The late summer heavy rain fell in some, but not all, regions. Australia’s capital city water supplies have had different fortunes this summer. The Bureau of Meteorology “water dashboard” provides daily data.
Five capital city water supplies dropped over summer by between 2.2% and 11.4% of their storage capacity.
Hobart has proportionally dropped the most, by 11.4 percentage points, to 59.8%. This reflects relatively small storages and the city’s dry summer with only 65mm of rain. That’s less than half the historic average.
The Adelaide storages fell by 8.4 points to 43.5%. Adelaide had a typical dry summer with 66mm. That’s close to the historic average, as the city has a Mediterranean climate with hot and dry summers.
Adelaide’s water storages provided only 10% of the city’s water supply in 2018-19, with 83% drawn from the Murray River. The Commonwealth is providing nearly A$100 million for Adelaide’s desalination plant. This aims to allow upstream irrigators to grow fodder with the river water that was destined for Adelaide.
Perth has had another dry summer. Its catchment rivers have supplied only 44.1 gigalitres (GL) of water since April 2019. This is much lower than the long-term pre-1975 average of 413GL over the same time period.
Canberra lost 4.6% of its water supply. The end-of-summer level of 46.5% continues a rapid decline from 100% in October 2016.
Despite the falling reserves, Canberra’s Icon Water has not imposed water restrictions. It advises that the Cotter Dam was enlarged in 2013. Icon Water can also draw “top-up” water from the Murrumbidgee River.
Melbourne’s supplies fell 2.2 percentage points to 61.6%.
Cities where storages rose
Three capital cities recorded water storage increases this summer.
Darwin’s supply was close to full as recently as April 2018. Since then it has been on a downward trend. A modest 6.4% gain over this summer’s wet season took it to 60.3%.
Darwin appears to be having its second poor wet season in a row. The city had 675mm of rain (Darwin Airport) this summer. That’s about 67% of its historic summer average of just over 1,000mm.
These were the toughest summer water restrictions for an Australian capital city. All use of hoses for gardens and washing cars was banned. Many Sydneysiders struggled to keep their gardens alive, lugging around buckets and watering cans. A catchcry across Sydney was “let your lawn die”.
On February 6 2020, heavy rains started falling in coastal southeastern Australia, including Sydney and its water catchments.
The automatic weather station at Mount Boyce, near Blackheath on the edge of the Warragamba Dam catchment, recorded 415mm in four days. From February 6-27 Sydney’s water storages nearly doubled, from 41.7% to nearly 82%. This added more than 1 million megalitres (ML), equivalent to more than 1.5 years’ demand.
On February 6, parched catchments were adding 10ML a day to Warragamba Dam. A week later the catchment rivers had risen and many were in minor flood, adding 65,000ML a day on February 13.
At the end of summer Sydney Water announced it was dropping level 2 restrictions.
Some parts missed out
The February rains were patchy, however. Many water-stressed parts of New South Wales were not so lucky.
Orange in the state’s Central West remained on level 5 water restrictions all summer. Orange Council pleaded with residents to curb water use to less than 160 litres per person per day. Residents responded by using even less, averaging 126 litres a day in February.
Nearby Bathurst declared “extreme” water restrictions from February 24. Its main storage, Chifley Dam, is just under 30% and also had a blue-green algae alert.
A cause for concern is that many large NSW irrigation dams across the Murray-Darling River system remain very low for the start of autumn. For example, Burrendong Dam near Dubbo was at 4.5% at the end of summer. This dam supplies water to the city via the Macquarie River.
The Macquarie River also supplies other settlements, irrigators and industry, such as the mines at Cobar.
Flooding rains in inland Queensland are returning healthy flows to dry inland rivers such as the Barwon and the Darling. On February 25, Bourke Shire Council announced happy news that “strong flows in the Darling River” allowed the lifting of water restrictions. Bourke residents had endured water restrictions for more than 550 days.
Bushfires pose serious short- and long-term impacts to public drinking water quality. They can damage water supply infrastructure and water catchments, impeding the treatment processes that normally make our water safe to drink.
Several areas in New South Wales and Victoria have already been issued with warnings about the quality of their drinking water.
Here’s what we know about the short- and long-term risks.
