Water for Victoria discussion paper Submission May 2016
Copyright Municipal Association of Victoria, 2016. The Municipal Association of Victoria is the owner of the copyright in the publication Water for Victoria submission May 2016. No part of this publication may be reproduced, stored or transmitted in any form or by any means without the prior permission in writing from the Municipal Association of Victoria. All requests to reproduce, store or transmit material contained in the publication should be addressed to MAV Reception on 9667 5555. The MAV does not guarantee the accuracy of this document's contents if retrieved from sources other than its official websites or directly from a MAV employee. Water for Victoria submission May 2016
Table of contents 1 Summary and recommendations... 5 2 Introduction... 9 3 Background...10 3.1. The MAV...10 3.2. The role of councils in water...10 4 Vision for water...11 4.1. Enhancement of the vision...11 4.2. Connection between the vision and objectives...12 4.3. System complexity...12 4.4. Timeframe for achievement...12 5 Climate Change (Chapter 2)...13 5.1. Assessing the costs and benefits...13 5.2. Research and sharing of information...14 5.3. Roles and responsibilities...14 5.4. Infrastructure investment...14 6 Waterway and catchment health (Chapter 3)...15 6.1. Waterways...15 6.2. Setting the strategic direction for catchments...16 6.3. Risk based decisions in potable water supply catchments...16 7 Water for agriculture (Chapter 4)...17 7.1. Socio-economic impact analysis...17 7.2. Rural drainage...18 7.3. Land use planning...19 7.4. Vulnerability to drought and climate change...19 7.5. Emergency water supply points...19 8 Resilient and liveable cities and towns (Chapter 5)...20 8.1. Parks and gardens...20 8.2. Recycled water...21 8.3. Onsite domestic waste water...21 8.4. Integrated water management...21 Water for Victoria submission May 2016
9 Recognising and managing for Aboriginal values (Chapter 6)...23 10 Recognising recreational values (Chapter 7)...23 11 Water entitlement and planning frameworks (Chapter 8)...24 11.1. The entitlement framework...24 11.2. Economic wellbeing...24 11.3. Victoria Floodplain Management Strategy...25 12 Realising the potential of the grid and markets (Chapter 9)...26 13 Jobs, economy and innovation (Chapter 10)...26 14 Other comments...26 15 How can the MAV assist?...27 Water for Victoria submission May 2016
1 Summary and recommendations Councils have a substantial role and influence in the water system with approximately $5.5 billion worth of drainage infrastructure assets. The MAV supports the need for renewed policy direction for Victoria s water sector and the management of water resources. We acknowledge the need for, and appropriateness of, many of the strategic directions outlined in the discussion paper although we consider that a stronger vision and narrative is needed to outline how Victoria will face the water challenges of the next 20 to 30 years. This could include using integrated water cycle management as a framework for managing the water system. This would allow a catchment focus and the development of objectives, modelling, use and consumption targets at both a catchment and state-wide level. As a starting point for integrated water management, councils need a clear set of roles and responsibilities, a funding model, the ability to assess costs and benefits and determine willingness to pay, and capacity-building support. Systemic change will be required in the water sector to respond to climate change challenges. This may involve infrastructure requirements beyond the capacity of many councils. The greatest opportunity lies in accounting for all water in the system and creating an ongoing revenue stream for councils. The sharing of information will enable all decision makers to be informed by evidence. We believe government needs to work on improving access and transparency of information and databases. The Water Plan provides the potential to resolve some of the areas of ongoing frustration and burden for councils. These include: o o o o Potable water supply catchments Onsite domestic wastewater Emergency water supply points Fire plugs Some of these challenges require modification to the Water Act 1989 and we continue to advocate for its review. 5 Water for Victoria submission May 2016: May 2016
When clarifying roles and responsibilities for all agencies involved in water, negotiation under the Victorian State-Local Government Agreement will be required if there are new expectations of councils. We look forward to working closely with the Department of Environment, Land, Water and Planning (DELWP) to further develop the Water Plan and its subsequent implementation. Recommendations General comments Modify the vision for the Water Plan to recognise the need for cooperative efforts to account for, integrate and manage the entire water cycle across all usage sectors. Include greater detail about the long term water challenges associated with population growth in Melbourne and other key population centres and set out a roadmap for responding. Develop a framework for integrated water cycle management as part of the Water Plan. Consider the flexibility of the entitlements model and whether it will be able to evolve over time. Include an illustration of the context and various state government departments and agencies involved. Identify a timeframe for the achievement of the Water Plan. Where new or increased standards of care are required of councils to deliver state benefits, the Plan needs to articulate that these will be negotiated with councils through the Victorian State Local Government Agreement. Climate change (Chapter 2) Balance the achievement of carbon neutrality against the affordability of water services by evaluating the cost/benefit. Include local government as a partner in understanding the impacts of climate change. Share climate modelling platforms and system analysis tools and information to assist councils in their climate change responses. 6 Water for Victoria submission May 2016: May 2016
