Government buys back $430m worth of water for Murray-Darling Basin

The federal government has spent more than $430 million on almost 86 gigalitres of environmental water. (ABC News: Nathan Morris) The federal government has spent more than $430 million buying back almost 86 gigalitres of water for the environment under the Murray-Darling Basin Plan. The deal involves a company associated with an Australian superannuation fund selling water entitlements to the Commonwealth. The purchase has drawn criticism from politicians and farming groups, but environmental advocates say recovering environmental flows is essential to restoring the health of Australia's largest river system. Link copiedShareShare articleA mega deal to sell water back to the Commonwealth has been announced on a government tender website, reigniting debate over the future of buybacks in the Murray-Darling Basin. The deal involves a company associated with an Australian superannuation fund selling almost 86 gigalitres of water to the federal government for environmental use. The Commonwealth has spent more than $430 million acquiring the water as part of efforts to recover water under the Murray-Darling Basin Plan, taking environmental water recovery to more than 380GL towards its 450GL target. The purchase has drawn criticism from politicians and farming groups who argue productive water is being removed from agriculture, while environmental advocates say the recovery is essential to restoring the health of Australia's largest river system. The notice on the AusTender website. (AusTender) One Nation Member for Farrer David Farley said the purchase of almost 86GL of water from major institutional investor State Street Australia Ltd would have an immediate impact on food production, irrigated farming and supermarket prices. He said the water had previously been leased into agricultural production each year through Brisbane-based Argyle Fund on behalf of Aware Super. David Farley says the deal is a "massive hit to the food bowl". (ABC News) "What's been reported today is a massive $430 million water buyback out of the heart of the food bowl of Australia," Mr Farley said. "It's an enormous amount of water, circa 86 gigalitres of water. "It will have an immediate impact on production. It will have an immediate impact on spring planting and irrigation intentions and ultimately it's going to have a flow-on effect straight into the supermarkets of Australia. "All that water that's been sold today is out of the food production chain completely. "So it's a massive, massive hit to the heart of the food bowl of Australia, where 40 per cent of Australia's food comes from." Rather than criticising the seller, Mr Farley questioned why the federal government had purchased the water before reviews of the 2007 Water Act, the 10-year Murray-Darling Basin Plan review and a national food security strategy had been completed. "I can't express to you the gravity of this," he said. "It is not only on agriculture, it is on regional communities, it is on food processing and it's ultimately into the supermarkets in food pricing." Shadow Minister for Water and federal Riverina MP Michael McCormack said further water buybacks under the Murray-Darling Basin Plan were damaging communities reliant on irrigation and reducing food production capacity. Mr McCormack said the impacts extended well beyond farming businesses. "It's the baristas, it's the motor mechanics, it's the hairdressers, it's the schools." Michael McCormack echoed many of the concerns expressed by One Nation. (ABC News: Sarah Maunder) He said the latest purchase reinforced a trend of buybacks being concentrated in southern New South Wales and northern Victoria, where much of Australia's irrigated food was produced. "Food security equals water security equals national security," he said. Environment Minister Murray Watt said the government was on track to recover almost 400 gigalitres of water for the environment by the end of the year, bringing the Basin Plan close to its 450GL target. He claimed more than 380GL had already been recovered via water-efficiency infrastructure projects and voluntary water purchases, with a further 20GL expected from willing sellers. Murray Watt says the government is on track to recover hundreds of gigalitres of water for the environment. (ABC News: Matt Roberts) "We remain on track to reach 400GL by December, and it's good to see this process nearing the finish line," Mr Watt said. He said the government was taking a balanced approach by combining infrastructure investment, voluntary water purchases and community adjustment assistance. While acknowledging buybacks could affect some regional communities, he said a $300 million Sustainable Communities Program would help Basin towns diversify their economies and build resilience for a future with less water. National Farmers' Federation water committee chair Malcolm Holm, who farms near Blighty in the southern Riverina, said the organisation remained firmly oppos

Government buys back $430m worth of water for Murray-Darling Basin

Key takeaways

Also covered by

Government buys back $430m worth of water for Murray-Darling Basin

Key takeaways

Also covered by

More in international