Robbie Katter getting to the bottom of processes put in place to assess impact of water use on potential downstream users.
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00:00 Thank you.
00:01 Thank you.
00:02 Minister, with reference to the competitive tender process for water rights along the
00:06 Flinders River, will the minister explain the absence of a compulsory arbitration figure
00:14 for the downstream water user agreements, which applies to the impossible, as I would
00:21 view it, tolerance threshold that priorities placement of the river over price?
00:27 I thank the member for the question.
00:29 I'm not sure if I made that clear.
00:32 What I'm saying is there's an impossible threshold of 0.1 per cent for everyone downstream.
00:38 So you need to ask everyone downstream to say that we don't feel you don't impact us.
00:45 When I know that HIPCO has tried to negotiate and they've said no, because there's clearly
00:51 their own interest in there to say no, because then if there's water left over, they get
00:55 it.
00:57 And there's no trigger for that.
00:58 And I don't think any dam in Australia would have been built on that same basis.
01:04 I thank the member for the backup of the question.
01:07 As the member knows, we're currently going through the tender process.
01:11 And as the rules are set for that, that tender process, that is the department's way that
01:19 they've done that process at this point in time.
01:21 So whoever's in line for the tender process will have to abide by the department's guidelines
01:27 as far as that process goes.
01:30 I think it's when the tender came out that was quite clear in the detail of any projects
01:38 that are moving forward at that stage during the process period.
01:42 But I can hand over to the acting director general to give you a little bit more info
01:46 on that, if that's all right.
01:50 Thank you.
01:56 On the 30th of November, 2021, the department commenced a release by competitive tender
02:02 for 110,000 megalitres of water from the Flinders River General Reserve.
02:07 The release is still underway.
02:10 The process for the tender, it's a market-based tender with a confidential reserve price is
02:15 being used because interest in water for new agricultural proposals was known to exceed
02:20 the remaining volumes available in the catchment.
02:24 Using a competitive process protects existing investment decisions while ensuring water
02:29 goes to its highest value use.
02:32 The tender process was broken down into three stages to enable flexibility while ensuring
02:38 only projects that could deliver on the purpose of the release will proceed.
02:42 The staged approach distinguishes itself from previous water tenders by allowing only projects
02:47 that demonstrate a clear water usage plan to advance to the next stage.
02:52 It uses features such as computer modelling, eligibility criteria and a call options deed
02:57 with conditions which ensures any water sold will be used.
03:01 The assessment considers the project against criteria which protect environmental, social,
03:06 economic and cultural outcomes, as well as the reliability of existing entitlements stated
03:12 under the Gulf Water Plan.
03:15 This framework ensures the release of an allocated water remains competitive and aligns with
03:20 water plans and that's why a structured process is so important.
03:26 I'm happy with that.
03:27 I'm aware of all that.
03:32 What I was getting at was a trigger to what I see as impossible conditions for anyone
03:37 upstream like Flinders Shire that's facing a 20% population decline.
03:43 The conditions for them are the tolerance at 0.1% of non-effect, which as you're outlining
03:48 there, do you not see that as an almost impossible barrier for them to ever comply with?
03:55 All water projects, including the ones that are underway, for example, Rookwood Weir at
03:59 the moment, they have to build those projects so that they don't impact downstream existing
04:06 water entitlement holders.
04:08 That's what compliance with the water plan means.
04:13 If there was an irrational type downstream user that would flat out refuse and you need
04:20 100% compliance, then that dam that could help supply to hundreds of people would never
04:27 go ahead because then we'd never build a road or a bridge in Australia if you can't impact
04:32 on someone else in the process.
04:36 It's a process that's occurring up in that particular catchment because of the way the
04:41 river behaves, where it's dry a big period of time and then has flood events.
04:48 Can I move on then?
04:53 Would you consider amending the thresholds of the tender so that there's some chance
05:01 of an outcome?
05:02 Because at 5% it's tolerable, but at 0.1% it seems like ridiculously small tolerance
05:12 that I'm sure would be unprecedented for impact on downstream users.
05:18 When somebody has a water entitlement, so a water licence or a water allocation, it's
05:24 like a property right.
05:26 You've got pretty much a guarantee for that water.
05:29 Like someone in a compulsory road acquisition or anything.
05:32 So to do what you're suggesting erodes away that water right.
05:37 In which case you have compulsory arbitration through a compensation agreement.
05:41 And that's what I'm getting at.
05:42 Is there any trigger in your process?
05:45 Because otherwise they have all the bargaining power downstream.
05:49 We don't have a trigger in our process.
05:51 The National Water Initiative...
05:52 That answers the question.
05:53 I think that's a flaw in the process.
05:54 So when we're talking about the entitlements and the measurements, is the minister confident
06:00 of the information that you're getting on the flow stream records?
06:03 Thanks, Member, for the question.
06:06 I have all faith in the department and what they do with the water tender process.
06:11 As the Acting Director-General just said, it is a very competitive tender process.
06:17 That tender process is still in play.
06:20 And the people doing in the department, or they're doing the assessment of that, do it
06:25 internally.
06:26 So I have no record or no idea of what that is that you're talking about.
06:32 Because it is a competitive tender done by the department, not by me.
06:35 I'm not so much reflecting on the tender process now.
06:38 I'm talking about the data that everyone so critically relies on to calibrate this.
06:44 So we're only talking about 3% water.
06:47 The water's only been taken out at the moment anyway, of the entire average annual flow.
06:51 But when we're talking about average annual flow, the 2019 floods, for instance, there's
06:56 reports that flume-strain records have been reported to councils that didn't know that
07:01 to pass it on.
07:02 There's in the source model, that's the water modelling basis, there's been licences allocated
07:07 in the wrong position, that are in the wrong position when they're doing the modelling.
07:11 Look, it was probably a rhetorical question, there seems to be flaws in it.
07:17 Is the minister aware that there are a number of flaws and limitations in that, and busted
07:23 flow metres that aren't working for, you know, and given the size of like 2019 floods, which
07:30 impacts on the average annual flow and any other future, especially out of the ROP, is
07:34 the minister concerned of some of these irregularities and, you know, busted flow metres non-reporting?
07:40 I thank the member for the question.
07:42 Certainly, I'm not aware of busted flow metres or any misreporting to me, unless the department
07:49 certainly might have some of that detail and that information.
07:54 What I can say is that there is an opportunity coming up in relation to the Flinders water
07:59 plan that we may be looking to do that review shortly.
08:04 And obviously the opportunity for allocating more water can be part of that process.
08:10 People have their say on the demand that they're looking for as part of opening up a water
08:14 plan to make sure that even the small players, which I know you're passionate about, small
08:19 irrigators in the region have an opportunity to apply as part of that process under the
08:23 water plan and to certainly get that water if they need it into the future.
08:28 So at some point in time in the near future, we'll be looking to open that water plan as
08:34 we're doing right across the state for different water plans at the moment.
08:38 And certainly those people that you're talking about may have opportunity for extra water
08:43 if they want to apply for it at that time.
08:45 So would the minister's advice be then, if under this tender process, given that there's
08:56 downstream users that are competing in the tender that will benefit from HIPCO falling
09:00 over and then having access, would the minister advise HIPCO that it's pointless pursuing
09:10 the tender any further, given they need 100 per cent compliance of downwater users?
09:16 I thank the member for the question.
09:19 And as I said before, I'm not aware of people who are still in the tender process.
09:24 It's a departmental process.
09:26 I'm not aware of which companies are still in it or which projects are still in it.
09:32 And it wouldn't be good for me to start to dig in and start to look at those type of
09:37 things inside that tender process.