3 Performance review

Transcription

1 Performance review

2 Performance review Performance reporting overview This section reports on the Commission s performance in delivering its program objectives and deliverables and meeting performance indicators. A performance summary (page 44) shows results for quantitative deliverables and key performance indicators. As required under the Financial Management and Accountability Act 1997 and the Public Service Act 1999, we report on our performance in in accordance with the performance information framework set out in our Portfolio Budget Statement. The Commission has one planned outcome: Informed decisions by governments on national water issues, and improved management of Australia s water resources, through advocacy, facilitation and independent advice. The outcome is delivered through Program 1.1: Water Reform, as outlined on the next page. Pipes with water istockphoto image 20 National Water Commission

3 Program objective, deliverables and key performance indicators Program 1.1: Water Reform Program objectives To assist with the implementation of the NWI and water reform by: assessing, monitoring and providing advice and recommendations on priority national issues related to water management in Australia and on progress in implementing the NWI independently auditing the effectiveness of the implementation of the Murray Darling Basin Plan and associated water resource plans working with all Australian governments and other stakeholders to facilitate water reform initiatives. Deliverables Audits, assessments and monitoring activities on priority national issues related to water management in Australia and on progress in implementing the NWI. An audit of the MDBA, Murray Darling Basin states and other relevant entities implementation of the Murray Darling Basin Plan and associated water resource plans, tabled in the Parliament. Assessment of Murray Darling Basin states performance in implementing agreed milestones under the National Partnership Agreement on Implementing Water Reform in the Murray Darling Basin. Information and advice to governments, stakeholders and the community to inform improved water management. Key performance indicators Strategic assessments and advice provided to the Minister and COAG on national water reform issues. Assessments of basin states performance in implementing agreed reform in the Murray Darling Basin completed. Murray Darling Basin audits are undertaken as required by the Water Act Effective engagement with all Australian governments and other stakeholders on the NWC s work program to facilitate water reform initiatives. Annual Report

4 Strategic planning to deliver the Commission s functions The Commission s three-year strategic plan is a core component of our governance framework. Our Strategic Plan was developed with reference to the outcome statement, objectives and key performance indicators set out in the Commission s Portfolio Budget Statement, as well as the legislative reporting requirements in the National Water Commission Act. In developing the strategic plan and associated work program, we consulted COAG through its Water Thematic Oversight Group, all jurisdictions, peak industry and representative bodies, and relevant Australian Government agencies. COAG s water oversight group discussed the Commission s strategic priority activities at a meeting held in May 201. Strategic priorities focus on the core functions identified in the amended Act assessments, audits and monitoring but also support other activities to promote the objectives and outcomes of the NWI. Most work program activities and deliverables were designed to inform the production of the first triennial assessment of water reform progress under the NWI (due for delivery in late 2014). The strategic plan is supported by annual operational plans detailing how we will achieve our outcome within our allocated resources and measure our performance. Supporting plans and structures are in place to ensure that we use resources efficiently and effectively and manage our risks appropriately (see Section 4: Management and accountability). Objective 1: Assessments and advice on national water issues Program objective: assessing, monitoring and providing advice and recommendations on priority national issues related to water management in Australia and on progress in implementing the NWI. Deliverables: audits, assessments and monitoring activities on priority national issues; assessment of Murray Darling Basin states performance in implementing agreed milestones under the National Partnership Agreement on Implementing Water Reform in the Murray Darling Basin; information and advice to governments, stakeholders and the community to inform improved water management. Key performance indicators: strategic assessments and advice provided to the Minister and COAG on national water reform issues; assessments of Basin states performance in implementing agreed reform in the Murray Darling Basin completed; effective engagement with all Australian governments and other stakeholders on the NWC s work program to facilitate water reform initiatives. 22 National Water Commission

