Senator ROBERTS: Ms O’Connell or Ms Connell—
Ms O’Connell: I know—they’re very similar names.
Senator ROBERTS: Well, for the one with the ‘O’ or the one without the ‘O’, you said the plan water numbers were online. My office is pretty good at surfing the internet, but they clicked right through the website and couldn’t find it. Could you send that link, please, that you offered?
Ms O’Connell: Yes. Just to be clear, that’s the link on the report on the 450 gigalitre framework consultation?
Senator ROBERTS: Yes, and the water quantities.
Ms Connell: The overrecoveries?
Senator ROBERTS: Yes.
Ms Connell: We can provide you with that information.
Senator ROBERTS: How is the government implementing the Productivity Commission’s recommendation on transparency and accountability for basin plan decisions? We’ve got a few here about the ACT. What information has the government released about the Australian Capital Territory Bridging the Gap project announced on 3 April?
Ms O’Connell: There was a press release on the ACT Bridging the Gap. The date of that release was 3 April 2024. There was a joint media release on ACT fulfilling its water recovery commitments under the MurrayDarling Basin Plan Bridging the Gap.
Senator ROBERTS: Has there been any more information?
Ms O’Connell: We’re happy to provide you with more information.
Mr Southwell: The FFA, the Federation Funding Agreement, that relates to that matter has been published on the Department of Treasury’s website.
Senator ROBERTS: The Department of Treasury?
Mr Southwell: It’s a website for federal financial relations and FFA is there.
Senator ROBERTS: There are so many bureaucracies and so many departments. That’s fine.
Mr Southwell: That’s where all of the FFAs have to be published. That relates to the minister’s press release. The FFA itself was executed on 14 March when the ACT signed it, and that provided the $58 million for the 6.36 gigalitres of water that the arrangement related to.
Senator ROBERTS: So, 6.3 gigalitres, did you say?
Mr Southwell: 6.36 gigalitres.
Senator ROBERTS: That was to be my next question. Now my next question instead is: how much per megalitre was paid to the ACT, including previous payments?
Mr Southwell: This FFA is $58.83 million for the 6.36 gigalitres, and that works out at $9,250 a megalitre.
Senator ROBERTS: What part of the ACT is the water being recovered from?
Mr Southwell: The FFA itself doesn’t require specific components from the ACT. The ACT has said that they will use the money received to implement long-term water management changes, including water sensitive urban design activities, incentivising community change to reduce water use and water quality improvement activities.
Senator ROBERTS: So, no specific water was released?
Mr Southwell: I think it’s called the Halls Gap site—the Lower Molonglo.
Senator DAVEY: Only state—
Mr Southwell: No. The transfer of entitlements has occurred. It is with the Commonwealth Environmental Water Holder. The Commonwealth received a licence of 6.36 gigalitres. That comprised 4.9 towards Bridging the Gap, and an additional 1.46 gigalitres of water towards broader basin plan outcomes. That water has since been specified by Minister Plibersek as being held environmental water to contribute towards the 450 gigalitre target.
Senator ROBERTS: The water is no longer going to the ACT?
Mr Southwell: That water is now held by the Commonwealth Environmental Water Holder, that entitlement.
Senator ROBERTS: Is it water that’s actually being held or is it water that will be held due to savings in the future? I didn’t quite understand.
Mr Southwell: The entitlement has been transferred now.
Senator ROBERTS: Okay.
Mr Southwell: It’s with the Commonwealth Environmental Water Holder. Dr Banks: I can confirm that water entitlement was registered on 18 April to the Commonwealth’s environmental water holdings.
Senator ROBERTS: So, part of that was part of the efficiency measures towards the additional 450 gig?
Mr Southwell: 1.46 gigalitres. ACT identified that they could deliver 6.36. Their gap that was remaining for Bridging the Gap—4.9. That’s been met in full. So, the ACT no longer has a gap. With the additional 1.46, that has now been determined as contributing towards the 450 gigalitres, which means 1.46 gigalitres less that has to be recovered elsewhere.
Senator ROBERTS: When or how did officials agree to this socioeconomic criteria for the funding?
Mr Southwell: The department evaluated the offer that was made from the ACT. We provided advice to the minister, a comprehensive assessment around the water and the value that it represented and its contribution towards the basin plan, and provided advice to the minister accordingly.
Senator ROBERTS: I appreciate your answers being so direct and clear. Is that publicly available, that information?
