Monday 3 December 2012

NSW Government responds to Murray Darling Basin Plan


The NSW Government will impose a limit on water buybacks to address the failings of the Murray Darling Basin Plan if the Intergovernmental Agreement does not commit to a 3 % cap, provide proper funding for implementation, and remains unrealistic about groundwater Sustainable Diversion Limits according to NSW Minister for Primary Industries Katrina Hodgkinson.
"I have consistently called for the Commonwealth Minister to cap water buybacks as a fair and reasonable measure to minimise economic and social impacts on our Basin communities and allow them time to adjust," Ms Hodgkinson said.
"In addition, the current limits imposed on brackish and saline groundwater will negatively impact proposed developments in remote and regional NSW that are set to generate billions of dollars if they proceed.
"Given the Commonwealth Government has foregone sound policy and our Basin communities in the pursuit of South Australian votes, the NSW Government is determined to support our communities and maintain our focus on infrastructure investment."
The Ministerial Order to cap water buybacks at 3% per valley per decade would be introduced in January 2013 under section 71Z of the NSW Water Management Act 2000.
"Minister Burke keeps referring to 'if' and 'whether' the States put forward projects to improve water use efficiency and deliver environmental returns," Ms Hodgkinson said.
"While NSW has identified a range of projects to be implemented across the Basin, we are still waiting on the Commonwealth Government to fund these.
"NSW is not in a position to fund projects to implement the Commonwealth's policy, and the Commonwealth must provide all funding necessary to implement the Plan.
"Premier Barry O'Farrell is writing to the Prime Minister seeking a response to this."
Ms Hodgkinson pointed to further failings of the Plan, with the Murray Darling Basin Authority's own Regulation Impact Statement estimating that the annual economic impact to communities from reduced surface water availability is over $500 million, even after factoring in planned infrastructure projects, on top of the estimated $100 million annual cost of implementation.
"Last Thursday the Commonwealth announced a limited assistance package of $100 million to be shared across the entire Basin and indicated that NSW will be required to co-contribute in order for our communities to access this fund," Ms Hodgkinson said.
"I call on the Federal Government to back up its rhetoric of ambitious reform to actually fund this policy."

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