Protect farming communities from negative impacts of 450GLs

Federal Agriculture and Water Resources Minister announced the review’s terms of reference last week, saying it had been agreed to by all Basin ministers at the Murray–Darling Basin Ministerial Council’s meeting in March.

Mr Joyce said the analysis would be conducted by relevant experts, independent from government, and was now finalising who would undertake it, in consultation with Basin states.

A report from the independent analysis is due to be tabled for the Ministerial Council’s consideration in December 2017.

The terms of reference include providing; advice on how to recover 450GLs of water from efficiency measures by 2024 with neutral or improved socio-economic outcomes within the legal framework of the Basin Plan; and the anticipated cost.

It will also look at the extent to which adverse socio-economic impacts could be mitigated through; further refinements to the efficiency measures program; existing Commonwealth programs; and further opportunities for Commonwealth-funded activities in support of regional development.

Mr Joyce said the Basin Plan and 2013 Intergovernmental Agreement on Implementing Water Reform in the Murray Darling Basin mandated that the recovery of an additional 450GLs of ‘up-water’ through efficiency measures can only proceed if it would have no adverse socio-economic impacts on Basin communities and industries.

“I have heard first-hand from communities across the basin about their concerns about socio-economic impacts of water recovery and I understand that these impacts can be complex to understand and quantify,” he said.

“They don’t just stop at the farm-gate.

“That is why this independent study will involve a more comprehensive examination of the potential socio-economic impacts of possible efficiency measures at a range of scales.

“It will also report on strategies that may be required to ensure neutral or improved social and economic outcomes.”

The National Irrigators Council (NIC) CEO Steve Whan said meeting a promise of no negative community impact was “critical”, if the Basin Plan’s so called ‘up-water’ component was to be delivered, which made Mr Joyce’s release of the terms of reference for an independent study, an important step.

Mr Whan said when then Prime Minister Gillard joined the former Water Minister Tony Burke - in late 2012 - to announce a Basin Plan that included the provision for an additional 450GLs in so called ‘up-water’ efficiency savings, their statement was very clear; that the water could only be delivered to the environment if it had a beneficial, or at least no negative, community impact.

“Unfortunately when the plan was actually put in place the test became whether or not an individual is willing to accept funding – a single property test,” he said.

“Very clearly that is not a test of impact on neighbours, on the viability of irrigation systems or on jobs and the welfare of the broader local community.

“It doesn't meet the promise and it is completely out of step with the standard demanded when major city based industries face structural adjustment.”

But Mr Whan said the NIC was “pleased” basin water ministers had recognised that, for the promise to be met, more work must be done to ensure any taxpayers’ money spent securing the 450GLs of up-water produced benefits - or at the least no negative ones - for the community and the environment.

He said it was also pleasing to see South Australian Water Minister Ian Hunter suggest the study and the Deputy Prime Minister moving it forward. 

“I would hope that the bipartisanship demonstrated by state ministers in agreeing to these terms of reference will be reflected at federal level as well,” he said.

“If the Gillard/Burke promise is to be honoured then there must be a bipartisan recognition that it would be unacceptable to put in place a scheme which further damages Basin communities.”

National Farmers’ Federation (NFF) Vice President Les Gordon also welcomed the independent analysis of efficiency measures in the Basin Plan, to ensure neutral or improved socio-economic outcomes.

He said the NFF’s members looked forward to working with the independent experts commissioned for the analysis to share their experiences with delivering efficiency projects and to explore the full range of costs and benefits - on farm, on the water market and the flow on impacts to industries and communities.

Mr Gordon said at the March meeting, Basin Ministers also agreed to a ‘credible pathway’ for delivering the supply measures or 650GLs ‘down-water’ component of the Basin Plan and had until June 30 to nominate their suite of supply measure projects.

“The NFF’s position on the down-water has always been clear – Basin governments must deliver the full 650GLs down-water offset as this enables the plan to achieve environmental outcomes while avoiding further socio-economic pain on Basin communities,” he said.

“We ask that when Basin Ministers come together in June they commit to detailed and meaningful consultation with irrigators and communities to build their confidence and to ensure their needs are met as supply projects are implemented by the 2024 deadline,”

Mr Joyce said he remained committed to the Basin Plan’s triple-bottom line outcomes.

“Water recovery must be done in a way that supports strong Basin communities and productive industries,” he said.

“Communities across the Basin want transparency and certainty.

“This work is an important step in having the Plan delivered and allowing Basin communities to look to the future with confidence.”