Proposed Basin Plan consultation report

Chapter 3: Water resource plan areas and water accounting periods

Chapter 3 of the proposed Basin Plan identifies water resource plan areas and the water accounting periods for each area.

4.Issue

The need for new water resource plan areas, differing from state planning boundaries, to be established under the proposed Basin Plan was questioned.

Submitters raised concerns that the aggregation of state water planning areas into larger planning areas would disadvantage some valleys. It was suggested that separate water resource plan areas should be created for some sub-catchments.

Response

MDBA is required by the Act to establish water resource plan (WRP) areas under the Basin Plan. Where possible, these WRP areas are aligned with existing state water planning areas. In some cases, however, existing boundaries have been varied: for example, to include water resources not currently covered by state water planning areas; or as a result of consultation with Basin states.

In deciding upon the number of WRP areas across the Basin, MDBA balanced the need for a consistent approach across the Basin at an appropriate level of detail with the approach taken by each state to developing water resource plans. For example, in New South Wales, nine surface water WRP areas have been chosen to encompass the areas covered by some 28 existing and proposed surface-water-related water sharing plans. This number of WRP areas is considered adequate for establishing Sustainable Diversion Limits (SDLs) at an appropriate level of detail across the Basin.

The intent of the Basin Plan is to establish a plan for the Basin as a whole and to set a framework within which states will continue to develop the detailed arrangements through their ongoing water planning and management roles.

Some small changes have been made to this chapter to better align with states planning processes. In relation to groundwater in NSW, a change has been made to groundwater water resource plan boundaries in the north-west of the state. As a result what were two NSW water resource plan areas will be replaced with a single area. In South Australia, the surface water of the main stem of the River Murray is now identified as a separate water resource plan area.
5.Issue

Submitters raised concerns that the adopted accounting period would limit the ability to use environmental entitlements flexibly across multiple accounting periods.

Response

MDBA agrees that the ability to be flexible when using any entitlements, including environmental entitlements, is desirable so as to achieve the most benefit. The definition of the accounting period does not place any restrictions on existing arrangements such as carry-over, which allow a degree of flexibility as to when allocations are used.

Chapter 4: The Identification and management of risks to Basin water resources

Chapter 4 of the proposed Basin Plan identifies the risks to the condition or continued availability of Basin water resources, and sets out strategies to be used to manage or address those risks. The chapter also allows MDBA to publish guidelines setting out specific actions that may be taken in relation to the implementation of the strategies. Water resource plans must be prepared having regard to the risks set out in this chapter, and any guidelines made by MDBA about risk assessment and identification.

6.Issue

Submissions expressed concern that the proposed Basin Plan’s strategies to manage risks were too broad or inadequate.

Response

The risk assessment framework in chapter 4 details the risks to the Basin’s water resources and provides management strategies to mitigate these risks. The strategies to manage risks are considered to be fit for purpose, providing a framework within the legislative instrument on which risks can be flexibly managed and allowing for the adaptive management of risks over time. Water resource plans for individual water resource areas, prepared by Basin states, must have regard to these risks, and any subsequent guidelines prepared by MDBA.

7.Issue

Submissions mentioned that more stakeholder consultation about the risk assessment frameworks would be required in the future.

Response

MDBA consulted widely in the development of an appropriate risk management and mitigation strategy for inclusion in the proposed Basin Plan. This included consultation with expertise from Basin states regarding the approach, risks and strategies to be included within chapter 4. The risk assessment framework is compliant with the Australian Standard (AS/NZS ISO 31000:2009).

Should further detail be required in the future regarding specific risks, MDBA will develop guidelines in consultation with Basin states and communities. Opportunities will also arise for further stakeholder consultation during the development of individual water resource plans undertaken by Basin states.

8.Issue

Submissions expressed concerns about who would pay for implementing risk management strategies.

Response

Chapter 4 is not intended to impose obligations or costs on particular parties, but rather to identify potential areas of future activity by MDBA or Basin states with regard to the identified risks and associated management strategies. Actions to this end by MDBA will be subject to the normal funding decisions of the Australian Government. In relation to Basin states, this chapter provides guidance as to the risk assessment approaches they may wish to undertake; any decision to fund such actions is a matter for each state.

9.Issue

It was submitted that risk assessment provisions in the proposed Basin Plan did not go far enough, did not adequately describe or assess risks, or did not express risk management strategies in sufficient detail. Some suggested the proposed Basin Plan did not consider the financial and social risks associated with the implementation of the Plan, and some suggested that the risk strategies were too concerned with risks to the environment rather than risks to consumptive water users.

‘Financial and social risks need to be considered as they will impact on the continued availability of basin water resources.’

Response

In drafting the proposed Basin Plan, MDBA carefully considered the range of potential consequences that could result from implementing the Plan. Chapter 4 of the proposed Basin Plan was drafted not only to identify these risks, but also to provide strategies under which these risks would be managed. Chapter 4 is considered to be fit for purpose, providing flexibility and the opportunity for adaptive management while ensuring sufficient detail is captured within the legislative instrument.

MDBA might in future develop guidelines in relation to specific risks, in consultation with Basin States and communities. Water Resource Plans, prepared by Basin states, must have regard to chapter 4 and any subsequent guidelines. Water resource plans must identify the risks to water resources in that water resource area and provide appropriate strategies to address them.

Risks associated with potential financial and social consequences of the proposed Basin Plan are included within section 4.02(2).

10.Issue

Submissions queried how risk management strategies would be implemented and how the performance of the strategies would be assessed. Submissions referred to the guidelines for implementing risk strategies mentioned in chapter 4.

Response

Chapter 4 of the proposed Basin Plan identifies risks to the Basin’s water resources and suggests strategies to manage those risks. Basin states should have regard to these risks and management strategies when preparing water resource plans, however the chapter is not intended to impose obligations on other parties. MDBA will be responsible for the performance and assessment of these risk management strategies. Consideration of this work will influence any future amendment to the Basin Plan. MDBA might in the future publish guidelines to help states in managing risks to water resources. Such guidelines would be intended as supporting materials only, and states would not be assessed against them. They would be prepared in consultation with the states.