Hansard debates

                   WATER AMENDMENT (WATER TRADING) BILL 2014
Statement of compatibility
Mr WALSH  (Minister  for Water)  tabled  following statement in  accordance with
Charter of Human Rights and Responsibilities Act 2006:
  In  accordance  with  section   28  of  the  Charter   of  Human  Rights   and
  Responsibilities Act  2006  (the 'charter  act'),  I make  this  statement  of
  compatibility with respect to the Water Amendment (Water Trading) Bill 2014.
  In my opinion, the Water Amendment (Water Trading) Bill 2014, as introduced to
  the Legislative Assembly, is compatible  with  human  rights as set out in the
  charter act. I base my opinion on the reasons outlined in this statement.

  Overview of bill
  The  bill amends the Water Act 1989 (the  Water  Act)  to  promote  Victoria's
  compliance with certain  requirements of the water  trading rules set  out  in
  chapter 12 of the Murray-Darling Basin  plan.  It  will  do  this  by removing
  limitations  in  relation  to the classes of persons to whom an allocation  of
  water under water shares, bulk entitlements and environmental entitlements may
  be  assigned,  and to whom  a  limited term transfer of  a  water share may be
  given.
  The  bill  will  also  remove  indirect  restrictions  on  trade  by  removing
  limitations  on  who the  Victorian  water register  can  record  for  holding
  allocations of water under a water share.

  It will enable, subject to the minister's approval, a holder of a  water share
  to give a standing direction to the relevant water corporation for  the  whole
  of the right to the  future water allocations under  that share to be held  by
  any other person for an  ongoing period  until the  owner of  the water  share
  revokes the standing direction. The person holding a standing direction, being
  the  holder of  an allocation bank account in the water register, will then be
  able to assign water allocations they receive to other persons, subject to the
  minister's approval and trading rules.
  Human rights issues
1. Human rights protected by the charter act that are relevant to the bill
  Right to privacy

  Section 13(a) of the charter act  provides that a person has  the right not to
  have  his  or  her  privacy  unlawfully or  arbitrarily  interfered  with.  An
  interference with privacy will not be unlawful or arbitrary if it is permitted
  by  a law  that operates in a reasonable, just and proportionate manner to the
  end sought.
  The  bill will provide that a holder of a water share will  be able to issue a
  standing direction  to a water authority nominating a person to whom the whole
  of  the  right  to  future  water  allocations  under  that  share  is  to  be
  transferred. A number of provisions in  the bill  are relevant to the right to
  privacy  insofar as  they  provide for  a  water  authority to  establish  and
  maintain records  and  information regarding  a  person  nominated in  such  a
  standing direction to be recorded on the water register established under part
  5A of the Water Act.

  Under these provisions, details such as the name of  a person  nominated in  a
  standing  direction  and any other information the water  authority  considers
  necessary will be  recorded  by the water authority on the water register. The
  information will be subject to the requirements of the Information Privacy Act
  2000, for example,  personal information should only  be collected by a  water
  authority where this information is necessary for one or more of its functions
  or activities  -- information privacy  principle 1 of  the Information Privacy
  Act  2000.  To  enable  the  water  authority  to,  for  example, be  able  to
  effectively  monitor  the  take  of water by a nominated person,  it  will  be
  necessary for a water authority to record the name of the nominated person and
  any other information considered necessary on the water register.

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  The bill will provide for  this  information  to  be  exempt  from  being made
  publicly available.
  Maintaining  information  in the  water  register  is designed  to  assist the
  minister to undertake  the continuous program of assessment of available water
  resources  in  Victoria  under  part 3 of the  Water  Act.  The  recording  of
  information  is consistent with the  primary purpose of  the water register to
  ensure  the  sound  record  keeping  of  all  water-related  entitlements  and
  allocations. As a result of these amendments, the water register will continue
  to provide a complete set  of  records  and  information  in  relation  to the
  allocation of water resources in Victoria.
  Given the limited manner in which this information will be able to be used and
  the  fact that such information will not be made publicly available, the  bill
  is compatible with the right to privacy.