Bushfires can damage or disrupt water supply infrastructure as they burn. And the risks can persist after the fires are out.
A loss of power, for example, disables important water treatment processes such as chlorine disinfection, needed to kill microorganisms and make our water safe to drink.
Drinking water for the towns of Eden and Boydtown on the NSW south coast has been affected in this way over recent days. Residents have been advised to boil their water before drinking it and using it for cooking, teeth brushing, and so on.
In some cases, untreated water, straight from a river supply, may be fed directly into drinking water systems. Water treatment plants are bypassed completely, due to damage, power loss, or an inability to keep pace with high volumes of water required for firefighting.
We’ve seen this in a number of southern NSW towns this week including Batlow, Adelong, Tumbarumba, and the southern region of Eurobodalla Council, stretching from Moruya to Tilba. Residents of these areas have also been urged to boil their drinking water.
Untreated river water, or river water which has not been properly disinfected with chlorine, is usually not safe for drinking in Australia. Various types of bacteria, as well as the parasites giardia and cryptosporidium, could be in such water.
Animals including cattle, birds and kangaroos can excrete these microorganisms into river water. Septic tanks and sewage treatment plants may also discharge effluents into waterways, adding harmful microorganisms.
Human infection with these microorganisms can cause a range of illnesses, including gastrointestinal diseases with symptoms of diarrhoea and vomiting.
Bushfires can damage drinking water catchments, which can lead to longer term threats to drinking water. Drinking water catchments are typically forested areas, and so are vulnerable to bushfire damage.
Severe impacts to waterways may not occur until after intense rainfall. Heavy rain can wash ash and eroded soil from the fires into waterways, affecting drinking water supplies downstream.
For example, bushfire ash contains nutrients, such as nitrogen and phosphorous. Increased nutrient concentrations can stimulate the growth of cyanobacteria, commonly known as “blue-green algae”.
Cyanobacteria produce chemicals which may cause a range of water quality problems, including poor taste and odour. Some cyanobacteria can produce toxic chemicals, requiring very careful management to protect treated drinking water.
Many water treatment plants include filtration processes to filter small suspended particles from the water. But an increase in suspended particles, like that which we see after bushfires, would challenge most filtration plants. The suspended particles would be removed, but they would clog the filters, requiring them to be more frequently pulled from normal operation and cleaned.
This cleaning, or backwashing, is a normal part of the treatment process. But if more time must be spent backwashing, that’s less time the filters are working to produce drinking water. And if the rate of drinking water filtration is slowed and fails to keep pace with demand, authorities may place limitations on water use.
In order to reduce the risk of gastrointestinal and other illnesses, water suppliers and health departments may issue a boil water alert, as we’ve seen in the past week. Bringing water to a “rolling boil” can reliably kill most of the microorganisms of concern.
In cases where water may be contaminated with chemical substances rather than microorganisms, boiling is usually not effective. So where there’s a risk of chemical contamination, public health messages are usually “do not drink tap water”. This means bottled water only.
Such “do not drink” alerts were issued this week following bushfire impacts to water treatment plants supplying the Victorian towns of Buchan and Omeo.
By the end of the week, federal Minister for Water Resources David Littleproud, a Nationals MP, had announced a review of water sharing arrangements under the basin plan, claiming it would “take the politics out” of the issue.
But that hope will be in vain. If irrigators in New South Wales get more water, that means less for the environment and other water users downstream including irrigators in South Australia.
The Nationals are wedged between NSW irrigation communities and its coalition with the Liberals. But this crisis is largely of the party’s own making, and it will not go away any time soon.
A political bind
The Murray Darling Basin Plan became law in 2012. It’s meant to determine how much water can be drawn from the river system by users, mostly irrigators who use about 95% of extracted water. The plan aims to return some water to rivers, wetlands and flood plains by buying it from willing sellers on the water market, and improving infrastructure to prevent water loss.
The National Party has long blamed the basin plan for a raft of problems facing rural communities. This attitude might have served the Nationals’ short-term political interests. But it created a monster: stoking dissatisfaction from rural voters it is now unable to manage.
The beneficiaries are right-wing minor parties such as One Nation, to which rural voters in NSW and southern Queensland are now turning.
