NSW Shadow Water Minister Steph Cooke said it is only a matter of time before Federal Government water buybacks start to impact household budgets across the country, as the flow-on effect from purchasing water from irrigators drives up the cost of production in the Murray Darling Basin.
Ms Cooke said the Federal Government has this week launched a tender seeking to buy up to 70GL of water entitlements in the Southern Basin - all aimed towards fulfilling the 450GL environmental target set out in the revised Murray Darling Basin Plan.
"It won't just be the Basin communities directly impacted by buybacks that will feel the pinch of this ill-considered policy. Before long, the reality of buybacks will start to bite in the cities too," Ms Cooke said.
"The perfect example is the recent ripple effect the bird flu has had on our egg industry. From the supermarkets imposing buying limits on eggs to McDonalds limiting the hours you can buy breakfast – sooner or later, every single Australian, regardless of where they live, feels the pain when our food and fibre production and supply is interrupted or compromised.
"As recent reports from the ACCC, and ABARES have reiterated, the Federal Government's plan to strip more water out of Basin communities risks increasing water bills for irrigators.
"Producers will inevitably have to pass on these costs to consumers, which will only compound the cost-of-living crisis for struggling families regardless of their postcode," she said.
Ms Cooke said governments - both at a state and federal level - must work harder and faster to implement non-purchase water recovery options, such as vital water saving infrastructure.
"As the ABARES report pointed out, reducing water in the Basin will reduce overall productivity. This will obviously hamper our ability to not only sustain our growing population but will also put at risk our future export potential, and compromise our reputation as a world-class producer of premium primary produce," Ms Cooke said.
"I'm calling on state and federal ministers to adopt a sensible approach to safeguarding the economic and social sustainability of our communities, while also preserving the environment. These outcomes aren't mutually exclusive.
"Our Basin communities are the engine room of the state's economy. We simply cannot afford to put this in peril, and must invest the time and money now to get this right for the benefit of future generations across the entire country," she said.
