Productivity Commission report highlights water recovery shortfall in MDBP

The Productivity Commission has released its report on the rollout of the Murray Darling Basin Plan (MDBP), highlighting the likelihood of a significant water recovery shortfall, even with additional time and funding.

The report recommended stage voluntary water entitlement buybacks, along with government support to help communities "transition to a future with less available water".

Although the commission broadly supported the government's plan, more than 70 per cent of the public submissions oppose the legislation, which seeks to push the basin plan's deadline to 2027 and make it easy for the government to purchase water licences.

In a submission to the inquiry, Moira Shire Council said that expanded water buybacks would have "severe consequences" for the region.

"Water buybacks can have significant impacts on businesses in the region, particularly those reliant on irrigation," the submission said.

"The reduced availability of irrigation water, especially during drought periods, can lead to a sharp decline in on-farm production and a decreased demand for agriculture services.

"This can have severe consequences for the long-term viability of irrigation industries and the irrigation infrastructure managed by Goulburn Murray Water within Moira Shire.

"Furthermore, the reduction in agricultural production may render some manufacturers economically unviable."

The Murray-Darling plan outlines the amount of water that can be taken from the basin each year, while allowing for an environmentally sustainable amount to remain.

The original proposal aimed to return 450 gigalitres of additional water to the environment by next June, but new laws would push back the deadline to December 2027.

Opponents, like the Southern Riverina Irrigators, argue that the expansion of water buybacks could result in food insecurity and significant harm to regional and rural communities.

"If ever you needed proof of the negative impact of buybacks, look no further than an MDBA case study on Wakool published in October 2016, where 34.5 per cent of the available water in Wakool was purchased (103.9GL) through buybacks," Southern Riverina Irrigators said in a submission to the inquiry.

"(It resulted in) a reduction in the maximum area irrigated of around 37 per cent to 39 per cent, milk production dropped from around 7 million litres to approximately 5.5 million litres, and total employment fell by around 54 per cent between 2001-16."

Responding to the new Productivity Commission report, the Environment Minister Tanya Plibersek said it confirmed what was already known.

"After a decade of sabotage under the Liberals and Nationals, the Murray-Darling Basin plan is off track," Ms Plibersek said.

"More than 80 per cent of the water recovered under the plan so far has been under federal Labor governments."

The minister said laws before the Senate would rescue the plan by allowing "more time, more options, more funding and more accountability".

But opposition water spokeswoman Perin Davey said the government needs to have its priorities right in pursuing an extra 450 gigalitres.

"Chasing the 450Gl before understanding what water recovery is required under the baseline targets is putting the cart before the horse," Senator Davey said.

"There is a reason why the basin plan was written as is - water recovery and offsets, constraints, and then additional water through the 450Gl - as long as it does not cause social and economic harm."

On Tuesday, October 31, a senate committee began examining the legislation to amend the basin plan and will report back by November 8.

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