COAG Review of the National Water Commission

Summary

This submission from the Australian Academy of Technological Sciences and Engineering recommends that the remit of the NWC be extended for at least a further six years. This submission emphasises the need for a continuing role of an objective and independent authority that reports on the progress of water reform and can adapt rapidly to further needs for water reform, particularly in issues of urban water management and in consideration of policy outcomes that may arise from the imminent Murray Darling Basin Plan.

The National Water Commission (NWC) was created as a statutory authority to assist in promoting and advancing implementation of the reforms underpinning the National Water Initiative (NWI). The NWC also has a statutory role to conduct audits of the implementation of the Murray Darling Basin plan by 3 March 2013, though given that the Basin Plan has not yet been released no audit could be undertaken in the current life of the NWC.

The NWC assisted the States with developing their NWI Implementation Plans. However, it is evident from the Second triennial review by the NWC that though the States have made significant progress in implementing various parts of their NWI commitments, there is considerable variation among the states in how and where they have done so. Progress has been patchy and slow. The NWC also facilitated the ability of the States/Territories to implement the NWI when it was responsible for Water Smart Australia funds.

The NWC has shown considerable initiative in investing in and developing new technologies and raising the level of debate and understanding of the NWI commitment, both through its Raising National Water Standards program and through the subsequent publication of more than fifty Waterlines publications, encompassing a wide range of water issues and technologies. The NWC Commissioners have also identified numerous priority areas for investment, including the serious deficiencies in our understanding of groundwater and its relationship to surface waters, and obtained government commitment for what became an $82 million investment in the National Groundwater Action Plan. These initiatives reflect the ability of the independent NWC as a statutory authority and of its Commissioners to dispassionately identify priorities and investments to promote the objectives of the NWI and facilitate their achievement.

The NWC has reported independently and formally on opportunities to advance water reforms through its annual reports and its regular Biennial Assessments of progress in the implementation of the NWI. In preparing these assessments, the NWC sought advice from key stakeholders and discussed and tested its anticipated conclusions with a Stakeholders’ Reference Group. The Biennial Assessments effectively encompassed the generality of progress of reforms. It is the Academy’s view that the NWC Second Biennial Assessment (2009) was an excellent and objective review of the extent of progress by the States/Territories in implementing their NWI Commitments. The NWC has reported biennially on the performance of the water industry against national benchmarks since 2006 in association with the Water Services Association of Australia. However, the Commission has tended to change the format of the report from year to year, making trends a little difficult to follow.

The NWC has also reported on a comprehensive range of water topics through its Waterlines series as well as presentations to numerous national and regional industry forums, conferences and meetings. By the use of referees of its work and taking a disciplined approach in its activities, the NWC has been able to maintain a highly credible, responsible and apolitical stance on controversial issues in the press without becoming involved in local political disputes. The NWC has provided independent advice as requested to numerous key government stakeholders.

An effective annual NWC workshop has been held with a stakeholders’ group of approximately 60 people drawn from government, industry, educational institutions and consumer groups. There is increasing interest among international policy bodies and “think tanks” about Australia’s evolving and often world-leading water policies and management. The NWC has strengthened stakeholders through initiating a Water Industry Skills Audit to address future successional issues and has financed career-development Fellowships for young water professionals.

Under the final review of National Competition Policy, the relatively newly created NWC was responsible for the NCC Water Review. This process demonstrated clearly that an assessing body with access to incentives and sanctions can effectively influence water policies adopted by the States. Subsequently, however, the NWC has not had access to any direct incentives or sanctions that could be applied to encourage NWI implementation, an issue that has made achieving implementation more difficult The loss of management of the Smart Water Australia Program, the loss of powers of sanctions following completion of the NCC Water Review and a change in organisational structure have led to a change in the roles, functions and modes of delivery by the NWC.

We note that the Productivity Commission’s draft Report on Australia’s Urban Water Sector (April 2011) suggests that progress against COAG agreed water reforms should be subject to monitoring and that the NWC would be the most logical body to undertake such monitoring.

There is a major investment in Water Research and Development being undertaken in Australia, much of it Commonwealth-funded. However it is relatively uncoordinated and disjointed and the NWC would be well suited to undertake a coordinating/integrating role in overseeing Australia’s water R&D.

Australia will continue to benefit from ensuring it has an independent, objective, credible science and evidence-based agency, the National Water Commission, to advance water policy reform.