The Nationals’ base might be rural, but it is in coalition with the Liberals who must appease both capital city voters concerned about the environment, and constituents in downstream South Australia where voters of all persuasions think their state does not receive a fair share of water.
A history of white-anting
It is ironic farmers now accuse the Nationals of not doing enough to oppose the basin plan, given the party’s record on water policy at a state and federal level.
As far back as the 1980s, it became clear water salinity and over-extraction by irrigators was degrading river environments in the Murray Darling Basin.
Over ensuing decades the Nationals could have helped affected communities accept the need to take a basin-wide approach to water extraction. Instead they fuelled resentment by demanding more water for irrigators, implicitly dismissing the legitimate needs of the environment and downstream water users.
In the early 1990s, for example, when a cap on further extractions was being planned, the NSW government (whose water policy was controlled by the Nationals) insisted water licenses not yet activated should be accepted within the cap. This substantially increased the volume of water extracted.
Later as part of the Howard government, the Nationals reluctantly helped prepare the Water Act 2007 which underpins the basin plan. When it finally went before Parliament in 2012, McCormack, then a backbencher, opposed it. Such opposition has been a hallmark of Nationals policy ever since.
In NSW, Nationals water ministers have undermined the plan in many ways, including by failing to ensure the timely delivery of “water resource plans”. These plans are supposed to outline how water will be shared between irrigators and the environment at a regional level, and are essential to the success of the broader basin policy.
Meanwhile federally, Nationals MPs have insisted water for the environment be acquired by improving water infrastructure rather than taking water from irrigators. The building of this infrastructure has led to additional costs for taxpayers for little environmental benefit.
So what next?
The basin plan now appears on the brink of collapse. The NSW government is threatening to pull out if changes are not made and Littleproud’s decision to review water-sharing arrangements is hardly a ringing endorsement of the plan.
Meanwhile the Greens and other critics say the plan was never adequate anyway,
given the low volumes of water redirected to the environment and its failure to properly recognise climate change.
If irrigators succeed in having the plan scrapped, their victory is likely to be short-lived. Public anger at ongoing environmental degradation will only grow. And depending on the party in government when a new Murray Darling policy is drafted, irrigators may be treated with far less sympathy.
The results show that Darwin’s water supply has lost about 25% over the last year. On the plus side, Melbourne’s supply actually increased over 2019, having fallen below 50% earlier this year, and now sits on 63.9%.
While the national average is trending downwards, the patterns for each city are very different. Sydney and Perth water supplies have had contrasting journeys over the last six years. In October 2013 Perth’s supply was a very low 33.8% and Sydney was a comfortable 91%.
Now, for the first time in many years Perth does not have Australia’s lowest level of all capital city water storages. As of last week, Sydney has taken this unwanted distinction from Perth.
For Perth residents, the news is good as their surface water storages are at a six-year high of 46.4%. In Sydney they are worried, as they have a six-year low of 46.2%.
Sydney has experienced a steep decline over the last 30 months, from nearly full storages (96%) in April 2017. The speed and severity of the Sydney drought is starting to resemble previous dry spells. One was in the 1940s and the other was the Millennium drought.
Perth has lived with the most water stress of any capital city. They have had to contend with a steady 45-year decline in rain. The inflow of water into Perth’s dams has also fallen dramatically.
Perth has adapted to its drying climate by sourcing water from many different supplies. It now uses its surface water storages for about 10% of its water supply. Much larger proportions of Perth’s supply comes from its two desalination plants, which unlike the other capitals are constantly in operation. It makes greater use of groundwater and highly treated recycled water. Perth also has permanent water restrictions.
Sydney’s desalination plant, after hibernating for 7 years, is now supplying water. It was switched on in late January 2019 when Sydney supply hit 60%, and can supply 15% of water demand. Unusually perhaps, the desalinated water does not reach all parts of Sydney.
Melbourne and Brisbane water supplies are currently at similar levels. However, since 2013 Melbourne’s storages have generally been lower than Brisbane’s. Melbourne’s supply has risen in 2019 after good winter rainfall in its catchments. The storages have increased from under 50% (49.6%) in late May 2019. Today, Brisbane storage levels are now at 59.2%.