Commit to undertaking regional hazard assessments, where required. Define roles and responsibilities in climate change adaptation and ensure consistency across key legislation and policy documents. Explore funding models that enable a potential revenue stream for councils. Waterway & catchment health (Chapter 3) Include in the Water Plan: water quality principles and objectives waterways or areas where higher environmental flows may be required criteria for the purchase of land adjacent to waterways commitment to ongoing resources to existing river health programs Utilise the Water Plan as an opportunity to provide role clarity to CMAs and address their funding constraints. Require CMAs/water authorities to undertake risk assessments of potable water supply catchments. Water for agriculture (Chapter 4) Include in the Water Plan strategies to minimise water use including what might be done to introduce more efficient farming practices, techniques or technology to reduce water use. Extend socio-economic analysis beyond the Murray-Darling Basin. Develop a procedure/agreement between councils and water authorities to engage with each other when developing their strategic plans to ensure long term water supply, availability and infrastructure plans are appropriately considered. Remove the statement requiring councils to work with landholders to understand their vulnerability to drought and climate change, their options for addressing it in the long-term, and their willingness to contribute to capital and ongoing costs. Work with the MAV on reviewing the arrangements for Emergency Water Supply Points to ensure they are equitable and effective. 7 Water for Victoria submission May 2016: May 2016
Resilient & liveable cities & towns (Chapter 5) Engage with councils to continue to explore innovative means of keeping open spaces green and provide further information about what standards are expected. Clarify the government s level of commitment to recycled water. Provide leadership to achieve cooperation between government departments, agencies and councils to resolve the current and outstanding legacy issues surrounding on-site domestic wastewater. Work with the MAV to identify how the good IWM work of the more advanced councils can be shared across the sector. Work with the MAV and the water sector to confirm roles and responsibilities in IWM and how the other identified needs of councils can be met. Recognising & managing for Aboriginal values (Chapter 6) Facilitate exchanges between traditional owners and councils to build early trust and understanding, and provide an opportunity for sharing of ideas. Recognising recreational values (Chapter 7) Consult further with local government about the costs of providing recreational benefits and how the costs will be allocated, recovered and how willingness to pay will be determined. Water entitlements & planning frameworks (Chapter 8) Ensure a flexible entitlements framework that also considers the type of water as well as amount. Firm up in the strategic directions in the final Water Plan and include more than investigation or consideration. Work with landholders to address security of supply to meet agricultural demands and low allocations for entitlement holders. Consult with local government about water for community uses. 8 Water for Victoria submission May 2016: May 2016
2 Introduction The Municipal Association of Victoria (MAV) welcomes the opportunity to provide feedback to the Water for Victoria discussion paper. The MAV supports the need for renewed policy direction for Victoria s water sector and the management of water resources. This work dovetails with the broader policy reviews that are underway for climate change, biodiversity and catchment management. There are particular inter-dependencies between Water for Victoria, Our Catchments Our Communities and the Victorian Floodplain Management Strategy. The general directions and focus areas of the Water for Victoria discussion paper are sound and there are many positive elements in the discussion paper that are supported by councils. We note that a number of the strategic directions reiterate current policy rather than represent significant reform. The Water Plan for Victoria requires a strong narrative and strategic directions that lay the foundation for how Victoria will prepare for the water challenges of the next 20 to 30 years. As councils manage a substantial part of the drainage network and make significant drainage infrastructure investments we are keen to further explore with government: The implications of the strategic directions on local government infrastructure, water access and use How the sector can be meaningfully engaged in state-wide and regional strategic planning for the water sector The prioritisation of strategic directions. This process will need to be cognisant of the capability and capacity of councils. We suggest that the Water Plan would benefit from greater detail regarding accountabilities and the alignment between policy, action and funding mechanisms. We would like to acknowledge the significant work by the Department of Environment, Land, Water and Planning (DELWP) in preparing the discussion paper within constrained timelines. The Department s genuine willingness to engage with local government is also commendable. 9 Water for Victoria submission May 2016: May 2016
3 Background 3.1. The MAV The MAV is the peak representative and advocacy body for Victoria's 79 councils. The MAV was formed in 1879 and the Municipal Association Act 1907 appointed the MAV the official voice of local government in Victoria. Today, the MAV is a driving and influential force behind a strong and strategically positioned local government sector. Our role is to represent and advocate the interests of local government; raise the sector's profile; ensure its long-term security; facilitate effective networks; support councillors; provide policy and strategic advice; capacity building programs; and insurance services to local government. 3.2. The role of councils in water Councils play a vital role in managing stormwater with approximately $5.5 billion worth of drainage infrastructure assets, including drainage pipes, open drains, pits, gross pollutant traps and green infrastructure. Councils manage and control stormwater drains vested in them within their municipal district. This involves ensuring that the local drainage networks adequately transport and treat rainfall derived runoff through built and natural environments to receiving waterways. In metropolitan Melbourne the stormwater is delivered to regional drains (notionally those with a catchment area greater than 60 hectares) managed by Melbourne Water. As part of managing municipal drainage infrastructure, councils undertake monitoring, maintenance checks and plan for capital investment through their strategic planning processes. They are involved in flood modelling, with catchment management authorities being the lead. Councils also develop and administer their planning scheme applying, where necessary, flood overlays and requiring water sensitive urban design as part of development. Historically, the main intent of councils has been to transfer stormwater into main drains, rivers and streams as quickly as possible for public health reasons and to limit liability from flooding. This has changed significantly over time with the local government sector investing heavily in integrated stormwater initiatives and strategies. Councils are reasonably heavy users of water in maintaining parks and gardens, sports fields and green verges. During the millennium drought the use of alternative water sources and water savings became entrenched in the operations of councils. 10 Water for Victoria submission May 2016: May 2016
