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National Water Initiative
 
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In June 2005, the Tasmanian Government signed the Intergovernmental Agreement on the National Water Initiative (NWI), the national framework for water reform. The NWI builds on the previous Council of Australian Governments’ (COAG) framework for water reform that was introduced as part of a suite of national competition policy reforms in 1994. Development of the NWI recognises the continuing requirements to use water productively and efficiently, to service urban and rural communities, and to ensure the health of river and groundwater systems.

As a signatory to the NWI, the Tasmanian Government is fully committed to implementing efficient and sustainable water industry reforms. A copy of the NWI Agreement, as signed by First Ministers can be found here.

The NWI is aimed at, amongst other things:

  • expanding water markets for greater permanent trade in water;
  • promoting more flexible and profitable water use;
  • increasing confidence for those investing in the water industry;
  • improving water planning and accounting;
  • improving the way water is allocated, used and managed for environmental outcomes; and
  • improving the efficient management of water in urban environments.

The National Water Commission, which is an independent statutory body in the Commonwealth Department of Environment, Water, Heritage and the Arts, is responsible for driving national water reform by implementing the NWI Agreement, and administering programs under the Australian Water Fund.

Under the NWI, the NWC has assumed responsibility from the National Competition Council for assessing governments’ progress with implementing the NCP water reforms. The 2005 report to the NWC on Tasmania’s progress in implementing the NCP water reforms can be found here. All future reporting obligations under the NWI will be made to the NWC.

Under the NWI, the Economic Reform Unit has carriage of policy development and monitoring in relation to urban water pricing. This includes developing pricing guidelines for urban water suppliers and urban wastewater service providers, and monitoring compliance with those guidelines by initiating regular investigations of urban water and wastewater pricing practices. These investigations are undertaken by the Government Prices Oversight Commission.
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