Melbourne residents use less water than the other capital cities. In 2018 the average Melbourne resident used 161 litres per day, approximately 30% less than Sydney residents.
Melbourne’s supplies have also been supplemented with the reactivation of its Wonthaggi desalination plant in 2019. It is Australia’s largest desalination plant, capable of producing 410 million litres a day.
Brisbane also built a desalination plant after the Millennium Drought. In addition, they also made very large investments in Australia’s largest waste water recycling scheme. The Western Corridor recycled water scheme opened in 2008, cost $2.5 billion and features three advanced waste water treatment plants, with more than 200 km of pipelines and three advanced waste water treatment plants.
Hobart, Darwin and Canberra are the three Australian capital cities without desalination plants. Canberra has had a steady decline in its supply over three years. It was full in October 2016, gradually dropping to 51.6% in November 2019. Hobart’s storages were above 80% for most of the last six years. They were just above 90% 12 months ago and have since fallen to their current level of 72%.
Darwin’s water supply was full as recently as April 2018. Now, 18 months later, it is just touching 54%. This is its lowest level in six years. Darwin, our tropical capital, has the most seasonal rainfall of Australia’s capitals. Typically, they have almost no rain June to September during their dry season, and a wet season of heavy rains from October to April.
However, the last wet season was one of the driest on record.
Adelaide’s water storage has fluctuated over the last 6 years. Adelaide gets more rain in winter and has dry summers, an opposite pattern to that of Darwin. Over the last 3 years the level has dropped from over 97% in October 2017 to just below 58%.
The desalination plant in Adelaide can supply up to 50% of its water supply. It has been operating in 2019, although not in the wetter months of July and August. The Murray also continues to supply a large proportion of Adelaide’s water supply. The Commonwealth has agreed to use drought funding for the Adelaide desalination plant, so more river water can be used by farmers upstream to grow fodder for livestock.
Australia is set for a dryer and hotter summer than average, particularly in the east. Coupled with continued high levels of household demand, we can expect further declines in water storage levels through the first half of 2020.
The deal to crank up Adelaide’s desalination plant to make more water available to farmers in the drought-stricken Murray-Darling Basin makes no sense.
It involves the federal government paying the South Australian government up to A$100 million to produce more water for Adelaide using the little-used desalination plant.
The plant was commissioned in 2007 at the height of the millennium drought. It can produce up to 100 gigalitres of water a year – enough to fill 40,000 olympic sized swimming pools. But has been used sparingly, operating at its minimum mode of
8 gigalitres a year, because of the expense of turning seawater into freshwater.
Adelaide has continued to mostly draw water from local reservoirs and the River Murray, which on average has supplied about half the city’s water (sometimes much more).
But with federal funding, the desal plant will be turned on full bore. This will free up 100 gigalitres of water from the Murray River allocated to Adelaide for use by farmers upstream in the Murray Darling’s southern basin.
The federal government expects the water to be used to grow an extra 120,000 tonnes of fodder for livestock. The water will be sold to farmers at a discount rate of A$100 a megalitre. That’s 10 cents per 1,000 litres.
By comparison, the residential price for that water in Adelaide would be A$2.39 to A$3.70 per 1,000 litres.
The production cost of desalinated water is about 95 cents per 1,000 litres when there’s rainwater already stored, according to a cost-benefit study published by the SA Department of Environment and Water in 2016. That means the total cost for the 100 gigalitres will be about A$95 million.
So the federal government is effectively paying A$95 million to sell water for A$10 million: a loss to taxpayers of A$85 million.
What do we get for the money?
The discounted water provided to individual farmers will be capped at no more than 25 megalitres. The farmers must agree to not sell the water to others and to use it to grow fodder for livestock.
There are many different forms of fodder but livestock producers most favour lucerne hay because it is highly nutritious. But it is also more expensive than cereal, pasture or straw hay.
The amount of hay that can be grown with a megalitre of irrigation water depends on many things, but 120,000 tonnes with 100 gigalitres is possible in the right conditions.
In the Murray-Darling southern basin lucerne hay currently sells for A$450 to A$600 a tonne. That would make the market value of 120,000 tonnes of lucerne A$54 million to A$72 million.
