Saturday, 19 January 2019

Friday, 18 January 2019

State of Play: Australian Water Wars in 2019


Time lapse images of part of the Lake Menindee system in the Murray Darling Basin drying up through mismanagement, 2016 to 2018.

It won't be long before multiple talking heads from the Liberal and National parties will be penning opinion pieces in national newspapers and popping up as guests on radio or television accusing those who are acutely concerned, about water sustainability and the plight of the Murray-Darling Basin, of bashing the poor hardworking farmer and telling us that all irrigators are ethical individuals who are only trying to feed the nation.

Now that may be true of some, it probably isn't true of many and it is definitely not true of all irrigators.

The amount of water being taken from Murray-Darling Basin rivers is eye watering.

According to the Murray-Darling Basin Authority (MDBA); Irrigated agriculture in the Basin consumes about 60% of Australia’s available water.1

Again according to the MDBA, by 2017-18 this 60% was being harvested by only 9,200 irrigated agricultural businesses

In 2017 the National Water Account stated that total surface water and groundwater entitlements in the Basin equalled 19,374 gigalitres.

The whole Murray-Darling Basin receives just 6.1 per cent of Australia’s distribution of water run-off and the MDBA admits that approximately 42% of this surface water run-off is diverted from Basin river systems primarily by irrigators.

Professor Sheldon of the Australian Rivers Institute at Griffith University states that more than 50% of average water inflows into the Murray and Darling rivers are extracted for irrigation.

Overall, the Murray-Darling Basin contains 77,000 km of rivers, with flows said to total some 35,000 gigalitres on average.2  A figure which now appears unreliable. 

At the beginning of the 2017–18 water year, the total volume of held water for the environment was nominally about 2,871 gigalitres (in long-term available water terms).3

Science has been telling the Federal Government and the governments of Qld, NSW, Vic and SA that Murray-Darling Basin rivers cannot sustain the rates of water extraction they have been experiencing since the second half of last century and more water needs to be returned to the rivers as environmental flows.

Government does not appear to be listening. Probably because implementing an effective response to years of mismanagement of Basin water resources would mean reducing the over allocation of water rights by commencing a policy of permanently buying back at least 7,000 gigalitres of water entitlements from irrigators and reducing the annual amount of water their remaining water entitlements represent.

Here are just three examples of excessive water consumption in the face of declining national water security.

WEBSTER

Webster Ltd (WBA): “Webster owns a diverse portfolio of over 200,000 megalitres of water entitlements, stretching from southern Queensland, through New South Wales to northern Victoria and Tasmania. It’s also fundamental to our strategy of streaming water to areas where we can generate greatest return for each megalitre of water applied…..  we are able to extract further value by exploiting opportunities in water markets. A significant component of this entitlement holding resulted from the acquisition of Kooba along the Murrumbidgee and the subsequent acquisitions of Tandou and Bengerang with significant water entitlements in the Murray Darling Basin. Our portfolio is a complementary mix of high and general security water with supplementary and groundwater entitlements. This scale, diversity and surety of our water holdings underpins our competitive advantage…”

Webster states that its primary crop focus is on cotton, using technology and expertise to maximise yield and water efficiency, with capability to produce over 200,000 bales of cotton annually”.

Chris Corrigan is the Chairman Webster Ltd and Joseph Corrigan is the Alternate for Chris Corrigan.

Corrigan (formerly Managing Director of Patricks Corporation Ltd who colluded with the Howard Government's attempt to break a union) became chairman of the ASX listed agribusiness in March 2016, soon after it had completed a major takeover. In that play, Webster bought land and water company Tandou, assembling the nation’s top private water rights portfolio, according to Irrigation Australia.

Webster Ltd landholdings include 40,000 irrigable hectares as well as extensive grazing farmland. 

Webster holds its most of its water rights in perpetuity. As at 30 September 2018 the company listed the value of its water rights as $161.9 million.

In 2017 the company sold the water rights at its Tandou property to the Turnbull Government for $78 million which was reportedly almost twice the recommended value of the water.

Current WBA share price is in the vicinity of $1.565. In 2018 the company listed its assets value as $760.44 million. Combined salary & fees received by Webster directors exceeded $1.49 million in that year.