There is a wide range of skills, technical capacity, financial resourcing and capability across councils and it is important that assumptions are not made about the sectors capacity without an understanding of the nuances. The Victorian State-Local Government Agreement (VSLGA) sets the parameters for a collaborative working relationship between state and local government as well as improved communication and consultation. The VSLGA applies to arrangements where the State: intends for local government to administer or enforce new or revised primary legislation or regulation, or act as an agent and deliver services on its behalf is, or intends to, partner with local government to deliver programs is, or intends to, fund local government to deliver a program may be affected by the relationship between the Commonwealth Government and local government. 4 Vision for water 4.1. Enhancement of the vision The vision set out in the Water for Victoria discussion paper is admirable and captures current priorities such as climate change and involving communities: Water is fundamental to our communities. We will manage water to support a healthy environment, a prosperous economy and thriving communities, now and into the future. Our water system will be resilient to drought and climate change, our communities will be at the centre of decision making and we will encourage innovation. Source: Water for Victoria discussion paper, page 8 We believe the vision is flexible and provides the sector with a clear statement of purpose. The vision does not, however, recognise the need for co-operative efforts to account for, integrate and manage the entire water cycle, across all usage sectors, and we believe it should be amended to include this. The Water Plan could then set the framework for integrated water resource management. It could set the parameters for the identification of catchment water objectives, modelling of water availability (including alternative sources) and use and consumption targets as well as providing a systematic approach to demand management and encouraging water conservation. This 11 Water for Victoria submission May 2016: May 2016
would enable monitoring measures across catchments as well as the collation of this information for state-wide purposes. The Plan could establish appropriate governance arrangements including all of the players in the water cycle. The local government sector has a vital role to play given its stormwater management functions. There are significant water challenges facing Melbourne and Victoria over the long-term and more discussion is required about the impact of a growing population. The Water Plan needs to be able to set a roadmap with clear strategies for water supply when Melbourne reaches population milestones and the predicted population of 7.8 million by 2051 [Victoria in Future, 2015]. 4.2. Connection between the vision and objectives The objectives set out in the various chapters contribute to the achievement of the vision. They are representative of the key challenges facing the water sector. We note that some of the objectives may directly conflict with one another such as to protect all waterways from the adverse impacts of human use. and the water sector will support sustainable productive agriculture. The government will need to utilise all the levers it has its disposal to balance the objectives over time, including the utilisation of the entitlement framework. The framework will need to be flexible and responsive to changing emphasis. While a review of the legal rights may not be appropriate, a review of the model and its flexibility could usefully set up the system to evolve over time. The scope of the strategic directions should also not preclude modification of the Water Act 1989 if this would help to achieve the vision and objectives. 4.3. System complexity The inclusion of a diagram, outlining the various agencies involved in water policy and delivery, would assist in setting the scene and illustrate the breadth and scope of the activities discussed in the Water Plan. The roles and responsibilities of other departments, such as health, agriculture and infrastructure should be included, as well as a description of any national forums with a policy and regulatory interest. 4.4. Timeframe for achievement We also recommend that a timeframe be given for the achievement of the Water Plan and its strategic directions. It is unclear whether the vision and strategic directions are applicable to one year, a medium term or a longer timeframe of 20-30 years. For such a critical industry we would like to see a strategy that has a long lead time and commitment across political parties. 12 Water for Victoria submission May 2016: May 2016
Recommendations: Modify the vision for the Water Plan to recognise the need for co-operative efforts to account for, integrate and manage the entire water cycle across all usage sectors. Include greater detail about the long term water challenges associated with population growth and set out a roadmap for responding. Develop a framework for integrated water cycle management as part of the Water Plan. Consider the flexibility of the entitlements model and whether it will be able to evolve over time. Include an illustration of the context and various state government departments and agencies involved. Identify a timeframe for the achievement of the Water Plan. The Plan should mention that where new or increased standards of care are required of councils to deliver state benefits, that these are negotiated with councils through the Victorian State-Local Government Agreement. 5 Climate Change (Chapter 2) The MAV supports the government s aspiration to establish itself as a leader in climate action, including mitigation, adaptation and funding climate science. The water sector is an important part of the picture in tackling climate change impacts. Over the next 20-30 years the availability of water will be further constrained and there will be increasing disruption from extreme events. This new normal operating environment will place considerable pressure on water pricing. 5.1. Assessing the costs and benefits Targets, such as achieving carbon neutrality, are notionally attractive but may not be most the appropriate means to achieve overarching strategic climate change objectives. Such targets will need to be balanced against the affordability of water services and careful cost/benefit analysis will be necessary. Achieving carbon neutrality will also be difficult to achieve. A cost/benefit decision-making framework would show a trade-off between the energy requirements for generating certain sources of water and the benefits of water security. For example, sourcing water from the desalination plant will result in higher electricity use potentially from brown-coal 13 Water for Victoria submission May 2016: May 2016
