The NSW government has been accused of a "cynical" attempt to retrospectively offer water licences to coal mines under Sydney and Illawarra drinking catchment.
On Thursday, March 2, a day before the caretaker period commenced for the election campaign, the government gazetted a new water allocation trade rule for the existing mines.
The changes for the Woronora and Metropolitan Special Areas of the Sydney drinking water catchment give direction "enabling those companies to account for their incidental surface water take".
A note from Water Minister Kevin Anderson explains the rationale for the change.
"It is in the public interest for these mining companies to account for their surface water take under the Water Management Act 2000 and pay water management charges for that water."
Mr Anderson further said it would "provide greater transparency" and help support continued coal extraction from the Southern Coalfield.
"Coal from these Special Areas and broader Southern Coalfield supports local industry, such as BlueScope Steel at Port Kembla which contributes approximately $1.9 billion per annum to the economy."
More questions than solutions
Environmental group Lock the Gate's Nic Clyde said the move was alarming.
"What the government is doing is trying to legalise what was an illegal take of surface waters inside the Special Areas of Sydney and the Illawarra existing catchment from existing coal mines," Mr Clyde said.
"For years longwall coal mining inside the catchment has been damaging the creeks and streams that provide fresh drinking water to about five million people.
"We have been saying this water take should be subject to licences, but we have not had time to scrutinise what has happened here."
He said the changes created many more questions.
"How much water will they allow companies to take, what will the cost be, why was it done just days before caretaker."
Retiring independent MP Justin Field said it was a step in the right direction but there were serious gaps in the plan.
"The real problem here is exactly how much is not being determined independently, the price of it — it is not clear how that is being set, though the independent pricing regulator will set that at some point," he said.
"And I think the bigger concern is what happens when there is not enough water in the system and they can't fulfil their licence requirements — what do government do then?"
Mr Field also said there needed to be an independent analysis of the quantity of the water the mines were required to licence and pay for.
"If you have a financial interest in underestimating water take, the risks are that will happen.
"It's not appropriate the mines determine this."
Not addressing the 'real issue'
Mr Field said the move failed to address the "real issue".
"I would really like to see a commitment from both sides of no more mining in the catchment," he said.
"And then working with the mines to see how they can minimise this loss of water.
"In the next drought, what will happen is the government will take more water from the Shoalhaven to make up for shortfall in Sydney and Illawarra drinking supplies."
In a statement Mr Anderson said: "The environment and other water users will not be negatively impacted by these changes".
