ABA URGES GOVERNMENTS TO ADOPT WATER TITLES REGISTER TO ENSURE ACCESS TO FINANCE

Sydney, 4 March, 2004: The Australian Bankers’ Association (ABA) is hoping State Governments in Australia will adopt a consistent and secure system of water titles which has been recommended in a new report.

The ABA welcomes the approach outlined in a research report “An Effective System of Defining Water Property Titles” [1] released yesterday in Canberra by Deputy Prime Minister, John Anderson.

This report concludes that State Governments should adopt a modified Torrens-based system in relation to water rights which would provide greater certainty of title because it would track all the interests in a title on a single piece of paper or computer record.

ABA recommends the report to the Senior Officials Group on Water that is working on the intergovernmental agreement covering the National Water Initiative, an initiative of the Council of Australian Governments (COAG).

David Bell, Chief Executive of the ABA, said: “The ABA and its member banks support policies for the sustainable resource management of water nationally. The separation of water from land is a positive move because it will define entitlements, clarify water’s value and enable trading, so water will flow to its most valuable use.”

“Farmers will be able to use their water licence like any other asset to obtain access to finance. The unbundling of water from land allows a bank to take a mortgage directly over the water, however, there needs to be a reliable register and clear title so that banks and other third parties are informed before the water is traded – similar to a Torrens Title land register.”

The banking industry is seeking assurance from State Governments on the status and content of registers of water licences because they will be of paramount importance when farmers come to access finance.

Mr Bell said a secure title system is not only required to protect the interests of mortgagees, it is also essential to protect and give confidence to purchasers of water licences and to ensure that all owners of water licences are protected from unauthorised dealings.  A secure and efficient title system will also minimise conveyancing costs and time.

The ABA would like to see state water registers established and administered by the Land Titles Office.

The ABA supports a national approach to defining water access rights, and land Torrens Title provides a useful guide for governments to follow.

The ABA looks forward to further consulting with State Governments on water reform.

For further information:

Heather Wellard
ABA Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439

ENDS