Coalition and Labor in deal for Murray-Darling plan

In a major win for the Turnbull government, Labor has agreed not to block key changes to the $13bn Murray-Darling Basin Plan.

Water Minister David Littleproud at Parliament House in Canberra. Picture: Kym Smith

In a major win for the Turnbull government, Labor has agreed not to block key changes to the $13 billion Murray-Darling Basin Plan, saving it from political ­disintegration halfway through its 10-year lifespan.

Under the 11th-hour agreement last night between Water Minister David Littleproud and his opposition counterpart Tony Burke, the two major parties will band together to quash a Greens disallowance motion in the Senate today that would have led to the NSW and Victorian governments walking away from the ­national water plan.

The deal means 605 gigalitres of the Murray-Darling Basin Plan’s 2750GL environmental water target in the southern basin will now come from 37 engineering and water infrastructure projects in NSW, Victoria and South Australia, rather than from farmers’ irrigation ­entitlements.

Environmental groups have claimed the projects — which ­include decommissioning the Menindee Lakes as water storage and pumping water over river banks onto wetlands to imitate floods — are “on-paper” water savings only and do nothing to boost natural flows and save the fragile inland river ecosystems.

Irrigation and farmer organisations had pleaded with the government to stop taking any more water directly from productive agricultural use, arguing that the 2100GL, or 70 per cent of the targeted 2750GL environmental flow, that had already been ­recovered was achieved at great social and economic cost to communities, towns and jobs.

Mr Littleproud said the agreement represented a historic ­moment, five years after the original compromise deal between all ­political parties and four state governments was achieved against huge odds.

“This gives certainty to the two million Australians up and down the basin; it gives certainty to their livelihoods and the ­opportunity to get on with their lives,” Mr Littleproud said.

He said that when he became Water Minister, he had wanted to take the politics out of the ­Murray-Darling Basin Plan and had “reached out” to Mr Burke and the Labor Party.

“This shows to every Australian out there that this place here (in Canberra), we can get outcomes,” he said.

“I’ve always kept my hand out (and) made sure I haven’t got into any name-calling.”

In return for his strengthened support after weeks of negotiation, Mr Burke — the original architect of the ambitious 2012 plan to save the vast, ailing river system — has been given major guarantees by the government. They include a commitment that the full 3200GL of water to be returned to wetlands, trees, wildlife and river systems of the Murray-Darling Basin under the original plan will be delivered by 2024 — a guarantee Mr Littleproud’s predecessor as water minister, Barnaby Joyce, refused to give.

Other pledges include a comprehensive response to allegations of corruption and water theft, greater protection for environmental water owned by taxpayers never being allowed to be taken by irrigators, a $20 million package to help rural communities affected by the basin plan to adapt, and a $40m package to help indigenous communities such as Wilcannia on the outback Darling River have greater access to water.

There is also a guarantee of constant close monitoring of ­engineering and water-saving ­projects to ensure they are delivering the measurable water benefits promised. Under the deal, Labor will also reverse its opposition in February for 70 billion litres of water in the northern NSW rivers systems to be provided back for environmental benefits from engineering solutions rather than ­direct water-licence buybacks.

Mr Burke said his agreement with Mr Littleproud meant the delivery of the full basin plan would be back on track, with new levels of compliance and transparency, and the independence of the Murray-Darling Basin Authority preserved.

National Irrigators Council chief executive Steve Whan said he was delighted Mr Littleproud and Mr Burke had been able to “keep the plan alive” and keep its status as a groundbreaking bipartisan agreement.

Greens spokeswoman Sarah Hanson-Young said last night’s deal was “heartbreaking”.