EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Agriculture, Fisheries and Forestry
Murray-Darling Basin Amendment Act 2003
Proclamation
The Murray-Darling Basin Amendment Act 2003 (the Act) received Royal Assent on 26 June 2003.
Item 2 of the table in subsection 2(1) of the Act provides that Schedule 1 to the Act will commence on a single day to be fixed by proclamation.
The purpose of the Proclamation is to fix 21 December 2005 as the day on which Schedule 1 to the Act commences.
The purpose of Schedule 1 of the Act is to amend the Murray-Darling Basin Act 1993 (the “Principal Act”) to approve and give effect to the Murray-Darling Basin Amending Agreement between the Commonwealth, New South Wales, Victoria and South Australia (“Amending Agreement”) to amend the Murray-Darling Basin Agreement (“Agreement”).
Complementary legislation to give effect to the Amending Agreement has been proclaimed by New South Wales and Victoria. However, the legislation is yet to be considered by the Parliament of South Australia.
In circumstances where Commonwealth legislation is mirrored by the States, the Commonwealth usually does not proclaim the legislation until all other contracting governments have done so, and this may be done on the same day. In the case of the Amending Agreement, the Commonwealth delayed proclamation in anticipation that South Australia would pass the equivalent legislation through its Parliament. However, as it was not clear when South Australia would do this, and given that the Agreement provides that any amendments to the Agreement should be submitted for the approval of the respective parliaments as soon as practicable after agreement is reached by the Murray‑Darling Basin Ministerial Council, the Commonwealth has proceeded with the proclamation.
Legal advice indicated that the Commonwealth may validly proclaim the Amending Agreement, even though it will not be effective as a compact between all the contracting governments until such time as South Australia proclaims the amendments into effect.
The Amending Agreement makes new arrangements for sharing water made available in the River Murray catchment above the Hume Dam by the Snowy Scheme, and provides for the management of environmental flows in the River Murray.
The original Agreement was made on 24 June 1992 between the Commonwealth, New South Wales, Victoria and South Australia. Its purpose is to promote and co-ordinate effective planning and management for the equitable, efficient and sustainable use of the water, land and environmental resources of the Murray-Darling Basin.
Broadly the Amending Agreement enabled in Schedule 1:
- removes references to the Snowy Mountains Hydro-electric Authority (whose functions were transferred to a new corporation on 28 June 2002) and the associated Snowy Mountains Agreement;
- amends Part XII of the Agreement to require the Murray-Darling Basin Commission to determine the respective allocations to New South Wales and Victoria of water from the Snowy Scheme in a manner set out in a new Schedule G;
- adds a new Schedule G to the Agreement to make arrangements for the sharing between New South Wales, Victoria and South Australia of water made available in the catchment of the River Murray above Hume Dam by the Snowy Scheme;
- protects Victoria's and South Australia’s rights to water from the River Murray if New South Wales fails to ensure either the release of environmental entitlements to the Snowy River or the required annual releases from the Snowy Scheme to the River Murray;
- enables the transfer of water savings and purchases to environmental entitlements for the Snowy River and the River Murray and makes reductions in the respective States’ long term Murray-Darling Basin diversion caps;
- requires the Murray-Darling Basin Ministerial Council to develop environmental objectives and a strategy for environmental water that will be made available to the River Murray as a result of the Snowy Water Inquiry, and requires the Murray-Darling Basin Commission to manage this environmental water in accordance with the strategy;
- requires governments to inform the Murray-Darling Basin Commission of proposals to achieve water savings or to purchase water entitlements for environmental entitlements; and
- establishes the necessary additional water accounting, notification, consultation and modelling mechanisms that will be the responsibility of the Murray-Darling Basin Commission.