sources. Having clarity and transparency about the consequential impacts on carbon emissions are important to help the community understand the difficult decisions governments sometimes need to make. While there is mention of recycled water in Chapter 5 of the discussion paper, there is little commitment to either increasing understanding or acceptance of the use of recycled water or the costs of production. What is the intention for recycled water into the future? Will its proportion of water supply need to increase from two percent? 5.2. Research and sharing of information Investing in climate research is essential. There is also a need for government to provide information it gathers to assist agencies and local government to make evidence-based decisions relating to climate change. Some councils are already well developed in modelling climate change and would like to be involved in a partnership across sectors to share their understanding of the impacts of climate change. It is recommended that the proposed strategic direction (page 25) be amended to reference local government as a partner. There is varying capacity amongst councils in relation to adaptation planning. Sharing of climate modelling platforms, system analysis tools and information is necessary to build the sectors ability to respond. State government departments and agencies providing technical guidance is also important. Councils have highlighted that they rely on regional hazard assessments, for example, to assist local risk assessments and decision making. Commitment to undertaking such work is required and government should also assess its data framework for ease of access and transparency. 5.3. Roles and responsibilities We note that none of the climate change documents referenced on page 22 Victorian Climate Change Framework for Action, Climate Change Adaptation Plan and the Renewable Energy Action Plan have been released. Currently there is little definitive direction as to the roles and responsibilities of the State and its agencies and local government. We consider that all of the above strategies must align in their directions, include role clarity and involve comprehensive discussion with local government. 5.4. Infrastructure investment The MAV believes that systemic change will be required in the water industry and may involve infrastructure requirements beyond the capacity of many councils. There is a need to identify a funding model that enables this systemic change. In the water cycle we believe this can be 14 Water for Victoria submission May 2016: May 2016
focused around accounting for all water in the system and providing the ability to create an ongoing revenue stream for councils, for example through stormwater capture. Recommendations: Balance the achievement of carbon neutrality against the affordability of water services by evaluating the cost/benefit. Include local government as a partner in understanding the impacts of climate change. Share climate modelling platforms and system analysis tools and information to assist councils in their climate change responses. Commit to undertaking regional hazard assessments, where required. Define roles and responsibilities in climate change adaptation and ensure consistency across key legislation and policy documents. Explore funding models that enable a potential revenue stream for councils. 6 Waterway and catchment health (Chapter 3) There are long established programs and practices relating to the management of waterways and catchments which the MAV and councils support. Unfortunately this chapter does not tackle some of long term concerns we hold about catchment management or include any new initiatives. There is significant opportunity to enhance catchment management through integrated water management. 6.1. Waterways The MAV supports strategic directions to: Improve the health of 36 priority waterways. Additional detail would be useful about the type of large scale investments proposed and proposed engagement with the community and councils Introduce legislative provisions to improve the management and protection arrangements of the Yarra River Develop and apply environmental-economic accounting for waterway and catchment health to assist in decision-making. This tool, however, should not used in isolation. Councils have indicated that they would like the Water Plan to include: 15 Water for Victoria submission May 2016: May 2016
Water quality principles and objectives recognising that standards and indicators are are best contained in the State Environment Protection Policy (Waters of Victoria). Criteria for the purchase land by government where there is high conservation value and a history of poor land management Areas in need of higher environmental flows where there might be key environmentally sensitive areas such as Ramsar wetlands Ongoing support and resourcing for monitoring programs such as Caring for Campaspe and the River Health Incentive Program. 6.2. Setting the strategic direction for catchments The MAV believes the Water Plan should form the overarching policy document that provides strategic direction, leadership and outcomes for catchment management in Victoria. The Our Catchments Our Communities strategy could then be about how this direction and outcomes are delivered on the ground. The draft Our Catchments Our Communities strategy did not give the MAV confidence that effective and equitable catchment management arrangements and outcomes will be achieved. The MAV considers that CMAs are unreasonably constrained in fulfilling many of their responsibilities by a lack of appropriate long-term funding and the absence of role clarity. The Water Plan presents the opportunity, at a higher level, to resolve some of these ongoing constraints. This will enable councils to work collaboratively with CMAs on some of the significant issues facing catchments. 6.3. Risk based decisions in potable water supply catchments The discussion paper presents current policy as though the current arrangements for potable water supply catchments are working effectively. For example, page 46 states that to protect waterways and human health: Potable water supply catchment areas have specific planning guidelines to assess applications for the use and development of land within the area. Councils that contain such catchments express frustration about the content and administration of the Guidelines and the lack of cooperation from water corporations. The Guidelines set out blunt controls for the management of development without an understanding of risk. Councils acknowledge the particular challenges facing these catchments but require further information to understand the development limitations and would like to see greater flexibility in administration of the controls. The MAV and affected councils have sought to bring this issue to 16 Water for Victoria submission May 2016: May 2016
