Victoria have unlocked hundreds of millions of dollars in federal water efficiency funding after its "commitment" to a revamped Murray-Darling Basin Plan that will restore vast quantities of water to Australia's largest and most important river system.
The state broke ranks with other Basin states and territories after refusing to sign up to the extended $13 billion plan, baulking at the prospect of the reintroduction of buybacks, before it was unveiled last August by Federal Minister for the Environment and Water Tanya Plibersek.
Victoria's Water Minister Harriet Shing said while the state's stance against voluntary water purchasing from farmers remained unchanged, private correspondence between the minister's seen by ACM Agri showed Victoria had now acknowledged the extended agreement and both governments had committed to working together to deliver the plan through environmental and water-saving projects.
The undertaking was enough for Ms Plibersek to lift her hardline stance on funding Victoria's projects after it had rejected the buyback plan, although it is unknown if by doing so Victoria has ostensibly agreed not to railroad the extended plan in the future, including the Commonwealth's voluntary tender processes.
However, in recognising the agreement, the Victorian Government has acknowledged that the legislation is in effect and applies to all jurisdictions after it had previously denied the 450 GL, intended to increase flows to South Australia, was part of the plan.
"For some months now, the Albanese Government has been working closely with participating Basin jurisdictions on water recovery opportunities, including alternatives to buybacks," Ms Plibersek said.
"This has led to recent announcements of significant funding agreements with NSW and ACT.
"Victoria's commitment will allow for similar opportunities over the coming months, and will allow us to deliver the Murray-Darling Basin Plan in full in coming years."
Labor's plans for its Restoring Our Rivers Act were hatched when it became obvious that legally-binding targets under the original basin plan would not be delivered in full by the June 2024 deadline. The plans accelerated with a deal forged with The Greens.
The legislation, which passed parliament late last year after the government secured crossbench support, made changes to the Water Act and Basin Plan giving the states until 2027 to reach water recovery targets, along with extra funding and accountability measures.
The trade-off was that the agreement, which sets out how Basin water is to be shared, also paved the way for voluntary buybacks from primary producers.
Ms Shing told ACM Agri that it was "a wonderful outcome" that the Commonwealth had agreed to fund Victoria's projects.
"It is really great that after many years of advocacy... that the Commonwealth has realised there is no good reason not to fund our crucial environmental projects," she said.
"It stacks up for everyone and we are looking forward to seeing that funding coming through... with negotiations and agreements to be provided in the coming days and weeks."
However, it is understood that Ms Plibersek asked the Department of Energy, Climate Change, the Environment and Water last week to prioritise arrangements for several Victorian initiatives, including the Victorian Murray Floodplain Restoration Project.
Ms Shing revealed that projects in the pipeline would return about 70 GL of water back to the environment. She also said the state was "determined" to have a transparent system of reporting, monitoring and compliance to "make sure we are cracking down on floodplain harvesting."
"Importantly, Victoria has not changed its position. We remain opposed to buybacks, we haven't signed up to any agreement that was put by the Commonwealth, we are however determined to make sure that we are continuing to help the Commonwealth to deliver on the basin plan."
No state can prevent the Commonwealth from buying water from willing sellers.
The extended plan pushes for an additional 450 gigalitres of environmental water to be reclaimed through water-saving infrastructure projects, like weir upgrades and lining irrigation channels to stop water losses, along with rule changes, purchasing water entitlements from willing sellers after lifting the buyback cap and "community adjustment" assistance for communities impacted by the purchases.
New South Wales, Queensland, South Australia and the ACT have been working to identify and fund water-saving infrastructure projects since signing up to the plan last year.
This includes a "bridging the gap" agreement between the federal and ACT governments that will ensure the territory fulfils its water recovery obligations by returning 4.9 GL/yr to river flows announced on April 4.
Ms Plibersek said that "this commitment unlocks for Victoria the full range of water recovery options" already available to other Basin states.
The success of the water efficiency projects will ultimately be the deciding factor in how much water will need to be purchased by the Commonwealth in the Basin states.
COMMUNICATION TO BREAKTHROUGH
In several letters sent between the ministers starting in February, seen by ACM Agri, Ms Shing reiterated her opposition to buybacks but underlined her enthusiasm to assist the Commonwealth in rolling out water-saving measures "while protecting our communities and economies."
However, while Ms Plibersek responded that voluntary purchasing was an embedded necessity to reach the targets, the government was acutely aware of their potential for negative socioeconomic impacts.
Ms Shing "welcomed" an assurance from Ms Plibersek that the government was taking any potential impacts seriously and ensuring that community perspectives are incorporated in the Commonwealth's socioeconomic programs.
In the final correspondence dated April 5, Ms Plibersek said she "very much" welcomed Ms Shing's "acknowledgement that the Restoring Our Rivers Act is in effect and applies to all Basin jurisdictions."
"I take your acknowledgement that the legislation is in effect as a commitment by the Victorian Government to work with the Commonwealth to deliver the Murray-Darling Basin Plan," she wrote.
In an earlier letter around Victoria's participation, Ms Plibersek said: "I take your acknowledgement that the legislation is in effect as a commitment by the Victorian government not to take any action, including legal action, that would frustrate the Commonwealth's delivery of these obligations."
However, while Ms Shing baulked at those stricter terms she acknowledged that the extended plan applied to Victoria and the state was "committed to outcomes delivered in good faith."
The original MDBP was agreed between the VIctorian, NSW, South Australian, Queensland and ACT governments in 2012 and aimed to restore about 3200 GL/yr mainly through buybacks from farmers and irrigators.
Environmental returns however stalled, leaving a shortfall of 750 GL/yr, after NSW and Victoria combined in 2018 to stop further buybacks and other measures that could harm farmers and regional economies.
Meanwhile, the federal government recently paid farmers, irrigators and water traders around $205 million for 26.35 GL/yr through a competitive tender process opened last year to reclaim 44.3 GL/yr of sustainable diversion limits target for seven NSW and Queensland catchments.
