Government buys back $430m worth of water for Murray-Darling Basin

The Australian government has finalized a significant water buyback deal, acquiring nearly 86 gigalitres of water for $430 million to bolster environmental flows in the Murray-Darling Basin. This move, announced via the government tender website AusTender, pushes the total environmental water recovery closer to the plan's 450 gigalitre target.

The deal involves a company linked to an Australian superannuation fund selling the water rights. This has reignited a long-standing debate over the effectiveness and consequences of water buybacks. While the federal government frames the purchase as essential for restoring the health of Australia's largest river system, critics argue it harms agricultural productivity and could increase food costs.

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What's been reported today is a massive $430 million water buyback out of the heart of the food bowl of Australia. It's an enormous amount of water, circa 86 gigalitres of water. It will have an immediate impact on production. It will have an immediate impact on spring planting and irrigation intentions and ultimately it's going to have a flow-on effect straight into the supermarkets of Australia. All that water that's been sold today is out of the food production chain completely. So it's a massive, massive hit to the heart of the food bowl of Australia, where 40 per cent of Australia's food comes from.

Politicians from One Nation and the Coalition have voiced strong opposition. David Farley, One Nation Member for Farrer, described the buyback as a "massive hit to the food bowl of Australia," warning of immediate impacts on food production, irrigated farming, and supermarket prices. He questioned the timing of the purchase, given ongoing reviews of water legislation and national food security strategies.

Similarly, Shadow Minister for Water Michael McCormack stated that further buybacks under the Murray-Darling Basin Plan are damaging communities reliant on irrigation. He emphasized that the economic fallout extends beyond farming businesses to encompass a wide range of regional service providers and local economies. Environmental advocates, however, maintain that such recovery efforts are crucial for the ecological well-being of the basin.

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It's not just the farmers. It's the baristas, it's the motor mechanics, it's the hairdressers, it's the schools.