It means, on a best-case scenario, the federal government will be spending A$85 million to subsidise the production of hay worth A$72 million to its producers.
In practice farms and farmers are incredible diverse, so not all irrigators will necessarily grow lucerne. Alternative fodders such as pasture or cereal hay generally have much lower market values. Which meaning the value of the fodder produced may be much less than the best-case scenario.
It’s worrying that this policy shows such little regard for farming realities. It appears to have been crafted on the premise that every farmer has the same land, the same equipment and the same needs.
Dictating the water must be used for a single purpose runs counter to the needs of the agriculture sector. If farmers could put it to a more effective use, why not allow it?
In addition, it’s not clear how all the monitoring will be done to maintain compliance over such a restrictive regime.
What measures will prevent farmers buying the discounted water and then simply selling an equivalent amount of any carry-over allocation at the going rate of up to $1,000 a megalitre?
How will the government distinguish between the fodder grown with the 25 megalitres provided at low cost and any other fodder harvested on the same farm? How much will it cost to monitor and enforce such arrangements?
The difficulty of answering these types of questions is precisely the reason why countries in the former eastern bloc failed to adequately provide for their populations. Telling people what crop to grow, when to grow, how to water the crop and how it should be consumed has not worked in the past. Farm businesses that respond to prices and use inputs, including water, in a way that suits their long- term commercial needs are generally better off.
It seems a long way from the type of national drought policy Australia needs. It’s hard to see how a policy of this kind does anything other than waste a large amount of public money and disrupt important market mechanisms in agriculture in the process.
Our “state of the states” series takes stock of the key issues, seats and policies affecting the vote in each of Australia’s states.
We’ll check in with our expert political analysts around the country every week of the campaign for updates on how it is playing out.
New South Wales
Chris Aulich, Adjunct Professor at the University of Canberra
There is a clear fault line in the Coalition between conservatives and moderates, reflected in the number of centre-right women challenging more conservative members.
Some sitting moderates have chosen not to renominate – Ann Sudmalis in NSW won’t recontest, while Julia Banks in Victoria has resigned from the Coalition to challenge Greg Hunt in Flinders. Other moderate women are standing as independents (Kerryn Phelps and Zali Steggall in NSW, and Helen Haines in Victoria) or as candidates for other centre-right parties (Rebekha Sharkie in SA).
What typically unites these women is a rejection of conservative social policies – and perhaps also a rejection of the alleged culture of bullying within the Coalition parties. These candidates are modernists in that they support progressive policy issues. As independents they can also sidestep the Coalition’s internal fracas about quotas and targets for women.
In NSW, independent Zali Steggall is challenging Tony Abbott in Warringah. Front and centre of her campaign is action on climate change, refugee policy and foreign aid. Her views on marriage equality contrast dramatically with Abbott’s in an electorate that overwhelmingly voted “yes” in the marriage equality postal vote.
Similarly, independent MP Kerryn Phelps, contesting Wentworth, was a significant player in the marriage equality debates and has argued forcibly for a more humane treatment of asylum seekers.
Both Steggall and Phelps have complained about “dirty tricks” and the negative campaigns being mounted against them. Billboards linking Steggall to Labor, allegations that she is receiving funds from GetUp! (she is not), the renting of premises next to her office that were then plastered with anti-Steggall advertising, and the sexualising of Steggall posters all appear to be an attempt to intimidate and demean her.
A number of articles critical of Steggall have been published by the Daily Telegraph, with free copies delivered to residents who are not subscribers to the paper. This includes a front page story in which Steggall’s ex-husband and his current wife described her as “opportunistic” and “lacking the temperament of a leader”. The couple have since declared that the Telegraph article does not reflect how they feel about Steggall’s candidature.
Kerryn Phelps says dirty tricks were behind the removal of hundreds of her election posters in her campaign to retain the seat of Wentworth. Labor’s Tim Murray has also complained that his posters had been removed and replaced by Liberal posters. Liberal challenger, Dave Sharma, rejects any allegation that this activity has been sanctioned by him or the Liberal Party. Today it was reported that Sharma’s posters have also been defaced.