  Property rights
  Section 20 of the charter act provides  that a person must not  be deprived of
  his or her property other than in accordance with law.
  A number of  provisions in  the bill  are relevant  to the holding of personal
  property. The bill will remove limitations on the  classes  of persons to whom
  an allocation of water under water shares, bulk entitlements and environmental
  entitlements may be assigned, and to whom a  limited term  transfer of a water
  share may  be  given.  Lifting  the  constraint  on who  a holder  of a  water
  entitlement may trade  with  provides the holder  with greater flexibility  to
  manage  and  control their entitlement.  As  there will  be  no deprivation of
  property, the right to property is not relevant to the bill.
  Peter Walsh, MLA,  Minister for Water

                   WATER AMENDMENT (WATER TRADING) BILL 2014
                                 Second reading

  Mr WALSH (Minister for Water) -- I move:
  That this bill be now read a second time.
Speech as follows  incorporated  into Hansard in  accordance with resolution  of
house:
  On  5  June 2013, the  Victorian  government and  the  commonwealth government
  signed an intergovernmental agreement on  implementing  water  reform  in  the
  Murray-Darling  Basin  and  an  associated  funding  agreement  to support the
  implementation of the basin plan.

  These  two agreements settle  the  responsibilities and  costs  of putting the
  Murray-Darling Basin plan into action.
  The  intergovernmental  agreement  reaffirmed   the   Victorian   government's
  commitment to removing any remaining restrictions on water trade in accordance
  with the Murray-Darling Basin plan. The bill gives effect to this commitment.
  Both the intergovernmental agreement and its associated funding agreement work
  together  to  support cost-effective  implementation  of  the  basin  plan  in
  Victoria,  recognising  the dual interests  of balancing the  need  to improve
  basin health and continuing to sustainably grow our  irrigation-based  farming
  communities and food production industries.
  For Victoria, the intergovernmental agreement has secured:

    $14.3 million  over three years  to  develop offset projects  to  reduce the
    volume of water required to be recovered from productive use under the basin
    plan;
    $47.4  million  over  eight  years  for   start-up   costs  associated  with
    implementing the  basin plan; and a  commonwealth commitment of  $25 million
    from its $100 million Murray-Darling Basin regional economic diversification
    program, for assistance to communities affected by the basin plan.
  The  intergovernmental agreement validates Victoria's longstanding view that a
  healthy  basin  can   be  achieved  alongside   sustainable,  productive   and
  competitive irrigation.

  This bill  relates to  chapter 12 of the basin plan which  sets water  trading
  rules to govern the operation of water  trading activity in the Murray-Darling
  Basin. Chapter 12 of the basin plan is due to commence on 1 July 2014.
  The  basin plan  trading rules  set out  in chapter 12 require the  removal of
  restrictions on  who  can participate in  trade  of allocations  of  water and
  tradeable water entitlements.
  Section  35 of the commonwealth Water Act imposes a duty  on all agencies of a
  basin state, including ministers, to act consistently with the basin plan.
  This bill will  amend Victoria's Water Act to improve the efficiency and scope
  of water trade.

  The bill removes limitations under the state Water Act relating to the classes
  of person to whom an allocation of water under a water share, bulk entitlement
  and  environmental entitlement may  be  assigned and to  whom  a limited  term
  transfer of a water share may be given.
  The  bill  will  also  remove  indirect  restrictions  on  trade  by  removing
  limitations on  who the water register   can record as  holding allocations of
  water under a water share.
  In  practice, an owner  of  a water share will  be  able to issue  a  standing
  direction to a water authority  nominating another person to receive the right
  to future water  allocations  under  that  share  until such time as the water
  share  owner revokes the  standing direction.  Introducing standing directions
  reduces  the red tape and the administrative costs  for the ongoing assignment
  of future water allocations.

  The bill will create greater  flexibility for  how the owner of a water share,
  controls and manages their water share.
  Importantly, the owner of the water share may revoke the standing direction at
  any time. If  the  owner  of  the  water share chooses to divide, consolidate,
  cancel or surrender the water share the standing direction will be cancelled.
  This  bill  is an  important  practical step in  giving  effect to  Victoria's
  commitment to implement  the  commonwealth  basin  plan.  Whilst  meeting  the
  required objective to  remove the very  small number of remaining restrictions
  on  trade in  Victoria, the  bill does  this in  a manner  that  supports  and
  encourages  water  trading  in its  role  as  a  valuable  tool  for Victorian
  agriculture and the industries and communities that it supports.
  I commend the bill to the house.

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Debate adjourned on motion of Ms GREEN (Yan Yean).
Debate adjourned until Thursday, 20 February.