THE Victorian Government has strengthened the state’s zero-tolerance approach to water theft, ensuring a level playing field for all water users.
Minister for Water Lisa Neville this week accepted recommendations from an independent review into water theft compliance measures – providing a big boost to water market transparency.
In May, the Minister appointed Des Pearson to undertake the comprehensive independent review ensuring Victorian irrigators and water users have a robust compliance and enforcement system, with checks and balances in place that helps maintain – and continue to build – confidence in the market.
“Victoria is a leader in compliance and water management – particularly in the context of the Murray-Darling Basin over recent years – and we will continue to lead the way,” Ms Neville said.
“Water theft is not a victimless crime, and with limited water to go around in recent times, these changes will benefit the entire water market.”
She said better communication would ensure water users are aware when their account is running out, and the timing of enforcement processes would be improved, so large volumes could not be pumped when accounts hit negative.
Other changes include rural water corporations undertaking more rigorous management and monitoring of their compliance and enforcement functions, along with finalising metering action plans and addressing enforcement issues which inhibit on-ground compliance.
There would also be improved and timely risk-based reporting on compliance and enforcement provided to water corporation boards and the Department of Environment, Water, Land and Planning. Mr Pearson will return in July 2021 to evaluate and report on implementation of the recommendations.
The actions build on new legislation that came into effect in October last year that increased the maximum fine for intentional water theft to $990,000 for companies and $198,000 for individuals. The legislative change also allows water corporations to suspend or cancel licences for water theft. Victorian Farmers Federation (VFF) water council chair Richard Anderson welcomed Ms Neville’s announcement and said Victorian farmers expected to see all state governments take similar action in stamping out unauthorised overuse of water.
It comes after the VFF called on basin state governments earlier this year to enforce tougher measures on irrigators who were stealing water.
“We need all governments across the Murray-Darling Basin to take a strong stance on unauthorised overuse and the VFF calls on all Basin states to adopt a similar approach to Victoria,” Mr Anderson said.
“Some irrigators who divert directly from the Murray River are using more water than they have in their water accounts and are then paying it back later in the season,
“For example, overuse in South Australia causes a spike in water prices as irrigators scramble to top up their accounts.
“This means some irrigators have purchased water late in the season to top up their over-use, saving them $400 per megalitre than if they bought the water around the time they actually used it.
“For large corporates, this can save them multiple millions of dollars, by simply taking someone else’s water.”
Mr Anderson said although the review found low levels of unauthorised overuse in Victoria, it did find differences in the amount of overuse across the different water corporations.
He said all irrigators, irrespective of where they were located, should follow the rules.
“I want to ensure farmers will be represented with a series of workshops proposed to take place between government and water corporations.
“It is important that a farmer voice is present at all of these discussions.
“As always, we’ll be seeking a seat at the table for the VFF.”
Details of the Compliance and Enforcement Review can be found at www.water.vic.gov.au/water-for-agriculture/taking-and-using-water/non-urban-water-compliance-and-enforcement-in-victoria*** break-outFIVE COMPLIANCE PRINCIPLES
1. Risk based: Meaning resources within a water corporation are used more efficiently by focusing more on on areas and entities where risks of compliance breaches are the greatest.
2. Responsiveness: Having a risk-based compliance strategy means that resources within a water corporation are used more efficiently by focusing more on areas and entities where risks of compliance breaches are the greatest.
3. Transparent: Transparency means a water corporation’s compliance and enforcement activities can be clearly seen by the public.
4. Accountability: Transparency and accountability are essential elements of successful compliance and generally considered the two main pillars of good corporate governance. They reinforce public confidence in the legitimacy and fairness of water sharing.
5. Consistency: Consistency in compliance and enforcement practices across Victoria means everyone is held to the same rules across different water corporation areas. This would help maintain fair access to water.
