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Waterfind supports regulation of the water industry
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Waterfind recognizes the current debate on the regulation of the water market industry and is in support of the development of a national body to regulate the activities of water brokers and other key stakeholders within the industry.
Such a body would require all monies for water trading activity to occur through audited trust accounts and water transfers would only be able to lodged to government agencies / irrigation authorities by licenced water brokers.
Water licencing would be approved only if the group / company can demonstrate that it has no involvement with regulating or approving transfers in the water market and that the group is not involved with the trading (buying and re-selling) of water.
Protection of water licence holders involved in trading would be essential and a licenced broker should have a current indemnity insurance policy for water brokerage activities. Furthermore a fining or licence suspension regime should be enforced for a water broker that does not comply with the code of practice.
In summary minimum standards would include: • Audited Trust accounts • Current professional indemnity insurance • Separation from regulatory / approval powers • Fines or suspension of water brokers for non adherence to the code of practice.
The regulatory body would work with major stakeholders including water licence holders, water brokers, state government agencies and irrigation delivery companies and would have a separation of powers from these stakeholders to ensure they are in a position to enforce required punishments for falling outside the code of practice.
Waterfind does not support self regulation as it would limit competition between water brokers and not provide sufficient separation of powers to accurately judge and enforce unpleasant punishments to its members.
In the absence of a regulatory body Waterfind currently self regulates and conducts all water transfer activities through an independently audited trust account, does not allow its brokers to be involved with water trading activities and holds current insurances that are particular for water transfers.