Published name
Confirm that you have read and understand this declaration.
If individual, do you identify as an Aboriginal or Torress Strait Islander?
To start, we'd like your views on water management in Australia.
Question 1:
Having agreed national objectives, outcomes and principles on water is important for managing Australia’s water resources.
Question 2:
Is there anything you would add, change or remove in the principles that deal with climate change? Please give a reason for your response.
No
Question 3:
Is there anything you would like to add, change or remove in the principles that deal with urban water reform? Please give a reason for your response.
Draft principles - water service provision
Add a principle for funding of services. This is not covered or in necessary detail in objective 2. a major deficiency in the strategic approach water sector. Reference is made to the NSW Productivity Commissioner final report in the LWU funding models. https://www.productivity.nsw.gov.au/sites/default/files/2024-07/20240725-review-of-funding-model-for-local-water-utilities-final-report.pdf
suggest principle "funding for water services includes range of customer revenue, debt funding and grants assistance, supported by transparent community service obligation payments for structural or transitional support where necessary"
Add a principle Provide broader definition for community service obligation payments and their possible uses. Refer Ch7 of the NSW Productivity Commission LWU Funding Model Report
suggest additional principle after 1.18 = " transparent community service obligation subsidies are to provide cost-effective targeted method to improve and/or maintain service levels. These subsidies can either be for structural long-term funding, to enable transitional pricing to achieve cost recovery or to support debt financing for capital projects"
Add a specific principle to overtly support water utilities using either asset depreciation method specified in section 1.5 of the NWI pricing principles, namely the annuity approach or the regulated asset base (RAB or straight line) depreciation approach.
The RAB approach is regressive often discourages maintenance or replacement in small or rural water utilities
suggest principle before 1.19 " water systems are to comply with capital expenditure recovery principles and may use either the annuity or regulated asset base approach for calculating asset depreciation"
Question 4:
Is there anything you would add, change or remove in the principles that deal with science, knowledge and partnerships? Please give a reason for your response.
no
Question 5:
Considering the draft principles as a whole, do you agree the draft principles are sufficient to support the achievement of the outcomes and objectives?
Question 6:
With regard to the principles, are there any gaps or changes required?
refer to my answer to question 3 on urban water reform
for objective 2 - "investment in major water infrastructure that is effective, strategic and transparent"
more detail is required in principle 2.3 on project funding as it too limited in its current form and limits infrastructure planning
suggest "infrastructure funding can be from either customer revenue, debt funding or grants assistance, supported by transparent community service obligation payments where necessary"
Question 8:
Overall, the principles will be helpful in achieving the objectives of a new national agreement on water and enable better management of Australia’s water resources
Would you like to upload a written submission?
