Oakey Meat Works Pollution

Senator ROBERTS: I’ll ask the questions that I started asking of the inspector-general; I was advised that they were more appropriate for the Murray-Darling Basin. The Oakey meatworks is 100 per cent owned by NH
Foods of Japan. Between mid-March and mid-June 2022, NH Foods released 175 megalitres of highly contaminated abattoir run-off into Oakey Creek, which flows into the Condamine-Balonne system. The water
released was 175 megalitres—massive. It was a large body of water, which was contaminated with ammonium nitrate at 102 milligrams per litre and E. coli at 14,000 MPN per 100 millilitres. I am sure you know that 100 MPN per 100 millilitres is considered a high-risk concentration. The source of the water was a holding pond, which was contaminated at the level of 460,000 MPN per 100 millilitres—an astronomical number for E. coli—151 milligrams per litre of ammonium nitrate and phosphorus at 29 milligrams per litre. The volume and the high concentration toxicity taken together are likely to cause a particularly large toxic blue-green algae outbreak, which was observed at the site prior to the release. The release occurred during heavy rain, which is why the concentration in the waterway was lower than in the dam. The timing of the release coincides with a blue-green algae outbreak in the Darling in July of 2023. My question is: are you aware of these facts already?

Mr McConville: Environmental regulation in Queensland is the responsibility of its Department of Environment, Science and Innovation. The MDBA doesn’t have any compliance or regulatory functions with
regard to the issues that you’ve raised. In respect of the issues regarding water quality in the Darling, yes, Dr Banks and I can talk in more detail to some of those issues, but not in relation to this.

Senator ROBERTS: So did the Queensland EPA investigate.

Mr McConville: I am not in a position to comment.

Senator ROBERTS: That wasn’t a question, Mr McConville. The Queensland EPA investigated, concluded that a breach of Queensland environmental laws had occurred and a fine was issued. The maximum fine for this offence is $1.3 million per offence. The Queensland government chose to fine the facility $13,500: one per cent of the maximum. Local residents tell me that the abattoir, which has a long history of industrial accidents and fines, has a habit of building up pollutants in their holding dam and then releasing it under cover of heavy rain. Has either the Murray-Darling Basin Authority or the department investigated the Oakey meat processing plant sending pollutants into the Murray-Darling Basin?

Mr McConville: Once again, I state that the MDBA doesn’t have any compliance, regulatory or investigative responsibilities. Those responsibilities would sit with regulatory agencies in Queensland.

Senator ROBERTS: Am I to interpret, Mr McConville, that you’re saying, ‘Nothing to look at here’, or do you raise it and deal with it in another way? Did you know about it and what’s your response?

Mr McConville: No, Senator, I didn’t know about this specific instance. We continue to engage on an ongoing basis with Queensland, and indeed all other states, on issues of water quality. We have been very engaged with WaterNSW in relation to the issues of water quality in the Lower Darling in particular. But no, I have not been engaged on that issue in Queensland.

Senator ROBERTS: What’s your level of engagement with the Queensland government and the Queensland EPA in particular?

Mr McConville: We don’t engage directly. There isn’t an EPA in Queensland; it’s the Department of Environment, Science & Innovation. We don’t engage directly with them. We do engage on a very continuous and
ongoing basis with the water agencies in Queensland as we look at all of the issues that relate to their responsibilities in implementing the basin plan.

Senator ROBERTS: Given your concern about the water quality of the Darling River, will you be engaging with the Queensland water authorities now on this specifically?

Mr McConville: I am happy to have a conversation with them. I would reinforce that we don’t have any compliance or regulatory functions in relation to environmental incident management in Queensland.

Senator ROBERTS: Will you raise this with them as a concern?

Mr McConville: I am happy to have a conversation with them, as I do on an ongoing basis.

Senator ROBERTS: Could you let us know when you do?

Mr McConville: Certainly, Senator.

Senator ROBERTS: Minister, does $13,500 seem a fair fine for a foreign multinational food company? This is 175 megalitres of heavily contaminated water disposed of into the connected basin for just $13,500. That’s a very cheap way of getting rid of pollution. That’s a bargain! Why do anything legally when you can just dump dangerous levels of pollution into the basin? Any thoughts on that?

Senator McAllister: The officials have explained to you that the Murray-Darling Basin arrangements respect the role of the states and territories in managing certain functions in terms of environmental management, but require coordination on other questions. The official has said to you that this is a question for the Queensland government. The fines that they levy and the approach they take to compliance and enforcement really is a job for which they are responsible. We don’t seek to take on every responsibility that exists for a state and territory. We respect the role of states and territories in managing their own affairs.

Senator ROBERTS: That’s pleasing to hear, in a way, because as you know I believe in competitive federalism and as much power to the states as possible and limited central power. But who is concerned? It doesn’t seem like anyone is concerned about the health of the Darling River?

Senator McAllister: Everybody is interested in the health of the Murray-Darling Basin.

Senator ROBERTS: Queensland is not.

Senator McAllister: Senator, I invite you to take that up with the Queensland government.

Senator ROBERTS: Who’s interested in the health of the Darling River?