The seats of Wentworth and Warringah are critical to the reelection of the Morrison government and it’s clear that some supporters of the conservative wing of the Coalition have “taken off the gloves”. We can only speculate if it’s because the independents are women or because they are moderates.
Maxine Newlands, Senior Lecturer in Political Science at James Cook University
Labor leader Bill Shorten’s first hustings in Herbert coincided with reports of a deal that the Coalition will preference Palmer’s United Australia Party (UAP) over other populist parties.
UAP’s candidate, former NRL player Greg Dowling, will run for the lower house, while Palmer has his sights on the Senate. Palmer’s big cash splash announcement may cause more of a ripple than a bounce, considering former Queensland Nickel workers will have to wait until after the election to get their money back.
With One Nation and Fraser Anning’s Conservative National Party (FACN) also throwing their hats into the ring, there’s now four right-leaning minor parties vying for votes.
Herbert’s 2019 election is shaping up to be a rerun of 2013. Six years ago, preferences played a huge role in deciding 97 of the 150 seats nationally. 40% of Queensland seats were decided on preference votes in 2013.
The latest polling shows UAP at 14% – almost the same as 2013 after preferences (15.52%), but this was before Pauline Hanson’s One Nation (PHON) confirmed their candidate. In 2016, One Nation preferences helped push the incumbent, Labor’s Cathy O’Toole, over the line. With a preference deal between LNP and UAP, Palmer’s chance of a seat in the Senate is a good bet, but it’s now a four-way spilt for the lower house.
UAP and Katter’s Australian Party (KAP) will be the benefactors in the Herbert electorate, placed ahead of Liberals and Labor on the how-to-vote cards. In a battle between UAP, PHON and FACN, it’s the Greens that could benefit the most.
With UAP aligned with LNP, the Greens candidate Sam Blackadder has a chance of picking up protest votes against Labor. The Greens could also take votes from latecomers, the Animal Justice Party, thanks to its clear policy on climate change – something that has eluded the major parties.
There’s a similar picture in Dickson, with One Nation, Fraser Anning and the Animal Justice Party all putting up candidates. Plus there’s former Palmer United Party, now independent candidate, Thor Prohaska running on a democracy ticket.
Like Herbert, PHON and FACN will have to fight for votes from UAP in Dickson. In 2013, Palmer’s party polled 9.8% of the vote in Dickson. With UAP favouring LNP over ALP like it did in 2013, it could help Dutton to retain his marginal seat this time around.
Ian Cook, Senior Lecturer of Australian Politics at Murdoch University
Attention was on Bill Shorten and Clive Palmer in WA election news this week.
Bill Shorten came under scrutiny when it was revealed that three WA Labor candidates had been forced to include him in their election advertising after they were found distributing pamphlets that made no reference to the Labor leader.
Polls consistently show that Australian voters prefer Scott Morrison to Bill Shorten as prime minister. But Shorten is a bigger problem for Labor in WA than he is elsewhere – although it’s not clear by how much.
A poll last month by Crosby Textor showed that Shorten had a minus 26 favourability in the Perth seat of Cowan, which is held by Labor’s Anne Aly by a margin of just 0.7%. That makes Shorten more unpopular in Cowan than he is in other marginal seats across the country. And it’s the reason that candidates would rather put Premier Mark McGowan in their campaign material.
Like the rest of Australia, many West Australians will vote Labor even though they don’t particularly like or trust Bill Shorten. So, we can expect more ads attacking Shorten as the Liberals look to capitalise on one of the few positives (or should that be negatives) they have to work with in WA.
Clive Palmer was in WA news for the same reason he was in everyone’s news: the Newspoll that showed that his United Australia Party would change the result in some marginal seats. That includes one of one of ours: Pearce.
Pearce is held by Christian Porter and this election is a big moment for him. Porter was Attorney-General in Scott Morrison’s government, and he has a high profile in WA. He was also on the way to becoming premier when he took a detour into federal politics. Porter undoubtedly has ambitions and is one of the bright young(ish) things in the WA Liberal Party, so his future is important to his party’s fate in the West.
After One Nation’s disastrous campaign in the last state election, WA voters are obviously looking elsewhere and Palmer has spent a lot of money on the UAP campaign. Christian Porter and the WA Liberals will be hoping that it isn’t enough to make the difference in Pearce.
