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From the Chief Executive

The last four years have produced the lowest inflow on record into the Murray River and this has challenged irrigators, communities and the environment.

Murray-Darling Basin Commission (MDBC) activities have been focused on maximising water delivery, starting the implementation of The Living Murray initiative and building up our program on evaluating risks to shared water resources. Coordination of MDBC activities under the National Water Initiative such as expanded interstate water trade was also a focus. The Sustainable Rivers Audit is completing the first full year of sampling and activities are ongoing in relation to Cap management, salinity and native fish strategies. The Commission continued dredging of the Murray Mouth in the face of the continuing drought.

To ensure that the Commission and Commission office work program is focused to achieve the Murray-Darling Basin Agreement and Ministerial Council decisions, the Commission has been developing a five-year Strategic Plan, which is almost complete. In addition, we are developing a Business Improvement Program for the Commission Office. We have also commenced a major program review, consistent with the Strategic Plan, to ensure the financial transparency of our budget process.

A reorganisation of the MDBC Office structure has occurred to focus on the current Ministerial Council priorities: The Living Murray initiative, water policy coordination and implementation of agreed strategies. Communications has been separated out of the Natural Resource Management Division and senior positions in Natural Resource management have been filled.

The year has been one of significant change for the organisation. I would like to acknowledge the support of the President, Commissioners and particularly the staff of the organisation whose professionalism and commitment are outstanding. I would also like to thank David Dole, Scott Keyworth and Louise Rose for their support during the transition.

I am looking forward to 2005–06 which I believe will be a period of consolidation and progress.

Wendy Craik
Chief Executive

 

Overview

The 2004–05 reporting year has been dominated by the extremely dry conditions in south-eastern Australia. Storages across the Basin are at very low levels because of the absence of good inflows to major river systems. For the first time, the Basin is subject to the full impact of both an extended period of drought and highly regulated and utilised river systems. We have experienced these impacts separately in the past - in river regulation and increasing diversions since the 1970s and long drought periods in the 1890s and 1940s – but now they are occurring together.

The outlook for the total system in the Murray-Darling Basin for 2005–06 indicates that, even under average conditions, the volumes in storage are likely to remain well below average levels. The absence of small floods under the combined effect of regulation and drought over the past eight years is sobering. Such floods are critical to the health of the wetlands, lakes, floodplains and estuarine ecosystems. The number of stressed or dying River red gum and Black box trees across the lower Murray floodplain reflects this. The proportion of trees surveyed that were considered stressed has risen from an already high level of 50 per cent to 75 per cent over the last two years. Since October 2002 the Commission has been funding a program of dredging at the Murray Mouth to ensure it remains open.

Within this context, the National Water Initiative (NWI), agreed at the Council of Australian Governments (COAG), in June 2004 is of enormous significance. It builds on the 1994 COAG agreement on water reform. Associated with NWI, the Murray-Darling Basin Intergovernmental Agreement (MDB IGA) sets out arrangements for investing $500 million over five years to achieve environmental outcomes at six significant sites along the Murray (The Living Murray First Step). This agreement was signed, also in 2004, by the Prime Minister, the premiers of New South Wales, Victoria and South Australia and the Chief Minister of the Australian Capital Territory.

During the year, The Living Murray Business Plan was approved and activated and, along with it, strategies to implement the actions and milestones in the Murray-Darling Basin Intergovernmental Agreement. The investment of $500 million is in addition to $150 million for the Environmental Works and Measures Program (EWMP) provided through the Murray-Darling Basin Ministerial Council.

In 2004–05, the EWMP moved into its second year of operation, with 31 projects implemented across the six significant ecological assets identified under the First Step Decision of Council in November 2003. By June 2005, the program had spent $18.4 million on a wide range of activities (see chapter 3 ).

The Environmental Delivery Team, under the direction of the Environmental Watering Group, developed the River Murray Channel Environmental Management Plan for 2005–06 for one of The Living Murray's six significant ecological assets. In addition, the team produced The Living Murray Environmental Watering Plan for 2005–06, which will coordinate water delivery across all of The Living Murray's significant ecological assets. The team continued to work with River Murray Water Production to identify and manage environmental watering opportunities across the River Murray system to meet the objectives of The Living Murray.

The Murray Flow Assessment Tool (MFAT) is a key element in evaluating how effective these measures are. Visitors to the Inside MFAT website, launched on 25 October 2004, can now discover how the tool works and view the scientific information on which it is based.

