Debate rages over new plan deal

The new plan — which limits the amount of water extracted from the basin — includes more options and funding to deliver the remaining water, such as through voluntary buybacks.

The 12-year plan to restore the nation’s largest and most complex river system, which runs through four states and dozens of towns and cities, was created in 2012 and has already garnered about 2100Gl for the environment.

The Murray-Darling Basin Authority has previously advised there would be a shortfall of 750Gl — about a quarter of the target — by June 2024.

Federal Environment Minister Tanya Plibersek said the agreement struck between the Federal Government and the NSW, South Australian, Queensland and ACT governments came at a crucial time with the next drought “just around the corner”.

“What we’re proposing is more time, more money, more options and more accountability,” she said on Tuesday.

Ms Plibersek said voluntary water buybacks would complement the infrastructure projects and that all options remained on the table.

“It is obvious that what’s happening at the moment isn’t working,” she said.

“What I’m proposing for that 450 gigalitres is that instead of relying on some mythical projects that haven’t eventuated until now, and are unlikely to eventuate in the future, we’ll also be open to water purchase.”

But the minister said she wanted to be careful speculating about the details of the water buybacks — such as how much money would be made available — as it would have the potential to distort the water market.

“We also will be introducing measures to make sure that our water markets are better run and better protected,” she said.

Ms Plibersek added that more would be invested in water saving projects to limit the amount of water that needs to be bought.

Victoria, which has previously opposed water buybacks, is the only basin government that hasn’t signed up to the new plan.

But Ms Plibersek said her door remained open and there were significant benefits for the state to sign.

The legislation will be introduced into federal parliament in coming weeks, with both houses to sit for two weeks from September 4.

Deputy Opposition leader and Federal Member for Farrer Sussan Ley said the new plan was an insult to communities along the river system.

“What it will do is rip water and rip the heart out of the Murray and Murrumbidgee communities,” she said.

“What happens when that water leaves the community that farm closes down ... that school comes under threat, doctors don't come to the area because there’s not enough community support, infrastructure falls away.”

Those sentiments were echoed by Federal Member for Nicholls Sam Birrell, who said the Albanese Government had effectively “torn up the plan, leaving only a weak and meaningless commitment to minimise the social and economic impacts on basin communities”.

“What is missing from Water Minister Tanya Plibersek’s new plan is the neutrality test established in 2018 and agreed to by all basin states, to protect basin communities,” Mr Birrell said.

“What we now have proposed is a plan that only seeks to minimise impacts, most likely through one-off compensation, a pittance compared to the generational impact of lost production, jobs, economic activity and population in communities that rely on water for agriculture.

“The Victorian Government has remained steadfast, supporting the retention of the socio-economic neutrality test and opposing buybacks, which is justified by the heavy lifting our irrigation districts have already done to help deliver the bulk of the water recovery under the original plan.

“In contrast, NSW Premier Chris Minns, who was publicly opposed to buybacks two weeks ago has rolled over giving the Commonwealth the green light.”

Mr Birrell said buybacks would take water out of the consumptive pool and increase competition for the remaining water.

“This is a plan to slaughter our regional communities and deliver environmental water at any cost,” he said.

Independent Member for Murray Helen Dalton said the Federal Government’s plan had “failed”.

“Just weeks ago, NSW Premier Chris Minns told the state’s parliament: ‘We don’t want to see water buybacks used for water recovery’,” Ms Dalton said.

“I now demand the NSW Government immediately follows Victoria’s lead and back my Water Transfer Amendment Bill which will stop federal buybacks.

“The Federal Water Minister has put a target on NSW Southern irrigators backs and it’s time Rose Jackson and Chris Minns stood up for the bush.”

Speak Up Campaign chair Shelley Scoullar said it was disappointing Prime Minister Anthony Albanese had not honoured his promise to govern for all Australians.

“It appears Minister Plibersek has used a ‘sign up or else’ approach, and the NSW Government has bowed to the pressure, doing a deal that agrees to buybacks in exchange for more federal funding,” Ms Scoullar said.

“Congratulations to the Victorian Government and its Water Minister Harriet Shing for standing firm, even in the face of these tactics.

“Despite today’s announcement, our communities will continue to strongly oppose buybacks and we will also work with other organisations and continue to present better solutions. The great shame about the Albanese Government’s approach to the basin plan is that its focus is not on achieving environmental outcomes, but political ones.