5 Providing independent advice and recommendations on water reform issues is our primary function. The main aim of our advice is to advance the highlevel objectives and outcomes committed to under the NWI, and to inform improved water management. In , we provided advice on a range of water issues to the Parliamentary Secretary to the Minister for the Environment, the Australian Government and the state and territory governments through COAG, the water industry and other stakeholders. Water reform assessments Advancing our recommendations to COAG The Commission s third national water reform assessment, The National Water Initiative securing Australia s water future: 2011 assessment, provided COAG with a comprehensive review of the NWI. It also identified 12 headline recommendations and a number of key priority areas for water reform progress into the future. On 11 October 201, COAG responded to our 2011 assessment and recommitted to the NWI through its endorsement of the Next steps in national water reform: preparation for the future report. This report, which was prepared by the then Standing Council on Environment and Water (SCEW), outlined the National Water Reform Work Plan as the next stage in the Australian water reform agenda. SCEW s report identified the water issues expected to deliver the greatest benefit from national progression over the next 10 years, and listed specific actions for addressing those issues over the next five years. It also identified significant unfinished business from the NWI. The key actions in the next five years were to: develop and implement a National Groundwater Strategic Plan improve certainty and security of access to water explore the costs and benefits of further entitlement reform in locations where rights are not explicitly defined within existing water access and entitlement frameworks provide evidence to inform national urban water reform initiatives that support secure, safe, healthy and reliable water-related services and which meet community needs in an efficient and sustainable manner better integration between water quality and quantity in planning, management and regulation frameworks to achieve improved environmental, economic and social outcomes ensure water resource decision makers are better able to plan for likely long-term impacts on water supply and demand, including identifying areas of critical balance inform decisions on the development of water resources based on the consistent application of agreed principles. Annual Report

6 SCEW s Next steps report included new approaches to implement these water actions and identified unfinished business from previous commitments, such as to: fully implement commitments for NWI-compliant water planning use best endeavours to introduce and pass legislation to enable implementation of NWI-consistent water access entitlements (Northern Territory and Western Australia) and water planning (Western Australia) identify and report on water systems where use is not sustainable address stakeholder concerns about water market intermediaries facilitate collaborative work between the Australian, Victorian, South Australian and New South Wales governments to develop practical measures to overcome impediments to the consistent application of the 4% cap and a staged increase in the limit continue to implement the National Framework for Non-Urban Water Metering estimate rural water use implement the National Water Knowledge and Research Platform. In December 201, COAG announced its decision to reduce the number of standing councils. SCEW and, consequently, the committee of senior water officials reporting to SCEW the Water Thematic Oversight Group were disbanded. At the end of June 2014, there was no specific standing council with responsibility for considering water policy at the national level. The Commission will articulate our concerns on the lack of national ministerial standing council oversight and the reduction in the priority accorded to improving Australia s national water management in our upcoming 2014 triennial assessment. Preparing our 2014 national water reform assessment The Commission has a specific function to assess progress by all governments in achieving the objectives and outcomes in the NWI. The National Water Commission Act currently requires that assessments be undertaken every three years, and requires us: to assess the progress of parties to the NWI towards achieving the objectives and outcomes of, and within the timelines required by, the NWI to advise COAG of those assessments to advise and make recommendations to COAG on actions that the parties might take to better achieve those objectives and outcomes. 24 National Water Commission

7 Our next (and last) assessment is scheduled for public release in October Under our work program, we have almost finalised this report, Australia s water blueprint: national reform assessment To minimise reporting burdens, we sought jurisdictional input to the 2014 assessment in a judicious and coordinated manner. As far as possible, we drew on evidence from our existing work program and publicly available information. Preparation of the assessment throughout entailed a formal program of consultation with NWI parties and stakeholders and the development of a program logic, including specific performance indicators. Snapshot: Consultation on our 2014 assessment From August 201 to June 2014, the Commission engaged with NWI parties, Australian Government agencies, industry stakeholders and the public to gather information and evidence required for the 2014 national water reform assessment. In September 201, we invited interested organisations and people to make written submissions to the assessment. An issues paper was released to provide background to the assessment, identifying matters on which we sought information and comment. In October 201, the Commission also issued an urban water futures discussion paper, which some of the submissions responded to. Overall, we received 56 submissions from a wide range of stakeholders and interested parties. Each submission, except those provided in confidence, was published on our website. The Commission held four water stakeholder roundtable workshops to gather input for the assessment at a variety of locations across Australia: in Albury, New South Wales, on 17 September 201; in Cairns, Queensland, on 24 October 201; in Perth, Western Australia, on 8 November 201; and in Melbourne, Victoria, on 6 February Jurisdictions were given the opportunity to provide comment and fact checking for the report. Initial meetings with state and territory agencies were held from August to November 201. Commissioners met with the directors-general of the state and territory water agencies or their representatives in April The meeting discussed water reform progress and considered strategic issues faced by agencies in implementing the NWI. A consultation draft was provided to all NWI parties on 2 May 2014, and further inputs were received through June Annual Report