As part of efforts to support the First Step Decision, the MDBC this year consulted with its government partners on the factors that could have an impact on the flow and quality of shared water resources in the Basin. The key factors are:

• climate change (and variability)
• groundwater use
• bushfires
• reforestation
• farm dams
• reduced return flows from irrigation.

The MDBC has undertaken research projects, reviews of information, and investigations throughout the year to respond to these factors (see chapter 3 ).

The MDBC's pilot Interstate Water Trading Project, which aims to allow irrigators and the environment to maximise the returns gained from available water in the River Murray system, has continued. Partner governments to the COAG National Water Initiative have agreed to expand permanent interstate trade (subject to environmental and third-party impacts). The MDBC partners are facilitating this process within the Basin by developing the technical and operational mechanisms necessary to allow exchange between water entitlements on an interim basis in the southern interconnected Basin. (see chapter 3 )

Independent monitoring of the Cap—compliance with the targets that limit surface water diversions—continued in 2004–05 (see chapter 3 ). An independent audit of the combined Barwon–Darling/Lower Darling Valley of New South Wales completed in 2005 found the valley in breach of the Cap. As a result, New South Wales will report to the Ministerial Council meeting in September 2005 on the reasons for this.

The Independent Audit Group provided qualified support for the NSW proposal to introduce new arrangements for the Barwon–Darling to apply for 2005–06.

Another audit, this time of the Cap data management system of the states and the Commission office, identified scope for improving the accuracy of measurements from river off-takes and of the Cap reporting system.

Salinity management was a major area of successful MDBC activity in 2004–05. The second independent salinity audit in November 2004 identified significant progress in measures such as establishing baseline conditions, setting end-of-valley targets and developing approaches to evaluating the impacts of water trade (see chapter 3).

Salinity levels in the River Murray, with the exception of the Lower Lakes, were very low during 2004–05. This was due to a number of factors, including a high proportion of flows sourced from Hume and Dartmouth storages and low levels of saline groundwater inflows from the Mallee and Riverina plains.

An important part of salinity management is keeping salt out of the rivers. River Murray Water operates seven jointly funded salinity mitigation schemes along the banks of the Murray River. During 2004–05 the schemes continued to significantly reduce impacts of saline groundwater on downstream salinity. Significant progress was made in the construction of joint salt interception schemes, including the Pyramid Creek, Buronga, Bookpurnong and Loxton schemes.

The Sustainable Rivers Audit (SRA), a river health assessment program that aims to provide consistent, Basin-wide information on the health of the Basin's rivers, achieved important milestones in 2004–05. These included:

• finalisation of the program design
• establishment of governance structures
• initiation of a joint monitoring effort, using consistent methods, across Queensland, New South Wales, Victoria, South Australia and the Australian Capital Territory (see chapter 3 ).

During the past year, new fishways at Locks 8 and 9 and two trial fishways at Tauwitchere Barrage were completed. Investigative work continued on a number of innovative projects designed to improve the effectiveness and cost efficiency of future fishways, such as trials with dual-frequency sonar technology and radio-tagging fish to determine their movement after exiting the fish lock at Yarrawonga.

The monitoring of fish passages at Locks and Weirs 7 and 8 continued to show encouraging signs, with target type and size of species achieving passage. An unforeseen benefit was the discovery that some species that were not previously thought to be migratory are using or attempting to use the fishway (see chapter 2 ).

The Indigenous Action Plan (IAP) project team finalised a series of Nation-based forums and continues to work closely with the Murray Lower Darling Rivers Indigenous Nations (MLDRIN). The team also established a relationship with Indigenous groups in the northern Basin (see chapter 3 ).

The MDBC Basin Communities Program, together with the Commonwealth Scientific and Industrial Research Organisation (CSIRO), completed a major study on quantifying and valuing land use change in the Murray-Darling Basin. The study trialled a new, more cost-effective way of using remote sensing to estimate land and water use in the Basin (see chapter 3).

The education and capacity of the Basin's future land and waters managers has continued to be addressed by a number of successful education projects. 'Special Forever', which celebrated its thirteenth year, involves more than 20 000 primary school children across the Basin who write, draw and learn about their local natural resources. The reporting year also saw the continuation of a project that involves youth teaching other youth about natural resource issues, with two successful youth conferences being held in Toowoomba and Narrabri.

