison, a battery installed on a customer's premises or on the local grid can be expected to use about 1.1 kilowatt hour for each kilowatt hour delivered.
It is inconceivable that Snowy 2.0 will produce revenues that are vaguely close to that needed to compensate its capital outlays. This is because the volume of electricity it can produce, valued at the difference between the price paid to pump water uphill and the price received when running the water back down the hill again, will be much too small.
Experience in other countries is also instructive. The feasibility study likens Snowy 2.0 to the Dinorwig pumped hydro plant in Wales. Dinorwig, along with the smaller Ffestiniog, has comparable capacity to Snowy 2.0. In its most recent market transaction six months ago, the market value of Dinorwig and Ffestiniog was established at $236 million, a small fraction of its initial build and subsequent refurbishment costs.
It is almost certainly the case in Australia that the market value of Snowy 2.0 will be a small fraction of its likely construction cost. If they decide to proceed with Snowy 2.0, the Commonwealth, NSW and Victorian governments will be forced to substantially write down their investment, at tax payers' expense. Or, if they can not stomach that, electricity consumers will be forced to fund the deadweight.
There is time to dodge this bullet. At the very least, independent investment advisors should now be asked to opine, in publicly available reports, on likely market valuations of Snowy 2.0, before any further contemplation of this project.
The Snowy 2.0 feasibility study can be found here.
A word of warning to readers. SMEC (formerly the Snowy Mountains Engineering Company and now a member of the Subarna Jurong Group) has been involved in the Snowy 2.0 feasibility study since May 2017.
In October 2017 mainstream media reported that SMEC had five of its subsidiaries banned by the World Bank after a corruption investigation
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