Victoria Accused of ‘Undermining’ Murray-Darling Basin Plan: Report

A view of the Hume Weir at sunrise in Albury on February 23, 2007. Photo by Robert Cianflone/Getty Images

Victoria has been singled out as the Australian state most to blame for “undermining” the Murray-Darling Basin Plan, according to a new report.

An Environment Victoria report (pdf) on Aug. 3 said the state’s opposition to water buybacks, including other schemes, has made it difficult to meet the scheme’s water targets.

“Since it was elected in 2014, the Andrews government has refused to support water buybacks from willing sellers as the most cost-effective way to return environmental water to the rivers, and has remained fixated on ineffective water offset schemes, resulting in wetland engineering projects that are often being carried out without Traditional Owner consent,” said Environment Victoria’s Policy and Advocacy Manager, Bronya Lipski, in a statement.

“While alleged water theft in [New South Wales or NSW] has generated national headlines, Victoria has actually played a bigger role in ripping off the river, and this report is the first time Victoria’s shortcomings and negligence of our river system has been comprehensively documented.”

Successive Victorian governments have been accused of a range of measures that have impeded any progress, including delays and curtailing of the Water Act, promoting “unproven” water-saving infrastructure and targets, introducing “novel” offsets scheme, and using an unworkable socio-economic test.

The state has also been accused of pushing for lower water-saving targets despite advice suggesting targets of around 3,000 to 7,600 gigalitres would better protect biodiversity in the Basin.

The report also added that Victoria’s decision to support caps on water buybacks—paying farmers to reduce their water usage—dramatically reduced the amount of water in the system.

The Current Scheme

Under the current plan, the basin states of South Australia, Victoria, New South Wales, and Queensland agree to take 2,750 gigalitres of water from irrigated agriculture and allow it to flow into the Basin by 2024, with a further 450 gigalitres to be added in future.

So far, more than 2,100 gigalitres of water have been relocated.

Federal Water Minister Tanya Plibersek has not ruled out using water buybacks to recover the remaining water needed under the plan. However, Victoria and New South Wales have opposed the proposition.

“I would like to see that we can return water, but it has to be with positive or neutral socio-economic outcomes,” Victoria’s water minister, Harriet Shing, said in April.

Victorian Greens water spokeswoman Sarah Mansfield said the report showed the state government must allow voluntary water buybacks to get “real water” back into the environment.

“The Victorian Labor government now has a clear choice: to continue to put off their obligations at the cost of this precious ecosystem or show leadership and ensure the Murray and regional communities can thrive for generations to come,” Ms. Mansfield said in a statement.

The office of Victoria’s Water Minister has been approached for comment.

Basin Plan Timeframe to be Extended

Following advice (pdf) from the Murray Darling Basin Authority that the $13 billion plan will not be completed by the 2024 deadline, federal Water Minister Tanya Plibersek said the timeframe would need to be extended.

In November 2022, the chief executive of the Authority, Andrew McConville, said that despite the need to deliver the plan in full, another 5 to 10 years was necessary for several projects connected to floodplains to be completed—backed by the Productivity Commission and Water for the Environment Special Account.

“Currently, our assessment is that the Sustainable Diversion Limit Adjustment Mechanism projects will most likely deliver between 290 and 415 of the 605 gigalitres required as part of the Basin Plan,” Mr. McConville said in November 2022.

“Put another way; we expect a shortfall of between 190 and 315 gigalitres.

“This means the Authority will have no choice but to recommend to the federal water minister amended sustainable diversion limits in southern Basin catchments.”

Criticism of the Basin Plan

In October 2022, the Department of Environment, Land, Water, and Planning released an independent report (pdf) into the social and economic impacts of the Basin Plan in Victoria.

The report found that water recovery under the Basin Plan “has had significant social and economic impacts on irrigators and communities in northern Victoria.”

It also found that previous water recovery efforts resulted in less irrigation, significant price rises in water, farmers being more reliant on the market and its fluctuating prices, as well as increased pressure on irrigators.

Additionally, the Victorian Farmers Federation said in November 2022 that federal Labor’s announcement to enter a water buyback scheme was “deeply disappointing.”

“Even though no water is to be purchased from Victoria, it reduces the overall consumptive pool that has shown to drive up water prices and results in stranded irrigation assets,” the Federation said.

Jan Beer, a representative from the Upper Murray River Catchment Association in Victoria, previously told The Epoch Times that the economic impacts of the water buybacks would be “enormous” and has urged both Victoria and NSW to withdraw from the Basin Plan.

Meanwhile, an independent report by the Water for the Environment Special Account (pdf) found that up to $10.8 billion could be spent to meet the 450 gigalitre target if the 2024 deadline was removed.