THE Federal Government’s decision to begin water buybacks on July 15, targeting up to 70 gigalitres of water from the southern part of the Murray-Darling Basin, has been met with fierce opposition.
Voluntary water purchases, or buybacks, are part of a three-pronged approach by the Government to deliver 450GL of additional water to the environment by December 2027.
Those demanding an urgent rethink of the Murray-Darling Basin Plan include Nationals politicians, farming and irrigators’ groups, and a mix of mayors, chief executives and administrators from six Northern Victorian councils.
Their collective sentiment was open tender buybacks should be abandoned, and the $300 million Sustainable Communities Program – aiming to compensate communities affected by voluntary water purchases – was unclear and “grossly inadequate”.
Member for Mallee Anne Webster sounded a warning that exacting buybacks on Victorian communities along the Murray River would impact part of the $10.3 billion in annual gross regional product.
“Once again we will see patchwork quilts of land that is dry, land that is irrigated, and the costs ultimately go to the farmers who are left,” Dr Webster said.
On social media, Member for Mildura Jade Benham accused the Federal Government of waving a chequebook while some farmers consider an exit strategy.
Recent modelling by Commonwealth research branch ABARES tested three water buyback scenarios, where the southern basin would provide recovery volumes of 125GL, 225GL and 325GL.
The report projected the purchase of those water volumes would equate to farm production losses in the region of either $62 million, $111 million or $154 million per year.
A Victorian Government report from September 2022 suggested if 372.3GL of water was bought back from the southern basin, it could risk 8700 hectares of plantings, and could lead to a $400 million decrease in the value of local farm production.
Victorian Farmers Federation president Emma Germano warned that buybacks could prompt a repeat of impacts felt during the millennium drought.
“In response to the latest economic analysis, which placed an overly conservative estimate on the impact of water buybacks, the Albanese Government has only allocated a pitiful $300 million to assist communities,” she said.
“There are no guarantees over how these funds will be used and whether they will support farmers and the resulting loss of jobs in the agricultural sector.”
On June 11, the Federal Government described the Sustainable Communities Program as a means to provide $300 million for “investments that create and support local jobs and businesses” in affected regional communities.
National Irrigators’ Council chief executive Zara Lowien accused the Government of providing vague details of its planned water purchases.
“The entire 70 gigalitres targeted could come from just one valley or region, devastating those communities, or push a known vulnerable community or industry to breaking point,” Ms Lowien said.
“Many of the supposed alternative options don’t even have a program to apply or department lead.
“It’s not good enough and it doesn’t pass the pub test for Basin communities.”
Murray River Group of Councils chair and Gannawarra Shire mayor Ross Stanton questioned the government’s rush to recover water through buybacks.
“The last time the Commonwealth did an open tender water buybacks in our region, we lost around 1600 jobs, it cost us hundreds of millions of dollars in production, and the price of water for agriculture went up $72 per megalitre,” he said.
“Our irrigation districts ended up looking like Swiss cheese.
“If that happens again, it will push districts to breaking point.”
He called for the Federal Government to rethink open tender buybacks, to put communities at the heart of water recovery, and to “be serious about helping communities transition”.
“We all want healthy rivers, and a thriving environment, none more than those of us who live in it in our river communities,” Cr Stanton said.
“We also need thriving towns and businesses and relying on market forces and focusing purely on water recovery as a number through open tender buybacks will cause social and economic damage.”
