Calls grow for more regulation of Australia's 'wild west' water rights trading market

摘要

Calls for reform of the water rights trading markets in Australia's Murray-Darling Basin have intensified, following last month's publication of the Australian Competition and Consumer Commission's (ACCC) much-anticipated interim report into market operating conditions.Valuations of entitlements and allocations in one of the world's most sophisticated water rights trading markets have surged on the back of three dry years in a row (see table right), leading to increasing interest from investors - and growing suspicions from water users in the region.The ACCC identified a number of issues with the current arrangements, including a lack of regulatory oversight and market fragmentation, and has floated the idea of a single regulator to oversee the market, which a number of industry observers believe should be acted upon by the federal government.The 544-page report quoted "significant deficiencies associated with the settings and governance of water trading, which undermine the efficiency of water markets and their dependent industries."