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Infrastructure Australia Enhancing and Sustaining the World’S Built, Natural and Social Environments

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Infrastructure Australia Enhancing and Sustaining the World’S Built, Natural and Social Environments Review of Regional Water Quality & Security Appendices Volume 2 Prepared for Infrastructure Australia Enhancing and sustaining the world’s built, natural and social environments. Review of Regional Water Quality and Security AECOM Table of Contents Volume 1 – Review and Reform Strategy Executive Summary i 1.0 Introduction 1 1.1 Background 1 1.2 Snapshot of Water in Regional Towns 1 1.3 Strategic Policy Context 3 1.4 Our approach to undertaking this review 4 1.5 Structure of report 7 2.0 Key Findings and Evidence 8 2.1 Pricing is only Part of the Problem 8 2.2 Inadequate Pricing Practices 9 2.3 Non- Compliance with ADWG 11 2.4 Absence of a Skilled Workforce 19 2.5 Inadequate Operator Training 20 2.6 Poor Catchment-Based Planning 27 2.7 Inadequate and Inconsistent Planning Frameworks 28 2.8 Governance Arrangements 31 3.0 Recommendations 35 3.1 Compliance with the Australian Drinking Water Guidelines 35 3.2 Consistent Reporting and a Planning and Management Framework 36 3.3 Improved Water Pricing 36 3.4 Develop a More Highly Skilled Workforce 37 3.5 Governance Structure in NSW and Queensland 37 3.6 Practical Solutions to Localised Issues 38 4.0 Reform Strategy 39 4.1 Governance Structure in NSW and Queensland 39 4.2 Consistent Planning and Management Framework 40 4.3 Improved Water Pricing 41 4.4 Compliance with the Australian Drinking Water Guidelines 41 4.5 Develop a More Highly Skilled Workforce 41 4.6 Barriers and Opportunities 42 5.0 References 45 25 October 2010 Volume 2 – Appendices Appendix A Water Framework in Australia Appendix B Methodology Appendix C Town Profile Template Appendix D Town Profiles – QLD Appendix E Town Profiles – NSW Appendix F Town Profiles – VIC Appendix G Town Profiles – SA Appendix H Town Profiles – WA Appendix I Town Profiles – NT Appendix J Town Profiles – TAS Appendix K Case Studies Appendix L Water Quality Media Monitoring Appendix M Water Security Media Monitoring Appendix N Water Quality and Security Risks Water Framework in Australia A Review of Regional Water Quality & Security Appendices Volume 2 Review of Regional Water Quality and Security AECOM Appendix A Water Framework in Australia The water industry is complex, with different governance structures and regulatory requirements existing in each state. Understanding the institutional arrangements and regulatory frameworks provides a baseline for the recommendations provided in this report. The Commonwealth Government also has a strong, but generally a non-regulatory role in the water industry. The criticality of sustainable water supplies for domestic, environmental, industrial and recreational use has meant that the Commonwealth Government has taken a leading role in driving reform across the country. However, the Commonwealth Government does not have enforcement power in water and as such actual reform is generally implemented by the states. Federal In Australia, water belongs to the Crown, which means the relevant minister in each state or territory. The management of water in Australia is complex with many laws and agencies. In fact, there are up to as many as 800 agencies that are responsible for the administration and management of water, at the federal, state, regional and local level. In addition to the regulatory bodies, there are a number of other government and non-government organisations with an interest in water. The organisations provide advice to regulatory authorities, work in research, develop new systems, assist regulators during implementation of new initiatives and campaign government for change. The major responsibilities for water at a Commonwealth level sit with the Department of Water, Environment, Heritage and the Arts (DEWHA), the Council of Australian Governments (COAG), the National Water Commission (NWC) and the Australian Competition and Consumer Commission (ACCC). While the states and territories own and manage water resources, the Commonwealth Government provides national leadership and strategic direction on water matters. COAG provides a forum for the states and territories to negotiate with the Commonwealth Government over matters of common concern, including water management. In 1994, COAG separated the land and water title rights. In 2004 the Intergovernmental Agreement on a National Water Initiative (NWI) was created and as of 2006 all states had signed it. The aim of the NWI is to improve the economic efficiency of Australia’s water management, while also protecting our resources and the environment. The NWC was formed to review the progress of the NWI and completes a biennial report on progress. The eight principal reform agendas in the NWI were and as