Annual reports

Department of the Environment, Water, Heritage and the Arts annual report 2007–08

Volume two
Department of the Environment, Water, Heritage and the Arts, 2008
ISSN 1441-9335

Legislation annual reports 2007-08 (continued)

Operation of the Water Act 2007 (continued)

The Annual Report of the Commonwealth Environmental Water Holder

This annual report is prepared in accordance with section 114 of the Water Act 2007. It covers the operations of the Commonwealth Environmental Water Holder from 3 March 2008 (the date the Water Act 2007 came into effect) until 30 June 2008.

This report addresses the reporting requirements of section 114 of the Water Act 2007, which are:

Purpose of the Commonwealth Environmental Water Holder

The Water Act 2007 establishes the Commonwealth Environmental Water Holder to manage the Commonwealth’s environmental water holdings, to protect or restore the environmental assets in the Murray-Darling Basin and any other areas where environmental water is held.

Activities of the Commonwealth Environmental Water Holder

The Secretary of the Department of the Environment, Water, Heritage and the Arts appointed Mr Ian Robinson as the Commonwealth Environmental Water Holder on 16 April 2008. Mr Robinson also holds the position of First Assistant Secretary, Water Governance Division, in the department.

The period to 30 June 2008 was an establishment period for the Commonwealth Environmental Water Holder, with the focus on developing operational arrangements to give effect to the functions under the Water Act 2007.

At 30 June 2008, the Commonwealth’s environmental water holdings amounted to 217 megalitres of water entitlements in the Murray-Darling Basin. These entitlements were acquired by the Commonwealth as part of its contribution to the water recovery program of The Living Murray Initiative, a partnership of the Commonwealth and state governments managed through the Murray-Darling Basin Commission. Under the intergovernmental agreements underpinning The Living Murray, these entitlements are to be used by The Living Murray Initiative to protect and restore ecological values. During 2007–08 there was no allocation of water to the entitlements because of the dry conditions in south-east Australia.

Achievements against the objectives of the environmental watering plan

In accordance with section 28 of the Water Act 2007, the Murray-Darling Basin Authority is required to establish an environmental watering plan as part of the Basin Plan. The objectives of the environmental watering plan are to:

The Murray-Darling Basin Authority is expected to complete the environmental watering plan by 2011. Until the environmental watering plan is established, the Commonwealth Environmental Water Holder will conduct activities in accordance with the function specified in the transitional arrangements in the Water Act 2007, namely to protect or restore the environmental assets of the Murray-Darling Basin.

The Commonwealth Environmental Water Holder did not conduct any environmental watering activities during 2007–08 because no water allocations accrued to the Commonwealth’s environmental water holdings this financial year.

Management of the Special Account

The Environmental Water Holdings Special Account is established under section 111 of the Water Act 2007. The purpose of the account is to facilitate the payment of costs, expenses and other obligations incurred by the Commonwealth Environmental Water Holder in managing the environmental water holdings and in administering the Special Account. The account may also receive monies relating to the Commonwealth Environmental Water Holder’s functions under the Act.

Funding of $2,022,800 was credited to the account in 2007–08. No payments were made from the Special Account this financial year. Further information on the Special Account is included in the department’s 2007–08 financial statements.

Directions given to the Commonwealth Environmental Water Holder

There were no directions given to the Commonwealth Environmental Water Holder either by the Secretary or the Minister during 2007–08. No operating rules, pursuant to section 109 of the Water Act 2007, were made or were in force during this period.

Future outlook of the Commonwealth Environmental Water Holder

The Restoring the Balance in the Basin program, which forms part of the Australian Government’s Water for the Future policy, conducted the first round of water entitlement purchasing in 2007–08. As at 30 June 2008, the program was pursuing the purchase of some 35 gigalitres of water entitlements in seven catchments across the Murray-Darling Basin. Water entitlements purchased under Water for the Future will form part of the Commonwealth’s environmental water holdings when ownership is transferred to the Commonwealth.

In 2008–09, the Restoring the Balance in the Basin program will conduct further buybacks of water in the Murray-Darling Basin. Other programs within the department are expected to commence investing in infrastructure improvements. Where a share of water savings is acquired by the government under these programs, those entitlements will also form part of the environmental water holdings.

During 2008–09, the Commonwealth Environmental Water Holder intends to enter into arrangements with state government organisations and other environmental water managers, for the delivery of the Commonwealth’s water to priority environmental assets. We will work cooperatively with these organisations and the environmental asset owners to maximise the benefit to the environment from the available water. The amount of water available for use will depend on outcomes of the purchase program and seasonal conditions. Due to the protracted drought over recent years, it is likely that water allocations will be low during 2008–09.

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