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June 8, 2011
The House of Representatives Standing Committee on Regional Australia has released a report entitled Inquiry into the impact of the Murray-Darling Basin Plan in Regional Australia. This will guide the Gillard Government's announced intention to water down the water reform in the Basin in the name of political pragmatism.

Gary Sauer-Thompson, the Chowilla floodplain, SA 2004
Basically, it is an inquiry into the assumptions of the Murray-Darling Basin Authority’s (MDBA) Guide to the proposed Basin Plan (the Guide), which set out proposals for reductions in the levels of diversions to irrigation that was necessary to ensure the Basin’s environmental health, and it questions the MDBA’s interpretation of the Water Act 2007.
The main point of the Inquiry is that the right approach to water reform is the:
water savings to be found through environmental works and measures and on-farm efficiency works. The report identifies some of these measures and recommends that they be fully explored prior to considering any reduction in productive water allocation.The report also recommends that all non-strategic water buyback must cease immediately.
The emphasis is on the need for community plans to ensure that communities remain resilient and vibrant places to live. These must be developed at the local level, to identify what communities need to continue to be thriving, vibrant places to live, addressing issues such as transport, infrastructure, and workforce development and training needs.
This is Big Ag's fightback against water buy backs to increase environmental flows. They have returned to the old Howard Government policy of subsidizing the investment in the irrigation system to reduce open channels and leakage. This is the Water for the Future program with its:
$5.8 billion to increase water use efficiency in rural Australia largely through projects that deliver lasting returns for the environment, increase productivity and secure a long term future for irrigation communities [and] an initial $3.1 billion to acquire water entitlements to allocate to the Basin’s rivers, wetlands and floodplains.
What is problematic about the $5.8 billion dollar investment in improving irrigation efficiency and productivity is that it amounts to a public subsidy for private irrigation infrastructure operators in NSW, Queensland, Victoria and South Australia and to improve the efficiency of irrigation infrastructure and to modernise and upgrade irrigation infrastructure.
The aim here is to increase the water for irrigators and to increase production. The case for the public subsidy-- the $5.8 billion dollar investment in improving irrigation efficiency and productivity--- is premised on Pareto optimality and Kaldor–Hicks efficiency.
Thankfully, what the irrigator's fightback against water reform was not able to achieve was to quarantine their region from the Basin Plan; the Water Act 2007 be amended or withdrawn; the Basin Plan be withdrawn; and the MDBA be disbanded. Big Ag has slowed down the transition to a sustainable levels of extraction through the buy back of over-allocated water entitlements. So the Murray-Darling river system remains an irrigator's channel.
The future is clearly written --some irrigation districts are going to be decommissioned because climate change in the southern basin means hotter conditions, less rain and less runoff. The pain is going to deepen from continued over-extraction, a degraded environment and the consequent decline of agricultural and other basin industries.
Sustainable agriculture---practices that improve profitability and the health of the environment---is the key to reform.
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I've been living next to the river for 20 years and this refrain of improving the efficiency of on farm infra structure as a panacea to all problems has been repeated mindlessly for every one of those years.
Its a platitude, a buzz phrase, something that those who wish to avoid reality can proclaim so that the essential problem will go away.
But it hasn't and it won't.
To the limited, and it is very limited, extent that some water saving might actually occur [at enormous expense] such extra water not lost will simply be snaffled up by irrigators as part of their allocation.
They believe they have the right to every drop of water in the Basin and the more that becomes available, or the less, they want all of it.
The core problem is being ignored.
We allow too much water to be taken out of the river by irrigation.
There isn't enough water to satisfy their demand any more.
We have to limit, drastically, the amount of water removed from the river by irrigation.