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Sydney, 29 August, 2003: The Australian Bankers’ Association (ABA) has welcomed the national water initiative which has been agreed at the Council of Australian Governments meeting today in Canberra.
David Bell, Chief Executive of the Australian Bankers’ Association, said “The $500 million dollar package will assist the productivity and efficiency of water use. Importantly, many of the initiatives will assist farming communities make investment plans into the future.”
The ABA is particularly pleased to see that COAG has agreed to an objective that will ensure compatibility of water right entitlements across jurisdictions and that unless fixed- term water access is required for particular purposes, access entitlements are to be defined as open-ended, or perpetual.
“It has been important that through this important reform process, the Federal, State and Territory Governments have recognised the importance of balancing the environmental and commercial concerns.”
The ABA looks forward to continuing to working with State and Territory Governments on a consistent form of title and the water registry which will be needed to ensure that water entitlements are able to be mortgaged on similar terms and conditions, just like land, ensuring compatibility across jurisdictions.
Consistent with this, the ABA was also pleased to see that COAG had re-affirmed its commitment to the 1995 National Competition Policy agreement.
Mr Bell said: “Water reform will affect the terms and conditions on which farmers will be able to access mortgage finance.”
“Farmers need to be able to access finance at its lowest commercial cost so that they are able to viably invest in long-term sustainable best practice water use.”
“Water reform has created a new form of right and water access entitlements need to be able to be mortgaged and have similar treatment as freehold land when used as collateral for the purpose of accessing secured finance.”
For further information:
Heather Wellard
ABA Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439
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