the attention of government and have advocated, for some time, the need for CMAs and water authorities to undertake risk assessments for potable water supply catchments. Recommendations: Include in the Water Plan: o water quality principles and objectives o waterways or areas where higher environmental flows may be required o criteria for the purchase of land adjacent to waterways o commitment to ongoing resources to existing river health programs Utilise the Water Plan as an opportunity to provide role clarity to CMAs and address their funding constraints. Require CMAs/water authorities to undertake risk assessments of potable water supply catchments. 7 Water for agriculture (Chapter 4) Currently in Victoria there are significant amounts of water moving around the State. Water is shifting from more traditional irrigated farming areas in the north to feed more recently established businesses such as large almond plantations. Increasingly both small boutique/lifestyle farms and large holdings may struggle to access water. Given the significance of irrigated land to Victoria s agricultural output and the amount of water used, councils would like to see the Water Plan include strategies to minimise water use rather than relying on a better supply of water. What might be done to introduce more efficient farming practices, techniques or technology to reduce water use? Cherry growers, for example, have now introduced rain covers that direct water between rows to better capture and direct rainwater. 7.1. Socio-economic impact analysis Councils have a strong interest in the wellbeing and economic development of their communities. Some communities have suffered from the highly dynamic water market and seeing water moving to its highest value use. If all water is accounted for, and must only be accessed through the water market, this will place further cost pressure on some operators. The Water Plan should acknowledge these realities and commit to a transparent process of assessing the adverse effects of water markets on small rural communities. The MAV supports 17 Water for Victoria submission May 2016: May 2016
socio-economic impact analysis into water recovery as part of the implementation of the Murray- Darling Basin Plan and suggest that this analysis should extend beyond the effects on the Basin. Councils would also like to see the development of strategies to address structural adjustment problems. Councils have expressed a desire to assist where they are able. 7.2. Rural drainage The MAV supports the development of a clear policy for the coordinated management of rural drainage and looks forward to working closely with councils and DELWP on a Rural Drainage Strategy. The policy must resolve the challenges which are faced by councils in the provision of drainage services including: What is the best model for designating ownership and maintenance responsibilities for rural drainage schemes outside the main urban centres? We note that councils do not have a statutory responsibility for such schemes and should not necessarily be the default owner and maintainer. How should the maintenance of waterways be conducted when those waterways have simultaneous biodiversity and drainage functions? Noting that vegetation, and debris plays a critical role in habitat provision. The Parliamentary Environment and Natural Resources Committee s Inquiry into flood mitigation infrastructure established a clear preference for a beneficiary pays model for funding drainage infrastructure. Although a beneficiary pays model can have some advantages, the Inquiry also suggested that the de facto vehicle for the beneficiary pays funding model is local government. The MAV has a number of concerns about such a simplistic approach, and suggest that greater clarity will need to be provided around principles for use and responsibilities. We are concerned that the beneficiary pays model often fails to take into account the ongoing costs of maintenance. There have been instances, for example, of federal and state governments funding high quality infrastructure re-builds (often beyond required design standards) after emergency events such as floods, with councils then being expected to take on the ongoing maintenance costs. Down the track, however, it may be the case that councils are not able to fund, from their rating base, the maintenance of the infrastructure to the level desired by the state or their communities. Another key factor in the future of effective rural drainage management across Victoria will be the confirmation of the role of CMAs as the responsible authority for the management and maintenance of waterways. 18 Water for Victoria submission May 2016: May 2016
7.3. Land use planning The discussion paper does not include a great deal of detail about how land use planning decisions might impact on water supply for agriculture. The proposed strategic direction suggests that Regional Partnerships will provide a mechanism to consider proposed land use zone changes. This forum is more likely to deal with infrastructure needs across a region rather than individual zoning changes. However, it is agreed that early involvement of water authorities in both regional and local strategic planning processes is critical to understanding service planning issues and providing information on future sewerage, drainage or water plans. At a municipal level we see value in a procedure/agreement being formalised to ensure that councils and water authorities engage with each other when developing their own strategic plans to ensure long term water supply, availability and infrastructure plans are considered. 7.4. Vulnerability to drought and climate change The discussion paper, on page 62, commits councils to assisting landowners with drought and climate change adjustment... In areas without access to reliable supplies, landholders should work with their local government in the first instance to understand their vulnerability to drought and climate change, their options for addressing it in the long-term, and their willingness to contribute to capital and ongoing costs. (page 62) Local governments generally do not have capability in agricultural extension work. Whilst some local governments have undertaken climate adaptation vulnerability assessments of their municipalities, such assessments may not be suitable for the above purposes. The statement appears to give a new policy direction which is outside the capability and capacity of local government. 7.5. Emergency water supply points The MAV recognises the need to improve and clarify the roles and responsibilities for the management and maintenance of Emergency Water Supply Points. In the past councils have agreed to take on some maintenance costs of these points, however many councils do not believe it should be their role, especially given their inability to effectively recover costs. The MAV would like to work closely with DELWP on reviewing the arrangements for Emergency Water Supply Points to ensure they are equitable and effective. 19 Water for Victoria submission May 2016: May 2016
