Media Release

An Idea to Save Water

20 June 2002

Eliminating evaporation and storage of irrigation water in the open channels by piping the water will result in at least a trebling of the amount of water currently available without diverting a single river.

The saved water could be used to both increase the amount of water available for irrigation, opening up new agricultural areas and return some water to rivers to restore environmental flows.

The Federal and/or State Governments could raise several billion dollars through the issue of Government Water Bonds, or a similar financial instrument, which carries a guaranteed rate of return. These investment bonds could be made available to superannuation funds that would find them an attractive alternative to cash deposits.

The funds raised from the water bonds would be for the sole purpose of funding the piping of every open irrigation channel in Australia. Based on the understanding that the Wimmera-Mallee irrigation-piping project has an estimated cost of $300m, the total cost of piping all of Australia's open irrigation channels would be in the many billions of dollars.

The piping projects would be administered by the existing local water authorities that would tender for contractors to supply the pipes and undertake the works. The infrastructure spending would provide a big economic stimulus to regional Australia.

Increased economic activity and the resultant tax collections would enable the Federal Government to fund the water bonds. The increased economic activity would include new agricultural projects, the manufacture of the water pipes, the works involved with the installation of the pipes, etc.

The Foundation for Rural and Regional Renewal (FRRR) is keen to hear any comments you may have about this idea. To express your thoughts please contact:

Sylvia Admans FRRR P: 03 5443 1022