Mr Southwell: The evaluation?
Senator ROBERTS: Yes.
Mr Southwell: No.
Senator ROBERTS: Can we get a copy of it on notice.
Mr Southwell: On notice.
Senator ROBERTS: We’re six months out from the passage of the restoring our rivers bill. Have any new SDLAM projects been started? Mr Ward: No new projects have been started. But as I mentioned earlier in the day, we’re working very closely with our basin state colleagues on identifying ideas and progressing them forward. There were seven that were shortlisted by the basin officials committee earlier this year for the states to undertake further development of those, and the information on that is published on our department website. Have any decisions been made on new SDLAM projects?
Ms O’Connell: Not by basin officials committees yet. There are prospective projects being worked on. We anticipate—and I gave this evidence earlier today—that New South Wales will be bringing forward a new project soon. They have advised us they intend bringing forward a new project soon and then basin officials will have a look at that.
Senator ROBERTS: What timeline is likely for new SDLAM projects?
Ms O’Connell: It really depends on the project in terms of how long it takes to deliver the project. The delivery timeframe for all SDLAM projects, which applies to new ones, is— Mr Ward: There are three key dates. New projects have to be notified by basin officials by 30 June 2025. States then have until 30 June 2026 to either amend or withdraw projects, and then all projects must be in operation on 31 December 2026.
Senator ROBERTS: I take it it’s too early to determine what the likely volumetric outcome is, much too early?
Ms O’Connell: Correct. It is a tight timeframe, as my colleague outlined.
Mr McConville: If I may add, the reconciliation process will occur, in terms of your question around volumes, after December 2026. The MDBA will be required to do a reconciliation after that.
Senator ROBERTS: Socioeconomic considerations—how is the government intending to meet the requirements to consider socioeconomic impacts of buybacks when it has such an unrealistic target, in my opinion, of recovery of 100 gigalitres per annum?
Ms Connell: As the draft framework makes clear, considering socioeconomic impacts needs to be a key consideration in each water recovery pathway. It really depends on the option being pursued, whether it’s infrastructure, rules based or voluntary water purchase. But I can talk in more detail about the work that we’re doing and the investigations we’re undertaking in relation to potential water purchase. We’re undertaking a range of work. There was a quite significant investigation into socioeconomic impacts of the basin plan quite a few years ago chaired by Robbie Sefton. She chaired a panel. The advice of the Sefton report was, given that there are really quite complex drivers of socioeconomic impacts in the basin—climate, drought, technology, labour inputs, energy inputs—it’s important to look at multiple lines of inquiry to develop the evidence base. So we’re doing a couple of things. We’re looking back. We’ve got the benefit of a range of reports that have been undertaken looking at socioeconomic impacts of water recovery options over the last couple of years. AITHER has done some work for the Murray-Darling Basin Authority, which has been a key reference point for us. Marsden Jacobs Associates, another firm, did quite detailed investigations for the Sefton review, and New South Wales has recently published a report which we’ve had reference to as well. I guess the other key significant thing that we’re doing is most of those reports find that it’s quite hard to actually pull apart what impacts water recovery has on regional communities, and it’s important to have a discussion with communities to involve them in those issues. One of the key elements of the consultation we did around the draft framework was to seek very specific feedback about past experience of water recovery programs, past experience of community adjustment programs, and we’re pulling that all together. We’ll also be drawing on advice from ABARES.
Senator ROBERTS: My understanding is that it used to be the requirement that we must have a socioeconomic benefit. Now it comes down to, at the top of page 18 of your draft framework report, the ‘Sustainable Communities program will seek to mitigate unavoidable socioeconomic impacts’.
Ms Connell: That’s right.
Senator ROBERTS: Let’s change the target.
Ms Connell: Our first order approach is to prioritise a non-water purchase option. We’ve talked quite a bit today about the fact that the infrastructure program opened in January and then the other kind of core program under the framework is the Sustainable Communities program. We’ve been working really quite intensively with stakeholders to get feedback on a draft of principles to guide how funding for community adjustment should be directed. So, we’ve received really quite extensive and clear feedback. There are seven principles that will form the foundation of the community adjustment program. The feedback largely supported each of those principles. Many of them were very strongly supported. There was a strong emphasis from local councils in particular. They’ve been closely engaged in the design of any community adjustment principles. So, that is something we will be definitely taking on board. We’re currently working with basin states to look at getting funding arrangements in place so that funding can flow in the new financial year.