THE impact of the Federal Government's water buy-back scheme will be put under the microscope by a new panel of irrigators and environmentalists named by the Government this week.
A Stakeholder Consultative Committee, announced by Minister for Water, Penny Wong, will evaluate the outcomes of the Government's first entry to the market earlier this year, where it put $50m on the table to buy water from irrigators for the environment.
But the Opposition says while the committee's at work, it should also look at the social impact of that buy-back and future government purchases of water, and consider what it says has been a lack of transparency in the pricing and purchasing of irrigation water for the environment.
Farmer and irrigation industry representatives on the committee include National Farmers Federation water spokesman, Laurie Arthur, NSW Irrigators Councils chairman, Col Thomson, Murrumbidgee Irrigators chairman Dick Thompson, Sharon Starick from the South Australian Farmers Federation, Richard Anderson from Victorian Farmers Federation, Queensland Irrigators Council chairman Ian Johnson and Cotton Research and Development Corporation chairman, Mike Logan.
A spokesman from the Department of Environment, Heritage, Arts and Water said the office received about 700 enquiries from irrigators about potentially selling their water to the Government, but could not confirm how much water was sold and at what prices until all the applications were processed.
Senator Wong told an Irrigation Australia conference in Melbourne she's heard concerns raised about the Government's water purchasing program, but she believes there are merits to buying water from willing sellers.
"Where property rights exist, you should be able to buy and sell them," Senator Wong said.
"In the Murray Darling Basin, there is a significant and pressing need to secure more water for our rivers. Using the market, by purchasing water from willing sellers at a fair market price, is a sensible response to this problem."
Senator Wong said in the recent $50m buyback, the public tender process was selected as the best way to deliver value for money for Australian taxpayers while also providing a fair price for sellers, adding the department provided advice to sellers on market information.
"I expect that some of the irrigators who sell water to the Australian Governments will choose to use the proceeds from selling some of their water to invest in on-farm efficiency and productivity improvements," Senator Wong said.
"I also expect that some irrigators who are looking to sell water to the Australian Government are actively looking to leave the industry. I don’t believe it is appropriate that these people should have their property rights restricted in such a way that they are unable to sell to the Australian Government.
"One of the things about a water market is that it does enable people to leave the industry with relative ease and dignity and – regardless of who is buying their water – that is a good thing."
Senator Wong said the stakeholder committee will help shape the future purchase of water in the basin.
"…Government water purchase is a relatively new frontier, so we are acutely aware of the need to learn from our first foray into the market.
"I will ask the Stakeholder Consultative Committee to provide advice to the Government on how we can best respond to concerns about water purchasing."
The Opposition's spokesman for water security, John Cobb, said the new committee must look at the socio-economic impacts on rural communities in the Murray Darling Basin of buying back $3.1 billion worth of water entitlements, which the government intends to do over the next 10 years.
"Minister Wong can not ignore the impact of buying $3.1 billion worth of water entitlements will have on rural communities in the Basin," Mr Cobb said.
He said a major complaint with the $50 million water buyback was the lack of transparency and said the Government must ensure sellers are aware of the price of water by posting all sale prices immediately on to a website.
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