Statement of reasons for recommending the making of the Water (Lake Eildon Recreational Area) (Houseboats) Regulations 2013 Background The activity of houseboating on Lake Eildon (the Lake) in Victoria is controlled and managed by regulations made under the Water Act 1989. The Water (Lake Eildon Recreational Area) (Houseboats) Regulations 2013 (the Regulations) were made by the Governor in Council on 12 June 2013 and came into force on the same day. The Regulations replace earlier regulations of the same name made in 2003, which sunsetted in 2013 after 10 years under Victorian law. As the Minister administering the Water Act 1989, I made the decision to recommend to the Governor in Council that it make the Regulations. Over 700 houseboats are moored on the Lake, mostly owned by private individuals. To legally operate a houseboat on the Lake the boat owner must hold a licence issued by Goulburn-Murray Rural Water Corporation (GMW), which manages the Lake Eildon Recreational Area. The Regulations largely replicate the previous regulations of 2003 although with the following changes: a) b) c) d) From 1 July 2020 GMW will not be able to issue a licence for a houseboat permanently moored on the Lake if the boat is not fitted with an on-board greywater treatment system (GWT system). There is a two year grace period until 30 June 2015 where an owner of an existing licensed houseboat without a GWT system may transfer the boat to a new owner. GMW can set a limit on the number of boats licensed to be permanently moored on the Lake. GMW may revoke a licence in the event the licence holder breaches a material term or condition of the licence. The Regulations also contain new offences concerning the discharge of blackwater into the Lake and, if the houseboat is fitted with a GWT system, the discharge of untreated greywater into the Lake. Consultation The Department of Environment and Primary Industries (the Department) and GMW organised two formal consultation meetings in the town of Eildon; one for interested public agencies, such as the local water corporations, local councils, the Environment Protection Authority and relevant government departments, and the second for the public, including houseboat owners, clubs and other members of the broader houseboating industry. Following this, a regulatory impact statement (RIS) was prepared by consultants engaged by the Department. The Victorian Competition and Efficiency Commission (VCEC) provided an assessment of the RIS. A four week public consultation period on the draft Regulations, the RIS and VCEC’s letter was advertised in the Government Gazette and the Herald Sun. The time for submissions closed on 17 May 2013. 1 Summary of Submissions The Department received 31 submissions, mostly from individual houseboat owners. Other submissions were made by the boat clubs around the Lake and by a sales agent. The submissions expressed a range of views and can generally be summarised as follows: the proposed requirement for all licensed houseboats to be fitted with a GWT system was widely supported, but for new houseboats only. Many considered that the cost of retrofitting such systems to existing licensed houseboats would be too high, disproportionate to the value of some houseboats and might force some owners to relinquish their licences; retrofitting a GWT system would not be possible on some old or very small houseboats due to lack of space, or because of stability or seaworthiness issues; the proposed requirement for such retrofitting would affect the value of existing houseboats if not fitted with a GWT system; a seven year timeframe for all houseboats to be fitted with GWT systems was insufficient due to infrastructure and industry restraints; the impacts of greywater on water quality in the lake were not sufficiently quantified or demonstrated in the RIS; the envisaged benefits of GWT systems could be achieved through cheaper options, such as traps, sand filters and behavioural change; and concerns were raised regarding the ability of GMW to impose significant obligations on houseboat owners under licence conditions. Reasons Thorough consideration was given to all of the views expressed in the submissions. I also took into account the views of VCEC regarding the RIS and the extent to which the Regulations would meet the requirements of the Charter of Human Rights and Responsibilities Act 2006 (the Charter Act). One change was made to the Regulations from the draft published with the RIS. The draft Regulations provided that owners of houseboats would not be permitted to alter the length of their vessels or the level of accommodation on them without the consent of GMW. Analysis of these proposed provisions against the Charter Act indicated they could not be justified, so they were removed from the draft Regulations. In regards to the issue of the requirement for on-board GWT systems, I was concerned that the common practice of houseboats disposing greywater directly into the Lake, particularly mooring areas, widely used for swimming, fishing and other recreational activities, presents a risk to water quality, to the health of users of the Lake and to the local environment. I took into account a number of State policies, including: The State Environment Protection Policy (Waters of Victoria) (2002). A key objective in the SEPP is to protect beneficial uses of surface waters, by (among other things) minimising environmental risks by minimising the discharge of wastewater to surface waters; Lake Eildon is a storage for drinking water. The Safe Drinking Water Act 2003 places responsibilities on water corporations, including GMW, to provide safe drinking water. It 2 requires water suppliers and water storage managers, such as GMW, to prepare and implement plans to manage risks in relation to drinking water; Best management practices for water corporations to support improved water quality; and The Government’s Guidelines for planning permit applications in open, potable water supply catchment areas, which take into account the State Environment Protection Policy (Waters of Victoria) and the Safe Drinking Water Act 2003. The new measures in the Regulations form part of a whole-of-catchment approach for protecting water quality and are consistent with requirements for greywater management on land. They represent the best way to ensure the whole community can enjoy the full range of recreational activities offered by the Lake. A number of submissions expressed concern about the practicalities and costs of fitting a GWT system into a houseboat. While the installation of a GWT system can be an expensive one-off cost, this cost must be considered in the context of the significant financial investment an owner makes in owning a houseboat. To reduce the financial effect of the Regulations, I also allowed seven years under the Regulations for the transition to be fully achieved. This seven year period includes a two year grace period to allow for transfers of existing licensed houseboats without a GWT system. Conclusion After taking all of the above matters into account and making some changes to the draft Regulations, I took the view that the Regulations will provide the best means of balancing the Government’s objectives of facilitating houseboating on Lake Eildon and encouraging the economic benefits that houseboating brings to the area, whilst preserving water quality in the Lake. I was therefore satisfied that I should recommend to the Governor in Council the making of the Regulations. Peter Walsh MLA Minister for Water 3