Dept. of Agriculture, Water & Environment is questioned over the Eastern Aus. Agriculture buyback

Rural & Regional Affairs & Transport Committee on 23 March 2021.

Senator RENNICK: My questions are regarding the Eastern Australia Agriculture buyback, Mr Metcalfe. I want to quote a part of the actual valuation by Colliers. They summarise in one part of the valuation:

The Lower Balonne region as a water market does not have a mature trading market as the water rights are predominantly un-supplemented allocations, which are not traded as often or as easily as supplemented allocations. Secondly the volume of water … in the system is not large enough to see a reasonable turnover within the "market". With regards to the OLF water licences there is no true market as trading is limited to sales only to the Commonwealth …

That tells me that the water market around the Lower Balonne and into the Condamine is illiquid. You often hear people say, of liquid markets, liquidity is very important for true price discovery. It's fair to say that, if you're going to have the Commonwealth step in to where you've got an illiquid market, a big buyer—and I'll quote from further on in the valuation:

Land is not a limiting resource in the Lower Balonne, however, water is.

Full transcript at: https://wp.me/pbfyTP-lg