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Jennifer Marohasy

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Marsh Graziers Don’t Pay for Water

October 25, 2005 By jennifer

According to the Environment Australia website, Macquarie Marsh grazier’s have a saying “Fat ducks mean fat cattle”. Of course all this is dependent on water.

Across Australia there is an expectation that we will all have to pay a bit more for our water, and use water more efficiently.

Interestingly Macquarie Marsh graziers get their water for free as environmental flow.

In contrast the NSW State Water Corporation expects the upstream irrigators to pay for their water and significantly more from next year.

The price of water may increase from $6.6 $8.24 per megalitre to $16.53 $19.49 per megalitre next financial year for the Macquarie Valley.

If the Marsh graziers paid the same as irrigators for their average annual water useage I calcuate they would be up for $2.55 $3.19 million dollars this year and $6.4 $7.55 million dollars next financial year.*

Under current arrangements, however, they pay nothing as the water for the pasture for their cattle is delivered as an environmental flow allocation.

This is on the understanding that “fat cattle equals fat ducks”.

This assumes the graziers are looking after the marshes and the “duck habitat”.

I suggested at my post last Thursday titled Cattle Killing the Macquarie Marshes that there was evidence of severe overgrazing.

Following that post, Ian Mott’s commented that my “single photo of a self selected point in time tells us nothing about sustainability”.

Fair comment. So I am posting a second picture.

I have been given permission to republish a picture from Australian Geographic (volume 77). The photograph was taken in 2002 at the same site as the photograph I showed in the earlier post.

To see photograph taken in 2002,click here.

To see photograph taken in 2005, click here.

Both photographs are of the south western boundary of the North Marsh Nature Reserve. The fence is the line of demarcation between an overgrazed private property and ungrazed nature reserve.

It seems reasonable to conclude that, at least at this site, overgrazing has been occuring for a few years.

It begs the questions, should there be some controls on stocking rates in the marshes and should the graziers get all their water for free?

………….
* My calculation is based on the following: Irrigation water in the Macquarie Valley is currently priced at $6.6 per megalitre ($2.81 general security and $3.79 usage) next year the price may increase to $16.53 ($3.45 general security and $13.08 usage) based on water corporation submissions to IPART Bulk Water Price Review. The average annual inflow to the marshes is 440,169 megalitres. 88% of the marsh area is privately owned and grazed.

Update 26th October 2005, 7.30pm.

* My calculation is based on the following: Irrigation water in the Macquarie Valley is currently priced at $8.24 per megalitre next year the price may increase to $19.49 based on submissions to IPART Bulk Water Price Review. The average annual inflow to the marshes is 440,169 megalitres. 88% of the marsh area is privately owned and grazed. These values relect State Water and DNR charges for general security water. Permanent licences for general security water are being traded at between $1200 and $1500 per megalitre.

Filed Under: Uncategorized Tagged With: Water

Reader Interactions

Comments

  1. Malcolm Hill says

    October 26, 2005 at 8:16 am

    Jen,

    The figures you have quoted are only for the State Water Corp (SWC) costs.They dont reflect the end user cost of water. Page 126 at point “10.3.7 Demand Management” seems to explain it.
    End user price of traded water( temporary) is nearer $200/ML.

    What I dont understand is the comment on the same page pp126, that if the SWC were to increase their price to provide a conservation signal it would somehow have the effect of increasing SWC’s exposure to volume risk.That doesn’t add up.

  2. jennifer says

    October 26, 2005 at 8:51 am

    Thanks Malcolm. It also appears the prices in the IPART paper for bulk water are in error. I have been advised (offline) that for general security the current price for the Macquarie Valley is closer to $7.88.
    Who’s paying how much in other parts of NSW and Australia?
    How might floodplain graziers get a property right to water and how should their water be priced?

  3. jennifer says

    October 26, 2005 at 10:31 am

    Today’s ABC Online suggests marshes have had no water: http://www.abc.net.au/news/newsitems/200510/s1490792.htm .
    Most of this 30,000 meg release will go onto privately owned land.

  4. medved says

    October 20, 2006 at 2:09 pm

    ionolsen23 Very good site. Thanks for author!

  5. papa tango victa juliet says

    April 8, 2007 at 5:57 pm

    This is not a comment but a request. I need to know, urgently, typical pricing for irrigation water controlled by licence.

    Domestic water now costs a bit over $1 per kl or $1000 per Ml in areas where there is reticulated supply.

    In the Upper Hunter, carted water costs about 8 times that figure.

    Please can you help me?

    PJ

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Jennifer Marohasy Jennifer Marohasy BSc PhD is a critical thinker with expertise in the scientific method. Read more

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