The Murray Regional Strategy Group has told a Senate inquiry changes to the federal government's Murray-Darling Basin strategy would have a devastating effect on communities in the area.
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The group has lodged a submission into the Senate inquiry on the Water Amendment (Restoring Our Rivers) Bill 2023.
MRSG chair Geoff Moar said the bill would change the bipartisan Murray-Darling Basin Plan, in particular guarantees made around water buybacks and protecting communities.
"Detailed research indicates the potential loss of $513 million a year in Gross Value Irrigated Agriculture Production if the bill is passed without amendments," Mr Moar said.
"This skyrockets to $855 million if you include the Bridge the Gap component of the Basin Plan," Mr Moar said.
That could lead to a loss of 900 on-farm jobs in Victoria alone.
"Using a conservative multiplier conversion, estimated recovery of the additional 450 gigalitres under the bill would result in $1.8 billion in lost economic activity a year," he said
The MRSG submission to the Senate inquiry pointed out that the government's own data, through the Australian Bureau of Agricultural and Resource Economics and Sciences, water buybacks had already driven up prices to more than $200 a megalitre in three out of 10 years.
It estimated taking another 450GL from farmers would push this to eight out of 10 years.
"This can make farming unviable in some instances and will reduce food supplies, which leads to higher prices at the supermarket for all Australians," Mr Moar said.
He said communities were also concerned about elevated flood risks to private and public property when more water is held in upstream storages, adding "we do not want policy that exacerbates flood risk and a repeat of the devastation we saw to livelihoods in the 2022 floods, but this seems inevitable unless changes are made to the bill."
In its submission, MRSG outlined how environmental outcomes could be achieved through robust and cost-effective proposals, and by working with local knowledge and experience.
"Numerous ideas and options have been submitted by MRSG and other organisations through various government channels," Mr Moar said.
"We have given clear, proven direction on how to deliver environmental outcomes without destroying food production and rural communities.
"There are projects that could be replicated across the entire Basin, and all that is needed is a government prepared to work with us on their implementation."
