The release of the ACCC Murray-Darling Basin Rural Water Monitoring report 2022-231 has put the spotlight on the Albanese Government’s policies which are fuelling the cost of living crisis.
When asked about the impact of the Albanese Government’s water buybacks on water fees and charges paid by irrigators, ACCC Commissioner, Mick Keogh said “they do have an impact.”
Commissioner Keogh said “a lot of the costs of maintaining an irrigation network are reasonably fixed … if there’s less volume of water going through them that increases the unit charge they need to apply to recover those costs.”
Shadow Minister for Water, Senator Perin Davey said the Government had repeatedly tried to downplay community concerns about the ‘Swiss cheese’ impact it’s open tender buybacks will have on irrigation networks which would drive up costs for those remaining.
“Yet again we see Albanese government policies driving up the cost of doing business in Australia, which is adding fuel to the cost-of-living crisis.
“Mr Keogh’s comments make it imperative the Government reconsider its support for open tender water buybacks or the additional costs will have to be passed on to Australians already suffering from the Albanese Government’s cost of living crisis,” Senator Davey said.
The report highlights that regulated water charges differ substantially between different Murray-Darling Basin States.
The cost of having one megalitre of water delivered through an on-river network ranged between $7 for a private diverter in South Australia to $487 for the holder of bulk water entitlements in the Bullarook basin in Victoria.
Senator Davey said the report makes it clear pressurised networks have higher energy costs, which makes them vulnerable to the Albanese Government’s broken promises to lower energy costs. These pressurised piped networks could become unviable if energy costs continue to escalate and prices for food will need to rise to cover the costs.
The report finds the cost of having one megalitre of water delivered through an off-river network ranged between:
- $67 and $232 for pressurised networks
- $25 and $153 for gravity-fed networks.
Senator Davey said it was pleasing to see compliance improving in the Basin with just three complaints and nine inquiries about water-related matters in 2022–23.