8 National partnership assessments The Australian Government and the governments of the Murray Darling Basin states agreed that the National Water Commission will assess jurisdictional performance against milestones in the National Partnership Agreement on Implementing Water Reform in the Murray Darling Basin. The objective of this agreement is to ensure that Murray Darling Basin reforms are implemented in the national interest of achieving a healthy working river system, strong communities and sustainable food and fibre production. In the last quarter of 201, the Commission completed assessments for the initial signatories: the Australian Capital Territory, South Australia and Victoria. This assessment found that each jurisdiction met all of its commitments for under the agreement. Queensland and New South Wales became signatories to the agreement in February 2014, after which the Commission completed assessments for those jurisdictions. Our assessment found that, for , Queensland met all of its commitments under the agreement, and New South Wales met all but two of its commitments. The national partnership assessment reports are available on the Commission s website. Goulburn Weir Shutterstock image 26 National Water Commission

9 Carbon Farming Initiative assessment As part of the Australian Government s Carbon Farming Initiative (CFI), the Commission has a role of assessing whether relevant water management arrangements associated with plantations are consistent with the interception provisions of the NWI. One of the land-use change practices supported under the CFI is the establishment of permanent tree plantings. Projects are ineligible under the Carbon Credits (Carbon Farming Initiative) Regulations 2011 if they risk having a significant impact on water availability. Permanent tree plantings have the potential to affect water availability by intercepting surface water or groundwater, especially in areas with moderate to high rainfall. Consequently, tree planting projects are generally excluded from the CFI in areas that receive more than 600 mm average annual rainfall, with specific exemptions for environmental plantings and the mitigation of dryland salinity. There is provision for further exemption where it can be demonstrated that adequate arrangements are in place to manage interception. Under CFI Regulation.7(4), the Commission is required to assess whether interception management arrangements for areas in the above 600 mm average annual rainfall zone are consistent with the NWI and therefore considered to be adequate. To make this determination, we developed a CFI assessment framework in consultation with the then Department of Climate Change and Energy Efficiency and the Clean Energy Regulator. The framework, which involved the assessment of 72 water plans, was released in July 201. This assessment found that there were no water planning areas with adequate plantation interception management arrangements (at 1 January 201). Other reports and advice to governments One of the Commission s core functions is to provide independent and public reporting on water reform progress by monitoring priority national issues. We published significant reports in to promote transparency in the water sector and to inform improved water management in Australia. Australian water markets reports To facilitate the operation of efficient water markets (an important NWI objective), the Commission published three reports in Current issues influencing Australian water markets, released in December 201, examined issues influencing water markets and water market behaviour now and in the future. The report looked at trade limits, suspensions and other government announcements, information availability, irrigation rights as security, and emerging secondary markets. It found that potential improvements in all these areas would enhance market performance, increase participants confidence, strengthen the rigour of market systems, and make the market more efficient. Annual Report

10 The Commission s sixth annual statement of water trading activity across Australia, Australian water markets report , was also published in December 201. This is part of an annual series of reports intended to inform market participants about market structure, trading activity, prices and policy decisions influencing market performance. One of the report s key findings was that the value of trade in Australian water markets overall decreased from $1.6 billion in to $1.4 billion in , as a result of a reduction in entitlement trade. Australian water markets: trends and drivers to documented the main trends and drivers across the water market since , concentrating on the Murray Darling Basin, which represents 94% of the Australian water market. The report, which was released in April 2014, found that allocation prices reflect market participants understanding of storage levels, seasonal rainfall and temperature conditions, and crop areas. The volume and timing of environmental water deliveries are now affecting river operations, particularly in the River Murray. Determining the exact volume of environmental water transfers from state registers is difficult because state registers do not require specific identification of the purpose of a trade. Water industry performance reporting Two national report cards benchmarking the performance of water delivery agencies were published in April 2014 for the eighth and seventh consecutive years, respectively: National performance report : urban water utilities National performance report : rural water service providers These annual reports provide strong, transparent and public reporting on water reform progress by benchmarking the performance of water delivery agencies. They also afford valuable insights into industry trends, helping governments and consumers make informed judgements about whether Australia s water needs are being met efficiently and sustainably. Major themes in the urban report included the continuing increase in the typical residential water bill and rising operating costs, despite a push for greater efficiency. However, utilities have improved their service levels over time, particularly in the areas of security of supply, supply reliability, customer responsiveness and water quality. The urban report provided data from 81 reporting utilities servicing 18.7 million Australians. It was prepared by the National Water Commission in conjunction with all state and territory governments and the Water Services Association of Australia. The rural report showed that rural water service providers in Australia faced differing operating conditions in , with resulting variations in performance. Overall, there was no notable improvement in delivery efficiency because, despite increased delivery volumes in most cases, drier conditions increased evaporation and seepage. The rural report covered 11 rural water service providers, including eight of Australia s largest rural providers, and was produced in conjunction with state governments. 28 National Water Commission

