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FEATURE




     Water sharing plans:
     not just about economics
     by G. Kuehne, CRC for Irrigation Futures, University of SA and H. Bjornlund, University of Lethbridge, Alberta, Canada



     W           ater is not just an economic
                 good; people value it in
                 different ways reflecting
     non-economic values and its social
     dimensions.
                                                 the fundamental importance of public
                                                 consultation – ostensibly to help
                                                 implement reforms by improving the
                                                 public’s awareness and understanding of
                                                 the need for them.
                                                                                             reduction and continuing deferrals of
                                                                                             implementation dates contributed to
                                                                                             their uncertainty.
                                                                                               License holder discontent was also
                                                                                             attributed to a mistaken belief that they
       Much information to do with                                                           were to be involved with the formulation
     economics, psychology, social and           The Namoi Valley – non economic             of the WSPs rather than just providing
     health psychology, social and community     values in action                            an opinion. If there was no intention to
     and farm decision making disciplines         The implementation of the Namoi Valley     involve stakeh olders in making actual
     supports this statement. It also suggests   Ground Water Sharing Plans (WSPs) is        decisions they should have been made
     that farmers’ management responses          an example of where the consultation        more explicitly aware of this. It seems
     to any new policy will not be based         process could have been implemented         that this, combined with the failure to
     on profit maximising goals alone but        differently for a more harmonious           consult appropriately, has contributed
     will also depend on the influence of        outcome, and where water markets            further damage to an already strained
     their values, attitudes and objectives.     might not achieve the expected result       relationship between license holders and
     However, policies introduced to achieve     because of the non-economic values          the government.
     certain outcomes do not normally reflect    influencing water users’ decision making      Originally, the department (then
     these non tangible elements. Instead,         The process for developing the WSPs       called the Department of Land and
     they generally assume that water users      involved a long period of consultation.     Water Conservation) indicated that HOE
     behave in a uniform and economically        To achieve sustainability, reductions in    would be applied. This was changed,
     rational way and, as a result, often have   extractions had to be made, but license     however, to ATB for equity reasons. It
     unintended and sometimes undesirable        holders disagreed as to whether it          was argued that license holders with
     outcomes.                                   should be “history of extraction” (HOE)     unused or underused licenses would
       Among other changes, the 1994 CoAG        or “across-the-board” (ATB). Despite        suffer losses in the form of property
     reforms encouraged the adoption of          this, they all strongly perceived that      value and development potential. It was
     water markets – allowing water to be        the process of developing the WSPs          further argued that, if ATB was applied,
     traded from low value to high value         was unfair, confusing and frustrating.      the active irrigators could buy water
     agriculture. They also acknowledged         Changing methods of entitlement             from the inactive license holders. In this

      CRCIF farewells founding member            the CRC IF. Wayne has left to take up       Performance. Wayne has also been a key
      The Cooperative Research Centre for        the inaugural chair of Natural Resources    proponent of the innovative Regional
      Irrigation Futures (CRC IF) recently       Science at the University of Adelaide.      Irrigation Business Partnership model.
      farewelled Chief Scientist and founding      An internationally renowned                 Wayne was responsible for a
      member, Dr Wayne Meyer, who tended         irrigation researcher, Wayne played         number of major CRC IF publications,
      his resignation from CSIRO and thus        an indispensable role in the timely         including an eye-opening report
                                                 establishment of the CRCIF, the first       on The Irrigation Industry in the
                                                 national grouping of irrigation and         Murray and Murrumbidgee Basins
                                                 water management researchers in             (2005) and A Review of Methods to
                                                 Australia.                                  Estimate Irrigated Reference Crop
                                                   Wayne can be justly proud of making       Evapotranspiration across Australia
                                                 a huge contribution to this national        (2005). Copies of these reports
                                                 collaborative research capacity.            are available for downloading at
                                                   Highlights of Wayne’s contribution        www.irrigationfutures.org.au under
                                                 to the CRC include guiding the              ‘Publications’.
                                                 development of The CRC’s two                  Everyone in the CRCIF extends their
                                                 strong research programs, System            very best wishes to Wayne as he takes
                                                 Harmonisation through Regional              on a new challenge and thank him for
                                                 Irrigation Business Partnerships and        his significant contribution over the last
                                                 Irrigation Toolkits to Improve Enterprise   three and half years.

