Results

The terms of reference for the Inquiry into Secure and Sustainable Urban Water Supply and Sewerage Services for Non-Metropolitan NSW states that in consideration of any new industry arrangements, the Inquiry must consider

”the socio-economic impacts on the community, including Aboriginal communities, of any new institutional and regulatory arrangements”

The Aboriginal Water Supply and Sewerage Program includes Aboriginal communities that are a discrete community, are residential, are permanently occupied, are community owned and where the community is responsible for its own water supply and sewerage services.

CURRENT SITUATION

The New South Wales Aboriginal Land Council was established under the Aboriginal Land Rights Act 1983 (NSW). It is a self funding statutory authority responsible for promoting and protecting the rights of the Aboriginal people of New South Wales.

The State’s Land Council network operates as a two tiered structure, comprising the peak body, NSWALC, which operates from Parramatta and a small number of Zone offices around the state, and 121 Local Aboriginal Land Councils, which are governed by elected Boards.

The 121 Local Aboriginal Land Councils are responsible for the management of all support services within a specified local Aboriginal community, including water supply and sewerage services.

The Department of Water and Energy has advised that various governments have provided financial assistance towards the provision of capital infrastructure to support these

communities. This includes the Aboriginal Communities Development Program, which provided over $200 million for infrastructure development in Aboriginal communities in NSW and has now been fully allocated and almost all funds expended. This expenditure included over $20 million on water supply and sewerage infrastructure for Aboriginal communities in NSW. This was a capital program only and did not fund ongoing operations and maintenance costs.

Is the Current Situation Effective?

There is very little comprehensive data on water quality in Aboriginal communities

in NSW. However, a national survey conducted by the Aboriginal and Torres Strait Islander Commission derived the following data from 67 Aboriginal communities surveyed in NSW and the ACT in 1994.

ƒ 10% of communities used groundwater as their source water

ƒ 6% of communities did not comply with the 1987 NHMRC guidelines

ƒ 34% of communities had experienced water restrictions in the past year

ƒ 13% of communities had received no water supply maintenance

ƒ 22% of communities were projected as having insufficient water to meet housing needs for the following five years.

The NSW State of the Environment Report (1997) states that

“Although it is difficult to ascertain the exact morbidity and mortality in Aboriginal communities which may be attributable to poor water quality or insufficient water, a number of reports have documented the link between poor water resources and sub-standard levels of hygiene, and inadequate living conditions (Pholeros et al. 1993).

The link between poor quality water and health in developing countries around the world is well documented.^“

The Department of Water and Energy has reported that the current situation of managing water and sewerage services in Aboriginal communities is not currently effective due to a number of challenges:

A) Staff/Skills

Day to day management, operations and maintenance of the water supply and sewerage systems in discrete Aboriginal communities has frequently been

undertaken by local Aboriginal community members. The Aboriginal land councils have generally supported this arrangement as it enables communities to manage their own systems independently. Although start-up training programs were provided, this was not supplemented with ongoing training and support networks. If a water and/or sewerage system operator moved from their community, there was often no one trained to take over their role. In many instances the local Aboriginal land council has not been able to raise sufficient revenue to cover the ongoing operations and maintenance costs of the systems. Consequently, some of the water supply and sewerage systems are not operating effectively.

B) Water Quality Standards

Largely as a result of a lack of skilled operators and aging infrastructure, drinking water standards in many discrete Aboriginal communities are poor and do not meet the basic standards set by state and national health guidelines. The operation, maintenance and monitoring of water and sewerage systems has been inadequate and the health of these communities is at risk.

C) Revenue

In communities serviced by local water utilities (i.e. not by Local Aboriginal Land Councils), water supply and sewerage services are provided on a fee

for service basis through locally determined consumption based water and sewerage rates. In many Aboriginal communities the small size and remoteness of the

community makes ongoing costs on a per capita basis much higher than for larger communities which have the benefit of larger populations taking on a smaller proportion of the cost of basic infrastructure.

