Thursday 3 January 2019

Murray-Darling Basin Plan: a $13 billion fraud on the environment


Some home truth about the current Murray-Darling Basin Plan to remember as we enter into the morass of competeing claims in NSW State and Australian Federal election campaigns in the first half of this year....


IN THE MATTER OF THE MURRAY-DARLING BASIN ROYAL COMMISSION, Adelaide South Australia, 23 October 2018:

MR R. BEASLEY SC, Senior Counsel Assisting:

….Commissioner, the Water Act and the Basin Plan have been hailed as ground-breaking reform. They are. What this Commission has learnt, however, from the evidence it has gathered, and from the witnesses that have informed us, is that it’s one thing to enact transformative legislation like the Water Act and the Basin Plan, it’s quite another thing to faithfully implement it. Sadly, the implementation of the Basin Plan at crucial times has been characterised by a lack of attention to the requirements of the Water Act and a near total lack of transparency in an important sense.

Those matters have had, and continue to have, a negative impact on the environment and probably the economies of all the Basin Plan states but the state that will suffer the most is the state at the end of the system, South Australia. The Water Act was a giant national compromise. At its heart was a recognition that all of the Basin states – Queensland, NSW, Victoria and South Australia – were taking too much water from the system and had been for a long time. That, as a matter of statutory fact in the Water Act, and as a matter of reality, has led to serious degradation of the environment of the Basin. The Millennium Drought of 2000s underscored the fact that, if nothing was done, over-allocation of the water entitlements in the Basin would inevitably and quickly lead to irreversible damage to the Basin environment.

The Water Act was a response to that. It was the statutory means by which the process of restoration and protection of environmental assets would begin. I say the Water Act was a compromise because the Act contemplates that water will be taken from our rivers and used consumptively for irrigation, the growing of crops and permanent plants. Of course, also for human water needs. But it sets a limit. That limit is that no more water can be taken beyond the point where key areas of the environment and its ecosystems might be damaged. In an environment that’s already degraded, that means the Water Act requires the environment to have both enough water to restore degraded wetlands and the like and also, of course, to maintain them.

That’s not just the right thing to do. It’s what Australia’s international obligations require. That task, setting a limit on the extraction of water, is to be based on the best available science. Not guided by the best science, not informed by the best science but based on the best available science. It also has to be achieved by taking into account the well-known principles of ecologically sustainable development. What the Commission has learnt from the evidence presented to it is that the implementation of the Basin Plan, at crucial stages, has not been based on the best available science. Further, ecologically sustainable development has either been ignored or, in some cases, in relation to supply measures, actually inverted.

 I want to read to you a peer review of the Guide to the Basin Plan from some international scientists in 2010 because it demonstrates that they were well aware, even back then, of what was actually going on in the early stages of drafting the Basin Plan. This is a peer review report by Professor Gene Likens of the Cary Institute of Ecosystem Studies, Mr Per Bertilsson of the Stockholm International Water Institute, Professor Asit Biswas from the Third World Centre for Water Management and Professor John Briscoe, Gordon McKay Professor from Harvard University. What they said was this, in reviewing the Basin Plan, at page 34 of what became exhibit RCE38:

It is a fundamental tenet of good governance that scientists produce facts and the government decides on values and makes choices. We are concerned that scientists in the Murray-Darling Basin Authority, who are working to develop the facts, may feel they are expected to trim those so that the sustainable diversion limit will be one that is politically acceptable. We strongly believe that this is not only inconsistent with the basic tenets of good governance but that it is not consistent with the letter of the Water Act. We equally strongly believe that government needs to make the necessary trade-offs and value judgments and need to be explicit about these, assume responsibility and make the rationale behind these judgments transparent to the public.

If all the MDBA had been done in the past eight years since that review was written is “trim the facts”, that would be bad enough. But it’s worse than that. The implementation of the Basin Plan has been marred by maladministration. By that I mean mismanagement by those in charge of the task in the Basin Authority, its executives and its board, and the consequent mismanagement of huge amounts of public funds. The responsibility for that maladministration and mismanagement falls on both past and current executives of the MDBA and its board. Again, while the whole of the Basin environment has and will continue to suffer as a result of this, the state whose environment will suffer the most is South Australia.

The principal task of those implementing the Plan is to set the Basin-wide sustainable diversion limit. How much water can be taken from the rivers before the environment suffers? You’ve heard evidence that has been unchallenged that this task was infected by deception, secrecy and is the political fix. The modelling it has been said to have been based on is still not available seven years later. The recent adjustment of the sustainable diversion limit by raising it by 605 gigalitres, on the evidence you’ve heard, is best described as a fraud on the environment. That’s a phrase I used in opening. It was justified then. It’s re-enforced by the evidence you’ve heard subsequently. The so-called 450 gigalitres of upwater, the water that the then South Australian Government fought for, for this State’s environment, is highly unlikely to ever eventuate. The constraints to the system are just one major problem in the delivery of that water.

Like all aspects of the implementation of the Basin Plan, efficiency measures or infrastructure projects that form the basis of how the 450 gigalitres of water is to be attained, and which are funded by public money, lack any reasonable form of transparency and, as the Productivity Commission recently, and witnesses to this Commission, have noted, are hugely more expensive and less reliable than purchasing water entitlements. I will discuss this in detail but I will give you one quote from an expert who can talk with real authority about the extra 450 gigalitres proposed for South Australia under the Basin Plan. That’s the former Commonwealth Environmental Water Holder, David Papps. In his evidence to you said:

 I would bet my house that South Australia is not getting that water.

Mr Papps’ prediction seems safe when one considers the proposed amendments to the Basin Plan by the governments of NSW and Victoria concerning the 450 gigalitres that I will come to shortly. Everything that I have just said to you is based on the views of eminent scientists and other people who have given evidence and lodged submissions. However, neither the Commonwealth Department of Agriculture and Water, the Murray-Darling Basin Authority, or any Commonwealth government agency has provided any answer to anything I have just said or to the evidence before the Commission that I will refer to shortly. They have no answer. The submissions provided to you very recently by the Murray-Darling Basin Authority, and the DAWR, Department of Agriculture and Water Resources, demonstrate, as did their unwillingness to give evidence, culminating in proceedings to the High Court, that they do not have any answer.

The MDBA, you will recall, were even too busy to meet you. The States also have no answer, as demonstrated in their somewhat thin submissions to you, with the exception of the South Australian Government. When I say the MDBA has no answer to the expert evidence given in this Commission, I should emphasise also that it clearly has no answer to the maladministration and unlawfulness of its implementation of the Basin Plan. It is nevertheless a great pity that relevant persons from the Basin Authority, and other Commonwealth agencies, were not required to give answers to you under oath concerning the scientific evidence the Commission gathered.

The opportunity may have been there had the High Court decided those proceedings in your favour. I’m not going to speculate on what the High Court would have done but, regrettably, the South Australian Government chose not to extend your Commission in order to provide you with the opportunity that may have been available to you to question those relevant people. You made it clear to the South Australian Government that was your strong preference. You advised them that the Commission had potential witnesses that wanted to give important evidence, evidence relevant to the South Australian environment, but only if they were compelled by summons. In other words, they were too scared to talk about the implementation of the Basin Plan without the force of a summons. Why the Commission was not extended to explore these crucial matters is something upon which you can draw inferences as you see fit. I will only say that it’s a great opportunity lost……

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