Works continued under the 2002 River Management Plan for the Hume to Yarrawonga reach of the River Murray to help balance water conveyance, economic production and environmental objectives (see chapter 3).

Significant progress continued in 2004–05 towards purchasing flood easements along the Murray to confirm the Commission's rights to pass regulated flows within existing channel capacity on up to 106 affected properties in the Hume to Yarrawonga reach.

In a formal ceremony in April 2005, Engineers Australia presented plaques for Dartmouth Dam and Hume Dam, naming them National Engineering Landmarks. This is the highest category of recognition for engineering structures awarded by Engineers Australia (see chapter 2).

Operational and safety improvements to River Murray Water assets during 2004–05 included the installation of walkways at Dartmouth Dam; installation of remote operated gates at the Barrages; completion of an upgrade of the navigable pass and construction of a fishway at Lock and Weir 9; and minor finishing-off works at Locks and Weirs 7 and 8 (see chapter 2).

The Commission partnership

The Commission concentrates on Basin-wide issues that require joint action to deliver the best outcomes for the Basin's communities, industries and natural resources base - particularly in relation to its shared water resources. The Commission, as a partnership of the six Basin governments (including the Australian Government), exists to achieve the best integrated catchment management outcomes for the shared environmental resources of the Basin. Primary responsibility for managing land and water resources lies with individual state and territory governments.

Figures 1.1 and 1.2 show, for each of the partner states and territories, the proportion of each as part of the Basin and the proportion of each that lies within the Basin.

Figure 1.1: Proportion of Murray-Darling Basin in state

Figure 1.2: Proportion of state in Murray-Darling Basin

Chaired by an independent President, the Commission is an unincorporated joint venture, comprising representatives (Commissioners) appointed by partner governments. The Commission supports the Murray-Darling Basin Ministerial Council to achieve its purposes under the Agreement by:

• securing the cooperation of partner governments
• delegating work to its committees and working groups, whose members include Commissioners and experts from partner government agencies, research bodies, industries and communities
• directing the activities of the Commission Office.
• In addition to servicing the Ministerial Council directly, the Chair and Deputy Chair of the MDBMC Community Advisory Committee also provide a community perspective to the Commission.

The Commission Office provides a secretariat that gives administrative, technical and river operations, and policy support to the Commission, the Ministerial Council and the Community Advisory Committee.

The primary clients of the Commission Office are the partner governments and their agencies. Commission Office staff work with them to facilitate and coordinate the development, implementation and review of Ministerial Council policies and decisions.

Since the signing of the Agreement in 1992, governments have effected significant reforms in the management of natural resources. As a result, the institutional landscape in which the Commission operates has changed substantially. A wide range of organisations now contributes to improving natural resource outcomes for the Basin.

In recent years, partner governments have created and strengthened the role of regional catchment management organisations (CMOs), which have taken on an increasingly important role in managing land and water resources. While the role and responsibilities of CMOs vary across the Basin, all have a vital role to play in implementing Council and Commission policies and decisions at a local level. The working relationship between the Commission Office and CMOs varies depending on the nature of the program being delivered and the particular role of the CMO.

To minimise duplication and ensure coordinated natural resource management in the Basin, the Commission Office, together with the partner government agencies, also works cooperatively with joint government enterprises such as 'Water for Rivers' and Snowy Hydro Ltd; irrigation and water businesses; industry and environmental bodies; research bodies; local governments; and community groups – including Indigenous groups.

Ministerial Council programs and decisions in the Basin are delivered in accordance with national agreements and policies, particularly the National Water Initiative (NWI). For example, the MDBC and its Office will play a key role in facilitating the implementation of expanded interstate water trade under the NWI. The Commission will also be an important source of technical input to the activities of the National Water Commission.

The relationship between the Commission and the bodies with which it collaborates is shown in Figure 1.3.

Figure 1.3: Murray-Darling Basin Commission and its partners

Looking ahead

Despite the significant impacts of one of the worst droughts ever experienced in the Murray-Darling Basin, there continues to be a concerted commitment to the long-term management of the Basin's natural resources. The diversity of these resources demands that the MDBC, through contributing governments and communities, continue to undertake a wide range of activities. A new MDBC strategic plan was developed in 2004–05. This plan will form the basis for Commission activities over the next five years.

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