Chapter 2

Issues for Consideration

National Water Commission Amendment Bill 2012

1.1        On 14 March 2012, the Commonwealth government tabled the Rosalky review report in Parliament and announced that the NWC would be continued, in accordance with a number of the recommendations made in the review.[1]

After considering Dr Rosalky’s Review, the Government has determined that the NWC should continue for the life of the National Water Initiative with core ongoing functions of audit, monitoring and assessment. This will ensure the NWC can give priority to its valuable role as a credible, specialist and independent agency supporting national water reforms. [2]

1.2        Under proposed amendments, the NWC would continue to audit and evaluate implementation of the Murray-Darling Basin Plan, and monitor and assess water reform and progress with the NWI.[3] However it will refocus the role of the NWC to provide independent assurance of all governments' progress on water reform while continuing its role of monitoring, audit and assessment.[4]

1.3        Specifically, clause 6 of the bill sets out the proposed functions of the NWC:

(a) if requested by COAG, to carry out audits to determine:

(i) whether parties to the NWI are implementing their commitments under the NWI, or any other agreement between the Commonwealth and a State or Territory, in relation to the parties’ management and regulation of their water resources; and

(ii) the effectiveness of that implementation;

(b) every 3 years:

(i) to assess the progress of parties to the NWI towards achieving the objectives and outcomes of, and within the timelines required by, the NWI; and

(ii) to advise COAG of those assessments; and

(iii) to advise and make recommendations to COAG on actions that the parties might take to better achieve those objectives and outcomes;

(c) to conduct any other assessments in relation to matters relating to:

(i) the NWI; or

(ii) any other agreement between the Commonwealth and a State or Territory, but only if that other agreement provides for the NWC to have this function;

(iii) particularly in relation to matters that are significant for achieving the objectives and outcomes of the NWI;

(d) to monitor areas that are significant for achieving the objectives and outcomes of the NWI;

(e) to assist with the implementation of the NWI by providing information and guidance in relation to the functions mentioned in paragraphs (a) to (d), and to undertake activities that promote the objectives and outcomes of the NWI;

(f) if requested to do so by the Minister, to advise and make recommendations to the Commonwealth in relation to the functions mentioned in paragraphs (a) to (d);

(g) if requested to do so by the Minister, to advise and make recommendations to the Minister in relation to any Commonwealth program that relates to the management and regulation of Australia’s water resources;

(h) to advise COAG on whether a State or Territory is implementing its commitments under any agreement (other than the NWI) between the Commonwealth and the State or Territory relating to the management and regulation of Australia’s water resources, but only if the agreement provides for the NWC to have this function;

(i) if requested by COAG, to conduct any study or analysis, or to provide any report, in relation to:

(i) matters of national significance relating to water (including the sustainable management of water resources and access to, and use of, water); or

(ii) the COAG Water Reform Framework;

(j) any other function conferred by another law of the Commonwealth or prescribed by the regulations.

1.4        Other amendments proposed under the bill will:

• reduce the number of Commissioners from seven to five (which was not recommended by the Rosalky review);
• close the Australian Water Fund (AWF) Account and remove the NWC’s ability to administer any AWF funds;[5]
• provide for a review of the NWC’s performance by the end of 2017, with further reviews every five years.

1.5        The Raising National Water Standards Program, which has been administered by the NWC, will end in 2012. However, the NWC Amendment bill provides for the NWC to administer any future program funds that may be allocated to it.

Issues raised in submissions

1.6        The committee received seven submissions. Submitters expressed broad support for the continuation of the NWC and its monitoring and oversight role.[6] The Australian Water Association stated that the implementation of the NWI has been greatly enhanced by the NWC’s existence, identifying its independence as a key strength.[7] It noted other successes of the NWC: promotion of water standards, development of a National Water Sector Training Strategy, advocacy which stimulates the development of water markets, commissioning a Community of Practice for Environmental Water Managers to help these managers better carry out their functions, and supporting water reform generally through identifying targeted reforms.[8]

1.7        GE Energy regarded the proposed role for the NWC to be able to, at the request of COAG, conduct relevant studies and analysis on water issues as significant.[9] GE Energy recommended that one issue worthy of referral under this proposed function is access to water supply and wastewater services to Indigenous communities. [10]

1.8        The National Farmers’ Federation, the Water Services Association of Australia and the Australian Water Association all expressed concern about the level of funding available to the NWC to conduct its functions in a timely way.[11]

1.9        The CSIRO advocated a strong role for the NWC in knowledge brokerage, and in particular, the development and oversight of a national water science strategy to support the water reform process. The CSIRO would like to see knowledge brokerage as one of the express functions of the NWC:

A knowledge brokerage role for the NWC is not inconsistent with the breadth of the proposed subsections [7(1)(b)(iii), 7(1)(e), (g) and (i)] in the NWC Amendment Bill 2012. However, greater clarity and importance would be given to this role for the NWC if “knowledge brokerage” were to be included as a core function of the NWC in the Bill, in particular as it relates to the other core functions of the NWC.[12]

1.10      In its answer to a question on notice, the Department of Sustainability, Environment, Water, Population and Communities (the department) noted that knowledge brokerage is an important issue for governments:

The Standing Council on Environment and Water is expected to consider this year a National Water Knowledge and Research Platform which will include mechanisms for the improved coordination of water-related research.[13]

1.11      GE Energy applauded the proposed additional requirement in the bill for audits or assessments completed by the NWC under proposed sections 7(1)(a), 7(1)(b) and 7(1)(c) to be made publicly available and recommended that this requirement should be extended to proposed section (7)(1)(i).[14]

1.12      The committee understands that the current NWC Act 2004 provides for the Commission to make documents publicly available with the Minister's agreement and that this existing provision could be used in relation to documents prepared under proposed section (7)(1)(i).

1.13      The South Australian government expressed concern that the role of the NWC in evaluating the Murray-Darling Basin Plan is not clear. It also expressed concern that the role of the NWC in evaluating the Commonwealth’s management of environmental water is not clear, and suggested that there should be specific provisions in the Bill to allow COAG to request this.[15]

1.14      The South Australian government suggested that the NWC should be required to submit its plan of work and activities to COAG water committees on an annual basis.[16]

1.15      In response to the issues raised by the South Australian government, the department noted that Part 3 of the Water Act 2007 requires the NWC to complete audits of the effectiveness of the implementation of the Basin Plan at least every five years, and to provide a report of its audit to the minister, relevant state ministers and the Murray-Darling Basin Authority.[17]

1.16      The department further noted that the responsibility to confer the audit function on the NWC are reproduced in section 7(1)(f) of the bill.[18]

1.17      In response to the South Australian government's suggestion that the NWC submit annual plans of work and activities to COAG, the department remarked:

As stated in the second reading speech, it is envisaged that the NWC will formally engage with Council of Australian Governments (COAG) subcommittees on at least an annual basis, including regular advice on its activities. Reporting and consultation will be handled through normal COAG processes. The Department does not consider it necessary to make this a legislative requirement.[19]

Committee comment

1.18      The committee is pleased that submitters have given support to the continuation of the National Water Commission and its monitoring and oversight role. The committee believes that the NWC provides an important function in relation to water management in Australia. Accordingly, the committee recommends that the bill be passed before 30 June 2012.

Recommendation 1

1.19      The committee recommends that the bill be passed before 30 June 2012.

 

Senator Doug Cameron
Chair

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