Plibersek swamps Victoria on Murray Darling water buybacks

Federal Water Minister Tanya Plibersek is defying the Victorian government and ploughing ahead with her pledge to buy more water back from farmers to complete the Murray-Darling Basin Plan and boost the health of the nation’s largest river system.

The plan was originally set for completion by June this year, but a go-slow by NSW and Victoria on recovering irrigation water entitlements from farmers, as well as large-scale water-saving projects, left the scheme about 750 gigalitres short of its goal. That’s equivalent to about two full Lake Eildons flowing down the river each year.

Three wet seasons have led to record inflows into the southern Murray-Darling Basin.Credit: Brook Mitchell

Plibersek cut a deal with the Greens in November last year and changed the legally binding basin plan to extend its deadline to 2027, which she said would ensure it would be completed.

She offered the states more funding for buybacks and water infrastructure and in return she sought a commitment that they would work with her to complete water recovery. Infrastructure projects include moving water more efficiently, such as through lining irrigation channels, as well as carrying flows onto wetlands.

The basin plan was originally funded with $13 billion from the federal government, but Plibersek has said there would be hundreds of millions more made available for buybacks and infrastructure under the revamped deal.

The deal was backed last year by NSW, Queensland and South Australia but Victoria refused to commit to Plibersek’s revised plan.

Victorian Water Minister Harriet Shing rejected Plibersek’s push to recover more water from farmers, who she said had lost too many irrigation entitlements already, but was willing to work with the federal government on water infrastructure.

“Victoria has a long-standing opposition to buybacks and nothing we have seen in this deal has changed that position,” Shing said in November. “We will continue to work with the Albanese government on a way forward to complete our critical environmental and infrastructure projects and deliver their proven environmental benefits.”

However, the basin plan empowers the federal government to complete buybacks, either voluntary or compulsory, without Victoria’s support.

Plibersek announced on Wednesday a “commitment” from Victoria to progress water recovery.

“This commitment unlocks for Victoria the full range of water recovery options already available to other Basin states,” Plibersek said. “Victoria’s commitment announced today will allow for similar opportunities over the coming months, and will allow us to deliver the Murray Darling basin plan in full in coming years.”

Plibersek made this statement after written correspondence with Shing about the updated basin plan laws about Victoria’s participation in the scheme.

“I take your acknowledgement that the legislation is in effect as a commitment by the Victorian government not to take any action, including legal action, that would frustrate the Commonwealth’s delivery of these obligations,” Plibersek wrote to Shing.

Shing said on Wednesday that buybacks can harm regional economies and communities and Victoria would “continue to negotiate and advocate for outcomes that do not harm them”.

“We welcome the Commonwealth’s agreement to finally fund our key environmental projects,” Shing said.

The $13 billion basin plan was created by the Gillard government in 2012 to restore the river’s health by boosting water flows by 3200 gigalitres a year after experts found the Murray-Darling system was in peril due to excessive extractions for irrigation.

The deadline could have triggered compulsory water buybacks as soon as this year, an unpopular outcome among farmers and opposed by state governments.

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