Senator McAllister: You can ask any number of the officials here, who spent a lot of time thinking about the health of the Darling, about the steps that are in place under the Murray-Darling Basin Plan to improve the health of the river systems within the basin.

Senator ROBERTS: I accept that what is done is done. The purpose of sharing this is to bring it to your attention and hopefully to procure an undertaking that the Murray-Darling Basin Authority or the Department of
the Environment, Science and Innovation will monitor run-off from the Oakey meatworks in a heavy-rain event to prevent them from doing this again. Is that something that is reasonable?

Mr McConville: We don’t have a compliance or regulatory function, so it’s not our task to monitor run-off from any particular site or facility. That would sit with the Queensland state department. As I have said, I am very happy to engage with Queensland and to make inquiries in that regard; again, that function sits with the state environmental regulatory agencies.

Senator ROBERTS: Will your inquiries include any request or suggestion that they actively monitor water releases from this abattoir?

Mr McConville: Again, that is for the state authorities to determine how they would do that.

Senator ROBERTS: But would you hint to it or request it? They can tell you to ‘go to hell’.

Mr McConville: I need to be very mindful of where my remit exists and where it doesn’t. I am very happy to engage with departmental officials in Queensland in relation to water quality generally. The specific response, again, would sit with the state departments.

Senator ROBERTS: There are two points that I would like to raise. The second is the most important. The first one I just mention for completeness. The Queensland branch of the Australasian Meat Industry Employees
Union has made multiple donations to the Queensland ALP, totalling $66,000 across the period the abattoir has been a really bad corporate citizen. Maybe it’s something to do with the uncertain future of that meatworks and a factor in imposing such a small fine. The second point is directly to a federal responsibility. The uncertainty of that meatworks has been increased dramatically by the PFAS contamination in the groundwater off the Oakey air base. What is the government doing to manage and treat that PFAS contamination and prevent it growing?

Senator McAllister: There are a couple of things. First, as you have had explained to you on a number of occasions, we are not responsible for the Queensland government. We can’t in this forum answer questions about the way in which the Queensland government executes its responsibilities. Clearly, this is the Australian Senate. Senators are here for the purpose of interrogating the expenditure of public money in this portfolio. We are simply not in a position to answer questions about the Queensland administrative arrangements. Secondly, you asked me about the adequacy of penalties. I will say that a bill is in the Senate now to increase penalties from around $15 million in the Commonwealth’s environmental legislation to $780 million. That is legislation that you may vote for. I understand it is not your intention to do so, but we are trying to increase penalties in relation to offences that are relevant for the Australian government. Thirdly, in relation to PFAS, I can tell you generally that Australian government agencies, particularly in Defence, are very engaged with this where there is a relationship with the use of PFAS in defence sites. The officials at this table aren’t involved in those processes, but they may be able to assist you about any particular Murray-Darling Basin related matters. You may have needed to ask that in another committee.

CHAIR: We will now break for morning tea.

Senator ROBERTS: I will cover a number of issues. In the last 12 months, how many overseas trips have been taken by Murray-Darling Basin Authority members?

Mr McConville: In the last 12 months—I may have to double-check—two trips, one by me. I travelled to France for the International Network of Basin Organisations triennial general assembly. Tim Goodes, Executive
Director, Basin Plan, recently travelled to the United States to attend the Colorado River Basin and a series of other meetings and attended a course at Harvard University. I believe they are the only two.

Senator ROBERTS: Colorado River Basin would be pretty significant.

Mr McConville: Indeed.

Senator ROBERTS: Could you please provide details, including cost.

Mr McConville: I will have to take that on notice. I am happy to.

Senator ROBERTS: Thank you. My staff would like to compliment your new system view page—very well done.

Mr McConville: Thank you.

Senator ROBERTS: They think it is excellent. When will you be likely to add a page on the measurement of to-sea flow from the barrages?

Mr McConville: I don’t know. Again, I am happy to take that on notice, if I may.

Senator ROBERTS: Sure. South Australia’s water data export for water over the barrages, which is, I believe, the sea flow, totalled around 2,200 gigalitres to the sea in the last 12 months. Does that seem about right?

Mr McConville: Again, I couldn’t speculate. I am happy to come back to you on data flows and information.

Senator ROBERTS: This is your data, apparently. It is laid out for many pages and totals 2,201 gigalitres, which is a lot of water.

Mr McConville: Yes.

Senator ROBERTS: From your new and excellent system view page, the value of the flow to South Australia over the last 12 months is 3,707 gigalitres. That’s from your data total there. Is that correct?

Mr McConville: I wouldn’t know, off the top of my head. I am happy to confirm that.

Senator ROBERTS: What is the figure for South Australian flow to guarantee the health of the Murray River through South Australia, and how much must the to-sea flow be to carry out the salt and pollutants to keep the river healthy?

Mr McConville: I might ask Jacqui Hickey, our director of river operations, to come up and address those questions in relation to the flows and the barrages.

Ms Hickey: Can you repeat your question for me.