Its substantial shareholders in 2017-2018 were: AFF Properties No 1 Pty Ltd ATF The AFF Operations Trust (14.41%), Verolot Limited (8.92%), Mr Peter Robin Joy (8.43%), Belfort Investment Advisors Limited (5.89%) and Mr Bevan David Cushing as trustee of the KD Cushing Family Trust (5.60%).

CUBBIE

Cubbie Station is an aggregate of three properties owned by CS Agriculture Pty Ltd, which in turn is 20% owned by RF CSAG & 80% Chinese-owned through Shandong Ruyi Technology Group Co.5

Cubbie Station is 93,000 ha in size and sources its water from the from the Condamine and Balonne river systems in the upper reaches of the Murray-Darling Basin. 

Cubbie has annual water entitlements of 460,000 megalitres. In addition it holds back in off-river storage up to 45,000 megalitres of surface water from the flood plain

Its water storage area covers 12,000ha configured in a cell arrangements with an estimated capacity of 540,000 megalitres. It is reportedly the largest irrigation property in the Southern Hemisphere.

The company’s water storage dams are said to stretch for more than 28 kilometres along the Culgoa River.

Cubbie's principal crop appears to be cotton.6

In 2017 the Australian Taxation Office listed the company’s total annual income as $161,911,344.

The value of the Cubbie Station aggregate is est. $350 million.

NORMAN FARMING

Norman Farming Trust trading as Norman Farming has a combined land area of over 18,000 ha across two properties in the Macintyre River delta of the Border Rivers region.

The company has an entitlement of 76,000 megalitres of annual water diversion capable of being pumped at 7,000 megalitres take-per-day, with the potential for 500 megalitres per day of additional water harvesting from rainfall/runoff without an annual limit. An est.1,218ha are used for water storage.

Norman Farming's principal crop is cotton.

Estimated value of the company is $100 million. 

The owner is currently charged with defrauding the Australian Government of $20 million in Murray-Darling Basin water funding.

Webster, Cubbie and Norman Farming between them have annual water entitlements which exceed the volume of water in Sydney Harbour.

Footnotes

1. MDBA, Water markets and trade:
Water in the Murray–Darling Basin can be bought and sold, either permanently or temporarily.
This water is traded on markets – within catchments, between catchments (where possible) or along river systems. This form of trading allows water users to buy and sell water in response to their individual needs. Water trading has become a vital business tool for many irrigators.
The majority of water traded in the Murray–Darling Basin is surface water, however some groundwater also changes hands.
Irrigated agriculture in the Basin consumes about 60% of Australia’s available water….
There are more than 150 classes of water entitlement in the Basin….
Water trading in the Basin is worth about $2 billion annually.
The New South Wales, Queensland, South Australian and Victorian governments are primarily responsible for managing water markets, and each state has its own process and rules for allocating water.
Irrigation infrastructure operators create and maintain trading rules within their networks.
In November 2018 in the NSW section of the Murray-Darling Basin est. 2,988 megalitres of water was transferred between trading parties.

2. For comparison Sydney Harbour is estimated to hold 500 gigalitres.1 giglitre of water equals 1,000 megalitre. 


3. Water theft appears to be an ongoing issue. In 2018 one NSW irrigator pleading guilty to the theft potentially involving billions of litres at a Mungindi property near the NSW-Queensland border, while another at Brewarrina has been charged with taking water when the flow conditions did not permit it, and breaching licence and approval conditions.


4. Initially a scientific assessment by the Murray-Darling Basin Authority identified that 6,000-7,000 GL per year would be required to return the environmental assets of the Murray-Darling Basin to sustainable ecological health. This was reduced by almost half to 3,000-4,000 GL per year in the Basin Guide. Eventually, the Australian Government considered 2,800 GL, even lower than the minimum proposed, was a reasonable target. This was further reduced to 2,750 GL before the Queensland Government agreed to sign up to the Basin Plan, a reduction from the Northern Basin. Reduction of the target by another 70 GL represents a further significant reduction in environmental flows which will exacerbate environmental decline. [Professor Richard Kingsford, Director of the Centre for Ecosystem Science, UNSW, submission]

