By Deanne Jeffers
THE Federal Government has launched the first tender from the Voluntary Water Purchase Program, starting from July 15, aiming to buy up to 70 gigalitres of water entitlements from willing sellers in parts of the Southern Basin. This initiative is part of a broader effort to deliver 450 GL of additional environmental water by 2027. However, this move has been met with strong opposition from local leaders and farmers in Northern Victoria.
Federal Member for Nicholls, Sam Birrell, has vehemently criticised the plan, labelling it an act of “national self-harm.” Birrell argues that buybacks will severely impact the livelihoods of Basin communities and undermine the nation’s food production capabilities.
“What we had feared for so long will now become a reality. The livelihoods of basin communities will be severely impacted, and the nation’s ability to grow its own food will be diminished. The tragedy of this is that it is based on politics, not science,” Birrell said.
“There was an understanding that any water buybacks would come from river diverters but now we see the Commonwealth trying to buy water out of irrigation networks which threatens the viability of the entire system.”
State Member for Northern Victoria, Wendy Lovell, echoed these concerns. She said that Victoria has already contributed more than its fair share to water recovery, having returned 440GL more than South Australia and 170GL more than New South Wales. She criticised the Federal Government’s approach, arguing that it unfairly targets irrigation districts in Northern Victoria.
“The Federal Labor Government pretends to care about the social and economic impacts of purchasing water but then targets irrigation districts that are among the most vulnerable to buybacks,” said Ms Lovell.
However, Federal Water Minister Tanya Plibersek has defended the buyback plan, asserting that it is a necessary step in delivering the Murray-Darling Basin Plan in full. Plibersek said that the Government has taken a steady, staged approach to water recovery, prioritising non-purchase options where possible. Plibersek asserted that the Government’s approach has been informed by the latest science, community feedback, and consultation with various stakeholders. She said, “Not only will regional communities prosper when the Murray-Darling Basin River system is healthy – we all will. That’s what our government is focused on.”
Despite these assurances, local leaders and irrigators remain unconvinced. They warn that buybacks will drive up the cost of water, increase the cost of maintaining irrigation networks, and ultimately raise food prices. The policy is also expected to reduce farm production and lead to job losses in both agricultural and secondary industries.
Victorian Farmers Federation president Emma Germano said the Government’s push to buyback water from farmers as part of its revamped Murray-Darling Basin Plan would lead to a repeat of the economic heartbreak experienced in the Millennium Drought.
“A Victorian Government report estimated there could be a $900 million decrease in the value of farm production in the Southern Murray Darling Basin that would be lost under water buybacks,” Ms Germano said, indicating to the ‘Socio-economic impacts of Basin Plan water recovery in Victoria – 2022 Update’ document.
“This would lead to a repeat of the impacts felt during the Millennium Drought, but Tanya Plibersek dismissed this report out of hand.
“In response to the latest economic analysis, which placed an overly conservative estimate on the impact of water buybacks, the Albanese government has only allocated a pitiful $300 million to assist communities.
“There are no guarantees over how these funds will be used and whether they will support farmers and the resulting loss of jobs in the agricultural sector,” Ms Germano said.
Ms Germano also said the Government was failing to listen to impacted communities and work meaningfully towards solutions, and that Minister Plibersek refuses to visit regions to be most impacted or sit down with farmers to find solutions.