“We do not believe this can be disputed with all the evidence that has been gathered over the past 11 years of implementation which could improve the basin plan, but gets ignored.”

National Farmers’ Federation president Fiona Simson said delivering the Murray-Darling Basin Plan in full with buybacks squarely on the agenda would be met with disbelief given the Federal Government’s recent consultation.

“Just a few short weeks ago the government sought and received over 100 submissions from stakeholders, outlining innovative and smart solutions to deliver the plan without the need for buybacks,” Ms Simson said.

“The NFF was just one of these groups that engaged in good faith — putting up over 1000Gl of buyback-free water recovery projects.

“The minister has just admitted these are yet to be fully considered. To fire the starting gun on harmful buybacks while sitting on an unread stack of alternatives beggars belief.”

The NFF said the new agreement ended more than 16 years of fragile cooperation around the plan.

“States have a right to stand up for their communities and say no to buybacks. Accepting buybacks shouldn’t be a precondition for amending the deadlines — that’s just politically conniving,” Ms Simson said.

“Buybacks have hurt basin communities in the past and they’ll inflict more pain if they start again.

“This isn’t just an issue for farmers. It’s a bill every Australian gets to pay not once, but twice — first as their taxes bankroll costly buybacks, then again when their grocery bill goes up.

“You cut production in our food bowl and everyone who eats foots the bill.”

Ms Simson called on the Opposition and members of the crossbench to hold the government to account on this issue when legislation comes before parliament.

VFF president Emma Germano said the deal done behind closed doors between the Commonwealth and state governments, which excluded the Victorian Government, would have a devastating impact on the state’s farming communities.

“This is a shameful announcement by the Albanese Government that shows a total disregard for Victorian regional communities,” she said.

“This deal not only undermines the livelihoods of Victorian farmers, but also threatens the long-term sustainability of our regions.

“We are staring down the barrel of job losses across northern Victoria in farming and food manufacturing, increased cost of production, and increased prices at the supermarket checkout.

“Victorian farmers have done all the heavy lifting in delivering the 2100Gl that has so far been recovered under the plan. This has been done to the economic and social detriment of our communities. In no world should Victoria be expected to do any more.”

VFF Water Council chair Andrew Leahy said the announcement winds back Labor’s promise in 2012 that the 450Gl target would not be achieved through buybacks.

“Then Water Minister Tony Burke promised in 2012 buybacks would not be used for the 450Gl. Tanya Plibersek broke that promise,” he said.

“Recovery of the 450Gl was never guaranteed and was always dependent on socio-economic criteria that Tanya Plibersek now wants to ignore, or worse, get rid of.”

The NSW Irrigators’ Council (NSWIC) said the announcement sent shockwaves through basin communities.

“Basin communities have already lost one in three litres of irrigation water to get the Basin Plan Sustainable Diversion Limits in place, and the uncertainty of more, beyond what was required to reach the SDLs, is a major cause for concern,” NSWIC acting chief executive officer Christine Freak said.

“To put this in perspective, buying back the NSW share of an additional 450Gl of water will remove the equivalent of nearly half of the remaining high-security water that’s left for farming in the NSW Southern Basin. This is very concerning, given the severe socio-economic and water market impacts, and implications for Australia’s food bowl.”

Environment groups welcomed the new plan, saying it has the potential to “move us beyond the unworkable barriers and delay tactics we’ve seen in the past decade”.

“It’s not surprising Victoria was left out of the deal considering the Andrews Government is clinging to Barnaby Joyce-style policies that would block the most cost-effective and feasible solution — buying water for the river,” Environment Victoria chief executive officer Jono La Nauze said.

“Our recent report Debasing the Basin Plan documents how successive Victorian governments have undermined the national plan to restore the Murray-Darling to health. We hope other states can learn the lessons of the past and stand up to Victoria’s negotiating tactics this time round.

“The water recovery targets in the basin plan aren’t about restoring a pristine environment, but simply giving the river a bare minimum for survival. By not signing up, the Victorian Government is saying they don’t support keeping Australia’s most important river system alive.

“We’re concerned Victoria will miss out on some benefits from being part of the deal including significant federal funding for regional communities.”