THE trading activity of one of the largest Murray-Darling Basin water brokers has gone under the microscope and the compliance watchdog found there was room for improvement.
In his first audit since the role was created, Inspector-General of Water Compliance Troy Grant reviewed Goulburn-Murray Water - the largest approval authority in Victoria and Australia's largest irrigation infrastructure operator with more than 20,000 customers across Victoria.
Mr Grant said although GMW had systems and processes in place, there was still work to be done.
The audit found further improvements were needed to ensure all relevant interests were properly identified, and that GMW could verify other parties were notified of those interests.
The audit also recommended better records be maintained so applications submitted for approval could be reconciled with the published trade information.
READ MORE:
Mr Grant said the audit was part of the plan to build community trust and confidence in the water market.
"We were able to independently confirm that the number of trades and volume of water affected by GMW's dual role is proportionately quite low and not a significant risk to water markets," Mr Grant said.
"We know from the ACCC water markets inquiry that a wide range of improvements to Basin water markets are needed.
GMW was selected for the audit because it is an approval authority for water trades and has disclosure obligations under the Murray-Darling Basin Plan where it has a legal, equitable or commercial interest in any trade submitted for approval.
Mr Grant was encouraged by GMW's response to the audit and the company's desire for strong compliance.
"I welcome their commitment to action the recommendations provided in the audit report," he said.
"This will significantly reduce the risk of any future non-compliance with disclosure obligations under the Basin Plan."
Several other audits are underway and Mr Grant said his office was "hitting the ground running", with several compliance audits underway on sustainable diversion limits, water resource plans and overland flow.
Earlier this year, Mr Grant publicly blasted the NSW government and his former Nationals colleague Water Minister Kevin Anderson for dodging their Murray-Darling Basin Plan responsibilities.
NSW's water resource plans are three years overdue and without the plans, Mr Grant said he had no means to enforce the MDBP's rules.
"I'm the sole enforcement agency for WRPs, but I can't enforce the rules in the plans that don't yet exist," Mr Grant said.
NSW recently submitted a handful of its WRPs to the Murray-Darling Basin Authority for approval, with the remaining expected soon.