Restoring our Rivers Bill debated at Agribusiness Australia event

Agribusiness Australia, Media Release, 4 March 2024

The profound implications of the Commonwealth’s Restoring Our Rivers Bill was unpacked in a wide-ranging discussion about the Murray Darling Basin Plan at an Agribusiness Australia event in Melbourne last week in front of nearly 150 guests.

The speakers – Cobram Estate Olives Chair Rob McGavin, Victorian National Party leader Peter Walsh, LAWD senior director Danny Thomas and Aither director Chris Olszak – all voiced concerns about the impact the Commonwealth’s acquisition of water will have on the consumptive water pool in the future.

They lamented the Murray Darling Basin had degenerated to a “numbers game” rather than looking holistically at the overall health of the system, agriculturally, environmentally and socially.

Chris Olzak from Aither said discussion over the last decade had been about the headline numbers on environmental water acquisitions, not actual outcomes.

“The debate is not about how are we going to manage the river, because there is too much time fighting about the numbers in the water recovery plan,” he said.

All agreed there was a need for greater accountability from those who managed the system autonomously from elected representatives, such as the Murray Darling Basin Authority (MDBA) and Commonwealth Environmental Water Holder.

Rob McGavin, Chair of Cobram Estate Olives said the fundamental problem with the water market was allowing non consumptive users into the temporary market with unlimited volumes, making water unavailable for consumptive users. He called for accountability on the environmental management of the system, and suggested politicians take back the Basin’s administration given they are accountable to their electorates.

“No person is accountable for billion-dollar decisions… rather there is a shift to decision making by departmental committees,” Mr McGavin said.

“Bring the power back to the politicians instead of the departments, there’s not the accountability of what’s best for the nation.”

Peter Walsh, while acknowledging he was “marking his own homework” as he was involved in setting up the plan agreed, saying the Minister had actually very little say in how environmental water is used, rather the independent water holder in the Commonwealth and states.

“You fight elections to get into Government to make decisions for whoever you say you are going to make it better for,” Mr Walsh said.

“We as ministers, under the Westminster system, should be accountable for everything in our portfolio. We should have the power to make decisions and if we stuff it up, the voters kick us out, simple as that.”

In unpacking the legislation, Danny Thomas from LAWD said investors had not been put off by the current legislation.

“Markets do what markets do and the investment community do not see it as clear and present danger.” He encouraged participants to understand what the plan means for them as there will be opportunities.

Ultimately, Chirs Olzak said the full impact of the legislation in a dire year will be felt by those with deeper pockets.

“Most horticultural businesses, particularly in the lower Murray, do not have a full cover of entitlement. Most are using a mix of entitled ownership carry over and buying on the spot market,” Chris Olzak said.

“Most people are trying to develop water strategies that deal with the capital efficiency equation, the cost of water, get the best returns and manage the risk of the drought year… A buy back program in the lower Murray will add to the pressure, with not enough water to go around. It will be those with the deepest pockets and risk strategies who get through.”

Paul Thompson, director Agribusiness Australia rounded out the event. “Today’s conversation is critically important,” he said. “There are 2.4ml million people on the basin, 10 per cent of Australia’s population. This year there will be $30 billion worth of revenue created yet there are other things we need to take into account. There are 170 indigenous birds and fish that we must protect. There is no benefit in an unhealthy river.

“Some people think agriculture is in it for itself. We need to protect the river as much as anybody else, probably even more as our income is derived from that. It’s important we send that message into the community.”

Another Agribusiness Australia event in Victoria is set for May 2024.