News Latest News Water Buy-back Modelling Report Released
Water Buy-back Modelling Report Released
According to the reporting from the ABC, the release of an Australian Bureau of Agricultural and Resource Economics (ABARE) report which models the impact of the $1.5 billion in water buybacks vindicates the water buy-back program operating in the Murray-Darling Basin.
Source: ABC News Online
The Federal Government's water purchase program in the Murray-Darling Basin has been vindicated by a new study showing it has eased financial pressures on irrigators, Water Minister Penny Wong says.
The Government today released the Australian Bureau of Agricultural and Resource Economics (ABARE) report which models the impact of the $1.5 billion in water buybacks conducted so far. It found the lost production from water purchases was small compared to the impact of the drought and showed the program was helping irrigators prepare for the new lower limits on water use to be instigated under the Murray-Darling Basin plan.
Senator Wong said critics of the water buyback had repeatedly claimed that buying water to restore the health of the Murray had hurt agricultural production and was bad for regional economies:
Today's report shows that purchasing water is not only helping the environment by returning much-needed water to the basin's rivers and wetlands, it also helps irrigators.
Water purchase is providing irrigators with an extra option for managing their way through drought, retiring debt, investing in farm upgrades, diversifying their operations or exiting irrigation altogether.
Water purchase is the quickest way we can return water to the Murray-Darling Basin. We know our rivers need water, and the Government is absolutely committed to continuing our purchase program."
Opposition water spokesman Barnaby Joyce has previously criticised the Government for jumping in and buying water entitlements without considering whether it was getting value for money. But Senator Wong said it was clear from the study that the overwhelming source of lost production in the Murray-Darling Basin was drought, with any long-term impact from water buybacks offset by the Government's investment in infrastructure.
The report looks at a range of impacts. It looks at the fact that the impact on irrigated agriculture from water purchase can be offset from productivity growth. It also looks at the fact that the Government is investing some $5.8 billion in infrastructure for that very purpose.
We do have to become more productive. We do have to do more with less. More crop per drop.