Recommendations: Include in the Water Plan strategies to minimise water use including what might be done to introduce more efficient farming practices, techniques or technology to reduce water use. Extend socio-economic analysis beyond the Murray-Darling Basin. Develop a procedure/agreement between councils and water authorities to engage with each other when developing their strategic plans to ensure long term water supply, availability and infrastructure plans are appropriately considered. Remove the statement requiring councils to work with landholders to understand their vulnerability to drought and climate change, their options for addressing it in the long-term, and their willingness to contribute to capital and ongoing costs. Work with the MAV on reviewing the arrangements for Emergency Water Supply Points to ensure they are equitable and effective. 8 Resilient and liveable cities and towns (Chapter 5) The objective of this chapter is an admirable one, but perhaps overstates the water sector s input to the achievement of liveability outcomes. Water management objectives are an important input that needs to be weighed against other liveability drivers such as employment, social cohesion, transport, education and public safety. Councils provide useful connections to communities and can help to articulate and deliver liveability outcomes. It is important to recognise that communities require information on the costs and benefits of projects in order to make informed decisions about the liveability outcomes they seek. 8.1. Parks and gardens A key aspect to liveability is the provision of green spaces whether they be formal parks and gardens, sporting fields or even nature strips and boulevards. Such spaces can also be a key tourism driver providing significant economic benefits to towns. The watering of these areas is probably the highest usage component by councils. Since the millennium drought many now utilise alternative water sources such as harvesting and reuse of rainwater or stormwater and implement water saving measures, including planting strategies. 20 Water for Victoria submission May 2016: May 2016
Councils would like to continue to explore innovative means of keeping their open spaces green and are also conscious of reducing the urban heat island effect. They are very supportive of fit for purpose sources of water but would like further information about what that might mean for them and what standards are expected. 8.2. Recycled water As previously referred to in Section 3 of this submission, the potential for recycled water needs to have a greater emphasis in the Water Plan, particularly its potential to deliver increased amenity and liveability through alternate water supplies. The role of individuals and households in generating increased water supply should be given greater attention and priority in this Chapter. 8.3. Onsite domestic waste water Councils are experiencing significant difficulties with the regulation of onsite domestic wastewater systems. The responsibility of local government to regulate onsite domestic wastewater system is created under the Environment Protection Act 1970 and detailed in the State Environment Protection Policy (Waters of Victoria) and includes regulating the initial construction and installation of systems and regulating their ongoing maintenance to prevent failure. There are some significant legacy issues relating to the management of wastewater systems and high risks to the environment and communities relating to failing septic tanks. The legislative framework is also flawed in that there are limited rectification powers and recently a move away from certification of systems by the Environment Protection Authority (EPA). The MAV and councils are disappointed that the discussion paper barely mentions the issue, and the potential problems failing systems can have on Victorian waterways and the health of communities is ignored. A solution to this problem requires leadership from DELWP that will drive the EPA, the Department of Health, water corporations and local government to work together towards a common aim. 8.4. Integrated water management The MAV and councils are very supportive of integrated water management (IWM) and believe that the approach is relevant to the management of all water resources not just urban areas. We believe that the focus in this part of the Water Plan should instead be on water sensitive urban design. The Water Plan should articulate how the land use planning controls might need to change or be implemented in order to achieve integrated water management at a site level. 21 Water for Victoria submission May 2016: May 2016
There are exceptional examples of integrated water management undertaken by councils and the development industry. This work has often been driven by immediate need (i.e. severe drought), passionate individuals and in many cases grant funding. The task, however, remains difficult due to the number of parties involved in water management, the cross boundary nature of water catchments and the limited funding pool. Councils have been seeking clarity and certainty regarding their roles and responsibilities in IWM for a number of years. We remain unsure about the development of sub-regional or local plans until it is clear who the plans will be led by, paid for and implemented by. However, councils are very conscious that with climate change, the risks associated with the management of drainage are increasing substantially and that an integrated water management approach is the most holistic way of examining the problem and identifying solutions. There are some councils that are significantly advanced with their modelling and range of potential scenarios and response options. Others have limited in-house skills or capacity. In the middle are the majority of councils that may have done some investigative work but have not progressed to the point of making any major future capital or other commitments. The MAV would like to work with DELWP to identify how the good work of the more advanced councils can be shared across the sector. We suspect that there will be differing priorities in IWM particularly between metropolitan/regional cities and rural councils. The MAV has put some thought into potential roles and responsibilities (see Attachment 1) and would like to progress this work further with DELWP. As starting point the needs of councils in IWM are: A framework establishing roles and responsibilities (committed to in the discussion paper). This should include which agency will lead IWM in metropolitan and rural areas. Removal of barriers to IWM objectives being achieved (eg reform of planning provisions) A funding model to assist IWM planning and large projects including a legislative framework that enables water corporations flexibility in funding water projects A model for assessing the costs and benefits of projects A means of assessing beneficiaries willingness to pay A means of building capacity and capability development in local government Funding of research into IWM An education program to share best practice knowledge, lessons and experience. 22 Water for Victoria submission May 2016: May 2016
