PIAC made a submission in response to the interim report from the Australian Competition and Consumer Commission’s (ACCC) inquiry into the operation of the Murray Darling Basin water markets. PIAC responded to a range of findings in the interim report, highlighting issues with the transparency of links between the water markets and the physical operations of the Murray Darling Basin system. We made a range of recommendations to re-evaluate the way water allocations are determined, stored, transmitted, and traded.
PIAC highlighted the need to reform the operations of the market to make them more transparent, more flexible and sustainable in dry conditions; better able to support sustainable and diverse communities and production; more supportive of first nations communities and their access to water; more consistent within and between basin zones and states; and more directly link to clearly stated market objectives and principles focussed on supporting the long term interests of basin communities and the interests of all basin states.
PIAC supported a re-evaluation of where and how market mechanisms are employed, and where a wider range of community and sustainability objectives mean non-market mechanisms are more appropriate. The interim report was an opportunity to highlight the need for comprehensive governance and policy reform to address the issues identified with the operation of the MDB markets, as well as a range of ‘no regrets’ measures that should be taken now to improve transparency and faith in the operation of the MDB system and the market that supports it.
