IRRIGATORS are concerned the Federal Government has taken another step toward water buybacks after it allocated undisclosed funding for “environmental targets” in this week’s budget.
The unspecified sum was marked as not for publication and would be for “delivering on water commitments” in the Murray-Darling Basin.
Water buybacks have reduced since the Coalition government placed a cap on purchases in 2015.
The latest funding development, which budget documents stated would not be identified “due to commercial sensitivities”, has drawn cautious optimism from environmental groups.
NSW Irrigators Council chief executive Claire Miller said the government needed to “clarify its intentions … for the sake of community trust”.
“We hope the intentions are more nuanced than a water grab which … distorts water markets and drives up water costs, and puts pressures on food prices,” Ms Miller said.
National Irrigators Council chief executive Isaac Jeffrey said if decisions had already been made, “they should be immediately put to public consultation”.
The Murray-Darling Basin Plan requires states and territories to recover 2750 gigalitres of water for the environment, of which about 2100 has been recovered.
The budget documents indicated $746.9 million would be redirected over four years for delivering commitments, including more than $300 million from gas or carbon-capture projects “lacking a case of government support”.
The Federal Government spent $190 million between 2016 and 2019 on 10 water purchases in a closed tender process.
Water Minister Tanya Plibersek said she had been clear that nothing was off the table, including voluntary buybacks.
“There is money in the budget to deliver on our commitment – this may include voluntary buybacks, but it could also include infrastructure projects and other efficiency projects,” Ms Plibersek said.
“We know where we need to get to – but I’m open-minded about how we get there.”
Water buybacks through an open tender process began in 2008, with the bulk of applications occurring in 2010-11.
The government introduced an amendment to the Water Act in 2015 to legislate a 1500GL cap on surface water purchases to prioritise infrastructure investments.
The number of buybacks slowed between 2016 and 2019, but, according to the Federal Government, it received 100 unsolicited offers of sale during that period.
About $78 million in water was purchased from the lower Darling River.
Tyler Rotche, Environment Victoria’s healthy-rivers campaigner, said he wasn’t sure whether the allocated funds would deliver a “significant return of water” for rivers.
“If Victoria and NSW have it their way, it might just mean exorbitant infrastructure handouts that drain funding. Or more money wasted on a hair-brained water offset program,” Mr Rotche said.
SA Conservation Council chief executive Craig Wilkins said “much more water” was needed for the long-term survival of rivers.
“The quickest, most cost-efficient and most effective way to do that is with voluntary buybacks,” Mr Wilkins said.
