Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


‘Water Trading’ Next Step for New Zealand?

28 September 2005

‘Water Trading’ Next Step for New Zealand NZ Ignores Overseas Lessons at its Cost

Despite New Zealand’s seemingly abundant supply of fresh water, conflict over water use and access will inevitably lead to a need for a viable water trading scheme. That’s the view of Nick Morris, head of Australia’s largest economic consultancy, ACIL Tasman Ltd Pty, and a former lead adviser to the United Kingdom’s 1980s water privatisation programmes.

Speaking at the New Zealand Water and Wastes Association EnviroNZ05- Water Matters conference in Auckland today, Mr Morris says experience from around the world shows that well established, nationally consistent, water trading schemes have the potential to create major benefits both from an economic as well as an environmental perspective.

“The prime rationale behind any water market is to make more efficient use of what is a limited resource,” says Mr Morris.

“In Australia, where water trading has existed since 1994, there is ample evidence to show that this has occurred with the state of New South Wales alone benefiting by an estimated $60 to $100 million per annum because of water trading,” he says.

This is because water trading effectively moves water usage away from lower value uses such as sheep and cattle grazing to higher value uses such as permanent pasture irrigation and horticulture.

Mr Morris says that the Australian experience also points to environmental benefits – but only if adequate allocations for environmental uses are made by regulators prior to trading for other uses.

“There was initial scepticism from environmental groups about trading water as a commodity but it is now generally accepted that the system leads to lower water cost and a greater allocation for the environment,” he says.

“New Zealand has a major opportunity to learn from the Australian experience – which is generally accepted as being a world-leading model for water trading.

“Other systems such as those existing in Chile and California are either seen as over regulated or too open to influence from market forces.”

Mr Morris says the reforms necessary to create a viable water trading scheme require a fundamental paradigm shift from an engineering, supply-side and central allocation approach to one that uses pricing signals to assist with the efficient and sustainable allocation of water.

“While water reforms in other countries have by no means been perfect, and many issues remain to be tackled, for New Zealand to ignore lessons learned when developing its own water policy will come at significant cost,” says Mr Morris.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>

ALSO:

Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>

ALSO:

Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>

ALSO:

General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Gordon Campbell: On Our Posturing At The UN

In New York, Key basically took an old May 2 Washington Post article written by Barack Obama, recycled it back to the Americans, and still scored headlines here at home… We’ve had a double serving of this kind of comfort food. More>>

ALSO:

Treaty Settlements: Bills Delayed As NZ First Pulls Support

Ngāruahine, Te Atiawa and Taranaki are reeling today as they learnt that the third and final readings of each Iwi’s Historical Treaty Settlement Bills scheduled for this Friday, have been put in jeopardy by the actions of NZ First. More>>

ALSO:

Gordon Campbell: On The Damage De-Regulation Is Doing To Fisheries And Education, Plus Kate Tempest

Our faith in the benign workings of the market – and of the light-handed regulation that goes with it – has had a body count. Back in 1992, the free market friendly Health Safety and Employment Act gutted the labour inspectorate and turned forestry, mining and other workplace sites into death traps, long before the Pike River disaster. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news