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Distribution of Working Papers

The Australian Government appreciates the substantial body of work that the Murrumbidgee project generated and has made the working papers available on the National Action Plan for Salinity and Water Quality website (www.napswq.gov.au/publications/index.html).  The Australian Government also plans to distribute the working papers by CD to relevant cooperative research centres, research and development corporations, catchment management authorities and Australian Government facilitators.  The lasting value of the Pratt Water Report will be demonstrated over the next few years as the findings from the working papers are drawn on by research organisations and catchment management authorities.

Water Accounting and Metering

The Australian Government will ensure that the key findings from the Pratt Water Report are considered in the development of water accounting and metering guidelines and standards.  This includes the need to distinguish between true and apparent losses and gains.  In addition, the Australian Government Water Fund Raising National Water Standards programme will invest in, amongst other things, better water accounting systems, including better collection and processing of water-related data, to support confidence in decisions by investors.

Water Options Contracts

The report has generated a substantial amount of activity in the Australian Government over the past year, including most recently by the Australian Bureau of Agricultural and Resource Economics (ABARE) in the further investigations of option contracts for water and cost effective acquisition of environmental outcomes.  This work has built on the Murrumbidgee River Options Model, and has been very productive in widening the debate on the range of methods for acquiring environmental water and using clear and transparent models to set environmental objectives.  Proposals to pilot the water options contracts may be submitted to the new funding round of the Water Smart Australia programme, released on 22 March 2006, which also includes a specific call for irrigation specific proposals.

Public-Private Partnerships

One of the aims of the Pratt Water Report was to promote the role of private business in working with governments to achieve water efficiency improvements and invest in refurbishment of irrigation infrastructure.  The National Water Initiative seeks to encourage private involvement in the water sector through improved water pricing and charging arrangements; efficient functioning of water markets and trading; security of water access entitlements; and creating an environment of regulatory stability and clarity.  As the key water trading and pricing reforms of the National Water Initiative are put in place, it is likely – and desirable - that investment in infrastructure will require less government involvement, as private sector investment becomes increasingly feasible in its own right.

On 19 October 2005 the Prime Minister announced that Cabinet has agreed to further explore the scope for public-private partnerships at the Commonwealth level beginning with the budget process in 2006-07.  In future, when departments or agencies are seeking funding for new investments, or advising Cabinet of new spending funded from existing appropriations, they will need to consider the full range of financing and ownership options, including public-private partnerships.  In cases where there is good reason to believe that a public-private-type arrangement may offer better value for money over traditional financing and ownership options, this option must be considered and Cabinet given a detailed explanation where it is rejected.  The work by Pratt Water will assist the Australian Government in considering the role of public-private-type arrangements when investing in major pieces of water infrastructure. 

Investment in Infrastructure

The Australian Government is also seeking to ensure that the key findings from the Pratt Water Report are used to guide investment in infrastructure through the Australian Government Water Fund.  Specifically, the National Water Commission held a workshop on 2 December 2005 with researchers, including those involved in the Pratt Water study, to identify investment areas for the irrigation and water delivery sectors.  This workshop assisted the National Water Commission in identifying priorities for investment in irrigation under its Water Smart Australia programme and Raising National Water Standards programme and contributed to the preparation of the special irrigation round of the Water Smart Australia programme which will close on 16 June 2006.

 Following on from this, the National Water Commission, Department of Agriculture Fisheries & Forestry and Land and Water Australia held a workshop in Canberra in March 2006 involving peak irrigation associations and research organisations.  Three case studies from the Pratt Water Report were showcased at the workshop.  The workshop will assist irrigation associations to develop quality proposals for the special irrigation round of the Water Smart Australia programme.