The federal water minister says she's received approaches from farmers keen to sell their water licences back to the Commonwealth.
Last month's federal budget revealed a secret sum has been allocated to buy water entitlements from irrigators in the Murray Darling Basin.
"We've had a number of unsolicited approaches already," Tanya Plibersek told the ABC.
"I'm sure that when we go into the market for those strategic buybacks there will be people who are interested in partnering with the government to see that water returning to the environment."
Ms Plibersek said the government is looking for buybacks that represent good value for taxpayer funds.
It comes as Senate estimates hearing heard that almost 50 gigalitres (GL) of water licences will be bought back across New South Wales, the ACT and Queensland to be returned to the rivers, under the basin plan.
With major water-saving deadlines to be met in June 2024, federal officials confirmed 634 GL are still to be recovered across Australia's largest river network.
Deputy secretary at the Department of Climate Change, Energy, the Environment and Water, Lyn O'Connell, told the hearing that state basin water ministers had agreed that strategic water buybacks would be used to recover 46 GL of surface water, and 3GL of ground water as a "matter of priority".
"[The Basin Ministers Council] agreed that as a matter of priority that 46 GL, plus 3 GL ground water, the Bridging the Gap target needs to be met and that water recovery would commence to deliver the full amount of the remaining Bridging the Gap target and to do so through strategic purchases," Ms O'Connell said.
Dr Peta Derham from the Murray-Darling Basin Authority explained the ground water would be purchased from the Condamine Alluvium.
The remaining surface water was expected to be purchased across seven catchments which include:
- 14GL from the Condamine-Balonne
- 1.6GL in the Barwon-Darling
- 9.5GL in the Namoi
- 5.1GL in the NSW border rivers
- 9.5GL in the Lachlan
- 10GL in the NSW Murray
- 4.9 GL from the ACT
Victorian government says it does not agree to water buybacks
The former federal Coalition government had ruled out water buybacks as a way to meet water savings targets.
Speaking after the hearing, Shadow Water Minister Perin Davey said the buybacks would have an impact across the basin.
"Make no mistake, this is 46GL that will hurt," she said.
A spokesman for the New South Wales government said the state had lobbied for the water to be recovered from off-farm projects.
"NSW has had a clear and long-standing policy that it does not support the non-strategic buyback of water," the spokesman said.
"NSW has consistently advocated for a balanced approach to water recovery through a combination of infrastructure improvements, environmental works and rules review."
A spokesperson for the Victorian government said the state had not agreed to strategic purchases.
"Victoria has not agreed to strategic purchases to meet its Basin Plan obligations," the spokesperson said.
"Noting that Victoria has delivered all our Basin Plan obligations to date, including Bridging the Gap water recovery. Strategic purchases are therefore a matter for other Basin States.
"There has been no change to the long standing requirement that the additional 450 GL of water recovery must deliver neutral or improved socio-economic outcomes, or to the criteria to measure this which were unanimously agreed by Ministerial Council in 2018. The Basin Plan legislation does not allow the 450 GL to be recovered using buybacks."
More than 600 GL to be recovered
Since the basin plan was legislated in 2012, there has been 2100 GL of water re-allocated to the environment.
Friday's hearing also heard that in addition to the 49 GL required to meet the Bridging the Gap target, officials estimated a shortfall of 161 GL against a 605 GL target to be recovered using state-managed projects.
A further 424 GL is required to meet an additional 450 GL water target from efficiency projects.
New Murray Darling Basin Authority chief in hot seat
The Senate Estimates hearing was the first since Andrew McConville commenced his position as chief executive at the Murray Darling Basin Authority (MDBA).
Under questioning from South Australian Greens Senator Sarah Hanson-Young, Mr McConville told the hearing he is being paid $455,000 per year.
Senator Hanson-Young also asked Mr McConville if the requirement to deliver an additional 450GL of water for the environment, was essential to the Murray Darling-Basin Plan being completed.
Mr McConville replied: "The 450 is stated in the basin plan".
Asked by Senator Hanson-Young if that meant the 450 GL must be delivered.
Mr McConville again replied "The 450 is stated in the basin plan".
Earlier this week, the federal government announced a $30 million commitment, over four years, to reform the water market, responding to an earlier competition review.
It included $12 million over for the Australian Competition and Consumer Commission to regulate the market; $9.2 million for the office of the Inspector-General water compliance and almost $10 million for federal bureaucrats to prepare legislative amendments.
Editor's note (November 14, 2022): This article originally suggested there had not been a Commonwealth water purchase in the Murray-Darling Basin for almost a decade. The federal government has since clarified there have been more recent buybacks.