Recommendations: Engage with councils to continue to explore innovative means of keeping open spaces green and provide further information about what standards are expected. Clarify the government s level of commitment to recycled water. Provide leadership to achieve cooperation between government departments, agencies and councils to resolve the current and outstanding legacy issues surrounding on-site domestic wastewater. Work with the MAV to identify how the good IWM work of the more advanced councils can be shared across the sector. Work with the MAV and the water sector to confirm roles and responsibilities in IWM and how the other identified needs of councils can be met. 9 Recognising and managing for Aboriginal values (Chapter 6) The MAV recognises and values the importance of Aboriginal culture and heritage. The projects outlined in the discussion paper will enable government to understand more clearly how water is valued by traditional owners and how they can be more involved in water management. There are potentially economic and regulatory cost implications that could be built into the system depending on what values and uses traditional owners seek to have incorporated into water management activities. As local water resources have important economic and social benefits for the whole community, early consultation with local government and local committees of management will be important ingredients to achieving broader community support for any changes and initiatives that may be developed. Recommendation: Facilitate exchanges between traditional owners and councils to build early trust and understanding, and provide an opportunity for sharing of ideas. 10 Recognising recreational values (Chapter 7) The recreation values provided by waterways are often supported by actions and collaborations across a range of stakeholders including local government. As many small towns are located on waterways, councils recognise the importance of waterways to community wellbeing and health 23 Water for Victoria submission May 2016: May 2016
and the economic benefits of tourism that often flow. It is commendable that government is seeking to work with stakeholders to maximise recreational values. Councils would like to understand how the costs of providing recreational benefits, as outlined in the strategic direction (page 103), will be allocated, recovered and how willingness to pay will be determined. Local government are often seen as the agency that can recover costs under a beneficiary pays model. However, recovering costs is more complex than simply increasing council rates. Further work and consultation is required to develop an appropriate and practical model of cost recovery. Recommendation: Consult further with local government about the costs of providing recreational benefits and how the costs will be allocated, recovered and how willingness to pay will be determined. 11 Water entitlement and planning frameworks (Chapter 8) 11.1. The entitlement framework As mentioned in Section 3 of this submission, the entitlement framework must be flexible enough to respond to changing emphasis or objectives. For example, the balance between water for agriculture and water for environmental flows might need to be adjusted over time. Consideration should also be given to how potable water can be used for its highest and best use rather than for activities such as cooling of power stations. The framework needs to be able to reflect not just the amount of water allocated but also its type and quality. The discussion paper includes reference to some significant initiatives such as stormwater harvesting, converting take and use licences and controlled capture of high flows but is particularly vague about the strategic direction and actions required. These need to be firmed up in the final Water Plan and include more than investigation or consideration. 11.2. Economic wellbeing Councils have a strong interest in the wellbeing and economic development of their communities. Whilst our concerns regarding Chapter 4 of the discussion paper are largely centred on water moving out of agricultural communities through market trades, there is also concern in some communities about the security of supply to meet agricultural demands and low allocations for entitlement holders. 24 Water for Victoria submission May 2016: May 2016
For example, the Werribee Irrigation District is currently facing low allocations of their entitlements and potentially zero allocation in the next year. Additionally the quality of water being provided to these high-value market garden irrigators is particularly poor. In is unclear whether funding in the State Budget will redress these issues. Securing reliable and high-quality water is vital not only for the viability of local agriculture but also for the economic prosperity of the community. The government needs to outline in the Water Plan how they will find solutions to these issues to ensure the future prosperity of these districts and communities. Councils, particularly in rural areas, expressed concern about potentially having to enter the market to secure water supplies for sporting reserves and having to compete with uses that might have higher value. There needs to be consideration of community uses, particularly those uses that might contribute to liveable towns and cities. For some councils there has been a loss of water licenses and allocations from when water management was transferred from councils to water authorities. This has caused difficulty for when seeking to renew geothermal heating systems and irrigation of open spaces. Enabling councils to benefit from stormwater harvesting may address some of these concerns. 