The Federal Government's lack of transparency over water buybacks has been laid bare, with the revelation that 30GL of water has already been secured under the second tranche of the 450GL buyback program in the Murray Darling Basin.
National Farmers' Federation Water Committee Chair Malcolm Holm said the disclosure – made not by the government but by the seller, Duxton Water, under market disclosure rules – raised serious concerns.
"This confirms what industry has been saying all along: the Government's buyback program is being conducted behind closed doors, with no transparency or accountability," Mr Holm said.
"The only reason we know about this deal is because Duxton Water has a legal obligation to disclose it. Meanwhile, the Government continues to operate in an opaque manner, currently in the market for 200GL of buyback water without disclosing details. It smells very anti-competitive.
"It raises the question, is the Government sitting on any more contracts that have been signed by non-ASX organisations?"
Mr Holm said the lack of due diligence in finalising this deal so quickly also raised alarm bells.
"How has this transaction been pushed through so fast? Where are the checks and balances? Where is the program integrity? We call on the Inspector-General to take a close look at this process."
Beyond transparency, the NFF is demanding urgent answers on the social and economic consequences of this buyback.
"When will we get a breakdown of where this will impact? Basin communities deserve to know as early as possible what this means for jobs and local economies. The Government continues to fail the fairness test."
Mr Holm said the buyback deal reinforced concerns the Government has no real interest in alternative approaches to achieving environmental outcomes.
"NFF's election platform calls for greater investment in carp eradication and complementary measures to fix our rivers as a viable alternative to mindless buybacks. When will the Minister put serious money on the table for these solutions?
"There is an urgent need to improve this process. Right now, the Government is doing whatever it likes, with little regard for communities, jobs, or transparency."
Mr Holm commended Duxton Water for following the law and disclosing the deal, highlighting the irony that corporate regulatory disclosure obligations are far more stringent than those applied to the Commonwealth.
