Water is arguably our most precious resource. It is also a booming commodity, with irrigation water being traded and sold like shares on the stock market. But there are concerns that big investors are making a killing while farmers face soaring prices. #abc730 @FarrellPF
Grape grower John Argiro is worried about continued access to the vital water supply that keeps his vineyards alive. “I’ve owed the bank millions and I don’t lose sleep. But when I’ve got to make a decision on water for my vines, I don't sleep at night.” #abc730 #watertrading
Last year the trading price of water in Victoria soared by almost 140%. John Argiro blames the lucrative trade in water entitlements. “A lot of people can make more money trading their water than growing grapes. It’s wrong.” #abc730 #watertrading
Water trading is big business, worth more than $2 billion a year. The Murray-Darling system accounts for more than 95% of national water trading. But it’s not a single market, it’s a patchwork of regional markets spanning four states. #abc730 #watertrading
“Anyone really is able to buy and sell water in the water market. You don’t have to be a farmer, you don’t have to be a landholder.” Lex Batters, CEO H2OX water exchange. #abc730 #watertrading @H2OX_News
“Investors have an important role to play on a positive side, but obviously in any market you’re going to get people who do well out of it and people who don’t.” @SteveWhan, CEO Irrigators Council. #abc730 #watertrading
John Argiro wants curbs on investors. “They’re buying up all the water they’re hoarding it waiting until there’s a drought situation and then they’re going out buying more water and creating more of a shortfall, so we’ve all got to go to them to buy the water.” #abc730
“The presence of investors certainly makes the price go up, but it also helps to enable a whole range of businesses who probably wouldn’t have been able to operate previously.” @SteveWhan, CEO Irrigators Council. #abc730 #watertrading
Water trades are supposed to be recorded by each state’s water agency. But documents obtained by #abc730 reveal that in NSW water officials admitted they undertook no checks to ensure that water trades were being recorded accurately. #watertrading
Lex Batters wants a single public water market, like a stock exchange. “Then you have that full transparency and full confidence in the market the price you’re paying for water is the price it should be.” #abc730 #watertrading @H2OX_News
THE @acccgovau is now investigating the water trade. The Federal government says it will only act once it’s seen the ACCC report. #abc730 #watertrading
