WATER MARKET STRATEGY ALIGNMENT OF THE IRRIGATION INDUSTRY & THE ENVIRONMENT 13 MAY 2015 ALISTER WALSH - WATERFIND CEO

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1 WATER MARKET STRATEGY ALIGNMENT OF THE IRRIGATION INDUSTRY & THE ENVIRONMENT 13 MAY 2015 ALISTER WALSH - WATERFIND CEO

2 PRESENTATION TOPICS Current State of the Australian Water Market Environmental Benefits of Water Policy Future of Water Markets in Australia Q&A

3 CURRENT STATE OF WATER MARKETS EVOLUTION OF WATER MARKETS

4 CURRENT STATE OF WATER MARKETS WATER MARKET MATURITY FARMER FARMER INTERMEDIARY WATER EXCHANGE FARMERS FARMERS Transparency Legal Structured Contracts Equal Information = working market BENEFITS Access to a greater volume of water parcels Experienced team acting on your behalf Conveyancing to complete all paperwork

5 CURRENT STATE OF WATER MARKETS WATERFIND ONLINE WATER EXCHANGE ACCESSIBILITY Access the market anytime, anywhere, on any web enabled mobile device LIVE MARKET Trade online instantly MARKET INFO Make informed decisions based on free, relevant & timely market data

6 CURRENT STATE OF WATER MARKETS DEVELOPING WATER MARKET POLICY

7 CURRENT STATE OF WATER MARKETS WATER SHARING POLICY

8 CURRENT STATE OF WATER MARKETS HOW WATER RESOURCES ARE SHARED

9 CURRENT STATE OF WATER MARKETS HOW WATER RESOURCES ARE SHARED

10 CURRENT STATE OF WATER MARKETS HOW WATER RESOURCES ARE SHARED

11 CURRENT STATE OF WATER MARKETS HOW WATER RESOURCES ARE SHARED

12 ENVIRONMENTAL BENEFITS OF WATER POLICY MURRAY DARLING BASIN PLAN Southern Murray Darling Basin Allocations were as low as 18% of their nominal entitlement at which time temporary water peaked at record prices River banks were slumping Native fish faced extinction The Coorong was 5 times saltier than the sea Contingency plans were made to supply bottled water to Adelaide and other communities

13 ENVIRONMENTAL BENEFITS OF WATER POLICY COMMONWEALTH ENVIRONMENTAL WATER HOLDINGS

14 AUSTRALIA S IMPROVING WATER MANAGEMENT Lake Eildon - Australia 2008 Lake Eildon 2012 Lake Eildon

15 FUTURE STATE OF WATER MARKETS WHAT S NEXT? 2015 & BEYOND Define in detail the nature and structure of different water entitlements Public market data on access to more accurate water market prices Provide more advanced notice for trade barriers. Review of water charge rules in the Murray-Darling Basin

16 Australia did something which no other country could conceivably have managed in a large irrigated agricultural economy a 70% reduction in water availability had very little aggregate economic impact. This extraordinary achievement is, in my view, the single most important water fact of the 21st century, because it shows that it is possible (with ingenuity and investment) to adapt to rapid climate change and associated water scarcity. PROFESSOR JOHN BRISCOE, HARVARD UNIVERSITY

17 QUESTIONS ALISTER WALSH T E alister.walsh@waterfind.com.au Freecall

18 Latest policy announcement: ACCC seeks input into review of water charge rules in the Murray-Darling Basin 4 May 2015 The Australian Competition and Consumer Commission has released its issues paper seeking submissions on possible amendments to the Commonwealth water charge rules. The water charge rules regulate the charges imposed upon water market participants in the Murray-Darling Basin. The Murray-Darling Basin has one of the most developed water markets in the world. The importance of rural water markets cannot be underestimated in the context of the Australian economy, ACCC Commissioner Cristina Cifuentes said. Water markets in turn rely upon efficient and transparent charges for water infrastructure access and use. Throughout 2014, an independent panel reviewed the Water Act 2007 and recommended that the ACCC undertake a review of the water charge rules made under the Act. The Government accepted this recommendation and requested the ACCC s advice upon possible amendments to the water charge rules. The ACCC s review will consider a range of issues, including: the consistency of water charging regimes across the Murray-Darling Basin; the appropriateness of the tiered regulatory approach for infrastructure charges; how the water charge rules could apply to any charges imposed by intergovernmental entities such as the Murray-Darling Basin Authority; opportunities to improve regulatory clarity and efficiency; and opportunities to reduce costs to industry and governments. The ACCC is seeking input from irrigators, infrastructure operators, Basin States, and other interested parties. By making a submission on the questions set out in the issues paper, interested parties can help inform our review of the rules and our advice on possible amendments Ms Cifuentes said. The ACCC has been monitoring water charges since 2009 and will draw on this to inform its review. The ACCC will publish its fifth Water Monitoring Report in mid-may. The ACCC is seeking submissions on matters set out in the issues paper and on the water charge rules more generally. Submissions should be provided to the ACCC by Friday 26 June A copy of the issues paper, which includes details on how to make a submission, is available here: Review of the water charge rules: advice development. The ACCC is also planning a series of public forums in irrigation communities across the Basin during July and August; details will be posted on the ACCC s website in coming weeks. Following this consultation, the ACCC will release its draft advice (including draft rule amendments) for further public consultation. The ACCC will deliver its final advice (including proposed rule amendments) in December 2015.

19 WATERFIND S WATER MANAGEMENT INNOVATION PIONEERING THE ONLINE WATER MARKETS WATER LICENCE ALLOCATIONS COMPLIANCE WATER NEEDS WATER MARKETS Stipulates how much water can be taken out of a river system and is often aligned with a property. Government appointed Water Authorities allocate the volume of water that can be taken from a river system as a percentage. Government appointed Water Authorities provide specific trading rules that govern licence in relation to their licences. Water users identify specific volumes of water that they required for the irrigation season. Water markets facilitate the trading of water between two parties. Waterfind provides the most extensive water market in Australia.

20 AUSTRALIA S IMPROVING WATER MANAGEMENT DEVELOPING WATER MARKETS