The Water Account Australia 2008-09: Background and Main Findings ABS House 45 Benjamin Way, Belconnen ACT 29 November 2010 The Water Account Australia 2008-09: Background and Main Findings

Background 4th ABS Water Account Australia Changes since last time Last release 28 November 2006 Changes since last time Adoption of the SEEA-Water 2007 Water Act 2007 The Water Account Australia is part of a developing program of environmental-economic accounts at the ABS

Information silos Data developed to answer one particular question or problem Difficult to figure out if all information is included Not always easy to see the whole picture, or how it relates to other things Source: Julie Hass, Statistics Norway

Environmental-Economic Accounting Help to make sense of the larger picture Help to identify pieces that are missing Can make connections to other statistics - especially economic statistics Source: Julie Hass, Statistics Norway

Audiences for information Indicators and accounts Headline indicators Data users Indicators on specific subjects or industries Information Decision makers & wider public Research Is there an issue? Advice Yes Indicators Managers and analysts SEEA-W Standard tables Supplementary tables Analysis Ultimatly the relevance (policy relevance) of any indicator and set of indicators depends upon what use they are put. This means we need to understand the relationship between indicators and their audiences. Indicators are high level pieces of information suitable for governmet and the wider public as well a professionals such as senior managers. Indicators flag issues. When a minister or councilor sees an indicator they should ask “is there an issue here?” If there is an issue then there is a need for more information and analysis from managers and analysts. Of course indicators are not the only way of identifying issues, research can throw up issues as can advice and policy papers. The benefit of the core linked indicators is that they provide a broad view of issues, compared to research which tends to focus on single issues making it difficult to compare the priority of the issue. Indicators are not much use unless they are reported. There already exist sector specific indicator reports, such as the Economic Development report. The Social Report has a broad focus on social related issues but still has a focus on social issues. Sector reports will have an audience with those in the general public interested in a particular sector, but will appeal to those managers involved in the sector. Core linked indicators provide indicators across sectors and for this reason fits higher up the information triangle. Because of the broad nature linked core indicators there should also be significant appeal to the public, especially where information relates to their area, as well as elected reoresebtatuves central and local. Headline indicators, which would be a set of maybe 25 - 30 indicators, are at the very top of the information triangle and would have very broad appeal. Everyone wants to know if New Zealand is making progress, and many people want to know whether or not progress is balanced. Researchers Data items

SEEA-Water Economy and environment Stocks and flows Monetary and physical Pollution Water quality

12 Standard Tables of SEEA-Water Physical supply Physical use Gross and net emissions (of pollution) Emissions (of pollution) by Sewerage Industry (ISIC 37) Hybrid (Monetary and Physical) supply Hybrid use Hybrid supply and use Hybrid water supply and sewerage for own use Government accounts for water related collective consumption services (Monetary) National expenditure for waste management (Monetary) Financial accounts for waste water management (Monetary) Asset account (Physical) Plus 12 Supplementary tables ABS ABS BoM

Uses of water accounts Source of pressure on water resources: Macro trends in total water use, emissions, water use by natural source and purpose, etc. ‘Decoupling’ economic growth and water use, pollution Industry-level trends: indicators used for environmental-economic profiles Technology and driving forces: water intensity/productivity and total (domestic) water requirements to meet final demand Modelling. E.g. projections of future water needs, impact of reduced water availability on economic activity or environmental health

Data sources for the Water Account Australia ABS surveys Water Supply Survey Agricultural Survey Annual Integrated Collection (of Mining, Manufacturing and other industries) Electricity Generators Survey of Water Use Household surveys (March Labour Force Supp. Survey) Other National performance reports (NWC and water associations) Data from Commonwealth and State/territory governments Annual reports of companies Research

Main findings Water consumption down 25% since 2004-05, from 18,767 GL to 14,101 GL 38% fall in agriculture – 12,191 GL to 7,589 GL Large falls in cotton, rice, dairy pasture and sugar Value of distributed water supplied is up nearly $2 billion (56%), from $3.5 billion to $5.5 billion Household paying $927 million extra Businesses paying $994 million extra Average price of water nearly doubled from $0.40/kL to 0.78/kL Household pay the highest average price $1.93/kL Agriculture pays the lowest average price $0.12/kL

