Government strikes Murray-Darling Basin deal with Greens
The Albanese government has struck a deal with the Greens that could see more than 700 gigalitres of water used for farming each year, allocated to the environment through Commonwealth buybacks across the Murray-Darling Basin.
The deal includes $100 million allocated to help First Nations people to participate in the water market, an independent audit of water allocated to the environment throughout the basin, and the legislated commitment to return 450 gigalitres of water to the environment each year by December 31, 2027.
As part of the agreement, announced at Parliament House on Monday morning, the Commonwealth will have the power to cancel state-run water-saving infrastructure projects.
Legislation would also be amended to acknowledge First Nation people's connection, history and water needs.
Since the $13 billion Murray-Darling Basin Plan was legislated in 2012, more than 2100 gigalitres of water each year has been allocated to the environment, but a shortfall of almost 750 gigalitres per year remains. (Supplied: Connie Little)
The deal with the Greens means the government requires the support of at least two more crossbenchers to amend the Basin Plan.
Water and Environment Minister Tanya Plibersek said she was still negotiating with the crossbench to support legislation.
"I'm very much hoping we can get this done this week. I really need to emphasise the critical timing of this legislation. If this Restoring Our Rivers Bill is not passed while this parliament is sitting this year, a number of automatic measures come into play that will actually reduce water that is recovered for the environment and really risk the integrity of the Murray-Darling Basin Plan as a whole," Ms Plibersek said.
Tanya Plibersek's deal with Sarah Hanson-Young and the Greens leaves Labor two votes short of passing its legislation in the Senate. ( ABC News: Matt Roberts )
South Australian Greens senator and water spokesperson Sarah Hanson-Young called on her fellow senators to also support the bill.
"The Murray-Darling Basin Plan has not delivered what it promised to deliver. These amendments and the commitments that we've been able to negotiate with the government today will restore health to the river and trust in the plan. That's essential," Senator Hanson-Young said.
Since the $13 billion Murray-Darling Basin Plan was legislated in 2012, more than 2,100 gigalitres of water each year has been allocated to the environment, but a shortfall of almost 750 gigalitres a year remains.
Under the current legislation, reconciliation toward water-saving targets must take place from December 31, this year.
Ms Plibersek is seeking to amend the legislation to extend the deadline for the plan, allow new water-saving projects to be considered towards the plan's targets, and allow for more water buybacks to take place.
A buyback occurs when the Commonwealth purchases a farmer's licence to pump water, removing their ability to irrigate crops from the river system.
The water that was used for farming, is instead allocated to environmental flows to boost the health of the ecosystem.
The federal opposition and farmer groups oppose buybacks arguing they leave regional communities worse off.
Ms Plibersek would not say how much water she anticipated would be acquired through buybacks, or how much funding would be required to meet the new legislation.
Perin Davey listens to Tanya Plibersek and Sarah Hanson-Young's press confernce. ( ABC News: Matt Roberts )
The opposition's water spokesperson, NSW Nationals senator Perin Davey, said the cost of buybacks would be felt across the community.
"The minister might not want to put a number on it, but I can put a number on it, that they will buy back more than 225 gigalitres of water, because this amendment removes the cap on buyback, and that is the volume under that cap that is still available for them to purchase," Senator Davey said.
"Now the minister won't tell you how much it will cost Australian taxpayers to purchase this water. But I tell you, how much will it cost you in your grocery prices? How much will it cost rural and regional communities in jobs?"
Communities in the Murray-Darling Basin staged protests about water buybacks, but not everyone is opposed. (ABC: Conor Burke)
The shortfall and the 450GL
The shortfall is made up of up-to 315 gigalitres of water a year that had been expected to come from water-saving infrastructure projects funded by the Commonwealth, and operated by the states.
A further 450 gigalitres of water each year for the environment was promised from what's known as efficiency measures, so far about 26 gigalitres have been recovered toward this target.
Recovery toward the 450 gigalitre target has been restricted by a requirement not to impose social and economic harm to communities – criteria to determine this was agreed to by the Commonwealth and basin state governments in 2018.
An amendment sought by the Greens will ensure the 450 gigalitres a year must be recovered by December 31, 2027.
First Nations have say in MDB
Senator Hanson-Young said the new funding for First Nations people, secured in return for the Greens' support of the Restoring Our Rivers Bill, was vital.
"First Nations people and their communities have been left out of this plan until now," Senator Hanson-Young said.
"For the first time, First Nations communities will be in the objects of this act and plan putting them front and centre. First Nations communities need a say in how water is managed, an acknowledgement and a recognition that their connection to water is as strong as their connection to land, and that they have a say in how the Murray Darling Basin is managed going forward," Senator Hanson-Young said.
The 40 First Nations in the Murray-Darling Basin collectively owned just 0.17 per cent of its water in 2020, according to the Australian Rivers Institute.
In May 2018, then water minister David Littleproud announced $40 million over four years for First Nations to participate in the water market, so far no funding has been spent.