Our collective experience shows, and evidence confirms, that when the Australian Government buys back water, it can lead to the closure of farms, loss of jobs and many other negative impacts on families and whole communities.

Last time, buybacks cost our region 1600 jobs, including the closure of a milk factory and increased farming risk. Other negative impacts have included:

· $500 million of lost productivity across the Goulburn Murray Irrigation District (GMID) each year

· undermining the viability of irrigation districts, with 50% less water used in the GMID in recent years

· irrigation job losses of over 40% in northern Victoria

· directly increased water market prices, ABARES estimates on average by $72/ML.

Moira Shire for example, has experienced significant losses in its agricultural sector, with approximately 50% of dairy farms closed. Because our economies are built on farming and manufacturing, when these businesses shut down it leaves a devastating domino effect.

The Water Amendment (Restoring Our Rivers) Bill 2023 threatens the livelihoods of our families, businesses and industries, and social fabric of our communities. Extensive government and independent socio-economic analyses clearly demonstrate that buybacks and on-farm “efficiency” projects to recover water have had a negative impact across our communities.

Frontier Economics and Tim Cummins and Associates for example, found that the ‘Basin Plan water recovery has had significant socio-economic impacts on irrigators and communities in northern Victoria, and that further water recovery from the consumptive pool will add to the impacts already being experienced’. (Source: https://www.frontier-economics.com.au/social-and-economic-impacts-of-the-basin-plan-in-victoria)

The environmental outcomes the Australian Government aims to achieve through the Basin Plan are supported by the Murray River Group of Councils but there are better alternatives to water buybacks, such as the water-saving and efficiency projects underway at Hattah Lakes and Gunbower Forest as part of the Victorian Murray Floodplain Restoration Project.

Other possible solutions include:

(a) Re-engineering of major shallow lakes (e.g., Menindee, Lake Alexandrina) to minimise evaporation rates.

(b) Adelaide’s urban and industrial users switched to alternate water sources for example desalinated water and highly treated wastewater which is a better long-term solution than further extraction from the Murray.

(c) Accurate measurement and enforcement of all water extraction particularly in the Northern Basin.

(d) Engineer environmental water delivery to icon sites so benefits are maximized, and losses minimised.

(e) Restore historical drainage water system to Coorong.

As the Murray River Group of Councils region is one of the nation’s largest food bowls, there is a direct correlation between water availability and food production. It is, therefore, vitally important that farmers in the region have access to an adequate water supply to cultivate the necessary quantities of food and fibre to be able to produce viable quantities of products for Australian families and to export overseas.

It takes approximately 1,000 litres of water to produce 1kilogram of milk and 1,644 litres of water to produce 1kilogram of cereals.

When water produces a product such as wheat, milk, fruit or veggies, these raw products are manufactured into the items we eat and drink. They are then transported to wholesalers and retail markets to be sold to consumers. This supply chain supports thousands of jobs in the production, manufacturing, transportation and retail sectors.

The cost of living, especially the price of fresh food, is a major concern to Australian households. The proposed changes to the Basin Plan will significantly reduce the amount of water available for irrigated farming resulting in reduced milk production and less availability of fresh fruit and vegetables. This, in turn, would drive up the price of fresh produce and packaged food products at the checkout.