Shadow Water Minister Perin Davey said the issue with buybacks, which she described as the “lazy water recovery option”, is that while water owners are compensated, it is communities who would lose out.
“While this buyback is in select valleys, the issue with New South Wales Murray is we have a connected market in the southern Murray Darling Basin where water can be traded across state borders and buying water out of one valley impacts every community, especially in places like South Australia who have a very high percentage of permanent plantings and a heavy reliance on temporary trade,” Senator Davey said.
“It doesn’t matter whether the water is bought out of the New South Wales Murray or South Australia, it will drive up the price of water, especially in times of drought when permanent plantings like almonds and grapes drive prices beyond those which many agricultural industries like dairy can afford to pay.
“We know that the water bought back to date has resulted in an increased price of temporary or allocation water by around 25 per cent across all seasonal scenarios.
“Further buybacks risk some industries and irrigation communities unviable, especially if Labor continue to use them beyond the current 46 gigalitre tender round.”
In a press statement issued on Thursday afternoon, Federal Water Minister Tanya Plibersek said the “voluntary tender process to begin buying 44.3 gigalitres of water” would be offered in six catchments.
It includes the NSW Murray.
The targeted catchments for purchase are:
Queensland
• Condamine–Balonne catchment: 14.0 GL of surface water and 3.2 GL of groundwater
New South Wales
• NSW Murray catchment: 10.0 GL of surface water
• Namoi catchment: 9.5 GL of surface water
• NSW Border Rivers catchment: 5.1 GL of surface water
• Barwon–Darling catchment: 1.6 GL of surface water
• Lachlan catchment: 0.9 GL of surface water.
“The Murray-Darling is Australia’s largest river system. It is critical that we restore the balance and return water to the environment so that communities have water to drink; farmers have water to grow food and fibre; and native plants and animals get the water they need to survive and flourish,” the statement from Ms Plibersek said.
“Interested water licence holders are encouraged to consult with their legal and financial advisors to support their tender application.”
Senator Davey said people thinking of participating in the buyback tender should be aware the tender documents released last week make it clear successful tenderers would have their water right owner/s name/s, location of the water right, contract value and execution date reported publicly if over a certain financial limit.
“I welcome this additional layer of transparency which has not been applied previously,” she said.
10°C