QUEENSLAND HOSTS NATIONAL FORUM ON MARKET-BASED INCENTIVES TO CARE FOR LAND AND WATER

Primary producers, researchers and environmental groups from all over the country have converged in Brisbane to discuss strategic tools to improve natural resource management.

Natural Resources and Water Minister Craig Wallace said the Queensland Government was hosting a national forum from 30 September to 1 October which aimed to improve the knowledge and understanding of market-based instruments.

"Market-based instruments use economic incentives to encourage land and water managers to change the way they do business – in this case, how they care for the environment and the natural assets they manage," Mr Wallace said.

"For example, some market-based instruments use competitive market forces so the scarcity of the resource becomes an incentive for groups to be more efficient and environmentally aware.

"Market-based instruments may use trading mechanisms, auctions and price signals."

Mr Wallace said the forum was part of the Market Based Instruments Capacity Building Program, innovatively called "Designer Carrots", a $1.2 million project to assist land and water managers and policy makers to use economic tools to better care for Australia’s natural resources.

Designer Carrots is funded by the Australian, State and Territory Governments through the National Action Plan for Salinity and Water Quality.

Mr Wallace said Queensland had led the way for Australia in its swift and effective adoption of market-based instruments.

"Through Toward Q2: Tomorrow’s Queensland the Bligh Government has set targets for a strong Queensland, a diverse economy powered by bright ideas. Our water trading program is a great example of how we’re leading the way when it comes to natural resources management," Mr Wallace said.

"Our water trading program involves the voluntary buying and selling of water allocations, at a price determined by the market.

"It was introduced in the face of increasing competition for the limited and variable resource, to help provide access to water for a variety of water users."

For example, a water allocation being used for a low value irrigation crop could be purchased by a person to use for a higher value crop such as olives or macadamias.

Other market-based instrument programs include the Environmental Protection Agency’s Nature Assist, an initiative which provides financial assistance for landholders who actively manage the natural and/or cultural assets of their property, as well as the proposed Australian Emissions Trading Scheme scheduled for commencement in 2010.

For more information, go to: http://www.marketbasedinstruments.gov.au/

Media contact: Minister Wallace’s office, 3896 3688.