News

Market review welcomed

Jun 5, 2019

The launch of an Australian Competition and Consumer Commission (ACCC) review on the southern basin water market has been welcomed by Berrigan Shire.

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The inquiry is expected to look at the operation and transparency of the water market, developing market trends in the trading of water and the role of water brokers investment funds. It will also aim to review significant traders of water market allocations and entitlements.

The resulting report is likely to make recommendations to improve water market transparency and the operation of the southern basin water market.

Berrigan Shire general manager Rowan Perkins said the inquiry is a ‘‘positive thing’’ for a variety of reasons.

‘‘There’s concern about water speculation and possible market manipulation,’’ he said.

‘‘There’s also concern around the impact of trading water into different areas and who’s responsible for any losses or gains associated with that.

‘‘A review can also look into the socio-economic impact of the Murray Darling Basin Plan and that’s something we certainly are in favour of with our towns.’’

Federal Water Minister David Littleproud announced the inquiry after hearing concerns from farmers around lack of transparency around trading and about investors owning water when they own no farm and have no intention of growing food with that water.

‘‘It’s time to get under the bonnet and have a good look at how and if the market is working,’’ Mr Littleproud said.

‘‘A pure market requires transparency and is not distorted. It’s been estimated 12 per cent of high reliability water is held by investors who do not own land.’’