The Proclamation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The Murray-Darling Basin Amendment Act 2003, proclaimed in 2005, was enacted to address the need for updating the Murray-Darling Basin Agreement of 1992 to reflect changes in the management and allocation of water resources within the basin, particularly concerning the Snowy Scheme. This Act was introduced by the Commonwealth Parliament to align the legislative framework with the Murray-Darling Basin Amending Agreement, which was reached by the Murray-Darling Basin Ministerial Council. The primary policy objective of the Act is to facilitate more equitable and sustainable management of water resources in the Murray-Darling Basin, with a focus on environmental flows and the efficient use of water from the Snowy Scheme. The Act amends the Murray-Darling Basin Act 1993 to incorporate the new arrangements for water sharing and environmental management as agreed upon by the Commonwealth, New South Wales, Victoria, and South Australia, although the latter state has not yet enacted its corresponding legislation.
Scope and Application
The Murray-Darling Basin Amendment Act 2003 applies to the Murray-Darling Basin region, which spans across the Commonwealth and the states of New South Wales, Victoria, and South Australia. This Act serves to amend the Murray-Darling Basin Act 1993 by implementing the Murray-Darling Basin Amending Agreement, which was reached between these jurisdictions to refine the original Murray-Darling Basin Agreement signed in 1992. The agreement aims to ensure the equitable, efficient, and sustainable use of the Basin's water, land, and environmental resources. The Act specifically addresses the sharing of water from the Snowy Scheme in the River Murray catchment above Hume Dam, and the management of environmental flows in the River Murray. It removes outdated references to the Snowy Mountains Hydro-electric Authority and the Snowy Mountains Agreement, and introduces new provisions for water allocation and environmental management. The Act also mandates the development of environmental objectives and strategies for managing water saved from the Snowy River and the River Murray. While the Commonwealth has proclaimed this Act, its full effect as a compact between all contracting governments will only be realised once South Australia enacts the corresponding legislation.
Key Provisions
The Murray-Darling Basin Amendment Act 2003, specifically through Schedule 1, amends the Murray-Darling Basin Act 1993 to give effect to the Murray-Darling Basin Amending Agreement. This Agreement modifies the original Murray-Darling Basin Agreement, which was established to facilitate the equitable, efficient, and sustainable use of water, land, and environmental resources in the Murray-Darling Basin. The key amendments introduced by Schedule 1 include the removal of references to the Snowy Mountains Hydro-electric Authority and the Snowy Mountains Agreement, which were superseded by the transfer of functions to a new corporation on 28 June 2002. Additionally, the amendments mandate the Murray-Darling Basin Commission to determine allocations of Snowy Scheme water between New South Wales and Victoria, as detailed in a new Schedule G. This Schedule also outlines the arrangements for sharing water from the River Murray catchment above Hume Dam among New South Wales, Victoria, and South Australia.
The Murray-Darling Basin Amendment Act 2003 imposes several obligations on the parties involved, particularly the Murray-Darling Basin Commission and the governments of New South Wales, Victoria, and South Australia. The Murray-Darling Basin Commission is tasked with determining water allocations, managing environmental water in accordance with the environmental objectives and strategies set by the Murray-Darling Basin Ministerial Council, and ensuring that governments notify the Commission of proposals to achieve water savings or purchase water entitlements for environmental purposes. The governments, on the other hand, must inform the Murray-Darling Basin Commission of their intentions to save water or purchase entitlements for environmental purposes, thereby facilitating the implementation of the environmental objectives established by the Ministerial Council.
Breach of the obligations and requirements set forth by the Murray-Darling Basin Amendment Act 2003 may have civil or criminal consequences, although specific penalties are not detailed within the Act itself. The enforcement of these provisions would likely depend on the terms of the original Murray-Darling Basin Act 1993 or other relevant legislation. The Murray-Darling Basin Commission has the authority to take action against parties that fail to comply with their obligations, potentially leading to legal proceedings. The severity of penalties or consequences would depend on the specific nature of the breach and the discretion of the courts or administrative bodies involved in resolving such disputes.