Rural water trading between states is being stifled by red tape that can delay transactions by months and has practically stopped interstate sales of water licences, despite repeated pledges by state governments to remove restrictions.
According to The Australian Financial Review, the National Water Commission will today release the first comprehensive audit of water markets, revealing heavy trading in seasonal water allocations took place during the drought, particularly to South Australia, but there was just one interstate sale of a permanent water licence.
The NWC report says the 4pc annual limit on the trade of water licences out of a district - which the federal government wants to lift but Victoria wants retained - is one factor "restricting the volume of water available for purchase".
Email a friend