Plibersek launches more Basin buybacks: But already has 78,300ML more than needed

The federal government has bought 78,300 megalitres more water than needed in 12 river valleys, but is still out to buy 41,100 megalitres more.

Federal buybacks have led to 13,000 megalitres more than needed under the Murray Darling Basin Plan being recovered from the Goulburn Valley irrigators.

Federal Water Minister Tanya Plibersek has announced today that tenders will open on the federal purchase of 41,100 megalitres of surface water from six Murray Darling River valleys on March 23.

The move comes despite the Federal Government having already bought 78,300 megalitres more water than needed out of 12 other key irrigation valleys to meet the Murray Darling Basin Plan’s environmental recovery targets.

Irrigators want the 78,300ML, worth in excess of $400 million, sold back into the consumptive pool and the money spent on water-efficiency projects or complementary measures.

In the Goulburn Valley alone the Federal Government has 13,000ML in excess of its Basin Plan target, which if put back on the market would sell for about $55 million.

In NSW the federal government needed to buy just 57,600ML out of the Macquarie-Castlereagh system under the Basin Plan, but has accumulated 95,800ML — 38,200ML more than needed.

Even in the Murrumbidgee Valley the Commonwealth has accumulated 6500ML of above target water, worth $58.5 million at $9000/ML, while in South Australia it has 9200ML excess water worth about $74 million.

Yet Federal Water Minister Tanya Plibersek and her departmental bureaucrats are charging ahead with the purchase of another 41,100ML out of six other Murray Darling Basin valleys, which have fallen short of their environmental contribution targets.

Ms Plibersek announced sellers could lodge their applications to sell their water on the government’s Austender website from March 23 as she prepared to brief the basin states on her strategy at a water ministers council meeting on Friday.

They include:

10,000ML out of the NSW Murray irrigation system

14,000ML from Qld’s Condamine-Balonne

1600ML from the Barwon-Darling

9500ML from the Namoi Valley

5100ML from the NSW Border Rivers

900ML out of the Lachlan

She said the government would also work with the Australian Capital Territory government to identify, plan and deliver cost-effective efficiency projects to deliver its Murrumbidgee contribution of 4900ML.

But both NSW Water Minister Kevin Anderson and Victorian Water Minister Harriet Shing have announced they are firmly opposed to further buybacks.

NSW Water Minister Kevin Anderson said he would also seek “agreement (at the meeting) that over-recovered water count towards other water recovery targets, if it is not going to be returned to NSW communities”.

“NSW position is that any water that has been over recovered by the Commonwealth should be prioritised towards Bridging the Gap and addressing any shortfall from SDLAM (sustainable diversion limit adjustment mechanism).”

National Irrigators Council chairman Jeremy Morton said the lobby group had discussed the 78,300ML over-recovery with federal bureaucrats working for the current Labor and previous Coalition Government and the response had been “bad luck”.

“That’s not reasonable and they must deal with it,’ Mr Morton said.

“If you talk to people in the Macquarie they’re mightily pissed off that they (the former Rudd-Gillard Labor Government) recovered this extra water.”

Mr Morton also said the value of over-recovered water had soared since it was purchased and could easily be sold back to irrigators for consumptive use, with the money put towards water efficiency projects or complementary measures, such as fishways, the release of the carp herpes virus or cutting cold water pollution.

Water brokers are already warning a Federal Government buyout in what is a very thin water entitlement market will push up prices.