WEEKLY TIMES

Lyndal Reading |  October 31, 2012

TAXPAYERS appear to be writing bigger and bigger cheques for the basin plan, with $1.7 billion added to the bill.

La Trobe University director of the Centre for Water Policy and Management Prof Lin Crase said if $1.7 billion was spent on infrastructure upgrades on farms to save 450GL, then each megalitre saved would cost about $3800.

"I would be surprised if the taxpayer ends up that lucky - if it is that cheap," Prof Crase said.

"I would be surprised if there is 450GL left in on-farm savings, particularly at $3800 a megalitre."

He said the Goulburn-Murray Water connections program, previously known as the Northern Victoria Irrigation Renewal Project, was costed at $2425 a megalitre for on-farm work.

Prof Crase said in comparison, entitlement buybacks at about $2500 a megalitre looked competitive.

He said further socio-economic costs of entitlement purchases by the Federal Government were being exaggerated. "If you think about how irrigators are operating in the water market, farmers have cut back on what they are using and are selling the rest into the market," Prof Crase said.

"NWC data shows most people who sell their water stay on in agriculture."