Main findings, cont. Industry valued added per GL is up $41 million/GL or 76% from $54 million/GL to $95million/GL Largest increase in IVA mining of $129 million/GL or 133% ($97 m to $226m /GL) Agriculture up 77% from $2.2 million/GLto $3.9 million/GL Gross value of irrigated agricultural production up 13% or $1.4 billion from $10.6 to $12 billion GVIAP is 29% of the total gross value of agricultural production (almost unchanged since 2004-05 when it was 30%) GVIAP peaked in 2006-07 at $12.5 billion and 35% of total gross value of Agriculture production

Climate 2008-09 2004-05

Australian water consumption by industries and households

Agricultural activity

Water consumption by State Percentage change 2004-05 to 2008-09

Gross State Product per GL ACT = $384m/GL in 2005-05 and $536m/GL in 2008-09

Industry gross value added per GL of water consumption From 54 $m/GL in 2004-05 to 95 $m/GL in 2008-09

Inland Water Resources Australia – physical water supply and use, 2008-09 (GL) Key Wastewater Water Reuse water ? Sewerage Water Supply ? 79 ? ? ? ? ? 103 7 27 9 87 2 ? ? 3267 143 339 228 944 1594 Agriculture Mining Manufacturing* Electricity Other industries Households * Note show is the supply of distributed water and reuse water by mining and manufacturing. (25 GL in total) 33 3626 715 336 44841 320 172 9336 515 ? 334 12 44484 93 ? 722 Inland Water Resources The Sea 1163 * Note shown is the supply of distributed water and reuse water by mining and manufacturing, 25 GL in total.

Inland Water Resources Australia – monetary water supply and use, 2008-09 (million AUD$) Key Wastewater Water Reuse water 7 Sewerage ISIC 37 Water Supply ISIC 36 ? ? 21 208 6 1406 3316 ? ? ? ? ? ? ? 3 406 153 490 77 1229 3074 Agriculture ISIC 1 Mining* ISIC 5-9 Manufacturing* ISIC 10-33 Electricity ISIC 35 Other ISIC 2,3,38,39, 45-99 Households * Note show is the supply of distributed water and reuse water by mining and manufacturing. (25 GL in total) ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Inland Water Resources The Sea ? * Note shown is the supply of distributed water and reuse water by mining and manufacturing, 25 GL in total. No monetary available for these.

Monetary vs. physical use of distributed water (% of total use) 2008-09 Value of water Volume of water

Australian average water prices for industry and households – $/kL Agriculture $0.12/kL Aust. Average $0.78/kL

Per capita household water consumption

Some problems in compilation of the water account Classification of units to industry in the case of multiple activities and multiple sites. Industry classifications used by water suppliers and others does not follow ANZSIC Multiple data collections and poor coordination of data sharing Many units supplying water or sewerage services are operated by government and data on this specific aspect of services are difficult to separately identify Spatial referencing – economic data is related to enterprises and there is generally poor spatial referencing (usually to post code) Estimation of losses in distribution Recording of the flows for use of water in hydro-electricity and water for cooling Definition and reporting of environment flows

Issues Timeliness – data available 17 months after reference period Higher quality regional data are needed Greater disaggregation of industry data Surface and groundwater splits Data sources are changing (in general improving but still not stable) Understanding what and when we can get from other data providers (and especially BoM and NWC) Development and application of water accounting standards at business, state, national and international levels Appropriate valuation of water and water infrastructure assets Better integration of environmental, social and economic data

An Integrated Environmental-Economic Information System for Australia researchers Socio-economic Bio-physical DEWHA, BoM, DCCEE, Geoscience Australia, MDBA, BRS, CSIRO, state/territory, etc Treasury, ABS, ABARE, PC, PM&C, DRET, state/territory, etc Some agencies and researchers operate across both spaces

ABS Proposed plan for Integrated Environmental-Economic Account http://www.abs.gov.au/ausstats/abs@.nsf/mf/4655.0.55.001 Assist others (e.g. BoM, Victorian government, others) Water Account (29 November 2010) Energy Account (June 2011) National Accounts Data Integrated Environmental - Economic Accounts Land Account (Pilot February 2011) Waste Account (2011?) EPE Account (2012?) Environment Industry Account (“Green Economy”?) (2014)

Thank you to everyone outside of ABS that has assisted us Thank you to the ABS team Thank you for listening Contact details Dr. Michael Vardon Director Centre of Environment and Energy Statistics michael.vardon@abs.gov.au

Rainfall in Australia

% Annual Rainfall 2008-09 % Annual Rainfall 2004-05

Water consumption by State

Australian water consumption by industries and households