In 2018, the Turnbull government won support from Labor to amend the amount of environmental water allocated to the system, while the Greens and some senators were opposed. The amendments cut 605 billion litres a year that were allocated from the southern basin's environmental water flows, and 70 billion litres a year from the northern basin's flows. [ABC News, 17 January 2019]

5. The volume of water entitlements owned by businesses with some level of foreign ownership was 1.9 million megalitres at 30 June 2016 or 12.5% of the total volume of water entitlements for agricultural purposes in Australia. Of the water entitlements with some level of foreign ownership, the majority (1.6 million megalitres or 83%) was held by businesses that were more than 50% foreign owned. [Australian Bureau of Statistics, 7127.0 - Agricultural Land and Water Ownership, 2015-16] 
In 2016 in New South Wales in 847,250 megalitres of water entitlements were 100% foreign owned and in Queensland 744,957 megalitres were totally foreign owned.

6. According to the Dept of Agriculture and Water Resources ABARES, the Murray–Darling Basin accounts for around 91 per cent of Australia’s total cotton farms and cotton area. It is estimated that the total area in the Basin under cotton production is 490,000 hectares.If all of this land was planted for cotton in a given year then it is likely that the crops would require somewhere between 2.19 million to 3.82 million megalitres of water.

As the land grows hotter and drier, the storms and fires more violent, as we watch the rampant greed of the few decimate our forests and destroy our water sources......


..... there is some comfort in knowing that there are still some Australian communities trying to come together to care for country.

North East Forest Alliance, media release, 30 August 2018:

Githabul Tribe and Conservation Groups Reach Historic Agreement

The Githabul Tribe, Githabul Nation Aboriginal Corporation, Githabul Elders and representatives of conservation groups today launched their Memorandum of Understanding (MOU) for the management of Githabul Native Title Lands in the upper Clarence and Richmond Rivers.

On 29 November 2007 the Federal Court of Australia made a consent determination recognising the Githabul People’s Native Title rights and interests over 1120 sq km in 9 National Parks and 13 State Forests.

The MoU proposes:

·       Transferring care and control of 29,700ha State Forests for which Githabul Native Title rights are recognised, from the NSW government to the Githabul Tribe.
·       Preparing a comprehensive Plan of Management to safeguard conservation and cultural values and prioritise rehabilitation works.
·       Achieving an adequately funded comprehensive 15 year rehabilitation plan to arrest and repair forest dieback as part of a Githabul caring for country program.
·       Creating more NPWS positions and training for Githabul Working on Country in National Parks in the Kyogle area.
·       Transferring the care and control of Crown lands around the Tooloom Falls Aboriginal Place to the Githabul Tribe.
·       Promoting the establishment of a Cultural and Tourism Centre at Roseberry Creek.
·       Obtaining World Heritage Listing for the National Parks in the region.

30 August 2018


Githabul spokesperson Rob Williams said:

It is important to understand and acknowledge that the health of the Githabul people in general is directly related to the health of the surrounding country and vice versa.

This philosophy underpins the Githabul wish to immediately arrest what is seen as a decline in the health of the forests and waterways over many decades now.

Such is our connection to country that we all suffer - along with the plants and animals. We still feel we have a direct responsibility to maintain the natural balance between all inter- related species including ourselves, as was done for millennia before the colonial invasion.

North East Forest Alliance spokesperson Dailan Pugh said:

The Forestry Corporation has already abandoned 11,000 hectares of these State Forests for timber production because of the chronic dieback they are suffering from past logging, and the balance of the Githabul lands are in an equally parlous state.

Already the Government is proposing that 5,600 ha of State Forests around Mount Lindesay be transferred to the management of NPWS as a Koala reserve, but without the massive funding needed to rehabilitate the forests.

The Githabul have a proven track-record in rehabilitating dieback areas and we are excited by the prospect of supporting their native title rights while helping to obtain the funding needed to scale up their rehabilitation works to stop the ongoing degradation and begin to restore the health of these internationally significant forests.

National Parks Association CEO Alix Goodwin said:

NPA is committed to protecting NSW public native forests for their biodiversity conservation values for future generations. Working with the Githabul to rehabilitate and restore almost 30,000 hectares on the north coast is a great start to achieving this vision.

