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| Madam Speaker, I move that the bill be now read a second time. Madam Speaker, this bill delivers an important first stage of an election promise to review the Water Act, and is a significant step towards guaranteeing transparency and accountability in statutory decision-making with regard to water extraction licensing. The act is a critical component of the screed of Territory environmental and resource management law. It provides for the Territory’s ground and surface water resources to be actively managed through water allocation plans, designed to both protect environmental and cultural uses, and to establish the amount of water available for purposes such as domestic use, irrigation, industry and stock watering – the consumptive pool. Water allocation plans are being developed on a priority basis in areas under most pressure from increased consumptive use. The plans will articulate the amount of water allocated to each of the declared beneficial uses, and the rules and regulations associated with water extraction in the area of the plan, including, for example, water trading and alteration of allocations. The act regulates access to water entitlements drawn from the consumptive pool through licensing arrangements. Currently, there are in the order of 116 licences operating to extract groundwater, and 68 licences to extract surface water. The number of licences is expected to increase quite substantially as water allocation plans are completed. Since licences govern access to the water resource, they are the primary mechanism to ensure that, individually, licensees are legally accountable for the water extracted and that, collectively, entitlements remain within the established sustainable limits. Licensing of water extraction allows comprehensive regulation to ensure that the resource is protected from overuse and from pollution. The over-allocation and over-use of water for consumptive purposes is a major cause of river degradation and lack of water security in every other Australian jurisdiction. Accordingly, the nature and adequacy of licensing arrangements for water extraction are the subject of considerable external attention by both water consumers and those with a non-consumptive interest in the use or health of the resources, such as indigenous landholders, anglers, tourist operators and non-government environment groups. The Territory is in a unique position, very different from the rest of Australia, where water resources have not been over-allocated. However, careful management is now required to ensure that we remain in this position and ensure that sufficient allocation of water resources is made to the environment and for cultural purposes. We want to protect our precious water resources as we enter a new phase in the Territory’s development, particularly with regard to agricultural development. As a signatory to the National Water Initiative, the Territory has a particular obligation to water reform. These include requirements to put in place transparent, contestable processes for considering and reviewing approvals; sound information available to all sectors at key decision points and full public access to water entitlement registers; and open planning processes and careful monitoring of the performance of water plans with regular public reporting. A simple set of transparency and accountability provisions are, therefore, proposed by way of amendments to the act and water regulations. The proposed amendments build on the intent of the existing provisions and would see: the discretionary objections-based process for surface water extraction replaced with a non-discretionary public notification and comment process that applies to both surface and groundwater extraction licences; the existing provision for a register enhanced by creating a public register containing relevant licensing information including levels of committed water extraction; and an obligation on the controller of water resources to publish a statement of reasons for either granting or refusing a water extraction licence. The proposed amendments are not complex and add no entirely new processes to the act but, rather, refine and remove discretions to dispense with existing processes. A requirement to give reasons for decisions is consistent with much Territory administrative law, especially in relation to applications for licences or entitlement in which there is a legitimate public interest. The proposed amendments are consistent with provisions already established for land clearing; that applications are routinely advertised and information on permits is publicly accessible. Achieving a degree of consistency in the manner in which the community can contribute and gain access to information on the licensing processes for both water extraction and land clearing will considerably strengthen the government’s capacity to outwardly demonstrate the key natural resource management decisions are rigorous, robust, and consistent with sustainability principles. While individually the amendments are not sufficient to fully address the Territory’s National Water Initiative obligation, the improved transparency and accountability achieved through these amendments will meet some repeated concerns of the National Water Commission about processes for public engagement in water allocation in the Territory. In a climate in which the Australian government appears increasingly restless over water reform and implementation of the National Water Initiative, the proposed amendments represent a useful first step in demonstrating that the Territory is seriously addressing its National Water Initiative commitments. By demonstrating continuing commitment to the National Water Initiative reform, the amendments will assist in securing continued National Water Initiative funding from the Australian government. To date, the Territory has been successful in obtaining $1.8m in Water Smart Australia funding under the National Water Initiative. Further funding applications from the Territory are currently under consideration by the Australian government. It should be noted that the proposed amendments do not represent a complete overhaul of the act. Consistent with election commitments, and taking into account National Water Initiative obligations, a full review of the act has commenced and will take until the end of 2008 to complete. This second stage of the review will also take into account advice of the recently announced Environment Protection Authority in respect of its overall evaluation of environmental laws. Public reaction to the proposals for more open and accountable decision-making on water is likely to be overwhelmingly positive, particularly given current sentiments. State governments across Australia are widely regarded as having failed to provide sound management of water to permit productive rural and urban use while avoiding environmental damage. Change in the Water Act has been identified as desirable through a number of formal and informal processes. I hope I have made it clear that these initial amendments to the Water Act will go a long way towards improving the transparency and accountability in respect of decisions taken on water extraction. It will vastly improve public confidence in the processes by which water resources are allocated and managed, and will help to satisfy obligations to water reform as set out in the National Water Initiative. Water management in the Australia has an appalling track record in other jurisdictions and it is of vital importance that we get it right. We do that in an open and transparent manner but, more importantly, do it in partnership with the community who depend on the ability to access water resources for economic, social, cultural and environment prosperity. Madam Speaker, I commend the bill the Assembly and I table a copy of the explanatory statement. Debate adjourned. |