Rob Manwaring, Senior Lecturer in Politics and Public Policy at Flinders University
It would be ironic, to say the least, if former Labor state Premier Jay Weatherill’s legacy will be to have delivered the final nail in the coffin of the Turnbull-Morrison governments.
Last week, water policy dominated the political and campaign agenda, with the issue of water buybacks causing significant problems for the Coalition, and the Nationals in particular. Yet the groundwork for this poisonous issue was laid when the Weatherill government set up a state royal commission into alleged water theft by the upstream states.
Since then, the issue has been a lingering problem, exacerbated by the dead fish in the Menindee. Since the revelations of the water buybacks story, this has proved a problematic issue, culminating with a remarkable interview on the ABC with the former Minister for Agriculture and Water Resources Barnaby Joyce.
While elections are rarely ever decided in key marginal South Australian seats, this issue could be the exception. It’s striking how it has unified South Australians. When the original allegations of water fraud were revealed by the ABC, there was a press conference with all key South Australian senators, including Sarah Hanson-Young, Cory Bernadi, Nick Xenophon and Penny Wong. Commonwealth governments rarely benefit from this issue in the state where the Murray ends.
The Nationals have no presence in South Australia, and the electoral damage is likely to be limited to the Liberals in the seat of Mayo, where Centre Alliance MP Rebekah Sharkie has been strong on water policy. But this issue, so close to South Australian politics, could prove problematic on the national stage.
Michael Lester, researcher and PhD student at the Institute for the Study of Social Change
The Tasmanian North West Coast seat of Braddon is sitting on a knife-edge. Braddon is notoriously fickle, having changed hands five times since 1998, and margins are always tight.
Labor’s Justine Keay won the seat from the Liberal’s Brett Whitely in 2016. She retained the seat after having to resign and recontest it in the July 2018 citizenship byelections, but failed to make any electoral gains. She is now defending a very slim 1.7% margin.
In 2018, Keay had seven opponents. This election she is up against eight:
Karen Wendy Spaulding from the United Australia Party
independents Craig Brakey and Brett Michael Smith
Shane Allan from Fraser Anning’s Conservative National Party
Liberal Gavin Pearce
The National’s Sally Milbourne
Phill Parsons from The Greens
Graham Gallaher from Pauline Hanson’s One Nation.
Braddon is hard to call. In the absence of polling, local commentators are looking to the betting odds which presently place Keay as clear favourite at $1.45, with Pearce at $2.65. Despite that, some see Braddon as Liberal Party’s best chance of winning a seat in Tasmania – especially since an electoral boundary redistribution in 2017 added the more affluent Port Sorell area.
There is no single electorate-wide issue here. Braddon is a diverse mix of regional centres and agricultural districts extending from Devonport and Latrobe in the east, through Ulverstone, Burnie, Wynyard, Stanley, Smithton and Waratah, then down the west coast to the mining towns of Rosebery, Zeehan, Queenstown and the tourism and fishing village of Strahan. It also includes King Island in Bass Strait.
Tasmania’s recent economic renaissance has been slow to reach many areas of this electorate. So, candidates are aiming their promises at people’s concerns over economic development, jobs, youth training, health services and education. And both major parties have been careful to match almost anything the other side offers up.
Labor’s commitment of a A$25 million grant to support a Tasmanian AFL team has emerged as one big point of difference in the strongly pro-football Braddon, while the Liberals run a campaign on what better uses that money could be put to.
We’ll be back with an update on Victoria next week.
In 2017, the then agriculture minister, Barnaby Joyce, signed off on an A$80 million purchase of a water entitlement from a company called Eastern Australia Agriculture.
The problem is that Energy Minister Angus Taylor used to be a director of Eastern Australia Agriculture – though he didn’t have a financial interest – and the company is a Liberal party donor. What’s more, the value of the water purchased for A$80 million is under question.
Now, as the election looms, this issue has resurfaced. But why should taxpayers be concerned?
Water buybacks using an open tender were halted by the current government in 2015, even though this is the most cost-effective way to set aside water for the environment. Instead, the government pronounced that subsidies for irrigators were a better deal.
