There are many allegations of criminal activity and water stealing in the Murray Darling Basin. The Inspector General of Water is intended to be the cop on the beat and stamp out a lot of this non-compliance. I’ve travelled extensively across the Murray Darling Basin and spoken to locals on the ground.

I wanted to see if many of the issues I’d been told of had been brought to his attention.

Transcript

[Malcolm Roberts] Have you made contact with the New South Wales Natural Resources Access Regulator specifically in connection with unapproved water storages in New South Wales, including the Northern Basin?

I’ve had a number of contacts with Grant Barnes, the CEO of the Natural Resource Access Regulator and the Chairman Craig Knowles, not on that specific issue, more on general issues about our establishment and about metering and yeah, metering and a little bit about the water sharing plan on our last meeting.

[Malcolm Roberts] Are you aware, I’m not having a criticism of you, but are you aware of how much concern there is about water theft in the Northern Basin from people in other areas of the Murray-Darling Basin?

Oh, without question.

[Malcolm Roberts] Yeah. Okay. Thank you. That’s very reassuring.

Yes.

[Malcolm Roberts] So is there a timeframe for getting to the bottom of the question of how much water is being extracted in the Northern Basin as against the amount allowed by the plan?

Our work plan will, once we are legislated enact a number of assurance checks, auditing processes to get to answer a lot of those questions and then hopefully be able to work off a benchmark so that we can then answer those questions specifically.

[Malcolm Roberts] So I understand the legislation that enables your position is in the Lower House now?

That’s correct.

[Malcolm Roberts] And, so once that’s passed, how long do you think it’ll be before you have a good handle of that, three months, six months?

I can’t speculate on the parliamentary process or the ascension into from the Governor General.

[Malcolm Roberts] Once your position is created, legislated, how long will it take you to get a good handle on the Northern basin and the water?

We’ve already got a handle, we’ve made preparations with the scoping of a number of bodies of work that will be part of our work plan to start day one.

[Malcolm Roberts] And to get to the bottom of the issues and come up with some conclusions. How long roughly, do you think?

Well, there’s different timelines for different projects within that work plan, but they will all be transparently published on our website. So everyone will understand the work that we’re doing and the projects that we’re doing and the timeframes.

[Malcolm Roberts] That’s wonderful. When will that be available? I know it’s subject to the passage of the legislation.

The day we are enacted, it will be published.

[Malcolm Roberts] There’ll be a lot of people pleased to hear that. So we’ll be looking forward to it. If the enabling legislation passes as presented what tools do you have at your disposal to decide who is and who is not cheating on the basin plan? And what strategies would you be following?

It’s a difficult question to answer cause it’s case by case, or there’s holistic views, so, I guess if you’re talking about, if it’s a regional issue, like you referenced the Northern Basin, the legislation would allow us to potentially conduct an inquiry to get through some potential broader systematic issues that may be there. We have the ability through audit and compelling of information to inform potential river operation arrangements and how that’s measured and modelled and things like that. So there’s a number of different mechanisms depending on what the scope of the actual inquiry is. So your questions are very large, broad.

[Malcolm Roberts] So you can work at that level, but you can also work at the property level?

Exactly. Right. The property level would be less regular, we’re a regulator of last resort in that instance but there would be circumstances where we would do that and the legislation allows us to have authorised officers to conduct that work. But yes, it’s a tiered ability from an inquiry through to audit and assurance, checking and through to individual investigations.

[Malcolm Roberts] And you will also have the authority to appoint people to do that work for you?

Yes.

[Malcolm Roberts] So you’re going to have foot soldiers for you?

Yes. I will have under the statute the ability to, not sure of the exact word but to create the authorised officer or officers.

[Malcolm Roberts] So you’ll have all that’s needed to enforce the Murray-Darling Basin Plan, make sure there’s no favouritism to any area.

Yes, and part of the MoG arrangements is making sure that each of those authorised officers have the appropriate training, skill sets and to allow me to approve them as Commonwealth investigators as an authorised officer.

[Malcolm Roberts] Okay. ‘Cause there’s a lot of concern about cheating on the plan.

I’ve heard that loud and clear Senator.

[Malcolm Roberts] What other matters are you investigating right now?

We don’t have the powers to formally investigate.

