Back down: Plibersek abandons withholding Victorian water project funds

Federal Water Minister Tanya Plibersek has abandoned withholding funding to strongarm Victoria into backing buying 450GL of irrigator’s water.

Victorian Premier Jacinta Allan and Water Minister Harriet Shing have rejected Federal Government pressure to back water buyouts.

The Albanese Government has abandoned withholding critical water infrastructure funding from Victoria in a bid to get the state to back buying irrigators’ entitlements for the environment.

Up until now Ms Plibersek has refused to fund Victoria’s Sustainable Diversion Limit Adjustment Mechanism projects, which aimed to boost the efficiency of watering Murray River flood plains and wetlands.

Uncertainty over federal funding forced the Victorian Government to halt work on four of its floodplain restoration projects last April, which promised to deliver 58 gigalitres of environmental water efficiency gains towards the Murray Darling Basin Plan.

Since then Ms Plibersek has refused to reinstate funding for the floodplain projects, given Victoria had refused to join NSW, Queensland and South Australian government in signing an agreement that backed the Commonwealth buying an extra 450 gigalitres out of irrigation communities, on top of the 2680GL Basin target.

Victorian Water Minister Harriet Shing has repeatedly refused to sign onto the agreement.

But Ms Plibersek said the funds had been unlocked due to Victoria now backing the recovery of the 450GL.

However Ms Shing said “our position on buybacks has not changed and we do not support any decision under the Basin Plan that harms communities, the environment or puts farmers at risk – we will continue to negotiate and advocate for outcomes that do not cause unnecessary harm them.

“We haven’t signed up to any agreement that was put by the Commonwealth and agreed to by other states last year.

“(But) we welcome the Commonwealth’s agreement to finally fund our key environmental projects that will help protect thousands of hectares of Victorian flood plains.

“Victoria has done more than any other state to return water to the environment.”

Federal Opposition water spokeswoman Perin Davey said “yet again, big announcements by the Albanese Government raise more questions than answers.

“It is time the (federal) Labor Government delivered on their promise for an open and transparent government and told people not just how they will deliver the Plan, but also how much it will cost.

“Here we have the Minister selectively briefing journalists that she has ‘hundreds of millions’ more funding for buybacks and infrastructure, but she won’t quantify that figure.

“She has outlined minister to minister correspondence to claim she now has a commitment from Victoria to progress water recovery meanwhile the Victorian Government is still vehemently opposed to water buybacks.

“So what is the deal the Minister has reached with Victoria? Will she return to funding infrastructure projects designed to reduce the water recovery target? Or is she going to ride roughshod over communities and open buyback tenders.”