The recent sale of 30,614.7 megalitres of water entitlements by Duxton Water to the Federal Government for an estimated $121.3 million has sparked criticism from farming groups. This sale was part of the government’s Expressions of Interest 2 – Large Portfolios of Water tender process, under the Restoring Our Rivers Act, aimed at recovering 450 gigalitres of water to enhance environmental outcomes across the Murray-Darling Basin and support local communities.
The agreement included various water entitlements in New South Wales and Victoria, providing Duxton Water with the flexibility to rebalance its portfolio and unlock value for its shareholders. The company stated that the sale aligns with their commitment to sustainable water management and supporting the Federal Government’s efforts to deliver a healthy, sustainable river for future generations. The proceeds from the sale will be used to settle permanent water entitlement acquisitions and reduce the company’s debt facility.
However, the Victorian Farmers Federation (VFF) has raised concerns about the impact of this deal on farming communities. VFF president Brett Hosking criticized the sale, stating that it would hurt farmers and regional communities the most. He emphasized the importance of water for farming and food production, highlighting the potential negative effects on family farms.
VFF Water Council chair Andrew Leahy expressed concerns about the lack of transparency in the government’s actions, particularly regarding the impact of the water sale on irrigation districts. He questioned the government’s approach to water buybacks and its use of taxpayers’ money in such transactions. National Farmers’ Federation Water Committee chair Malcolm Holm also raised concerns about the lack of transparency and accountability in the government’s buyback program, calling for closer scrutiny of the process.
The speed at which the deal was finalized raised further questions about due diligence and the government’s motivations. Shadow Water Minister and National Party Senator for NSW Perin Davey questioned the rush to complete the deal, particularly in the lead-up to a federal election. She raised concerns about the analysis of value for money, social and economic impacts, and links to environmental outcomes in such transactions.
In conclusion, the sale of water entitlements by Duxton Water to the Federal Government has drawn criticism from farming groups for its potential impact on agricultural communities and the lack of transparency in the process. As stakeholders continue to raise concerns about the government’s water buyback program, calls for greater accountability and scrutiny of such transactions are likely to persist.
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