11 Parramatta walk Thinkstock image Water management and pathways to sustainable levels of extraction Through the NWI, all jurisdictions have committed to achieving and maintaining sustainable levels of extraction in a way that optimises economic, social and environmental outcomes. Water management and pathways to sustainable levels of extraction, which was published in November 201, examined extraction limits in systems at varying levels of development, described different approaches for improving the sustainability of water management, and investigated factors that affect the likelihood of success. In systems where there is low to medium competition for the resource (that is, where the extraction limit has not been reached), this assessment found that NWI-consistent water planning arrangements are in place in most areas to manage extractions within identified limits. However, there are exceptions in some jurisdictions where there are significant levels of unlicensed use or where there is the potential for rapid increases in water resource development. In those cases, water resources may be at risk if water planning is not implemented within a timeframe that prevents the need for water recovery in the future. Annual Report

12 In high-competition systems, pathways to return extractions to sustainable levels have been identified in many areas to protect water security for users and to achieve environmental objectives. In systems identified as overallocated or overused, pathways are being established and implemented and there is evidence of extractions returning to more sustainable levels. However, in some areas the pathways have remained at the formative stage, and delays of several years have occurred in implementing identified reductions. For the most part, the delays have been to gain community acceptance for water recovery and to address the economic and social impacts of water recovery measures. Monitoring and evaluation for adaptive water management Monitoring and evaluation for adaptive management, released in November 201, assessed the current monitoring, evaluation, reporting and improvement (MERI) arrangements for water plans in all Australian jurisdictions, including in the Murray Darling Basin. The report focused on monitoring and evaluation to assess progress towards water plan objectives that encompass social, economic and environmental outcomes. The NWI requires that progress towards these triple-bottom-line outcomes be monitored and reported, and that water planning provides for adaptive management practices in all of these domains. Although significant progress has been made by all jurisdictions to embed MERI arrangements into water planning, the review found that progress towards effective MERI had been hindered by some common challenges. These included a legacy of aspirational planning commitments, a lack of clear and ongoing investment strategies, and a need for information sharing and alignment of efforts. Integrating groundwater and surface water management Under the NWI, all governments agreed to the integrated management of surface water and groundwater resources. Since the agreement was signed in 2004, there has been substantial progress towards recognising and understanding connected systems, and there are many examples of innovative and leading practice. Integrating groundwater and surface water management in Australia, which was published in April 2014, looked at progress and outlined opportunities for governments to optimise the benefits of integrated management and potentially achieve multiple water management objectives. The report found that, in systems that are at or near full allocation, integrated management offers a mechanism to use the total water system more efficiently. In systems with a low level of development, it can enable sustainable development that delivers future water security benefits while minimising development impacts. Integrated management can also assist in managing extreme events, such as droughts, and in mitigating the impacts of high evaporation levels on surface water storage. 0 National Water Commission

13 Review of Indigenous involvement in water planning The NWI maps out objectives for Indigenous access to water resources. It calls for Indigenous representation in water planning processes, the incorporation of Indigenous social, spiritual and customary objectives in water plans, and the integrated management of environmental water to achieve environmental and other public benefit outcomes, including Indigenous and cultural values. A review of Indigenous involvement in water planning 201, released in May 2014, found that, while approaches are variable, most Australian governments have made significant advances in recognising Indigenous water interests. Progress has been made on engaging Indigenous people in water planning and management. However, challenges remain and little progress has been observed in the allocation or licensing of water for Indigenous social, economic, spiritual or cultural purposes. The report encouraged ongoing support for Indigenous representation so that Indigenous voices continue to be heard in the national water debate. It also supported further promotion of allocation or licensing opportunities and efforts to build the capacity of Indigenous communities to participate fully in water planning and management. Snapshot: Assessments in preparation During , we undertook several projects that are expected to produce reports in the six months before the Commission closes in December All these reports have been informed by extensive consultation with jurisdictions and stakeholders: Extractive industries: two related projects considering the interaction of water and mining policy, current state and territory regulatory arrangements for unconventional gas, and how these intersect with water planning, management and entitlement regimes Environmental water management: an update on identified areas for improvement in jurisdictions planning, implementation, monitoring and evaluation, and governance arrangements Water planning report card: an assessment of jurisdictional progress in the development and implementation of water planning Urban futures: a review of recent developments and emerging priorities to support a new agenda for urban water reform. Annual Report

