Budget cuts flow-on effect: Irrigators face cuts to reliability of supply

The Murray Darling Basin Authority’s reconciliation of the Basin Plan is set to cut the reliability of irrigators’ water supplies.

The Murray Darling Basin Authority is about to embark on a reconciliation of the Basin Plan that is set to cut irrigators’ take.

Funding for Murray Darling Basin water recovery will end on June 30 next year, with nothing in the federal budget beyond that point.

Budget papers show the Albanese Government will pull the plug on $1.56 billion of unspent funds allocated to recovering 450 gigalitres under the Water for the Environment Special Account at the end of 2023-24.

Funding for NSW, Victoria and South Australia to recover another 605GL from 36 supply and constraints measures also comes to an end on June 30 next year, under the Sustainable Diversion Limit Adjustment Measures program.

Irrigators fear the Albanese government will simply divert the unspent funds into water buyouts as the Murray Darling Basin Authority prepares to launch its basin plan reconciliation in December.

The budget grants the MDBA an additional 100 staff and $103 million to run the 2026 Basin Plan review.

The MDBA is also about to undertake a reconciliation on watre recovery towards the basin plan targets, which state and federal bureaucrats have already warned will lead to a shortfall in water recovery of up to 340GL.

Briefing papers prepared for the Basin Officials Committee state: “If water recovery is not able to be completed by the Commonwealth (by June 30, 2024), the Water Act 2007 requires that states comply with the reduction in SDLs (Sustainable Diversion Limits) by amending water resource plans to ensure that the take of water is consistent with the new SDLs”.

“Amending the SDLs as a result of reconciliation to reflect an Environmentally Sustainable Level of Take (ESLT) is likely to reduce the amount of water that can be taken from the Murray-Darling Basin for consumptive use.

Under the MDBA’s reconciliation process, it must prepare amendments to cut SDLs to offset any shortfall in time for Environment and Water Minister Tanya Plibersek to introduce them by June 30, 2024.

However, the BOC papers warn “any reduction in water users’ reliability of access would expose the Commonwealth to claims for compensation from water users under risk assignment provisions”.

National Irrigators Council chair Jeremy Morton said it was more likely the Federal Government would undertake more water buyouts to offset any shortfall, rather than simply cutting SDLs and irrigators’ reliability of supply.

“It’s a train crash waiting to happen,” Mr Morton said.

Federal Opposition water spokeswoman Perin Davey said she was unlikely to be able to get the numbers in the Senate to block amendments cutting SDLs and that unspent water recovery funds would now pour into irrigation community buyouts.

“The fear is, without the extension, there will be a mad rush to buy the gap prior to the legislated end to the Basin Plan – and that will come at a huge cost to Government, to communities and to the Australian economy,” Sen Davey said.

“Water market experts have estimated the cost to purchase enough water licences to bridge the gap will be over $20 billion which is far more than the funding currently available in the budget.

“Then you need to factor in the loss in productive capacity, associated job losses, the list goes on.”

Environment groups are already calling for the funds to be diverted into purchasing.

Environment Victoria’s Healthy Rivers Campaigner Tyler Rotche said: “The government needs to get the most water for the funds already set aside. Purchasing water from willing sellers is the most reliable option. It’s by far the most straightforward, aboveboard and cost-effective method on the table.”

Meanwhile the budget contained no funding to unclog or divert water around the Barmah Choke nor deal with carp control, using the koi herpes virus.