The MOU also marks an important milestone in achieving the protection of important koala habitat in the Western Border Ranges, the connection of seven existing World Heritage properties and a recognised biodiversity hotspot under the stewardship of the local Aboriginal community.

We look forward to working with the Githabul to implement this MOU, the first NPA agreement with an Aboriginal community in over a decade.

Nature Conservation Council CEO Kate Smolksi said:

We believe that effective nature conservation and land justice for Indigenous Australians go hand in hand.

We welcome today’s announcement and hope this proves to be a successful model that can be adopted in other areas.

The MoU is an agreement between the Githabul Nation Aboriginal Corporation and Githabul Elders, and the North East Forest Alliance, North Coast Environment Council, National Parks Association, Nature Conservation Council, Nimbin Environment Centre, Lismore Environment Centre and Casino Environment Centre.

Thursday, 17 January 2019

Donald Trump and his Antipodean shadow


US President Donald J Trump (left) & sycophantic Australian Prime Minister Scott Morrision (right)

It is hard to tell which man is the bigger fool.

Is Australian Minister for Immigration. Citizenship and Multicultural Affairs & Liberal MP for Banks David Coleman trying to stir up trouble ahead of Australia Day 2019 in the hope of gaining some nebulous political advantage?


Australian Minister for Immigration, Citizenship and Multicultural Affairs & Liberal MP for Banks David Coleman, a Scott Morrison appointee, appears to want to renew the culture wars ahead of the May 2019 federal general election.

ABC News, 13 January 2013:

The Immigration Minister David Coleman has announced he will update the that governs how citizenship ceremonies are conducted, to force councils to hold them on January 26.

"Some councils say NO to Australia Day. We believe that all councils should say YES to Australia Day....in this wonderful, wonderful nation that we are so proud to be a part of."


Citizenship ceremonies will have to take place on January 26 and a dress code will also apply, in a federal government move to protect Australia Day.

The federal government has revised the citizenship code to make it compulsory for all councils to hold citizenship ceremonies on Australia Day, it has been reported.

Prime Minister Scott Morrison has told the Sunday Telegraph the government will "protect our national day and ensure it is respected".

"We believe all councils who are granted the privilege of conducting citizenship ceremonies should be required to conduct a ceremony on Australia Day," he told the newspaper.

Under changes to the Australian Citizenship Ceremonies Code to be introduced in 2020, councils must hold a second citizenship ceremony on September 17 - Australian Citizenship Day - and new citizens will have to abide by a strict dress code that bans boardshorts and thongs.

Long before Coleman's announcement Welcome to Country had posted notice of these 
events scheduled for Saturday, 26 January 2019:

Narrm (Melbourne) – Invasion Day 2019 #AbolishAustraliaDay (Hosted by Warriors of Aboriginal Resistance WAR & BrisbaneAboriginal-SovereignEmbassy ) – Jan 26  

Sydney – Invasion Day 2019 (Hosted by Fighting In Resistance Equally FIRE) – Jan 26 

Meanjin (Brisbane) – Invasion Day 2019 (Hosted by WAR) – Jan 26 

Perth – Invasion Day Rally (Hosted by local Indigenous activists) – Jan 26 

Adelaide – Invasion Day Protest (Hosted by Occupy Adelaide) – Jan 26  

Note: Under the NSW Public Holidays Act 2010 Australia Day will be officially celebrated on Monday 28th January 2019 and the year after that on Monday 27th January 2020.

Wednesday, 16 January 2019

Another thing for NSW voters to remember as they cast their ballot in the 2019 state and federal elections


The Shenhua Group appear to have first approached the NSW O'Farrell Liberal-Nationals Coalition Government in 2011-2012 concerning its plans to mine for coal on the Liverpool Plains, a significant NSW foodbowl. 

This particular state government was the subject of not one but two investigations by the NSW Independent Commission Against Corruption (ICAC) - Operations Spicer (2014) and Credo (2014). 

After he was found to have misled the independent commission Premier O'Farrell resigned as Premier in April 2014 and as Liberal MP for Ku-ring-gai in March 2015. Similarly the then NSW Minister for Resources and Energy, Minister for the Central Coast, Special Minister of State and Liberal MP for Terrigal Chris Hartcher resigned as government minister in December 2013 after he was named in ICAC hearings and left the parliament in March 2015.