14 Parliamentary briefings, inquiries and submissions In , the Commission provided specific advice to governments, stakeholders and the community through Senate Estimates appearances before the Senate Standing Committee on Environment and Communications, public submissions to government water-related reviews, and appearances before relevant parliamentary inquiries. In the interests of transparency, we published links to all public inquiries and submissions on our website. We also contributed expert advice on water issues by participating in a range of intergovernmental and industry committees (summarised in Appendix A). Economic Regulation Authority s proposal to amend water service operating licences in Western Australia The Commission s submission, lodged in August 201, focused on those changes that we considered supported or inhibited the proposal s outcomes, and included comments on the efficiency and cost-effectiveness of regulation, customer choice, and performance reporting standards. Our submission expressed support for efforts that strengthened performance reporting standards and the handling of customer complaints but raised concerns about the removal of the requirement for water service providers to consult with customers. Victorian Government s Melbourne s Water Future strategy We made a submission to this strategy on 25 September 201, supporting the whole-of-water-cycle approach to planning (specifically, the use of systems analysis and the definitions of local, regional and metropolitan water cycle plans). The Commission commented on the need to ensure broader integration with other sectors, consider competition with new entrants and provide more emphasis on ensuring an informed community, and on the importance of building trust through transparency. Inquiry into the Development of Northern Australia The Commission made a written submission to the Joint Select Committee on Northern Australia s Inquiry into the Development of Northern Australia. We were then invited to appear before the committee at a hearing in Canberra on 21 March Acting CEO Kerry Olsson provided a summary of our submission to the inquiry and also discussed opportunities for Indigenous Australians to use water resources for economic advantage. 2 National Water Commission

15 Objective 2: Auditing the Murray Darling Basin Plan Program objective: independently auditing the effectiveness of the implementation of the Murray Darling Basin Plan and associated water resource plans. Deliverables: an audit of the MDBA, Murray Darling Basin states and other relevant entities implementation of the Murray Darling Basin Plan and associated water resource plans, tabled in Parliament. Key performance indicators: Murray Darling Basin audits are undertaken as required by the Water Act Reflective river istockphoto image Annual Report

16 Murray Darling Basin audit role The Murray Darling Basin audit function was assigned to the Commission under the Water Act. In accordance with the Act, we are required to audit the effectiveness of the implementation of the Murray Darling Basin Plan and associated water resource plans. In fulfilling our audit function, our goal is to improve public confidence, strengthen accountability and transparency, and promote more effective water resource management across the basin. Sections 87 to 90 (Part ) of the Water Act describe our audit role, prescribing that the Commission s first audit must be completed within five years of the commencement of the substantive provisions of the Act (six months after royal assent), and thereafter at not more than five-yearly intervals. This meant that our first audit was due by no later than March 201 a target we met by releasing the Commission s initial status report on 1 March 201. The next Murray Darling Basin Plan audit report was therefore required before March Following discussion of the Commission s strategic priorities at a meeting of COAG s Water Thematic Oversight Group in May 201, it was agreed that we would provide our first comprehensive audit report in Although the Commission had been monitoring Murray Darling Basin Plan implementation activity in the lead-up to preparing our 2015 report, with the announced closure of the Commission in 2014 we ceased our work on this function. The audit role will now be assigned to another agency. Discussions on this matter are being led by the Department of the Environment. Objective : Advice to improve water management Program objective: working with all Australian governments and other stakeholders to facilitate water reform initiatives. Deliverables: information and advice to governments, stakeholders and community to inform improved water management. Key performance indicators: effective engagement with all Australian governments and other stakeholders on the NWC s work program to facilitate water reform initiatives. 4 National Water Commission

17 Engagement with governments and stakeholders The Commission consulted all jurisdictions, peak industry and representative bodies, and relevant Australian Government agencies in developing our Strategic Plan and associated work program. In addition to providing advice through our COAG-mandated assessments, audits and reports, we engaged directly with governments and stakeholders to inform improved water management. Our crucial relationships with jurisdictions federal, state and territory water agencies have been developed through bilateral and multilateral arrangements. As described in more detail on page 25 of this report, the Commission undertook extensive consultation at multiple levels (ministers, directors-general and senior officials) throughout in the process of developing our 2014 national reform assessment. To advance water reform initiatives, the Commission also collaborates extensively with industry, agricultural, resources, environmental and Indigenous stakeholders and with science and research partners. Our Stakeholder Reference Group provides a formal channel for stakeholder engagement with peak bodies. We value our stakeholders as partners in reform and actively seek their views to inform our decisions. Snapshot: Stakeholder Reference Group Our Stakeholder Reference Group canvasses peak bodies views on national water reform priorities and the implementation of reform measures, and is a forum for discussions and exchanges of views. The group currently comprises 14 organisations representing environmental, farming, irrigation, business and industry interests. In , the members were the Australian Bankers Association, the Australian Conservation Foundation, the Australian Local Government Association, the Australian Forest Products Association, the Australian Water Association, the Business Council of Australia, Irrigation Australia Ltd, the Minerals Council of Australia, the National Farmers Federation, the National Irrigators Council, the Chair of the former First Peoples Water Engagement Council, the Water Services Association of Australia, Waterfind, and WWF Australia. The group met in November 201 and in April Both meetings focused on the development of our 2014 water reform assessment, seeking stakeholder input on emerging findings and recommendations. Following the April meeting, five of our Stakeholder Reference Group members provided their views in video interviews on the value that the NWI had delivered to their sectors over the 10 years since it was first signed in Annual Report

