An open market for trading water will disadvantage rural communities and force councils to bid for water as a commercial commodity, Moorabool council believes.
The state government last week released Water for Victoria – a policy framework that examines how to make better use of alternative, fit-for-purpose water supplies.
Open market trading will be trialled in southern Victoria to “harness the potential of the water grid and enable water to move where it is most valuable”, the state government said.
But Moorabool council chief executive Rob Croxford said this approach would unfairly advantage high-value croppers and big business, which will be able to trade and transfer water across the state.
“It is of concern that this will disadvantage community uses, whether local, passive and active recreation, or water-based activities, that will not have the resources to bid,” Mr Croxford said in his submission to the new framework.
“This will impact on local government and see councils potentially entering the market to secure supplies for sporting reserves, against agricultural and commercial operations.”
Mr Croxford said the council is concerned water will cost more in rural Victoria, impacting most on traditional farming and smaller communities.
“On the plus side, it is pleasing to see an intent to invest more in riparian zones, river health and environmental flows,” Mr Croxford said.
The plan includes $537 million over the next four years for projects that strengthen water security, protect agriculture, recognise Aboriginal water values, and improve the environmental health of waterways.
It also includes a $58 million investment for rural water system upgrades at Wedderburn, Bacchus Marsh and Werribee.
Water for Victoria is the first comprehensive statewide water policy in more than a decade, Water Minister Lisa Neville said. It includes plans to expand the water grid, modernise existing water infrastructure and improve water delivery efficiency across the state.
Ms Neville said there would be “greater transparency” in the water market, to give customers the information they need to make the best decisions.
“Water is critical to our health and wellbeing, the environment and the Victorian economy,” Ms Neville said.
“As we deal with issues around climate change and population growth, we need to make sure our water management is prepared to meet these challenges, now and for future generations.”
To view the report, visit delwp.vic.gov.au/water/a-new-water-plan-for-victoria.
