The decision by the Prime Minister and four state leaders to commence water trading in the southern states will lead to exploitation of a scarce resource and cost farmers and the environment dearly, according to Member for Calare Peter Andren.
"Anyone watching the manipulation of utility markets around the world can see how water trading will create water barons and lead to manipulation of the market, just as privatisation of the Snowy Scheme would lead to electricity market manipulation," Mr Andren said.
"While there needs to be a radical change in water use practices in Australian agriculture, such as far more incentive to invest in drip irrigation, water trading will disadvantage family farms and advantage speculators and urban water purchasers who can spread the cost over businesses and households.
"The plethora of Managed Investment Schemes, attracting 100% tax write-offs, has exacerbated the water crisis and created a glut in products such as grapes.
"Meanwhile managed investment tree plantations are not paying for the water they absorb and prevent from running off to the benefit of all water users.
"What price must Australians pay for crucial environmental flows under this scheme?
"I don't believe the market will deliver anything other than profiteering from a resource that belongs to all. Who is to say which is the most productive and efficient crop when it can be argued that rice production is a huge over-user of water in a dry continent?
"Most Australians would have hoped today's talks might lead to a national referendum on handing water rights to the Commonwealth, and the establishment of a system to properly licence water entitlements based on national need.
From a media release from Peter Andren, Independent MP for rural NSW seat of Calare, 7 Nov 06. See also www.peterandren.com
Add comment