Federal Labor has hinted it will seek to tear up a major agreement about how water could be recovered for the environment across the Murray-Darling Basin if it wins this year's election.
The shift in policy would almost certainly see more water recovered for the environment and is at odds with a deal reached by all basin states to protect communities from social and economic harm.
Under the Murray-Darling Basin Plan, an additional 450 gigalitres of water must be recovered for the environment by 2024 using water recovery projects that had a neutral or improved impact on basin communities.
With the election due by late May, the opposition is yet to formally announce any policies regarding the Murray-Darling Basin, which is home to 2.6 million people and generates $24 billion of agricultural produce a year.
Speaking to ABC Rural, Shadow Water Minister Terri Butler hinted that a Labor government would seek to restore the original socio-economic definition — a policy her predecessor Tony Burke took to the 2019 election.
"I will say this about the 450GL, I think that all Australians have an interest in the Murray-Darling Basin Plan, not just those who live in the basin and the basin communities, but all Australians," Ms Butler said.
"You can expect us, when we make our policy announcements, to be upholding the letter and the spirit of the Murray-Darling Basin Plan to keep faith not just with the jurisdictions — that's all the jurisdictions, not just the two biggest ones that entered into the plan at the time — but to keep faith with all Australians."
In 2018, state water ministers together with federal water minister David Littleproud agreed to set a strict socio-economic test for any water recovered toward the 450GL target.
It meant that only water recovery projects that could prove no socio-economic harm to communities would be considered to count toward the water savings.
So far just 2GL has been recovered toward the 450GL target.
Responding to questions about the target, Ms Butler called on the Federal Water Minister Keith Pitt to release the latest Water for the Environment Special Account (WESA) review.
"That report is about the 450, about the progress, so we don't have an up-to-date report on that yet," Ms Butler said.
In response, Mr Pitt said the WESA report would "be tabled within the required time frame set out under the Water Act".
The 2018 socio-economic criteria decision was widely considered a turning point in the implementation of the Murray-Darling Basin Plan, and a rare agreement by basin ministers.
Any changes to the criteria would likely spark outrage among the states, including with Victorian Labor water minister Lisa Neville who has been outspoken about the impact that water recovery has had on communities in that state.
But the 450GL target is also the source of contention within the Coalition government.
Last year a group of rogue Nationals abandoned the party's cabinet ministers and their Liberal colleagues, putting amendments to both the Senate and House of Representatives that would effectively rewrite parts of the Murray-Darling Basin Plan.
The proposed, and ultimately unsuccessful, amendments stated that the 450GL should not be required by legislation to be returned to the environment and that the Commonwealth not be allowed to buy back any more water entitlements from irrigators.
The stunt led South Australian Liberals to send a letter to Prime Minister Scott Morrison reiterating their support for the Murray-Darling Basin Plan as it is legislated.
Water buyback questions remain
Under the law, if water savings targets in the Murray-Darling Basin are not met by the 2024 deadline, the Commonwealth would be required to enter the market to buy back water entitlements from irrigators.
But Mr Pitt, a Nationals MP and member of the Cabinet, said that would not happen if the Coalition remained in government.
"I want to be very clear it is the government's position that there'll be no more buybacks. It is also the National Party's position there'll be no more buybacks. The only risk to that is a change of government," Mr Pitt said.
At the last federal election, Labor promised to lift a cap on water buybacks but this month Ms Butler would not say if it remained Labor's policy.
Speaking to ABC Rural, Mr Pitt also said he expected some water-saving projects would not be completed by the basin plan's 2024 deadline.
"There'll be projects that are completed, there'll be projects that have just started, there'll be projects that are halfway through. I don't have a crystal ball. I can't forecast where that will be," Mr Pitt said.