18 We collaborate more broadly through representation on a range of committees, working groups and alliances and through presentations and discussions at targeted industry events. On-farm discussion National Water Commission image Working with industry partners An integral aspect of the Commission s approach to driving reform is our commitment to work with industry partners. In , we focused significant effort on examining the case for urban water reform, as outlined in the Urban water futures snapshot. We continued our active involvement in industry alliances such as the National Recycled Water Regulators Forum, the National Water Industry Skills Forum, and the Australian Water Research and Development Coalition. In July 201, we hosted the second Urban Water Partnership Forum in collaboration with Australia s leading urban water research institutions. The forum discussed R&D priorities with a view to improving the value that Australia gains from its urban water research investment. We also participated in Water Industry Skills Taskforce meetings and activities aimed at encouraging industry take-up of the national certification framework for operators of drinking water treatment systems. 6 National Water Commission

19 Snapshot: Urban water futures The NWI commits its signatories to providing healthy, safe and reliable water systems for all Australians, and to improving the systems management, efficiency and sustainability. The Commission has published influential reports on urban water reform, pricing and competition, arguing that further change is needed to institutional and policy settings to create an urban water sector that is more resilient, flexible, efficient, transparent, accountable and customer-focused. Commissioners agreed to review the urban water sector as part of our 2014 reform assessment. The review was to take stock of reform progress and identify the critical priorities over the next 0 years. We issued an Urban water futures discussion paper in October 201 as a basis for stakeholder consultation. It explored key themes: Efficient and effective service delivery Aligning institutions and regulatory frameworks Access to capital and private sector investment Investing in people: skills and culture A customer-focused sector, an engaged community Contributing to liveable communities. In response, we received 25 submissions and held meetings with 1 urban water agencies. Key findings were developed from the submission process and tested at a stakeholder workshop held in Melbourne on 6 February The Commission also formed the Urban Water Strategic Advisory Panel to strengthen stakeholder engagement and provide advice on our findings and recommendations. Commissioner Leith Boully chaired the panel, which comprised Malcolm Roberts (Queensland Competition Authority); Rob Skinner (Monash Centre for Liveability), Graham Dooley (Australian Water Association and Blue Sky Water Partners), Shaun Cox (Water Services Association of Australia) and Roch Cheroux (Degremont). We plan to release our urban water futures review as a companion report to the Australia s water blueprint: national reform assessment Annual Report

20 Water seminar series In July 201, the Commission instigated a staff seminar series, inviting water industry figures and officers from other agencies to brief staff on topical water issues. Seminar presentations included: Dave Appels, Frontier Economics current issues influencing water markets Adam Lovell, Executive Director of the Water Services Association of Australia WSAA s vision for urban water Linda Botterill, ANZSOC Institute for Governance rural adjustment and drought policy Caroline Wenger and Jamie Pittock, ANU living with floods and key lessons learned Suzy Nethercott-Watson and Peter Baker, Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development scientific understanding of water-related impacts associated with coal seam gas and large coal mining Peter Stone and Dr Cuan Petheram, CSIRO water availability for agricultural development in Northern Australia and, in particular, the work on the Flinders and Gilbert catchments agricultural resource assessment Dr Sarah Wheeler, University of South Australia structural adjustment issues in rural communities and the socioeconomic impacts of buybacks and water markets Denis Flett, Victorian Environmental Water Holder office environmental water management issues and challenges. Conferences and events We also engage with stakeholders through a variety of conferences, speaking engagements and externally hosted workshops. During , Commissioners and senior staff delivered keynote addresses and presentations at many conferences and workshops to advance water policy debate and share information with industry and research partners. Noteworthy presentations are listed in Appendix B. Some highlights were as follows: Water 201 July 201: Commission CEO James Cameron provided conference delegates with a presentation on our approach for our audit of Murray Darling Basin Plan implementation. CEDA water conference August 201: Commissioner Des Lord spoke on water efficiency during the CEDA s water series in Perth. The series examines whether water policies respond effectively to the future challenges of the sector and society. Riversymposium September 201: Our Chair, Karlene Maywald, delivered the keynote address, Water, energy and food: cross-currents and challenges. Commissioner Rob Freeman also joined Commission staff in delivering a session on assessing progress in Australian water reform. 8 National Water Commission