                          IRRIGATION AUSTRALIA
36
FEATURE

way they would be able to maintain their     they are also influenced by different          We suggest that the social side of water
production and compensate the sellers        values, attitudes and goals towards non-     resource management is important
for lost property value and development      economic dimensions such as family,          and should not be an afterthought.
potential.                                   land, water, community and lifestyle.        When implementing new policies
                                             It is therefore uncertain whether the        with sensitive stakeholder groups,
Don’t assume people behave in an             expected reallocation would take place       stakeholders should be clearly informed
economically rational way                    under ATB.                                   of the role that they are to play to help
This expectation was, however, based           The alternative method, HOE, leaves        stop any misunderstanding about their
on the assumption that license holders       more of the water with those who             responsibilities.
would behave in an economically rational     are already using it, and does not rely        In addition policy instruments that are
manner, with inactive irrigators selling     nearly as much on a market process           designed and implemented with a more
their water to maximise their profit. The    for redistribution. Consequently, it         accurate understanding of landholder
problem with this assumption is that         disrupts the production of existing active   values and attitudes, and acknowledge
our research indicates that the potential    irrigators, and the economic life of the     the different motives and influences
sellers are not just motivated by the        affected communities, less. Despite their    of farmers rather than just making
possibility of making a profit on the sale   concerns for equity and fairness, the        an assumption of profit maximising
of their water. Apart from a variety of      department eventually reverted to the        behaviour, are more likely to achieve
farm and production characteristics,         use of HOE as their preferred option.        policy aims.




Irrigation Research
How much water DO forest plantations use?

T       he effect of forest plantations on
        water availability has been the
        subject of much debate in the last
few years. Now, research is underway
to try and get a better handle on this
                                             improving models to predict plantation
                                             water use, including seasonal variations.
                                             With these model, plantation managers
                                             will be able to explore the relationship
                                             between water use and plantation
                                                                                          almost doubled the total plantation area
                                                                                          in the region, prompting questions about
                                                                                          the effect of this land use change on
                                                                                          water resources.
                                                                                            Dr Benyon is working towards
tricky issue as well as quantify economic    growth to make informed decisions            developing a method to evaluate this
benefits derived from water. In essence,     about future land use and to improve         impact on a regional scale. His current
the research aims to quantify and predict    efficiency, ensuring catchment water         research will determine how accurately
the impacts of plantation water use to       balances are not adversely affected.         modelling can be used to estimate water
improve efficiency.                            For the past two years, ENSIS principal    use across the region, and to predict
  The research is being funded by the        research scientist, Dr Richard Benyon,       growth and production per unit of water.
Forest and Wood Products Research and        has been working in the Green Triangle         In other related research, scientists are
Development Corporation (FWPRDC),            – an area that stretches from Victoria’s     trying to better understand plantation
the Glenelg Hopkins Cavtchment               Port Campbell north to Dimboola and          water use and its interaction with
Management Authority and ENSIS.              west to SA’s Naracoorte – to measure         plantation growth, and plan to apply
  While water management has always          water use at representative plantation       the results at the larger catchment scale.
been an important issue for the forestry     sites and test and improve models to         catchment-scale modelling will include
industry, the drought has added pressure     quantify plantation water use. Although      the water balance of other land uses.
on it to conserve and maintain water         this area has accommodated a radiata           * ENSIS is a joint venture between the
resources.                                   pine industry for many years, in the past    CSIRO and New Zealand’s Scion.
  The focus of the research will be on       decade new blue gum plantations have




                                                                              IRRIGATION AUSTRALIA
                                                                                                                                        37

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Water sharing plans - Not just about economics

