THE National Water Commission's has today released its report on the impacts of water trading in the southern Murray-Darling Basin, saying that it provides significant economic, social and environmental benefits.
Speaking at the Australian Irrigation Conference in Sydney, National Water Commissioner, Laurie Arthur said the report showed water trading was a "major success story" and that without it, the effects of drought would have had far greater consequences on the region.
"Participation in water markets has given irrigators much needed flexibility in how they run their farm businesses during tough times - helping them to improve cash flow, retire debt and manage risk," he said.
The report estimated water trading in the southern Murray-Darling Basin added $220 million to Australia's GDP in 2008-09; with net production benefits of $79m in NSW, $16m in South Australia, and $271m in Victoria.
Water trading has also contributed to securing critical urban water needs in Adelaide, Bendigo and Ballarat.
Mr Arthur said the report supported the National Water Commission's call for an end to restrictions on entitlement trading.
"Water trading will play an increasingly important role in allowing irrigators in the MDB to manage the impacts of future climate variability and the new sustainable diversion limits that will be introduced under the new Basin Plan," he said.
Overall, the report contains 37 findings for consideration by the Commonwealth and southern Basin states via the Murray-Darling Basin Ministerial Council.
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