[Malcolm Roberts] Sorry. Yeah. Okay. What are you evaluating right now? What will you be investigating

We’re scoping and canvassing everything from standards, trying to understand benchmark of standards because the inconsistency from valley to valley, state to state, north to south basin is significant. So we’re canvassing that and have a body of work prepared for that, river operations, metering, trade, which there’s specific legislation in relation to trade. There’s specific legislation that allows me to create standards and benchmarks. Now that’s done in cooperation with the basin states obviously because a lot of the state legislation may need adjustment depending on what agreed standards and benchmarks that are created as well, so it’s a variant scale of work.

[Malcolm Roberts] I’m very pleased to hear that you’ve used the word variation because there is enormous variation, particularly between the north and south, that makes it very difficult for people in those areas to understand the other areas. But what specific topics are on your radar? What issues?

Senator, all of them to be frank and because a lot of them are interrelated, there’s a lot of misinformation out there as well. So we have a role to be a myth buster and independent communicator of truth and make sure that the data that people rely on and the modelling that’s relied on has an independent validation as well. There’s a componentry role that we’ll play there. It’s a very broad role, but metering measurement through to water operations through to environmental water and outcomes. It’s everything.

[Malcolm Roberts] So trading?

I have, yes, I have powers under the act in relation to trading, but limited resources and mindful of of the recent ACCC’s work and recommendations which is currently under consideration by all states and the federal government.

[Malcolm Roberts] And what about making recommendations and changing systems to enable you to better oversee the trading in any breaches of trading regulations?

Yes.

[Malcolm Roberts] You’ve got the ability and the support to be able to make changes?

I won’t have the power to be the– up through the Basin Official Committee into MinCO for those.

[Malcolm Roberts] Because it seems at the moment trading is something that is difficult to enforce for a variety of reasons, but you’ll be able to get through that.

Well, I’ll be able to assist the Ministerial Council and Basin Officials Committee.

[Malcolm Roberts] Okay. Thank you Chair, that’s all I have.

[Chair] Thank you Senator Roberts.

[Malcolm Roberts] And I appreciate your direct answers. Thank you.

No, you’re welcome, Senator.

Chair could I just add to those answers by saying that, of course the relevant bill was introduced to The House of Representatives this week, through the explanatory materials, the minister’s second reading speech and the explanatory memorandum outlines many of the issues that the Inspector General has just been talking about and I’ve just reacquainted myself with the explanatory memorandum. It’s written in a very good style and it outlines the proposed powers of the Inspector General, the offence provisions and the various other issues that have been outlined here. So I would commend that to the attention of the committee.

[Malcolm Roberts] Thank you chair. Mr. Metcalf, Mr. Grant will then have the ability for things that are not defined in the regulations or in the legislation to actually go and talk to someone to make sure that they’re covered somehow?

Well, Mr. Grant, or the Inspector General, once appointed, would certainly be charged with the administration of those aspects of compliance and Mr. Grant’s interim Inspector General has indicated the work that’s underway at the moment, but also the preparations, the very detailed preparations that have been put in place to ensure that when the legislation and if the legislation is passed, the Inspector General will be able to hit the ground running.

[Malcolm Roberts] Apart from variation, another word that keeps cropping up is complexity in the Murray-Darling Basin Plan and the work of the Authority. So, Mr. Grant is human and he’s already had some input into the legislation, as I understand it, is that correct?

[Mr. Grant] Yes.

[Malcolm Roberts] You mentioned that at the last Estimates I think, but he’s human so he won’t be able to understand everything quickly. So there’ll be need for changes of his approach or maybe changes that he couldn’t foresee a few months ago.

Well, certainly the Inspector General and Mr. Grant has outlined the fact that the Inspector General and the staff of the Inspector General will be a cop on the beat, that they will have staff, quite a significant resourcing out there in the Basin, working on a daily basis on these issues. And of course, if there are views that arrangements are not working properly, as Mr. Grant has explained, there’s a loop back through the Basin Officials Committee, given that this is a shared space between the Commonwealth and the states and the ACT to consider whether adjustments need to be made. So, the fact that there will be an on the ground presence will be a particularly powerful way of ensuring that things are actually working and if they need improvements then things can be done about it.

[Malcolm Roberts] Thank you.