NEED FOR WATER TITLES REGISTER IN VICTORIA TO ENSURE ACCESS TO FINANCE Sydney, 1 December, 2003: The Australian Bankers’ Association (ABA) has called for a secure water titles register to be set up in Victoria so that farmers can use their water licence to obtain access to finance.   The ABA has detailed the need in its submission responding to the Victorian Government’s ‘Securing our Water Future’ Green Paper. (See notes for editors)   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 so that banks and other third parties are informed before the water is traded – similar to a Torrens Title land register.”   Mr Bell said the Green Discussion Paper notes that the Victorian Government will ensure that water licences are recorded on a register and that they are publicly available. The banking industry is seeking assurance on the status and content of those registers because they will be of paramount importance when farmers come to access finance.   “Ensuring that water users have avenues to finance is critical for the trading and expansion of the water market.”   “There should be no lessening of the security values created by the unbundling of land and water. Since, in many cases the value of the water licence will exceed the land value, many licence holders will rely on being able to seek a mortgage over the water asset.”   “A separate water mortgage, recorded on a register of water licences, must be taken by the financial institution to ensure equivalent security to a mortgage over land.”   “Financiers need a system as secure as land registration for recording interest in the licences; otherwise a licence holder’s ability to obtain a mortgage may be restricted.”    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 a Victorian water register 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 the Victorian Government on water reform.   Notes for editors:   The Victorian Government released the ‘Securing our Water Future’ Green Paper for Discission (August 2003). The wide-ranging discussion paper presents options for Victoria to address the challenge of sustainable water use. The paper emphasises the need to reduce water consumption and recycle water where possible. It presents options for urban water use, irrigation water use, provision of extra flows for environmental health of rivers, water allocation for agriculture, pricing principles and water industry structural reform.  Click here for: ABA Submission to the Victorian Government on Green Paper    For further information:   Heather Wellard ABA Public Relations Phone: 02 8298 0411 Mobile: 0409 830 439