![Page 1: ACCC Regulatory Conference Australia’s ‘long march’ of water reform](https://reader035.vdocument.in/reader035/viewer/2022062801/5681438a550346895db00963/html5/thumbnails/1.jpg)
ACCC Regulatory Conference
Australia’s ‘long march’ of water reform
Malcolm ThompsonDeputy CEO
26 July 2007
![Page 2: ACCC Regulatory Conference Australia’s ‘long march’ of water reform](https://reader035.vdocument.in/reader035/viewer/2022062801/5681438a550346895db00963/html5/thumbnails/2.jpg)
Milestones in National Water Reform
1994 - COAG Water Reforms
June 2004 - National Water Initiative
2005 - NCP assessment of water reform
July 2007 - First biennial assessment of progress in NWI
![Page 3: ACCC Regulatory Conference Australia’s ‘long march’ of water reform](https://reader035.vdocument.in/reader035/viewer/2022062801/5681438a550346895db00963/html5/thumbnails/3.jpg)
• ‘Normalising’ the water sector:• Clear and ‘non-compromised’ institutional
arrangements• Reliable accounting and measurement• Clearly established property rights • Functioning markets • Transparent economic regulation
What we mean by water reform
![Page 4: ACCC Regulatory Conference Australia’s ‘long march’ of water reform](https://reader035.vdocument.in/reader035/viewer/2022062801/5681438a550346895db00963/html5/thumbnails/4.jpg)
• Dealing with the differences inherent in the water sector …
• Improved water planning and environmental management
• Addressing unsustainable levels of water extraction
• Science and data
• Community engagement
• Governance arrangements for managing water
What we mean by water reform
![Page 5: ACCC Regulatory Conference Australia’s ‘long march’ of water reform](https://reader035.vdocument.in/reader035/viewer/2022062801/5681438a550346895db00963/html5/thumbnails/5.jpg)
• Water planning practices are improving in every state
• Statutory water access entitlements established
• National water accounting model is under construction
• Water markets are expanding
• Cost reflective charging is entrenched in most major urban areas
Real progress is being made
![Page 6: ACCC Regulatory Conference Australia’s ‘long march’ of water reform](https://reader035.vdocument.in/reader035/viewer/2022062801/5681438a550346895db00963/html5/thumbnails/6.jpg)
Nationally, the biggest gaps are in …
1. actually dealing with overallocation
2. groundwater / surface water interaction
3. interception
4. management of environmental water
5. water metering, data , accounting and registries
6. monitoring and compliance
7. urban water security
![Page 7: ACCC Regulatory Conference Australia’s ‘long march’ of water reform](https://reader035.vdocument.in/reader035/viewer/2022062801/5681438a550346895db00963/html5/thumbnails/7.jpg)
Why is reform taking so long? (1)• Entrenched institutional arrangements• Entrenched patterns of water use• The ‘values contest’ in water
• Where there is no market price, the value of water becomes subject to a contest of ideas - inertia
• Incentives to avoid reform are greater than the incentives to undertake reform …
![Page 8: ACCC Regulatory Conference Australia’s ‘long march’ of water reform](https://reader035.vdocument.in/reader035/viewer/2022062801/5681438a550346895db00963/html5/thumbnails/8.jpg)
Why is reform taking so long? (2)• Communities not yet convinced that reform will deliver a better
result• Scarcity• Climate change impacts• Higher prices
• Governments are major owners and operators of water infrastructure
• Revenue source• Tool of economic development • Tool of community development• Rekindled desire to invest in water infrastructure• Crisis = command and control
![Page 9: ACCC Regulatory Conference Australia’s ‘long march’ of water reform](https://reader035.vdocument.in/reader035/viewer/2022062801/5681438a550346895db00963/html5/thumbnails/9.jpg)
Lessons for policy makers and regulators (and even academics and
consultants)• Don’t lose sight of the unique aspects of the
water sector
• Understand better how markets develop
• Create ‘adaptive efficiency’ in institutions
• Make the case for why reform will improve water management and use
![Page 10: ACCC Regulatory Conference Australia’s ‘long march’ of water reform](https://reader035.vdocument.in/reader035/viewer/2022062801/5681438a550346895db00963/html5/thumbnails/10.jpg)
www.nwc.gov.au
www.water.gov.au
![Page 11: ACCC Regulatory Conference Australia’s ‘long march’ of water reform](https://reader035.vdocument.in/reader035/viewer/2022062801/5681438a550346895db00963/html5/thumbnails/11.jpg)
What has the NWC been doing?
• 65 WSA projects; $1.28b committed• 72 RNWS projects; $95m committed• National Competition Policy Assessment Report • AWR 2005 Stages 1 and 2• Prime Minister’s Seasonal Outlook Report• Performance Report – Major Urban Utilities• Waterlines Report – Rainwater Tanks• Waterlines Report – Recycled Water• Biennial Assessment of NWI progress• National Water Data Summit