  • 1. FEATURE Water sharing plans: not just about economics by G. Kuehne, CRC for Irrigation Futures, University of SA and H. Bjornlund, University of Lethbridge, Alberta, Canada W ater is not just an economic good; people value it in different ways reflecting non-economic values and its social dimensions. the fundamental importance of public consultation – ostensibly to help implement reforms by improving the public’s awareness and understanding of the need for them. reduction and continuing deferrals of implementation dates contributed to their uncertainty. License holder discontent was also attributed to a mistaken belief that they Much information to do with were to be involved with the formulation economics, psychology, social and The Namoi Valley – non economic of the WSPs rather than just providing health psychology, social and community values in action an opinion. If there was no intention to and farm decision making disciplines The implementation of the Namoi Valley involve stakeh olders in making actual supports this statement. It also suggests Ground Water Sharing Plans (WSPs) is decisions they should have been made that farmers’ management responses an example of where the consultation more explicitly aware of this. It seems to any new policy will not be based process could have been implemented that this, combined with the failure to on profit maximising goals alone but differently for a more harmonious consult appropriately, has contributed will also depend on the influence of outcome, and where water markets further damage to an already strained their values, attitudes and objectives. might not achieve the expected result relationship between license holders and However, policies introduced to achieve because of the non-economic values the government. certain outcomes do not normally reflect influencing water users’ decision making Originally, the department (then these non tangible elements. Instead, The process for developing the WSPs called the Department of Land and they generally assume that water users involved a long period of consultation. Water Conservation) indicated that HOE behave in a uniform and economically To achieve sustainability, reductions in would be applied. This was changed, rational way and, as a result, often have extractions had to be made, but license however, to ATB for equity reasons. It unintended and sometimes undesirable holders disagreed as to whether it was argued that license holders with outcomes. should be “history of extraction” (HOE) unused or underused licenses would Among other changes, the 1994 CoAG or “across-the-board” (ATB). Despite suffer losses in the form of property reforms encouraged the adoption of this, they all strongly perceived that value and development potential. It was water markets – allowing water to be the process of developing the WSPs further argued that, if ATB was applied, traded from low value to high value was unfair, confusing and frustrating. the active irrigators could buy water agriculture. They also acknowledged Changing methods of entitlement from the inactive license holders. In this CRCIF farewells founding member the CRC IF. Wayne has left to take up Performance. Wayne has also been a key The Cooperative Research Centre for the inaugural chair of Natural Resources proponent of the innovative Regional Irrigation Futures (CRC IF) recently Science at the University of Adelaide. Irrigation Business Partnership model. farewelled Chief Scientist and founding An internationally renowned Wayne was responsible for a member, Dr Wayne Meyer, who tended irrigation researcher, Wayne played number of major CRC IF publications, his resignation from CSIRO and thus an indispensable role in the timely including an eye-opening report establishment of the CRCIF, the first on The Irrigation Industry in the national grouping of irrigation and Murray and Murrumbidgee Basins water management researchers in (2005) and A Review of Methods to Australia. Estimate Irrigated Reference Crop Wayne can be justly proud of making Evapotranspiration across Australia a huge contribution to this national (2005). Copies of these reports collaborative research capacity. are available for downloading at Highlights of Wayne’s contribution www.irrigationfutures.org.au under to the CRC include guiding the ‘Publications’. development of The CRC’s two Everyone in the CRCIF extends their strong research programs, System very best wishes to Wayne as he takes Harmonisation through Regional on a new challenge and thank him for Irrigation Business Partnerships and his significant contribution over the last Irrigation Toolkits to Improve Enterprise three and half years. IRRIGATION AUSTRALIA 36
  • 2. FEATURE way they would be able to maintain their they are also influenced by different We suggest that the social side of water production and compensate the sellers values, attitudes and goals towards non- resource management is important for lost property value and development economic dimensions such as family, and should not be an afterthought. potential. land, water, community and lifestyle. When implementing new policies It is therefore uncertain whether the with sensitive stakeholder groups, Don’t assume people behave in an expected reallocation would take place stakeholders should be clearly informed economically rational way under ATB. of the role that they are to play to help This expectation was, however, based The alternative method, HOE, leaves stop any misunderstanding about their on the assumption that license holders more of the water with those who responsibilities. would behave in an economically rational are already using it, and does not rely In addition policy instruments that are manner, with inactive irrigators selling nearly as much on a market process designed and implemented with a more their water to maximise their profit. The for redistribution. Consequently, it accurate understanding of landholder problem with this assumption is that disrupts the production of existing active values and attitudes, and acknowledge our research indicates that the potential irrigators, and the economic life of the the different motives and influences sellers are not just motivated by the affected communities, less. Despite their of farmers rather than just making possibility of making a profit on the sale concerns for equity and fairness, the an assumption of profit maximising of their water. Apart from a variety of department eventually reverted to the behaviour, are more likely to achieve farm and production characteristics, use of HOE as their preferred option. policy aims. Irrigation Research How much water DO forest plantations use? T he effect of forest plantations on water availability has been the subject of much debate in the last few years. Now, research is underway to try and get a better handle on this improving models to predict plantation water use, including seasonal variations. With these model, plantation managers will be able to explore the relationship between water use and plantation almost doubled the total plantation area in the region, prompting questions about the effect of this land use change on water resources. Dr Benyon is working towards tricky issue as well as quantify economic growth to make informed decisions developing a method to evaluate this benefits derived from water. In essence, about future land use and to improve impact on a regional scale. His current the research aims to quantify and predict efficiency, ensuring catchment water research will determine how accurately the impacts of plantation water use to balances are not adversely affected. modelling can be used to estimate water improve efficiency. For the past two years, ENSIS principal use across the region, and to predict The research is being funded by the research scientist, Dr Richard Benyon, growth and production per unit of water. Forest and Wood Products Research and has been working in the Green Triangle In other related research, scientists are Development Corporation (FWPRDC), – an area that stretches from Victoria’s trying to better understand plantation the Glenelg Hopkins Cavtchment Port Campbell north to Dimboola and water use and its interaction with Management Authority and ENSIS. west to SA’s Naracoorte – to measure plantation growth, and plan to apply While water management has always water use at representative plantation the results at the larger catchment scale. been an important issue for the forestry sites and test and improve models to catchment-scale modelling will include industry, the drought has added pressure quantify plantation water use. Although the water balance of other land uses. on it to conserve and maintain water this area has accommodated a radiata * ENSIS is a joint venture between the resources. pine industry for many years, in the past CSIRO and New Zealand’s Scion. The focus of the research will be on decade new blue gum plantations have IRRIGATION AUSTRALIA 37