Water is critical to the economy, our environment and the wellbeing of all Australians.
Our national water policy has served us well, but it is 17 years old. According to a Productivity Commission report released today, it has reached its use-by date and it will now struggle in the face of our future challenges of increased population, increased community demands and the likely effects of climate change.
Commissioner Dr Jane Doolan said, "It is time for our Governments to once again lead the way on developing a new national water policy and agree a pathway to meet these challenges."
"We can expect an estimated additional 11 million people living in capital cities by 2050, and climate change is likely to mean significant reductions in water availability for most of the country and an increase in the frequency and severity of droughts and floods across the nation."
"To position governments and communities to face these challenges, the nation's long standing water reform framework, the National Water Initiative (NWI), needs to be modernised and strengthened to create an agreement that will provide clear and sensible guidance to governments, communities and industries over the next 10 to 15 years," Associate Commissioner Drew Collins said.
To this end, the report provides draft advice on modernising the NWI and strengthening its governance arrangements. It identifies the major water management issues to be addressed, and the potential policy directions for a renewed NWI.
"Whilst many of the fundamental policy directions in the NWI are sound and need to be maintained, there are some significant gaps. The NWI needs to be refocused to provide strong guidance on how to adapt water management to best meet our needs in a changing climate. It needs to recognise the importance of water in the lives of Aboriginal and Torres Strait Islander people and provide greater direction on water service provision in cities and towns," Dr Doolan said.
"We have also learnt a lot over the 17 years since the NWI was signed and we need to bring that experience into a renewed NWI. For example, in water accounting and compliance - to improve community confidence in water management, and in environmental management - to ensure best use of water for the environment and the community," she said.
Mr Collins said, "A new NWI will need to provide guidance on new water infrastructure developments. Billions of dollars will be spent over the next decade by governments and water utilities and it is critical that investment is spent wisely to maximise the benefits to water users and avoid sharp price increases or excessive costs for taxpayers."
"Our future is more people and less water. So ensuring we have a forward-looking, modern, national water policy is both important and urgent. This is a strong message that the Commission has heard through its consultations and submissions to date," Dr Doolan said.
The report on National Water Reform is a draft report. The Commission encourages interested parties to read the report and make submissions and / or attend upcoming public hearings, details of which can be found at www.pc.gov.au
