The Australian Competition and Consumer Commission today issued a position paper inviting submissions on the development of water trading rules advice.
The Water Act 2007 requires the Murray Darling Basin Authority to develop a Basin Plan for the sustainable and integrated management of water resources in the Murray Darling Basin, including water trading rules. The MDBA has requested the ACCC’s advice on the development of the water trading rules component of the Basin Plan.
The position paper sets out the ACCC's preliminary positions on a range of matters relating to water trading. These matters include restrictions to trade, administrative processes and information requirements for a functional water market.
"Well-functioning water markets have a critical role in revealing the true value of water, and allowing scarce water resources to be transferred to where they have the highest value," ACCC chairman, Graeme Samuel said today.
"Water trading is a key means for farmers to manage their water needs, especially with low water allocations in the current drought," Mr Samuel said.
The ACCC will provide its advice to the MDBA by March 2010. The MDBA will then undertake further consultation on the Basin Plan as a whole throughout 2010-11.
Interested parties should provide their submission to the ACCC by 5 p.m. on Friday October 23 2009. Details on how to make a submission can be found in the position paper, which will be available from the ACCC website.