The Australian Competition and Consumer Commission (ACCC) is to conduct an inquiry into the Murray Darling Basin water market.
Treasurer, Josh Frydenberg and Minister for Water Resources, Drought, Rural Finance, Natural Disaster and Emergency Management, David Littleproud jointly announced the inquiry, releasing the ACCC’s terms of reference at the same time.
They said the ACCC would look at options to improve the transparency and efficiency of the water market, also examining changes in water use, carry-over water, trade between water valleys and systems and the effect of water speculators on the market.
Mr Frydenberg said water was the lifeblood of communities in the Murray Darling Basin and it was important that the market operated in a transparent and effective manner.
“As with any market, it is important to take a look at how it is performing and whether it is operating as intended and to the benefit of communities who rely on the Basin,” Mr Frydenberg said.
Mr Littleproud said farmers had told him they had concerns over the issues the inquiry would cover.
“It’s important to make sure the market is operating as intended, our regional communities depend on it,” Mr Littleproud said.
“We need a transparent market in which farmers have timely access to accurate information,” he said.
