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 Rudd risks losing irrigator support for slow Murray plan 

Rudd risks losing irrigator support for slow Murray plan

25 Feb, 2010 11:51 AM
IRRIGATORS have warned the Federal Government risks losing farm sector support for its water reforms because they are still too heavily focused on buybacks, there is no environmental accountability, and promised infrastructure upgrades are far from a reality.

Frustrated farm and irrigation lobby groups say the time for the Government to "get out and explain" its new plan for water use in the basin and the looming cuts to irrigation entitlements is now, with farmer uncertainty at an all time high.

Farm leaders say there is major angst, confusion and frustration about what further cuts to water use will be announced in June when the Murray Darling Basin Authority releases its draft plan, which will be finalised and ready for use in 2011.

Already it's clear irrigators will take a big hit to their entitlements thanks to a new cap, or sustainable diversion limit, as the environment's share of water increases and new competing uses for water other than irrigation - creeping in outside the entitlement process - like forestry, groundwater, unauthorised losses, farm dams.

Among a raft of criticisms the National Farmers Federation has for the SDL, it says the importance of agriculture has been minimised, and that has to change.

On top of that, both the NFF and National Irrigators Council (NIC) say the water buyback scheme has been accelerated markedly, with about 82 per cent of funding to be spent over three years of a 10 year program, while infrastructure upgrades have barely begun.

This week, the 600th day rolled around since the signing of an agreement between the Commonwealth and Murray Darling Basin states that committed $3.7 billion to irrigation infrastructure, with only one project underway, according to the National Irrigators Council.

Last year the first phase of the on-farm upgrade component worth $300 million was announced, yet the initial tender process is not yet complete, so the start of any farm projects is a good 12 months away.

NFF chief executive officer, Ben Fargher, said the goalposts for farmers just keep shifting.

"There's so much uncertainty and rule change that they just can't keep up," Mr Fargher said.

"For irrigators that have been going through water reform programs since 1993 or 1994 they want stability and certainty.

"They want to be able to get on with business on their properties and have a period of 10 or 20 years of certainty where they know what the rules are, where there won't be a heap of changes over the next five years."

NFF and the NIC has been urging the Government and the Murray Darling Basin Authority to immediately declare what environmental assets farmers and the community are protecting, saying it is "unacceptable" that there is no itemisation or accountability available until after the draft plan is delivered.

Mr Fargher said they are also calling on the Government to try and rebalance its approach so there is a more equal focus on infrastructure upgrades, to give farmers a choice to stay in agriculture rather than just selling their water to the Government.

He believes one of the problems with getting on-farm funding on the ground quickly is the program has been wrapped up in so much "process" and red tape.

Mr Fargher acknowledged the Federal Government was frustrated by the slow progress but added there was also a lot of blame shifting between the State and Federal Governments in the area of infrastructure.

"We're criticising the balance without saying the whole thing should be chucked out," Mr Fargher said.

"The whole thing about buying back water from the market and investing in infrastructure was fine, but it's completely out of whack.

"There's no sequencing, and the balance has shifted."

National Irrigators’ Council CEO, Danny O'Brien, said irrigators had "just about run out of patience" with both the Commonwealth and State governments over the delays.

Mr O'Brien said the 600 day wait was an "indictment" on governments given the Commonwealth had spent more than $1.2 billion on buying water from irrigators in the same time.

"Irrigators have generally been supportive of reform on the understanding there would be investment in irrigation infrastructure that would help them maintain productivity in a future with less water," Mr O'Brien said.

"Doing more with less has been the government’s mantra.

"The fact it is taking so long to get works happening on the ground is very frustrating and is leading many irrigators to question government commitments to infrastructure projects."

Mr O'Brien said the NIC understood the only projects that had been completed were various pipelines around the Lower Lakes in SA - mostly involving no efficiency savings - and some pilot projects in NSW.

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The people, including Greg Hunt and John Cobb, who told us that the basin's water problems could be solved by infrastructure upgrades, should hang their heads in shame. That solution was always going to be too little and too late. It is not the Federal Government that has held up the infrastructure upgrades. The NFF seems not to have noticed the queue of farmers, including large companies, putting their hands up to sell licences to the Government. They should be encouraging Victoria and Queensland to end their restrictions. The more buybacks there are, the better off will be the remaining irrigators and the environment.
Posted by Barney, 26/02/2010 8:16:43 AM

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