On 28 January 2015 the NSW Minister for Planning and Liberal MP for Goulburn Pru Goward granted development consent for a subsidiary of the Chinese state-owned Shenhua Group, Shenhua Watermark Coal Pty Ltd, to create and operate an open cut mine on the Liverpool Plains. 

On 4 July 2015 then Australian Minister for the Environment and Liberal MP for Flinders Greg Hunt ticked off on the Abbott Government's environmental approval for Shenhua Watermark Coal to proceed with its mining operation.

Glaringly obvious environmental risks associated with large-scale mining in the region and vocal local community opposition had led to a downsizing of the potential mine site, for which the  NSW Berejiklian Liberal-Nationals Coalition Government paid the Shenhua Group $262 million in compensation.
ABC News, 31 July 2015, projected new mine boundaries

However, in July 2018 the Berejiklian Government renewed Shenhua’s mining exploration licence.


Given that on the successive watches of the O'Farrell, Baird and Berejiklian governments instances of mismanagement and/or corrupt conduct in relation to water sustainability, mining leases and the environment have been reported one would think that an abundance of caution would be exercised.

Instead we now learn that that Shenhua Watermark Coal has been allowed to vary development consent conditions for the open cut mine on the edge of the flood plain and, it is looking increasingly like pro coalformer mining industry lawyer, current Australian Minister for the Environment and Liberal MP for Durack, Melissa Price, will wave through these variations on behalf of the Morrison Liberal-Nationals Coalition Government. 

Thereby placing even more pressure on the already stressed surface and underground water resources of the state.

The Liverpool Plains are said to be a significant groundwater source in the New South Wales section of the Murray-Darling Basin.

Lock The Gate Alliance, 8 January 2019:

The NSW Government has allowed mining company Shenhua to alter its development approval for the controversial Watermark open cut coal mine in the Liverpool Plains, near Gunnedah, which will enable work on site to begin without key management plans being approved.

Despite the NSW deal, Shenhua is still not able to commence work under the Federal environmental approval until two important management plans, including the crucial Water Management Plan, have been approved by the Federal Government.

Now local farmers are afraid that the Federal Environment Minister, Melissa Price, may be about to follow the NSW Government lead and vary the approval to allow Shenhua to start pre-construction for their mine without the management plans that were promised.

Liverpool Plains farmer John Hamparsum said, “We’re disgusted that the NSW Government has capitulated to Shenhua yet again, and amended the development consent to let them start pre-construction work without the crucial Water Management Plan in place.

"They have repeatedly stated that the best science would apply to this mine before any work was done, and now they’ve thrown that out the window.

"We’re calling on the Federal Environment Minister, Melissa Price, and New England MP, Barnaby Joyce to now step up and promise that not a sod will be turned on this mine until the full Water Management Plan has been developed and reviewed by independent scientists.

"This mine represents a massive threat to our water resources and our capacity to feed Australia, and if the National Party has any respect for agriculture they need to act now and deliver on their promise that the best science will be applied.

"We won’t accept creeping development of this mine and weakening of the conditions that were put in place to protect our precious groundwater," he said.

Lock the Gate Alliance spokesperson Georgina Woods said, "It’s been four years since the NSW and Federal Governments approved Shenhua’s Watermark coal mine on the Liverpool Plains and there are still no management plans in place.

"Instead of upholding the conditions of Shenhua’s approval, the NSW Government has watered them down so that Shenhua can start work without these crucial plans in place.

"The community has a long memory and will not accept Governments changing the rules to the benefit of foreign-owned mining giants over local farmers," she said.

The former Federal Environment Minister, Greg Hunt, made a strong commitment that a Water Management Plan for the project would not be approved unless the Independent Expert Scientific Committee was satisfied with it.

The amended NSW approval can be accessed here.

A legal perspective on the issues surrounding water management by Dr Emma Carmody, Senior Policy and Law Reform Solicitor, EDO NSW and Legal Advisor, Secretariat of the Ramsar Convention on Wetlands, is included in the December 2018 issue of Law Society Journal,  Managing our scarce water resources: recent developments in the Murray-Darling Basin.