Productivity Commission finds ‘little progress’ made towards Murray-Darling Basin Plan

The commission found that while some progress has been made in implementing the Basin Plan since its last report in 2018, the plan “will not be fully implemented on time or on budget.”

Environment and Water Minister Tanya Plibersek. Picture: NCA NewsWire / Martin Ollman

The $13bn Murray-Darling Basin Plan has made “very little progress” on water recovery in the past five years, and the Albanese government should consider establishing a new government-owned corporate entity to recover water and implement some of the Basin’s supply projects, according to the Productivity Commission.

The findings are among those in the commission’s second five-yearly review of the Basin Plan, which was established by the Gillard government in 2013, and currently consists of an agreement between the federal and NSW, SA, Queensland and ACT governments to recover 2750 gigalitres of water annually for the environment by reducing consumption by 20 per cent, and to recover an additional 450GL a year through efficiency measures.

In August, Victoria refused to sign on to the additional 450GL, arguing it has delivered 17.7GL of the total 26GL so far contracted toward the 450GL.

The commission found while some progress has been made in implementing the Basin Plan since its last report in 2018, the plan “will not be fully implemented on time or on budget”.

“Key supply measures (infrastructure works and rule changes that offset water recovery) will not be delivered and projects to ease constraints on river operations are progressing slowly,” the report finds, predicting a shortfall of approximately 315GL per year.

“The program to recover an additional 450 GL per year of water via efficiency measures will also fall well short of the target (only 26GL per year has been recovered). And 13 water resource plans in New South Wales, due in 2019, are still not in place.”

The August deal also saw federal Environment and Water Minister Tanya Plibersek extend the deadline for recovering the 450GL of environmental water out to the end of 2027, and water infrastructure projects to the end of 2026, after the initial June 2024 target was on track to be missed.

The Murray River.

The Productivity Commission found the deadline extension will, if legislated, provide more time and allow new supply measures and voluntary water purchases.

“But this will not be enough to implement the Basin Plan in full. Weak accountability and other underlying risks to Basin Plan implementation remain. Existing funding is also not sufficient,” the commission found.

“Despite the prospect of more time, a significant water recovery shortfall is likely. The Australian government should commence a renewed program of water recovery, using the most cost-effective methods, including staged voluntary water entitlement purchases. This should occur alongside a commitment from Basin governments to support communities to adjust, where warranted.

“A new government-owned corporate entity that operates at arm’s length from governments would be one option for undertaking water recovery and implementing some supply projects.”

The commission found the federal government must take greater responsibility for implementing the Basin Plan, in partnership with Basin states.

It recommended the federal Water Minister report to parliament by June 2024, and annually thereafter, on the cost-effectiveness and feasibility of existing and new commonwealth-funded supply projects, and that it develop a renewed approach to water recovery.

“Waiting until reconciliation (now proposed for the end of 2026) to address the shortfall will perpetuate uncertainty for Basin communities and risks further increasing the cost of water recovery,” the commission found.