The suggestion was raised in a NSW Government report, and immediately criticised by the National Irrigators Council.
The NIC’s position has been supported by the Murray Regional Strategy Group, which represents community and farming organisations in the NSW Murray region.
MRSG has written to NSW Minister for Water Rose Jackson to express its concerns.
It has applauded the NSW Government’s view on water buybacks, with its recently released ‘NSW vision for future Basin Plan implementation’ clearly stating it does not support more buybacks, based on their social and economic impact on regional communities.
However, like the NIC, MRSG says it is “deeply concerned” by a recommendation that governments could pursue temporary trading and leasing arrangements as a substitute for permanent buybacks.
MRSG chair Geoff Moar points out the vision document states that temporary market mechanisms offer “a more flexible and adaptive means of recovering water for the environment”, yet this proposal raises serious risks for basin communities and contradicts the very principles NSW has outlined.
“Introducing the Commonwealth as an active participant in the temporary water market would create a competitor with bottomless pockets, spending taxpayer funds in a market already under pressure,” Mr Moar said.
“We have seen multiple examples of the Commonwealth paying well above market value during past recovery efforts, including purchases towards recovery of the 450 gigalitres.
“The idea that this behaviour could now extend into the temporary market - without any consultation with affected communities - is alarming.”
Mr Moar said temporary purchases are not a “harmless alternative to buybacks”.
“They still remove water from productive use, still distort markets, and still undermine the reliability and affordability of water for farmers,” he said.
“The National Irrigators’ Council has already expressed strong opposition, stating they are ‘absolutely against the government taking water from farmers in any way, temporary or permanent’. MRSG shares this concern.”
MRSG has asked the NSW Government to:
• Publicly rule out NSW support for Commonwealth participation in the temporary water market, in line with your existing position against buybacks.
• Confirm that NSW will not endorse any form of additional water recovery, given the MDBA’s advice that further recovery is unnecessary.
• Commit to full consultation with basin communities before any future recommendations involving market intervention or water recovery mechanisms.
• Continue advocating for complementary measures and completion of SDLAM projects, which offer genuine environmental benefits without harming regional economies.
Mr Moar said he would also welcome an opportunity to meet with Minister Jackson to further discuss the group’s concerns.
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