11.3. Victoria Floodplain Management Strategy The MAV and local government have worked cooperatively with DELWP to provide considerable input into the development of the Victorian Floodplain Management Strategy over the last three years. We acknowledge the efforts made by DELWP to address some of the recommendations made by the MAV and councils. However, the MAV remains concerned about a number of consequences facing councils in trying to manage issues that the Strategy raises. There are both risk and cost implications for local government that remain unresolved - and divided views among councils about who should have responsibility for levees and flood gauges. Our most recent submission to the strategy is available on the MAV website. Recommendations: Ensure a flexible entitlements framework that also considers the type of water as well as amount. Firm up in the strategic directions in the final Water Plan and include more than investigation or consideration. Work with landholders to address security of supply to meet agricultural demands and low allocations for entitlement holders. Consult with local government about water for community uses. 25 Water for Victoria submission May 2016: May 2016
12 Realising the potential of the grid and markets (Chapter 9) The MAV supports the development of the water market in southern Victoria. Broadly the development of such a market will provide economic development opportunities in these areas as well as increase opportunities for innovation and alternative uses of water assets. State-wide oversight of Victoria s water resources is critical for sustainable water management into the future. 13 Jobs, economy and innovation (Chapter 10) The MAV notes that most of the strategic directions for this chapter are governance improvements and expectations that should occur without the need to reference them in a Water Plan. There is no assessment of how the proposed strategic directions might influence jobs in the water sector over the next 20-30 years. 14 Other comments The MAV is disappointed that the discussion paper does not take the opportunity to flag reform to the Water Act 1989. Many aspects of this Act are outdate or unclear. Much work has already been undertaken during the 2013/2014 review of the Water Act. This act was not finalised before the change in Government in late 2014. Particular areas that require urgent review are: Removal of any local government responsibility for the provision and maintenance of fire plugs. A revised model, that appoints the CFA as the responsible authority for the provision and maintenance of fire plugs, is a more efficient and equitable way of managing this essential infrastructure. This would ensure that the authority responsible for providing the firefighting service is the asset manager. The liability provisions of the Act require modification to align the liability of water authorities and councils where there is a flow of water from stormwater infrastructure. Currently for councils there is strict liability as opposed to water authorities where it must be demonstrated that the flow of water arose as a result of intentional or negligent conduct 26 Water for Victoria submission May 2016: May 2016
15 How can the MAV assist? The MAV is conscious that the task of preparing a Water Plan is not an easy one. Balancing the competing objectives and the sheer number of parties and individual issues is complex. We are appreciative of DELWP for recognising the interdependencies within the system and the integral role that councils play in managing their local drainage networks as well as providing other important community interfaces. The appointment, within the MAV, of an engagement officer to assist DELWP engage with local government on a range of issues related to the development of a new Water Plan is a significant and helpful step forward. In understanding the constraints, expectations and activities of councils we will be able to assist DELWP to progress initiatives such as integrated water management through sharing of knowledge and identifying how constraints can be managed 27 Water for Victoria submission May 2016: May 2016
Attachment 1 Integrated water management draft roles and responsibilities Department level Agency level Local government level DELWP Set the overarching policy framework Remove barriers to IWM objectives being achieved Provide for a system of accounting for all water ensuring sufficient water resources for community allocations Ensure legislative framework enables water corporations flexibility in funding water projects Develop a costs and benefits framework. Develop a process for determining willingness to pay Develop a funding model to assist IWM planning and large projects (particularly those with higher cost barriers) Fund capacity and capability development in local government Fund research into IWM Develop and fund education program to share best practice knowledge, lessons and experience Department of Health and Human Services Set drinking water standards Regulate standards for recycled water Provide guidelines and expertise on how to meet environmental standards Consult with community to identify current community willingness to use alternative water sources and develop guidelines. Water Corporations Flexibility to fund/part fund water projects that have broader community benefits. Clear limits will need to be set to ensure affordability is maintained and beneficiaries are willing to pay. Continue to prepare water supply and demand strategies and plan for future needs Investigate and evaluate alternative supply sources Assist councils to achieve community water related liveability objectives by offering options, advice, services, expertise Undertake risk assessments for potable water supply catchments Melbourne Water Catchment Management Authorities Set environmental objectives Lead IWM regional/sub-regional planning in regional Victoria Undertake flood mapping Coordinate catchment and river improvement works Fund river health Administer artificial estuary opening arrangements Environmental Protection Authority Regulate discharge and other environmental effects Provide guidance and expertise on how to meet environmental standards Essential Services Commission Regulate water pricing Lead IWM regional/sub-regional planning in metropolitan Melbourne Local Government Set liveability objectives for their communities (in consultation with communities) Continue to utilise levers in the land-use planning system to drive IWM in both greenfield and infill development Continue to manage local flood risk and drainage infrastructure within urban areas or for infrastructure that is under council control Fund small projects or parts of projects where there is a demonstrated positive cost-benefit and a demonstrated willingness to pay 28 Water for Victoria submission May 2016: May 2016
29 Water for Victoria submission May 2016: May 2016