of 2010, still are: Water access entitlements and planning framework Water markets and trading Best practice water pricing and institutional arrangements Integrated Management of Environmental Water Water Resource Accounting Urban Water Reform Community Partnerships and Adjustment Knowledge and Capacity Building There are also arrangements in place for a number of catchments traversing state boundaries. These arrangements are in place to improve governance of cross-boundary water supplies. Most of these arrangements are legislated, though some are by agreement only. The catchments are the Murray Darling Basin, Lake Eyre Basin, Snowy River, Great Artesian Basin, Vic-SA Border Groundwater Area and NSW-Qld Border Rivers. The Water Act 2007 commenced in March 2008. The Water Act established Commonwealth environmental water responsibilities, as well as the new Murray-Darling Basin Authority (MDBA) and required the MDBA to prepare a strategic Basin Plan. The Act also gave the ACCC powers to enforce water charge and market rules The National Competition Council (NCC) administers the National Competition Policy, in which water is included. The Policy endeavours to address both the economic viability and ecological sustainability of the nation’s water supply. Of particular reference to this project is the NCC’s pricing reform, which is ‘based on principles of consumption-based pricing, full-cost recovery, and removal of cross-subsidies’. 25 October 2010 A1 Review of Regional Water Quality and Security AECOM In April 2008, the Commonwealth Government established the Water for the Future program in response to the challenge of securing a sustainable water future for Australia. The program’s key priorities are: Taking action on climate change Using water wisely Securing water supplies Supporting healthy rivers The Commonwealth Government is also involved in addressing the water skills shortage and improving the knowledge of water industry members across Australia. Government Skills Australia (GSA) has been contracted by the federal Department of Education, Employment and Workplace Relations (DEEWR) to provide training packages and resources. GSA’s Water Industry Advisory Committee (WIAC) is responsible for developing and promoting these programs, which extend beyond operations and into cross-discipline problem solving, such as water resources management. Other key drinking water related requirements or best practice that are driven by the Commonwealth Government include the Australian Drinking Water Guidelines (ADWG). A 2010 draft revision of the ADWG was publicly available for comment in 2010, with the new ADWG to be issued for release in 2011. Additionally, the NWC, in association with Water Services Association of Australia (WSAA), publishes the annual National Annual Performance Report. This report provides information on approximately 33 of the 150+ criteria collated on water utilities with greater than or equal to 10,000 connections. The NWC also provides a biennial assessment on the implementation of the NWI, the most recent of which was completed in 2009. In addition to the above, there are a range of other programs that have been established to improve the management and delivery of water supplies in Australia. These programs are summarised on the DEWHA 1. website Figure 1: National arrangements for water governance2 1 http://www.environment.gov.au/water/policy-programs/index.html 2 http://www.nwc.gov.au/www/html/2354-national-arrangements.asp 25 October 2010 A2 Review of Regional Water Quality and Security AECOM Figure 2: Cross-boundary arrangements 3 Queensland In Queensland, water management responsibilities rest with various state organisations. Queensland’s water framework has undergone significant change in recent years, including changes to regulatory and institutional arrangements, including the amalgamation of bulk and reticulated water suppliers. The figure and table below describe the various responsibilities in water in Queensland as it related to supply of water to regional towns. Figure 3: Queensland arrangements for water management 4 3 http://www.nwc.gov.au/www/html/1540-cross-boundary-arrangements.asp 4 http://www.nwc.gov.au/www/html/1787-queensland---introduction.asp 25 October 2010 A3 Review of Regional Water Quality and Security AECOM Table 1 Summary of water in Queensland Governance Area Responsible Party Responsibilities Queensland QCA provide pricing recommendations, review pricing policies & Competition monitor pricing. Local government councils set their own urban Water Pricing Authority (QCA) & bulk and retail prices. SunWater, Seqwater & rural water boards Water utilities set their own prices. Department of Prepare & implement Water Resource Plans, Resource Rural & Regional Environment & Operations Plans & Regional Water Supply Strategies; administer Water Planning & Resource water licences, water allocations,
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