Senator ROBERTS: What is the figure for the South Australian flow to guarantee the health of the Murray River through South Australia? How much must the to-sea flow be to carry out the salt and pollutants to keep the river healthy? We are after flow into South Australia and flow into the sea.

Ms Hickey: Chapter 8 of the Basin Plan sets out what we think the flow should be over the barrages, if we can achieve that. On a three-year rolling average, for 95 per cent of the time, that number is about 2,000 gigalitres over the barrages, with a minimum—

Senator ROBERTS: It is 2,200 gigalitres.

Ms Hickey: Per year, on a three-year rolling average, for 95 per cent of the time over the long term. That is set out in the Basin Plan.

Senator ROBERTS: Where is it?

Ms Hickey: That is in chapter 8, section 8.13. Regarding your questions on flows recently to South Australia, in the 2023-24 water year, the total flow across the SA border was 7,780 gigalitres. Of that, 5,470 gigalitres went across the barrages.

Senator ROBERTS: That’s over what period?

Ms Hickey: The 2023-24 water year.

Senator ROBERTS: One year of floods.

Ms Hickey: Coming off some wet periods.

Senator ROBERTS: My understanding is that, during the last drought, in the debate about the water flows around 2019, the figure as to how much is needed to go out to sea to discharge pollutants and salt was about 800 to 1,000 gigalitres. Is that roughly correct?

Ms Hickey: I’d have to take that one on notice. I don’t have with me the long-term figures for barrage releases.

Senator ROBERTS: The target for over-the-border flows is about 4,000 gigalitres. That’s the top end. Is that about right?

Ms Hickey: It varies from year to year. The flow to South Australia, as you know, is made up of the SA entitlement flow, which is the consumptive entitlement and the dilution and loss. That’s what we have to provide
each—

Senator ROBERTS: That is domestic and irrigators?

Ms Hickey: It is. It is South Australia’s state entitlement. That includes some water for local environmental uses. We also provide environmental water that has been delivered through the system. When additional dilution flows are triggered, that is also provided, if that is not already met through unregulated flows. Any trade to or from South Australia provides a net adjustment of the total flow across the SA border.

Senator ROBERTS: The message I get from you is that it’s not simple. It’s complex. There are other factors. I am trying to simplify it. I don’t want to mislead anyone; I don’t want to put words in your mouth. My
understanding is that the annual inflow to the Murray-Darling Basin is about 12,000 gigalitres and South Australia gets about a third of that, which is about 4,000 gigalitres.

Ms Hickey: I can’t answer those numbers. I don’t have the analysis in front of me.

Senator ROBERTS: South Australia is only one-quarter of the basin. It seems to me that South Australia is getting plenty of water.

CHAIR: Said the Queenslander!

Senator ROBERTS: My understanding is that, during the last drought, as I said, around 2019, the debate was about a need in South Australia to discharge to the sea 800 to 1,000 gigalitres. We’re sending down 2,201
gigalitres to the sea. Why are we wasting water—and now the government wants another 450 gigalitres—when you have more than enough, Minister?

Senator McAllister: I think your question misunderstands quite a lot about the way the water arrangements work in the basin. The goal of the Murray-Darling Basin Plan is to generate a healthy working river and to
support farming activities, communities and the natural environment within the basin area. Your approach looks at a single metric: the amount of water flowing over the barrages. It makes an assumption that water flowing at the end of the system represents a waste. That’s not the way that the scientists tell us we should manage water in the system. We’ve got broader goals. We want to see healthy rivers right across the basin, including in the north of the basin. We want to make sure that the systems aren’t overallocated, so that irrigators and water users have certainty about what they can use each year. We also want to make sure that we’re not extracting more water out of those systems than can be sustained in the long term from an environmental perspective. The truth is that communities and agriculturalists and environmentalists all need us to return to some kind of sustainable take out of that system.

Senator ROBERTS: Just looking at the figures that I shared with Mr McConville, from the Murray-Darling Basin Authority’s own data, the flow into South Australia in the last 12 months was 3,777 gigalitres. The flow out from South Australia into the sea was 2,200 gigalitres. That is about 1,600 gigalitres consumed in South Australia. Town water and irrigation are about 400. That leaves about 1,200 for river seepage and evaporation of the lower lakes. That seems like a lot.

Ms Hickey: Maybe we can issue you with some updated numbers. What happens is that, when we get the information from our flow recording sites across the basin, every now and again we do hydrometric updates and
we do find that there are some adjustments to those figures. You are talking about the 2023-24 water year?

Senator ROBERTS: I am talking about the last 12 months.

Ms Hickey: I have only got it per water year. There is the flow into South Australia, minus the amount that’s used for irrigation purposes, aligned with South Australia’s allocation. Then there are additional inflows that come into the lower part of the River Murray from other small tributary inflows as well.

Senator ROBERTS: Is that from the south-east?

Ms Hickey: No. That is from the Mount Lofty Ranges and other local catchment areas. Obviously, when the lakes are higher, there is more evaporation loss, but wind and temperature do play a big factor in evaporation
losses at the lakes.

Senator ROBERTS: Thank you. That is the end of my questions.