CRITICAL WATER ALLOCATIONS

In reply to Mr PEDERICK (Hammond) (1 July 2009).

The Hon. K.A. MAYWALD (Chaffey—Minister for the River Murray, Minister for Water Security):

1. The Critical Water Allocation scheme water was purchased from early October 2008 through to mid January 2009. The average price for the purchased water was $377 per megalitre.

The average price of water trades in the NSW Murrumbidgee Valley for the same period as recorded in the NSW WMA (Water Management Act) water register is $382 per megalitre.

As approximately 60 per cent of all temporary water allocation purchases by the South Australian Government in 2008-09 was sourced from the Murrumbidgee Valley, it is considered a reasonable basis for estimating market price over a relatively long period.

2. In relation to the Coleambally transaction, the price paid for 10 GL of temporary water purchased from Coleambally Irrigation was $375 per megalitre (not $370 per megalitre as reported) comprising water allocations from 58 irrigators within Coleambally. Agreement with Coleambally was confirmed on 17 April 2009.

Market prices in early to mid April 2009 were generally in the range of $340 per megalitre to $360 per megalitre as evidenced by price bulletins for water sales issued by the Water Exchange and Waterfind, two large on-line water broking services. Also, over the same period, asking prices reported in Waterfind alerts and the Water Exchange bulletins were within the bandwidth of $340 per megalitre to $370 per megalitre.

Accordingly, the Opposition's assertion that the Government struck a price per megalitre of 10 per cent above the market value in order to secure the necessary volume of temporary water allocations is nonsense. The final price paid per megalitre was not only well considered given market value conditions at the time, but also very reasonable for the significant volume of water that was purchased and an economic way to transfer a significant volume of water.