Until 2015, the government bought back most water using an open tender process, before it was replaced by a subsidy scheme for irrigation and occasional closed tenders.
The problem with the closed tender process is that it tends to lack transparency, which raises questions about how effectively the government is spending public money. And it’s hard to prove closed tenders deliver the most cost effective outcome.
The Murray-Darling Basin is a very productive agricultural zone and its rivers have been used to boost agricultural outputs through irrigation.
State governments spent much of the 20th century allocating this water to agricultural users. By the 1990s it was clear too much water was being extracted. This resulted in both harm to the river environment and potential reduced reliability for those with existing water rights.
Various attempts to rein in extractions were made around this time, but ultimately the Murray-Darling Basin Plan was adopted to deal with the problem.
In agreeing on the plan, the federal government committed to spending A$13 billion to reduce the amount of water being extracted from the Murray-Darling Basin. To accomplish this the government has two basic strategies.
One involves buying up existing rights for water use. The other hinges on using subsidies so farmers use less water when irrigating.
Reducing water extraction from the basin
The second approach of using subsidies is generally more politically appealing. This is because few farmers ever object to receiving a subsidy and the public has an affinity with the idea of “saving” water.
The problem, however, is that subsidies are a more costly way of returning water to the river system than simply buying back existing water rights. And so-called water savings are hard to measure how much water savings are a result of subsidies or some other factor.
This is why some analysts even claim subsidies are reducing the level of water available for the environment.
Buying back water rights is generally more cost-effective than providing subsidies. But a clear and transparant process still matters because water rights are not the same for everyone and it’s a complex process to determine their overall value.
Allocations and entitlements
First, most water users hold a legal right, known as an entitlement. Water entitlements represent the long-term amount of water that can be taken and used – subject to rain, of course.
Second, water allocations represent the amount of water currently available against a given entitlement – this is the water that is available now.
If a farmer owns an entitlement in the River Murray, chances are the annual allocation will be determined by how much water has flowed into upstream storages like Hume Dam, Dartmouth Dam or Lake Eildon.
Even then the allocation will vary, depending on which state issued the original entitlement. For instance, New South Wales water is generally allocated more aggressively. This means NSW entitlements tend to be less reliable in dry years than Victorian or South Australian entitlements.
If a farmer owns an entitlement where there are no upstream storages, as is the case with much of the Darling River system, then the allocation will vary depending on how much water is flowing in the river.
All of this means the amount of water that can actually be used for the environment when an entitlement passes to the government will depend heavily on the underlying characteristics of the water right.
Partly for this reason, water buybacks were historically conducted using an open tender process.
This meant the government would announce its willingness to buy water entitlements. Farmers would then notify the government about what entitlements they held and the price they were prepared to take.
Running an open tender allowed the government to assess the value for money of the different entitlements on offer at the time.
Water buybacks through open tender began seriously in about 2007 to 2008. This meant the price owners were prepared to sell for would be registered, and then the government would determine which offer provided the best value. Around 60% of all water now held for the environment by the Commonwealth was secured through open tenders.
As a general rule, a relatively high-reliability water entitlement was bought for about $2,000 per megalitre and this has become the metric for many in the market. But the current government halted this process in 2015.
Now, the government buys water through direct negotiation with water-entitlement holders.
The government justified ending open-tender buybacks on the basis that the water being secured was causing undue harm to rural and regional communities. And, instead, much more expensive subsidies would supposedly generate a better overall return.
This view is not universally shared. The receipts from openly tendered water entitlements were being used by many farmers to adjust their business, while still staying in the region.
Many rural communities continue to thrive, regardless of the strategy chosen to secure water for the environment. Subsidies also tend to favour particular irrigators rather than the community in general.
Having set aside the cheapest option of open-tender buybacks and declaring support for irrigation subsidies, the problem the government now faces is that it must explain why closed tenders persisted (albeit in isolated cases) and were signed off by Ministers as good value for money.
Closed tenders need not deliver a poor outcome for taxpayers. But it does mean the likelihood of establishing the best value for money is reduced, simply because there are fewer reference points.
And if it’s legitimate to overspend public money on irrigation infrastructure subsidies, the credibility of a supposedly cost-effective closed tender is also brought into question.
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