21 Water in Mining conference November 201: Karlene Maywald delivered the keynote address to this Australian Minerals Institute conference in Brisbane, Managing water for mining in the national interest. 9th Annual Water Symposium February 2014: Commissioner Rob Freeman chaired this symposium in Sydney, which addressed a range of crucial policy, regulatory and industry related water issues affecting Australia s sustainable water future. OzWater14 May 2014: Karlene Maywald delivered a keynote plenary presentation on urban water futures. Commissioner Des Lord presented an address to open the Water in mining and energy stream and chaired two related sessions, and Commissioner Leith Boully spoke on Policy settings to transform the water sector. Kerry Olsson opened a workshop on the National Certification Framework, run by members of the Water Industry Skills Taskforce. The Commission also hosted two well-attended urban workshops where delegates explored efficient and effective service delivery, aligning institutions and regulatory frameworks, access to capital and private sector investment, and liveable communities. Karlene Maywald addresses OzWater Courtesy AWA Annual Report

22 Snapshot: National Water Initiative 10-year anniversary The NWI was signed by all jurisdictions at the 25 June 2004 COAG meeting (with the exception of Tasmania, which signed the agreement in 2005, and Western Australia, which signed in April 2006). On 25 June 2014, the Commission commemorated the NWI s 10th anniversary. An e-book, 10 years of water wins: Australia s National Water Initiative, was produced to highlight some of the significant benefits that have flowed to individual water users, communities, industries and the environment. We also established an NWI YouTube channel, which featured a series of videos. Our current and former Chairs reflect on the NWI reform journey, and stakeholders (Adam Lovell, Jonathan McKeown, Jonathan La Nauze, Matt Linnegar, Tom Chesson) highlight different aspects of the NWI from their perspective, as well as commenting on current challenges. Senator Birmingham issued a media release, National Water Initiative celebrates tenth birthday, on 25 June Several peak bodies issued related media releases, and there was considerable media coverage (see our website for further details.) International cooperation and engagement The NWI is internationally regarded as a model for water governance, for tackling the wider challenges of cross-jurisdictional management, and for harnessing the power of markets and price signals to encourage efficient water use and investment. As a result, we receive frequent requests to host international delegations and to participate in overseas events. Commission Chair Karlene Maywald attended the Global Water Summit in Paris in April 2014, where she discussed Australia s perspective on the theme of Water for growth. The summit was hosted by the Global Water Leaders Group a CEO-level non-profit organisation that brings together water sector leaders, including utility directors, water ministers and regulators, to focus on the world s water challenges. Also in April 2014, at the invitation of the Australian Trade Commission, Karlene Maywald attended the Australia Dubai Urban Water Symposium in Dubai and the Food Water Energy Nexus Policy Forum in Abu Dhabi from 1 to 16 April. At the Urban Water Symposium, she delivered a keynote presentation on Australia s urban water experience, highlighting Australian expertise and opportunities for collaboration. The Food Water Energy Nexus Policy Forum explored the connections between food, water and energy security, looking at the challenges that exist in both Australia and the Middle East. 40 National Water Commission

23 In May 2014, Karlene Maywald and Acting CEO Kerry Olsson attended Singapore International Water Week as invitees to the Water Leaders Summit. They participated in two days of workshops and roundtable discussions, which were also attended by some Australian directors-general of water agencies. We also hosted various international delegations, as reported in Table.1. Some highlights were as follows: A high-level delegation from Argentina, including six ministers and chaperoned by the Argentinian Ambassador to Australia, visited the Commission in November 201. We provided a briefing on water reform in Australia, including recent developments in reform and urban water infrastructure. Representatives from the Network of Asian River Basin Organizations visited in February 2014 as part of an Australian Awards Fellowship program. The delegation was interested in water markets and urban water reform in Australia. Also in In February 2014, as part of a series of visits to support a new Cambodia Australia China irrigation dialogue, Kerry Olsson participated in a high-level roundtable event briefing delegates on the NWI and water management arrangements in Australia. On 27 March 2014, we hosted a group of 25 students participating in the Australia Pakistan Agriculture Scholarship course on irrigation and water management, which is sponsored by the Department of Foreign Affairs and Trade and the University of Western Australia. The objective is to assist Pakistan to build capacity and apply sound policy to address constraints to irrigation and water resource management. On 16 June 2014, the Commission hosted an international delegation from the Water Resources Department, Government of Jharkhand, India. This high-level visit was undertaken in the context of a bilateral memorandum of understanding signed between the Indian and Australian governments to extend cooperation in the field of water resources management. Table.1: International delegations, Date Visitors Country Topic October 201 Rajasthan Delegation India Australia s water management arrangements November 201 Chinese Ministry of Water Resources China Functions and staff retention of the National Water Commission November 201 Han River Basin Environmental Office South Korea Australia s water management arrangements November 201 Ministers of infrastructure Argentina Australia s water management arrangements Annual Report