D) Relationship with Local Water Utilities

Where practical, the local Aboriginal land council has negotiated with the local water utility to leverage off the local water utility system. As the local water utility is not able to own any assets in discrete Aboriginal communities and is not able to take out easements over such assets, it has been reluctant to provide those assets when it is not able to recover the costs through rates. Over 50 communities are provided with water supply to the community boundary as

an extension of the mainstream supply. 38 communities have their sewage transferred to the local water utility for treatment.

The operation of services within the community is then the responsibility of the community. In communities not linked to the local water utility system, the local community is responsible for the whole service.

IMPROVING WATER AND SEWERAGE SERVICES IN ABORIGINAL COMMUNITIES These arrangements have led to water and sewerage services in many Aboriginal communities to be below acceptable standards enjoyed by the wider community

in NSW. The NSW Government has reported that, despite past capital funding initiatives, further assistance is necessary if the water and sewerage services in these communities to be raised to acceptable standards. The State Government recently announced a $205 million Aboriginal Water Supply and Sewerage Program over 25 years to provide ongoing technical and financial support to many of these communities in the ongoing operation and

maintenance of their water supply and sewerage systems. This program is being managed by the Department of Water and Energy and is a partnership with the NSW Aboriginal Land Council. As announced in the 2008/09 State Budget, the program will commence roll out during 2008-09.

As advised by the Department of Water and Energy:

“The program is targeted at discrete Aboriginal communities that are permanently inhabited and where the responsibility for the water supply and sewerage services is the responsibility of the community. Approximately 63 communities will directly benefit from the program when fully implemented.

It is proposed that the responsibility for the operations and maintenance of services in these identified communities be contracted out to experienced service providers. In the first instance, the local water utility closest to the community will be approached to determine if it is in a position to undertake these works, provided they are adequately recompensed for the costs involved. However, if the utility does not have the

resources required to undertake the works, alternative solutions will be examined.

Some communities will only require funding towards ongoing operations and maintenance, whilst others will also need one-off capital assistance to return their existing infrastructure to full operational efficiency. Some communities will also need additional capital infrastructure if they are to achieve the water supply and sewerage standards expected in the wider community.

Initially, negotiations will be held between a local Aboriginal land council, the local water utility that provides services to neighbouring mainstream communities, the NSW Aboriginal Land Council and Department of Water and Energy. These

negotiations will centre on the standard of service required, then on how that can be delivered. It will incorporate continued involvement and ongoing training of local Aboriginal people if desired by the local Aboriginal land council, and if the activities can be suitably supported by the local water utility.

Where agreement can be reached the local water utility will provide the services and will be reimbursed the estimated costs by the State Government through the funding program. Reimbursement will cover the routine annual costs, the one off cost to return any existing infrastructure to full operational efficiency and any costs

associated with emergency repairs such as after bush fires, when pumps break down etc.

This program will be rolled out during 2008-09 with an initial allocation of

$6.075 million. Based on the NSW Government’s announcement, future allocations will be greater to cover whole of financial year program costs.”

Impact of the Inquiry on Aboriginal Communities

Increasing the size and capacity of local water utilities has the potential to strengthen the ability of local water utilities to contract to and assist Aboriginal community water and sewerage services that are independently managed by land councils in NSW.

Increased capacity within local water utilities, and skill sharing arrangements between local water utilities, could assist Aboriginal community training programs - should this be deemed a priority by the land council of that community and its neighbouring local water utility.

CONCLUSION

Improvement of water and sewerage schemes in Aboriginal communities is a critical issue, and one that has been subject to a separate review conducted by the Department of Aboriginal Affairs, Department of Water and Energy and Department of Commerce.

While water and sewerage services provided by Aboriginal Land Councils are not the focus of this Inquiry, the improvement of the performance and governance of local water utilities across the State may benefit Aboriginal communities whose water and sewerage schemes will be managed by local water utilities under the State Government’s $205 million Aboriginal Water Supply and Sewerage Program over the next 25 years.