THE Federal Government will not step in and override the auction of new water licences in the Great Artesian Basin, and says it is comfortable that some of the savings made by farmers will be sold by the NSW Government.
This is despite the fact that there are also farmers on the NSW/Queensland border adjusting to a recent decision to slash 66 per cent in their GAB water entitlements, with no compensation or structural adjustment.
Those farmers, from Croppa Creek (between Goondiwindi and Moree) argue it is "offensive" the NSW Government could strip them of their water use, while auction off water savings just a couple of hours' drive south.
Federal Parliamentary Secretary for Water, Mike Kelly, conceded there was a lot still not known about groundwater and artesian water.
He said what is known is that water pressure was a good indicator of the basin's health and recharge.
While the Great Artesian Basin is one of the most ancient underground water sources in the world and can take up to two million years to recharge, Dr Kelly said it was "obvious" the floods in Queensland would have some effect on recharging the basin and helping to maintain pressure.
He said the NSW auction relates to the water that has been saved.
He said no government was "dipping into the water" that exists there already.
"We (the Federal Government) require 50 per cent of the savings to be used for the environmental maintenance of the basin, to go towards keeping that pressure," Dr Kelly said.
"What we then say to NSW under the arrangement is they're at liberty to dispose of, dictate, regulate the remainder of those savings.
"In NSW their plan is to auction 30 per cent of those savings. Effectively we’ve got 70 per cent dedicated to the basin under the plan."
Dr Kelly asked "what's your problem" when it was pointed out many farmers had gone to considerable expense to cap and pipe bores to save that water.
He said this first auction is just 2.5pc of the water saved and the proceeds would be reinvested in the Great Artesian Basin cap and pipe the bore scheme.
He said in the case of farmers and other users who have capped their bores at entirely their own expense and without Government assistance, 50 per cent of the water saved could be used exclusively by that farmer.
"In relation to any efficiency savings, 50 per cent of what they save has to go into environmental maintenance – they're free to trade that other 50 per cent or deal with it as they like," he said.
"If they're self-funding they're only required to dedicate 50 per cent of the savings to the environmental maintenance and can deal with the rest as they like. The extra savings they are making they can use."
Dr Kelly would not acknowledge the impracticalities of that scenario in the Great Artesian Basin, or the fact there is no trading regime in place in the GAB, with farmers reporting they use a miniscule amount of water for stock and domestic purposes compared to their previous consumption from the old free-flowing bores.
Dr Kelly said there was no scientific basis for him to step in and override the sale.
"That's the advice that we have from the experts and the Department, but if we're seeing 70 per cent of the savings going towards the environment then I'm personally comfortable with that.
"The bottom line is we've set this parameter so that's leaving aside 50 per cent of whatever water is in there.
"The other 50 per cent is up to the State to determine what it will do with it.
"With the understanding that if we're maintaining the health of the basin, and we're making all these other savings, then it's a good idea to actually use the water," Dr Kelly said.
Email a friend