Buyback Outcomes
1300 Expressions Of Interest received in Total - 78% South, 22% North
Pursuing 48 Northern Basin purchases Total $76m
Water shepherding arrangements are being negotiated with both States, this is a key issue that must be resolved before the water the Commonwealth has bought back is used for downstream environmental purposes.
Sleeper Licences are also being purchased, being treated much the same as active licences. Buyback is Basin specific, where Infrastructure investment is national.
Water Infrastructure
13 different funding streams (programs) under Commonwealth's Water for the Future program
$3.7 billion of the $5.8 billion is going through the States Priority Projects - MDB states
QLD $160 million
NSW $1.36 billion
Vic $1.1 billion Foodbowl plus Sunraysia projects
SA $610 million
Private Irrigation Corporations
NSW $650 mill
Vic $103
SA $110
Xenophon Deal
Money beyond 2012 has been brought forward to be spent before 2012
Next Steps - Discussion with Basin States to do the due diligence on the business cases proposals that come forward.
NSW DPI - Stephen Elliot
NSW 'Sustaining the Basin' Project $708 million
$650 million private irrigation corporations
$400 million Menindee Lakes
Subject to due diligence
'Sustaining the Basin' program
Basin and Valley approach to allow for differences between north and south
Farm Modernisation
$200 million for Darling Basin in Total
$47 million Stock and Domestic
Metering $221
Flood Plain Harvesting $50 million
DPI - on farm projects
A lot of work already being done by various CRC's (Irrigation Futures, Cotton Catchments Communities, etc.)
Aim is to build on the work already done, not start from scratch
PHASE 1 - Hotspots Assessment - Completed 2009
Evaluate losses
Focus on infrastructure
Identify and prioritise losses and gains
Farm storages, channels, fields
PHASE 2 - Business Plan - Completed 2010
PHASE 3 - Implementation - Commencing 2010
Mix of methods
Subject to funding availability
QLD Healthy Headwaters Program - Frank Walker QDNRW
On-farm $115 million
Same principles basically, as the NSW programs
Project 1 - QMDB appraisal and district level planning
Project 2 - Design on-farm infrastructure investment schemes
Project 3 - Pathways to adoption - Implementation
Project 4 - SunWater Modernisation of Infrastructure
Project 5 - Feasibility of Coal Seam Gas water
$ to start flowing July 09
Panel Session Q and A
Problem with % of savings being handed back.
That is fine, this is not a coercive process, it is a business proposal, not a grants scheme.
Will invest up to 80% of cost for 50% of the savings
COAG agreed that no less than 50% would be returned
Competitive process - may be able to find advantages by co-contributing $
Buyback targets - there are none yet - Basin Plan will provide these in 2011.
Current buyback is 'no regrets'
Future will bring the adaption and tailoring of changing the balance of buyback v infrastructure.
Emphasis could be changed from one to the other depending on where the greatest benefit can be derived.
The same options need to be given to all water-users right across the basin.
There is an inequity in the fact that the buyback is happening now, but the WUE programs won't be available for several years.
States are keen to get it moving, but the design of the programs has to be done. Acknowledge the inequity.
Pricey - Removal of water is killing the smaller western towns.
The whole package is designed around preparing for a future with less water.
Lease programs - Don't have policy approval for that at the moment, but could be looked at.
Market impact of licences bought by C'wealth - Acknowledge their is an impact on the market, but they have to pursue the opportunities they are offered.
They are not forcing people to sell their water, they have only hung out their shingle.
$200 mill for "planning, wue, etc. for councils. Decision made a week ago.
CEWH is bound by the Water Act to use the water for environmental benefit.
It is still very early days of the program -
Price determination - value is dependent on the purpose that water is required to perform and that will vary from one area to another.
CEWH will pay all the same charges as irrigators do.
Environmental targets will be primarily local.
Below are presentations that were presented on the day from various departments
'Goondiwindi Presentation February 2009'
'Healthy Headwaters Program Overview'
'Sustaining The Basin'
'DEWHA Infrastructure presentation Febuary 2009 - Goondiwindi'