The dairy industry has presented a united front in opposition to the Federal Government’s proposed law change, which will take more water from irrigators for the Murray-Darling Basin.
In Shepparton on Monday, October 2, a number of dairy representatives presented to a Coalition panel taking submissions on the change, which would see the government enter the market to buy water for the environment.
A Senate committee looking into the proposed change to the Murray-Darling Basin Plan is not visiting the regions, so the Coalition decided to mount its own inquiry and submit its findings to the official committee.
The Australian Dairy Industry Council has put a submission to the Senate committee, quoting from a report by Sefton Consultants in 2020 which examined the social and economic impacts of the basin plan.
The final report describes a mixed, but overall significantly negative, impact on basin communities, finding:
- “As a panel, we were disheartened to see communities at a crossroads despite countless studies, reviews and inquiries. Visions and policies in our irrigated communities focusing on overall gains have not dealt fairly with those left behind, nor worked hard enough to be fully inclusive.”
- “The pace [of change] has been rapid and the impacts profound. The future is no longer secure or certain for some people and regions, despite their hard work. Morale has eroded, and a sense of hopelessness is spreading; in many cases, people no longer feel confident in their future. These impacts are not only being felt in the ‘back pocket’, but witnessed in the main streets of towns, and in the prospects for our next generation.”
The Sefton Review found that “recovering more consumptive irrigation water will have significant negative impacts for some regional basin communities, including NSW Murray and northern Victoria”.
Chaired by Queensland Nationals Senator Matt Canavan, the Coalition panel in Shepparton heard statements from SPC chair Hussein Rifai, City of Greater Shepparton Mayor Shane Sali, the Australian Dairy Products Federation, the Committee For Greater Shepparton and several farmers.
They all warned of the social and economic impacts of removing more water from the consumptive pool of the southern basin.
Mr Rifai said SPC had no interest in party politics but was keenly aware of any change to production costs that would put it at a competitive disadvantage.
He said the company had to compete with companies producing food from low-cost labour in Europe and Africa.
Rising water costs due to a smaller consumptive pool would impact his suppliers’ costs.
Federal Member for Murray Sam Birrell said the Senate committee couldn’t be bothered to visit basin communities and would only sit in Canberra to take submissions.
“We think that is a massively disrespectful move,” Mr Birrell said.
The Coalition panel has no legal status and does not have the protection afforded to official committees of the parliament.
The panel hearing is the latest venue to air opposition to the proposed changes to water law, which would see the Federal Government use buybacks to fulfil a commitment to secure 450 Gl more water for the environment.
The basin plan has already recovered 2100 Gl for the environment.
