South Australia has called for an end to a controversial test on water recovery projects that form part of the Murray-Darling Basin Plan.
Ahead of the first in-person meeting of the Murray-Darling Basin Ministerial Council today, SA Water Minister Susan Close revealed she would withdraw support for a socio-economic test agreed upon by all Basin states in 2018.
The test required any project designed to deliver an additional parcel of 450 gigalitres of environmental water to SA to demonstrate it would not have any negative social or economic impacts on communities.
"I am putting the eastern states on notice," Ms Close said in a statement.
"South Australia will not settle for anything less than the full 450 gigalitres promised to us, regardless of how it's achieved."
In 2018 the state's then-water minister David Spiers agreed to the socio-economic test in return for federal funding for environmental projects the Coorong and Adelaide's desalination plant.
Victorian Water Minister Harriet Shing and New South Wales Water Minister Kevin Anderson did not comment on SA's decision to withdraw support for the test.
Clock ticking
The Murray-Darling Basin Plan has transferred 2,100GL of water from farming to the environment since it was signed into law in late 2012.
It is hoped the remaining 605GL of water recovery will be achieved through state-run projects that deliver environmental outcomes by improving water efficiency or removing constraints along the river that restrict higher flows.
This water and the 450 GL must be recovered by June 2024, but the Productivity Commission and the recent Water for the Environment Special Account report both warned the projects will not be completed on time.
"We've got a big job ahead of us," federal Water Minister Tanya Plibersek said.
"Particularly on delivering the 450GL of additional environmental water — that was a condition for SA signing onto the Murray Darling Basin Plan."
Victorian and NSW ministers have previously pushed to extend the 2024 deadline so that the projects can be completed.
If they are not completed, or do not deliver the promised environmental outcomes the federal government will be forced to purchase water entitlements from willing sellers.
With the exception of ACT Water Minister Shane Rattenbury, all ministers are new to their portfolios.
None were present when the socio-economic test was agreed upon.
Previous meetings have led to heated debates between states, with former NSW water minister Melinda Pavey storming out of a July 2019 meeting and former SA water minister Ian Hunter forced to apologise for "strong language" used toward former Victorian water minister Lisa Neville in 2016 at a pre-meeting dinner in Adelaide.
Market reforms
Former federal bureaucrat Daryl Quinlivan is expected to address today's meeting about the best way to implement changes to Australia's water market recommended by the Australian Competition and Consumer Commission (ACCC).
Ms Plibersek said the federal government would accept all 23 recommendations about how to best reform the nearly $2-billion per year trade.
"Implementing them will improve the functioning and governance of water markets, improving confidence and the information available for improved decision-making," she said.
Former Department of Agriculture and Water secretary Daryl Quinlivan was appointed by Keith Pitt as the principal advisor, overseeing a committee to develop a plan for implementing the ACCC's recommendations.
Ms Plibersek said the the Australian government would "introduce legislation and a mandatory code of conduct to deliver integrity safeguards and lift conduct standards, comparable with other markets".
"There will be penalties for brokers who do not comply with the mandatory code of conduct," she said.
