Tanya Plibersek told to “accelerate” Murray Darling Basin buyout
Federal Water Minister Tanya Plibersek’s bureaucrats want her to strip away irrigation community protections, to “accelerate” water recovery.
Federal Water Minister Tanya Plibersek is being urged to “accelerate” recovery of 450 gigalitres for South Australia and the environment by loosening the socio-economic test that protects irrigation communities.
A massive 1990 gigalitres — the equivalent of two Sydney Harbours — has already been stripped out of irrigation communities for the environment under the Murray Darling Basin Plan, increasing water market volatility, undermining the viability of irrigation districts and, according to the Basin Authority itself, costing jobs.
But a draft of the “red book” prepared by Department of Climate Change, Energy, the Environment and Water bureaucrats for the incoming Albanese Government, calls on Ms Plibersek to “accelerate recovery” of another 450 gigalitres by:
“DEVELOPING a new water recovery program that may include funding for on-farm efficiency projects and targeted water purchases”, and
“NEGOTIATING with states to remove or loosen the requirement for water recovery initiatives to have a positive or neutral socio-economic impact”.
NSW Irrigators Council and the Victorian Farmers Fedreation oppose weakening of the socio-economic test, given it prohibits any recovery of the 450 gigalitres via buyouts or on-farm efficiency projects that have “adverse third-party impacts, including on jobs, economic activity, small service businesses, riparian landholders, indigenous wellbeing, population, mental health and community wellbeing”.
Ms Plibersek has refused to make any commitment to retaining the current socio-economic test, as she prepared to meet Basin state water ministers in Canberra today.
“As I’ve said many times publicly – I’m open to all ideas when it comes to delivering the Plan,” she said.
But Ms Plibersek has sounded out basin community groups on weakening the test.
Murray River Group of Councils chief executive Geoff Turner said Ms Plibersek and her adviser raised “loosening” the socio-economic test at a meeting in Canberra last month.
“They were keen to know if we had an appetite for it to be loosened, but we said no,” Mr Turner said.
The South Australian Labor Government promised prior to being elected that it would “reverse the Marshall Liberal government endorsement of complex criteria restricting the funding of water efficiency projects up-river”.
But both NSW Water Minister Kevin Anderson and his Victorian counterpart Harriet Shing have already made it clear they will not agree to any weakening of the test.
“NSW remains committed to the socio-economic criteria as the means of assessing water efficiency projects that contribute to the 450GL commitment, and does not support changes,” Mr Anderson said.
Ms Shing said the test gave “communities confidence to plan for their futures and any moves to undermine the test will erode the confidence and trust of Victorians.”
But Ms Plibersek still has one ace up her sleeve, given NSW and Victoria want the June 30, 2024 deadline on delivering another 605GL parcel of Sustainable Diversion Limit Adjustment Mechanism projects extended.
In July the Basin Officials Committee warned NSW and Victoria would fall up to 340GL short of the 605GL, given many of the SDLAM projects had not even started, which could trigger a Commonwealth entitlement buyout and “a reduction in water available for consumptive use”.
But buying or compensating irrigators to recover 340GL would cost the Commonwealth at least $2.5 billion, based on current southern basin entitlement prices.
Ms Shing said “we have been open about the need to be flexible on 2024 for some complex projects because they need to be co-designed with communities. It is in everyone’s best interests for these projects to be given a chance.”
Mr Anderson said “NSW will be requesting more time for the SDLAM projects to be delivered beyond the 30 June 2024 deadline.”
Those SDLAM projects include: the Menindee Lakes Water Savings Project (including Lower Darling Constraints) the Yanco Creek Offtake and constraints removal (such as landholder agreement to flood their properties) to allow enhanced environmental water delivery along the Murrumbidgee, Goulburn and the Murray rivers.
The undelivered SDLAM projects are critical to the delivery of environmental flows, including the 450GL of upwater.
Much of the constraints work is proving impossible to deliver, given it involves negotiating with about 6000 landholders adjoining the river to flood their properties to deliver environmental flows.
Other options put forward by Department of Climate Change, Energy, the Environment and Water bureaucrats’ red book briefing also advised Minister Plibersek to consider:
THE benefits and risks of bringing the 2026 review of the Basin Plan forward.
PREPARING the terms of reference, funding requirements and appointment of eminent persons to undertake the statutory review of the Water Act due in 2024.
OVERCOMING lack of cooperation from the NSW and Victorian governments in regard to the easing of constraints.
BUILDING an evidence base for further reform by commissioning CSIRO to update the sustainable yields study, an independent study into how climate change is likely to affect Ramsar sites across the Basin and re-establising the Sustainable Rivers Audit.
Federal Opposition Water spokeswoman Perin Davey said the Coalition was open to bringing forward the 2026 review to 2024 or 2025.
“I would like the review to consider the water portfolio we have and how best to manage that going forward and what projects need to stay on the table,” Senator Davey said.
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