• George Williams

16 February 2010Water regulation is being strangled by an out-of-date constitution, argues George Williams in the National Times

LAST WEEK's High Court decision in the Arnold case reveals major problems with Australia's structure of government when it comes to the Murray-Darling basin. The case also suggests Peter Spencer has reached the end of the road in his attempt to be compensated for land-use restrictions on his property.

The Arnold case arose when farmers in the Lower Murray region sought compensation for forced reductions in their use of water. This was brought about by a NSW law that replaced their groundwater bore licences with aquifer access licences with up to 70 per cent less entitlement to groundwater.

Australia's constitution says a person must receive ''just terms'' when their property is acquired under federal law. No such guarantee exists under state law. NSW can pass a law to compulsorily acquire a person's property without having to pay a cent in return. Given this, it was not surprising the farmers in Arnold lost their case...

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