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Managing the MDB in C21 Prof. Mike Young Research Chair, Water Economics & Management School of Earth and Environmental Sciences The University of Adelaide Friday 21 st December 2006

Managing the MDB in C21

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Managing the MDB in C21. Prof. Mike Young Research Chair, Water Economics & Management School of Earth and Environmental Sciences The University of Adelaide Friday 21 st December 2006. Less rain means much less water!. Sydney. River Murray Inflow. 5400 GL/yr. 6300 GL/yr. - PowerPoint PPT Presentation

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Page 1: Managing the MDB in C21

Managing the MDB in C21

Prof. Mike Young

Research Chair, Water Economics & ManagementSchool of Earth and Environmental SciencesThe University of Adelaide

Friday 21st December 2006

Page 2: Managing the MDB in C21

2

Less rain means much less water!

Page 3: Managing the MDB in C21

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Ra

infa

ll (

mm

)

14% less 20% less

Rainfall for Jarrahdale

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Str

ea

mfl

ow

(G

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N o te s : S tre a m flo w is fro m Ma y o f la b e lle d ye a r to th e fo l lo w in g Ap ri l

48% less

66% less

S tre a m in flo w fo r P e rth d a m s (P rio r to S tirlin g D a m )

PERTH

Page 4: Managing the MDB in C21

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Warragamba + 3 Nepean Dams (Inflows & annual rainfall)

0

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1910 1915 1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

Year

Inflo

w GL

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Rain

fall

(mm

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892 GL pa

2,027 GL pa

572 GL pa

780 mm pa 907 mm pa 681 mm pa

Sydney

Page 5: Managing the MDB in C21

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5400 GL/yr

6300 GL/yr

River Murray Inflow

Source: MDBC 2006 & Craik 2005

Page 6: Managing the MDB in C21

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River Murray Inflows GL

Average infl ow 2006

% of previous

record

july 920 154 GL in 1967 130 84%

august 1360 125 GL in 1902-03 120 96%

sept 1558 178 GL in 1902 112 63%

oct 1100 139 GL in 1914 74 53%

Previous lowest monthly

infl ow bef ore 2006

Page 7: Managing the MDB in C21

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Flow reduction in the MDB!

0GL 1,200GL 2,400GL 3,600GL0GL 1,200GL 2,400GL 3,600GL

500 GL = one step forward while taking four steps back

Page 8: Managing the MDB in C21

8Source: Goode 2006

Page 9: Managing the MDB in C21

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InfrastructureInfrastructure

Flow management/manipulation

GovernanceGovernance

Allocation Allocation policiespolicies

Land Land Management Management

& & improved improved irrigation irrigation practicespractices

Water recoveryWater recovery Water trade Water trade policiespolicies Dynamic Cap Dynamic Cap

on diversionson diversions

Potential Solutions

Source: After Goode 2006

Page 10: Managing the MDB in C21

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Governance options

1. State v’s State

2. Managing the System as one

Page 11: Managing the MDB in C21

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Governance levels

National Trading protocols

Pricing and charging principles

Register guidelines

Sharing objectives and principles

Basin Actual registers

Water allocation

System scale management

Catchment Development and land-use control

Page 12: Managing the MDB in C21

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Charter and Objectives

Charter Manage the MDB as a single system

Objectives Outcome focused

Few in number

Page 13: Managing the MDB in C21

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Governance Option

Options Select Committee – Independent Commissioners

Droplet – A new body

Concepts Independent management with strong accountability to

community and parliaments

Skill based members

Appointed by a Ministerial Council to provide coverage of full skill set

Funded via an independent revenue source

Page 14: Managing the MDB in C21

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Responsibility and accountability

Possible minimum set

1. Merged entitlement register

2. All allocation announcements

3. Allocation accounts

4. All trading rules

5. Water sharing rules

• Environment v’s consumptive use

6. Infrastructure maintenance

Page 15: Managing the MDB in C21

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Process accountability

•Water accounts audited annually

•Ministerial instructions only from the entire Ministerial Council and only in writing

Page 16: Managing the MDB in C21

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Integrated Infrastructure Management?

Snowy System

NSW & ACTSystems

Victorian Systems

A Joint Government Enterprise?

Page 17: Managing the MDB in C21

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A way forward

Community consideration Do you want change?

Is the Status Quo an option?

Engagement of governance experts Already happening

A public inquiry? Who would Commission?

COAG?

First Ministers?

Page 18: Managing the MDB in C21

Is MDB Governance right for C21?

Contact:

Prof Mike YoungWater Economics and ManagementEmail: [email protected]: +61-8-8303.5279Mobile: +61-408-488.538