24 Table.1: International delegations, continued Date Visitors Country Topic February 2014 Delegation from Network of Asian River Basin Organizations Indonesia Laos Philippines Australian water reform Vietnam Sri Lanka March 2014 State Government of Andhra Pradesh India The role and functions of the National Water Commission March 2014 AusAID Australia Pakistan Agriculture Scholarship Short Course on Irrigation and Water Resource Management Pakistan Australia s water management arrangements; role & functions of the NWC; water planning; water markets; urban water; water & mining; environmental water management May 2014 Conagua (the National Water Authority of Mexico) Mexico Australia s water management arrangements June 2014 State of Jharkhand Water Minister India Australia s water management arrangements June 2014 Asian Development Bank, Small and Medium Towns Project Vietnam Urban water reform in Australia Quantitative deliverables and performance indicators In , the Commission met all of our key performance indicators (KPIs). We fully delivered on our legislated responsibilities by conducting assessments and monitoring matters relating to the NWI. Our assessments and advice provided credible and independent analysis on water reform. We completed all of the data collection, analysis and consultation required to deliver our next national water reform assessment to COAG in September 2014, as scheduled. The Commission also completed important assessments and monitoring activities that relate to the NWI. Highlights included annual reports benchmarking the performance of urban water utilities and rural water service providers and three reports on water markets, current issues, and trends and drivers influencing market activity. We also produced reports on integrated groundwater and surface water management, pathways to achieving more sustainable extraction levels, and monitoring and evaluation arrangements. 42 National Water Commission

25 The 201 assessment of Murray Darling Basin states performance in implementing agreed milestones in their national partnership agreements on implementing water reform in the Murray Darling Basin was completed and reports were provided to the Minister. Table.2: Portfolio Budget Statement extract: Program 1.1 deliverables deliverables Budget target Actual Assessments of progress of parties towards addressing the objectives and outcomes of the NWI completed Due a Assessments of other matters relating to the NWI conducted Yes Yes Assessment of Murray Darling Basin states performance in implementing water reform in the Murray Darling Basin completed Yes Yes Monitoring conducted of areas that are significant to the NWI Yes Yes a Considerable work was done on research, data collection, analysis and stakeholder engagement during Table.: Portfolio Budget Statement extract: Program 1.1 key performance indicators key performance indicators Budget target Actual Assessments and advice to the Minister and COAG provide credible and independent analysis on water reform Yes Yes Work program contributes to implementation of water reform Yes Yes Performance trends The Commission met or exceeded most of our performance targets over the past four years. Table.4 shows trends in performance over that period. Over the three years up to the financial year, several indicators related to the Commission s Raising National Water Standards (RNWS) Program. This large and complex program, involving more than 178 projects, achieved a high percentage of its planned outcomes, which were disseminated to target audiences. In and , our progress in delivering on the Murray Darling Basin audit framework was constrained by a delay in the finalisation of the Basin Plan. However, the release of our first audit in March 201 met the statutory timeframes required under the Water Act Annual Report

26 The change in the Commission s role in 2012 placed a stronger focus on assessment and monitoring activities. In Table.4, the relevant deliverables and KPIs have been bracketed where possible to show achievement trends across the years. These KPIs were met through the delivery of significant assessments and monitoring reports that have promoted transparency in the water sector and informed improved water management in Australia. Table.4: Four-year performance trends, to KPI/ deliverable Deliverable Deliverable KPI: Work program contributes to implementation of water reform deliverable: Monitoring conducted of areas that are significant to the NWI deliverables: Assessments of other matters relating to the NWI conducted; Monitoring conducted of areas that are significant to the NWI (these replaced the and indicator: Assessments and reports delivered in accordance with legislative requirements) deliverable: Individual RNWS projects completed (%) (replaced the and indicator: Individual RNWS projects delivered in accordance with project plan) Project outcomes disseminated to target audiences Target 100% 100% Yes Yes Achieved 100% 100% Yes Yes Target 85% 85% 100% n.a. Achieved 87% 48% 100% n.a. Target Yes Yes Yes n.a. Achieved Yes Yes Yes n.a. 44 National Water Commission