Federal Government to investigate Murray-Darling Basin Plan as NSW ups ante to pull out

Can a new review of the troubled Murray-Darling Basin Plan save it? As New South Wales ups the ante on pulling out of the plan, the Federal Government has launched a fresh probe into it.

An investigation into the Murray-Darling Basin Plan has been launched by the Federal Government.

Former federal police chief Mick Keelty will examine the effectiveness of the plan and report back in March.

The announcement came as NSW Deputy Premier John Barilaro and Water Minister Melinda Pavey on Tuesday repeated threats to abandon the plan. They also demanded NSW be made exempt from to water recovery efforts until the drought has broken.

SA Water Minister David Speirs said it would not cave in to the National Party’s latest “irrational list of demands”.

“We will not accept any less water flowing down the river and talk of removing the barrages at the Lower Lakes is nonsense that won’t even deliver any water savings,” he said, adding SA wanted the review to improve long-term water sharing outcomes.

The state will also be called on to beef-up Mr Keelty’s powers as the Murray-Darling inspector general.

Federal Water Minister David Littleproud said the review would give farmers “confidence” and ensure states understood the water sharing agreements.

Australian Greens water spokeswoman, Sarah Hanson-Young, said the review must investigate the corporate greed and corruption.

“Mr Keelty must consider the allegations of mismanagement and maladministration found by the SA Royal Commission,” she said.

Labor water spokeswoman Terri Butler said the Liberal and National parties were at war on water and Australians are paying the price.