The Murray-Darling Basin could be left with scores of upgraded but abandoned farms unless buybacks of irrigation water are completed before the Federal Government begins funding the modernisation of farms, water experts have warned.
This is at odds with the Government's plan to conduct water buybacks and irrigation upgrades at the same time, with more than $170 million to be spent on both throughout the basin this financial year.
The warnings come as yet another report cautions about critically low water levels in the southern part of the Basin.
The report, by Federal and State government officials, says drinking water supplies are secured until next year, but contingency plans are under way to ensure there is enough for 2009-10 "should inflows remain at or below record minimums through winter".
Spending will reach $482 million for buybacks and $780 million for upgrades in the next financial year, reaching a total of $3 billion and $6 billion respectively over the life of the basin plan.
Water Services Association of Australia executive director, Ross Young, said the Government should complete a significant portion of its buybacks before starting to spend money improving farm infrastructure.
"I don't believe that they can be done at the same time, it is important to know where the water is going to be needed in the future and where buybacks should be done," he said.
Mr Young's views were echoed by Peter Cosier from the Wentworth Group of Concerned Scientists.
"It's a flawed policy to be investing in irrigation upgrades when there is a likelihood that some of that irrigation will end up as gold-plated stranded assets," he said.
"It's eminently logical that you acquire the environmental water first and then as part of that process of acquisition you then build your irrigation efficiency program knowing where the water is or isn't going to be required for production."
The Government confirmed there was no rule to prevent farms that received upgrade grants from selling their water entitlements in future government buyback schemes.
"Farmers within each irrigation scheme will not be subject to any ongoing constraints on how to run their businesses," said Ilsa Colson, spokeswoman for Water Minister Penny Wong.
But Ms Colson said a rigorous approval system would ensure that only those farms committed to long-term, economically viable and sustainable farming were likely to win funding to modernise their properties.
She said a pilot scheme was already imposing strict conditions on applicants.
Australian Conservation Foundation spokeswoman Dr Arlene Buchan said Australia needed a brutally honest audit of which regions were suitable to continue farming into the future, before any grants were awarded.
"It's important we get the sequencing right and make sure we don't end up investing in infrastructure upgrades in places that will not be able to sustain irrigation industries into the future," she said.
Email a friend
Favourites
Del.icio.us
Facebook
Digg
StumbleUpon
MySpace
Reddit
Newsvine
LinkedIn
Kwoff