photo credit: lrargerich
The Weekly Times reports that water traders are double dipping, claiming commissions on both buyers and sellers, something that is illegal in the real estate industry in Water brokers pocket liquid gold
An investigation by The Weekly Times has found many brokers have double dipped on commissions, a practice that is outlawed in the real estate industry.
Brokers have been charging both buyers and sellers 3 per cent commission on the back of the $1 billion of water traded across the southern Murray Darling Basin each season.
Last season, temporary water prices hit $1200 a megalitre, resulting in trades worth the price of a small house in Sydney.
The article also goes on to state that the long delays in water trade approvals meant that purchase money spent a considerable amount of time in water trader’s trust accounts, where they are earning interest, another principle not allowed in the real estate industry.
In a follow up article, Water trader pockets irrigators’ cash,
Mr Matthews said the interest earned should go into an industry fund, not brokers’ pockets.
Why don’t the principles that apply to one natural resource, such as land, apply to water and soon carbon? Senior bureaucrats must know what’s going on. If only there was more pressure on the water speculation that is occurring. Any student of speculative capitalism will tell you that traders are making thousands more than your average inventor trying to save the planet. One shuffles paper to make millions, the other is developing tools for humanity’s survival. Why is life so hard for the inventor?