NSW section in s43A7 notice
NOTICE BY THE NSW GOVERNMENT UNDER SECTION 43A(7) OF THE WATER ACT 2007
This section for the s43A(7) notice expands on some issues raised in both the consensus notice and
NSW’s joint notice with Victoria, as well as providing some specific NSW concerns with the altered draft
Basin Plan and supporting Commonwealth programs.
SDL adjustment mechanism
1. As specified in the joint notice with Victoria, NSW considers that the SDL reduction mechanism
must first focus on offsetting the proposed 2,750 GL reduction target.
2. The SDL adjustment mechanism must be workable to enable it to deliver offsets of at least 650 GL
to minimise the impacts on Basin communities of the SDL reductions. The environmental outcomes
achieved by the Living Murray environmental works and measures must be incorporated into the
SDL adjustment mechanism to contribute to an offset reduction. Similarly, additional water inflowing
to Menindee Lakes from the northern SDL reductions must be able to offset SDLs downstream.
3. All measures must be explored to limit the further buyback of water licences to meet the 2,750 GL
reduction target, consistent with the NSW position that buyback of water licences should not exceed
3% per catchment per decade.
4. If constraints are then able to be lifted that could allow for increased flows and a subsequent
increase in the SDL reduction by a further 450 GL without third party impacts, then this must occur
only after water recovery to meet the 2,750 GL reduction has been contracted or committed to. All
water recovery, including on-farm efficiency projects must first contribute to bridging the gap.
5. NSW believes that undertaking water recovery to achieve the 2,750 GL reduction, while
concurrently seeking to further increase the reduction by another 450 GL will cause confusion and
lack of clarity on whether measures are being properly attributed. This issue has been raised as a
significant concern by NSW stakeholders.
6. Further, NSW reinforces the position in the consensus notice that additional water must only be
recovered by measures such as on-farm efficiency measures which do not create socio-economic
impacts. The details of the additional recovery proposal need to be provided by the Commonwealth
and incorporated in its water recovery strategy. NSW will not support any open licence buyback to
achieve any additional reduction beyond 2,750 GL.
Apportionment
7. NSW position remains that apportionment of the shared downstream recovery volume should be
allocated between jurisdictions according to their share of the Baseline Diversion Limits (BDL) and,
in the case of the southern basin, specified in the Basin Plan. The apportionment by BDL clearly
recognises that all extractions impact on river health. However, given the need for further work on
the shared downstream reduction, NSW will work with Queensland on finalising the volume and the
allocation between states and catchments.
8. The principles for apportionment of the downstream shared reduction components in the northern
and southern basin must be consistent to enable equitable apportionment between States across
the Basin. NSW requires that the principles for water apportionment across both the northern and
southern basin must be equity, transparency and consistency and preferably incorporated in the
Basin Plan.
Groundwater SDLs
9. NSW has provided detailed information in the joint notice with Victoria on its concerns with the
MDBA’s approach to determining SDLs for four deep saline aquifers in NSW. NSW requires that the
Basin Plan take into account the NSW expert hydrogeological advice and the NSW policy settings
that recognise and account for surface water to groundwater connectivity.
10. NSW can demonstrate that it has, and will continue, to apply groundwater management
mechanisms to ensure that the SDLs requested by NSW in these four relatively undeveloped
aquifers will not have impacts on other water users including environmental water holders, the
sustainability of the groundwater resource and any surface water resources. If appropriate, the
MDBA could include a requirement in the Basin Plan requiring jurisdictions to regularly report on
how extractions are being managed in aquifers where it has agreed to an increase in the SDL.
Date of commencement of SDLs
11. The consensus notice recognises that generating water savings through the full range of
infrastructure, efficiency and other measures will take longer than 2019 to fully realise outcomes.
12. NSW reiterates that the date of effect of the SDLs must be from 2019. Given the SDL adjustment
mechanism and the roll out of infrastructure projects, full compliance with the SDLs cannot be fully
achieved until these measures are implemented.
13. For the balance of water recovery through licence purchase, the NSW position remains that water
purchase should be limited to 3 percent of BDL per water source per 10 year period and this should
be undertaken in consultation with the State Government and communities. On an annual basis,
this equates to purchase rates of approximately 15 GL per year for the southern NSW Basin and 5
GL per year for the northern NSW Basin.
14. As currently planned, the SDL adjustment mechanism and the recovery of water through the full
range of mechanisms, should mean that the Commonwealth can maintain their licence purchase
within this rate and still meet or be close to their goal of bridging the gap by 1 July 2019.
15. Should the SDL adjustment mechanism and other means to recover water not generate the
recovery volumes currently anticipated, the Commonwealth’s purchased water recovery to make up
any shortfall must take place at the NSW approved rate.
16. NSW requires that any further licence purchases are strategic and in accordance with a strategic
water recovery plan.
Third Party Impacts
17. As set out in the joint notice in Victoria, the delivery of environmental water and any relaxation of
constraints must fully address the issue of third party impacts, including liability issues.
18. Further, NSW requires the Plan to include a specific statement that the Plan will not result in the
compulsory acquisition of land, easements or water licences.
Implementation funding and structural adjustment for communities
19. NSW has limited capacity to deliver on the wide range of implementation obligations placed on
Basin States by the Basin Plan. NSW notes that while the consensus notice seeks to tie
implementation to Commonwealth funding, there is still no Commonwealth commitment to fund the
activities.
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20. NSW requires that the Commonwealth must have in place an agreement with NSW for funding of
new or extended activities for NSW for the life of the Plan, before the Basin Plan commences. This
will require up-front payments to the State rather than payment in arrears.
21. While NSW supports the development of an agreement between the MDBA and each Basin State
regarding implementation obligations, it is still critical that the MDBA clarifies the implementation
requirements for States before it finalises the Plan. This review should ensure that all water
management requirements in the Plan are appropriate to achieve defined, improved water
management outcomes.
22. Of concern is that there has been no progress on the development of a structural adjustment
assistance package for communities impacted by water licence buybacks. Resolution of this is
essential before the Basin plan is submitted to Parliament. The NSW Submission on the draft Basin
Plan April 2012 contained constructive proposals for a cohesive structural adjustment package that
should be addressed by the Commonwealth.
Clarification of wording and intent
23. NSW has raised on a number of occasions concerns with the wording of various clauses of the
Basin Plan. NSW requires that the MDBA works with jurisdictions over the next few weeks to clarify
a number of provisions in the Basin Plan.
24. A case in point is the definition of floodplain harvesting in the Basin Plan as “the taking of water
from a flood plain after it leaves a water course during a flood.” Water on the flood plain can
originate from a river, local runoff or rainfall. Under the NSW approach to flood plain harvesting, any
water taken off the floodplain would be managed as floodplain harvesting irrespective of is origin.
NSW calculates the volume that can be taken under a basic right and exemptions and any excess
to this will require a floodplain harvesting access licence.
25. The Basin Plan approach that requires the specification of the origin of water will be difficult to
assess to prove and puts at risk NSW's ability to fully manage flood plain harvesting.
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