450GL Basin buyout blocked: Plibersek has no room to move

To buy another 450GL, Federal Water Minister Tanya Plibersek must overcome at least three major hurdles. See what they are.

Money, legislative barriers and the states all stand in the way of the Albanese Government stripping another 450GL out of irrigation communities. Picture: Zoe Phillips

Water Minister Tanya Plibersek faces three major hurdles in trying to buy the 450GL of upwater needed to deliver the basin plan “in full”, as she and Prime Minister Anthony Albanese promised.

Firstly the Minister must find the money.

The $1.775 billion set aside to recover the 450GL, under the Water for the Environment Special Account is about to come to an end.

The last independent review of the WESA states “the Water Act and the Intergovernmental Agreement specify these funds are to be used over the 10 years from 1 July 2014 to 30 June 2024”.

“After this time, the WESA cannot pay any funds towards efficiency projects or constraints projects. Any change to this condition would require amendment to legislation.”

The 2021 review put the “estimated cost to recover the full 450GL through efficiency measures is between $3.4 billion and $10.8 billion”.

Of course she could try and buy the water, which would cost taxpayers at least $4.5 billion.

But then she faces a second hurdle, given the Water Act states that under WESA “the Commonwealth will not conduct open tender rounds that are available to all water access entitlement holders in a water resource plan area to purchase water access rights”.

Of course the Minister could argue the notes only apply to the WESA, and that after June 30 she is free to wade into the water market.

But that’s where the third hurdle comes in – gaining basin state agreement.

To buy even part of the 450GL Minister Plibersek will need the state and ACT water ministers’ unanimous agreement to dump the socio-economic test on water recovery they agreed upon in December 2018.

That test demands any project to recover the 450GL must meet a neutrality test, in terms of the impacts on irrigation communities.

Victorian Minister Harriet Shing not only backs the test, but has repeatedly stated the Andrews Government opposes further Commonwealth water buybacks.

Of course Minister Plibersek, with support from the Greens, could bulldoze amendments to the Water Act through the Senate, allowing her to buy the 450GL.

But that risks Victoria and NSW refusing to transfer and register Commonwealth purchases, which would just end up in the High Court, with the nation’s top legal minds arguing over restrictions on trade versus state rights.