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 Follow Vic lead and cap NSW water trade: Cobb 

Follow Vic lead and cap NSW water trade: Cobb

20 Apr, 2009 06:21 PM
It is time for the NSW Government to reject the Federal Government's ad hoc water buybacks and follow the lead of the Victorians by enforcing the 4 percent cap on water being traded out of communities in any given year, according to Opposition agriculture spokesman John Cobb.

Mr Cobb says the Federal Government's current water buyback strategy will destroy the future of agriculture and is communities in NSW.

But he says the Victorian Government's hardline stance on only allowing 4pc of water to be traded out of a region in any one year will protect NSW farmers if adopted.

In addition it should also implement the Victorian’s 10pc cap on non-landholders owning water, he said.

"Until the Rudd Government actually produces a Plan for the Murray Darling Basin and starts putting dollars into on farm and in-system infrastructure to ensure the countries food security by enabling farmers to produce more food and fibre with less water then the NSW Government must do all it can to protect jobs, food security and communities in regional NSW," Mr Cobb said.

"Already the town of Bourke is reeling from the Governments water buybacks with over 100 jobs destroyed and the Bourke Shire’s economic base crippled.

"There are thousands of food and fibre manufacturing and processing jobs and farms in the MDB under direct threat from the Rudd Government’s water buybacks, because once the climatic drought finishes these communities will go straight into a Rudd-made drought."

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Come on John. It takes 2 players to conduct a market place. A willing buyer and a willing seller. No one is forcing people to sell irrigation entitlements. If something is not done about the overallocated Murray Darling system then we'll see many towns disappear.
Posted by Big Bob, 21/04/2009 10:01:27 AM
Big Bob- what you say is correct and farmers are not being 'forced' to sell their water. However, if you understand the debate, then you will understand that the Victorian caps on trade will effectively increase the value of water in NSW dramatically, making it far more attractive for farmers to sell. This will mean two things 1- Far more water will be bought out of NSW than would otherwise be the case, and 2- Far less water will be purchased overall for the same cost.

John is not suggesting that buybacks should not go ahead, he is merely suggesting that buybacks proceeding within the current market will have devastating impacts on rural communities in NSW. For buybacks to be effective they must be applied across a level playing field. This will ensure that water is purchased from the areas where it is least valuable first. Anything else is a distortion and will adversely affect the sustainable future of agriculture in the Murray Darling Basin.

Posted by Rich, 21/04/2009 12:13:49 PM
Jt, seems to me that either people are not aware of the section of our Australian Constitution that gives us the right to water for irrigation or they are choosing to ignore it. Section 100 states 'the Commonwealth shall not by any law or regulation of trade or commerce abridge THE RIGHT of a State or OF THE RESIDENTS THEREIN TO THE REASONABLE USE OF THE WATERS OF RIVERS FOR CONSERVATION OR IRRIGATION'. Since it is the Constitution that confers this right on us neither the States nor the Commonwealth can take it away from us. And since it is a Constitutional right I don't believe that anybody has a right to buy, sell or trade water.
Posted by DAW, 9/05/2009 8:46:21 PM

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