Irrigators have welcomed plans, by the Victorian Environmental Water Holder (VEWH) to release 20 gigalitres (GL) of temporary environmental water on the northern market, over the next six months.
Victorian Farmers Federation (VFF) water council chairman Richard Anderson praised the VEWH for following through on plans, announced earlier this year, it would consider trading water, if seasonal conditions stayed strong.
“This decision shows there is a process in place for the management of environmental water that is working,” Mr Anderson said.
The VEWH said in a statement that the decision to make available water for trade was to manage holdings for maximum environmental benefit across the State
Mr Anderson said the Water Holder made a pragmatic decision that would ease impacts on the trading price of water.
“It’s important, where an environmental water manager is to be trading in the market, that large volumes of water are not made available all at once,” he said.
“Spreading the release of water through a series of brokers over a six month period will help curtail any negative impacts that could occur on the water market.”
The VEWH has stated that proceeds from the sale will be used for future environmental watering priorities, including water purchase to meet shortfalls in Victorian systems or investment in structural or technical works to improve the management of the water holdings.
Mr Anderson said the VFF hoped to see the Water Holder continue building a relationship with irrigation communities, on where water proceeds would be spent.
“We’re encouraging the VEWH to keep engaging with the community on future watering plans and how the proceeds from these trades will be used,” Mr Anderson said.
Opposition water spokesman Peter Walsh said the Water Holder should speed up the sale.
“This season has seen significant inflows into our southern basin catchments,” Mr Walsh said.
“Many of these environmental assets have achieved their seasonal watering targets via natural flows and farmers have rightly anticipated water would be released for sale on the temporary water market.
“To enable its most productive use in autumn watering, the best outcomes for irrigators would be achieved if this parcel of sales water was made accessible and marketed in full before the end of Feb 2017.
He said the VEWH must reconsider the timing of the release to give farmers every opportunity to make the most efficient planning decisions for their businesses.
“Support of an earlier sale and the resultant downward pressure on water markets and availability would be welcomed by primary producers and businesses that rely on our agriculture sector,” he said.
