ACCC issues advice on water trading rules
The Australian Competition and Consumer Commission today presented its advice to the Murray-Darling Basin Authority on the development of water trading rules.
The Water Act 2007 requires the MDBA to develop a Basin Plan for the sustainable and integrated management of water resources in the Murray-Darling Basin, including water trading rules. The MDBA has requested the ACCC's advice on the development of the water trading rules component of the Basin Plan.
The ACCC's advice sets out trading rule advice and recommendations on a range of matters relating to water trading. These matters include restrictions to trade, administrative processes and information requirements for a functional water market.
In preparing its advice, the ACCC has considered matters raised during stakeholder consultations as well as the Basin water market and trading objectives and principles. The ACCC's advice will assist the MDBA to develop Basin-wide water trading rules. These rules will form an important step in improving the efficiency of water markets across the Murray-Darling Basin.
The Act requires the MDBA to have regard to the advice of the ACCC when developing Basin Plan water trading rules. The MDBA will consider the ACCC's final advice and will undertake further consultation on the proposed Basin Plan as a whole (including water trading rules) during 2010-11.
The ACCC's final advice will be made public by the MDBA when it issues the proposed Basin Plan in mid-2010.