Waterfind Pty Ltd, Media Release, 5 April 2023

An Australian-first program designed to restore critical environmental water flows to the Murray-Darling Basin, while meeting the ongoing needs of local irrigators and growers, has been proposed as an “immediate, affordable and genuine” solution to the nation’s Basin Plan – avoiding the need for short-term, unpopular water buybacks as announced by the Federal Government. 

As the July 2024 deadline looms to recover the final water requirements under the Basin Plan, the Federal Government has announced it will purchase 49GL of water from six catchments across QLD and NSW – and is reportedly contemplating further buybacks for the remaining water shortfalls on the underperforming SDLAM projects or the additional 450 GL of water recovery.

Irrigators fear this could have significant adverse socio-economic impacts on Basin communities, by reducing overall production levels, dramatically increasing the cost of a farmer doing business, and potentially driving up the cost of food across the nation, compounding the current cost-of-living crisis.

However, a bold new program developed by leading Australian water market specialist, Waterfind, proposes an alternative solution which would allow irrigators to commit voluntarily, under a robust legal framework, to effectively ‘lease back’ a percentage of their water entitlement to the environment when needed through a water ‘covenant’.

When the water is not needed – for example, in times of high-water flow or when delivery impediments and constraints are evident – the irrigator or grower would retain their full water allocation for ongoing productive use.

Waterfind CEO Tom Rooney said the Water Futures Efficiency Program (WFEP) would be a true partnership between Australian water right holders and the Commonwealth Environmental Water Holder and “strikes the right balance between the environment and regional economies”.

“This program offers an immediate, affordable and genuine solution to the Basin Plan to help achieve its recovery targets in full and on time, without any adverse impact on our local communities, irrigators, growers or the national economy,” said Mr Rooney.

“It is an entirely voluntary scheme and is carefully designed to allow the Federal Government, via the Commonwealth Environmental Water Holder, to achieve urgent environmental water outcomes through an option arrangement on a privately-held irrigation water right with a perpetual ability to access water under certain flow conditions. 

“This is a win, win, win proposition – and avoids the need for costly and disruptive buybacks.

“It’s a win for the Basin with environmental water returned in time in full, it’s a win for irrigators and growers with the water staying in the productive pool as long as possible until it’s needed; and it’s a win for the Australian taxpayer because the program has a much lower cost than alternative solutions.

“It also supports the continued economies of our Basin communities and alleviates the requirement for costly regional community grant adjustments that may be required as a result of possible sustainable yield adjustments.” 

In its Pre-Budget Submission to the Federal Government, Waterfind is calling on the 2023-24 Federal Budget to provide up to $220 million for a Water Futures Efficiency Program Pilot.

It is estimated the Pilot would run for approximately 6 months and deliver approximately 112 GL of water, with the program proposed to be managed by accredited and vetted Commonwealth delivery partners.

If successful, it’s anticipated a broader program would then be rolled-out for a further 12 months to achieve the full Basin Plan’s recovery target. 

Further, Mr Rooney proposed that “the program may be able to be used to recover water under the 450 GL additional water target due to the neutral/positive – social and economic impact the program offers to our regional communities”.

“Based on initial discussions with irrigators and growers across Basin communities, I’m confident that there would be significant, widespread support,” Mr Rooney said.

“The Federal Government has worked tirelessly towards achieving environmental outcomes in the Basin Plan and, with so much at stake, we respectfully encourage them to consider funding this pilot program as an alternative to buybacks to ensure we put ourselves in the best possible position to deliver the final water requirements on time, in full and within budget.”

Waterfind is now encouraging irrigators, growers and Basin communities to support the pilot program as a viable alternative to buybacks by contacting their local, Federal and State MP. For a detailed description of how the program would operate and for Basin communities to provide their feedback: https://www.waterfind.com.au/

Background

Waterfind is an Australian-owned and operated water market specialist company with decades of experience in water market product development and environmental water recovery. The company strives to improve water access to efficiency in the Murray-Darling Basin through information, leadership, technology and innovation.

It is one of a small group to have been previously selected by government as a Delivery Partner to administer projects that would deliver water savings to be transferred to the Commonwealth Environmental Water Holder.