The report by the Productivity Commission, the latest in five yearly reviews, acknowledges there has been progress having an impact on river health, and the achievement of 2100 gigalitres for the environment.
But it warns that the goals for the plan will not be achieved in the current timelines.
“Resetting the balance in the basin has slowed since 2018 and will not be completed by the original deadline of 30 June 2024,” it said.
Key supply projects will not be completed by the original deadline, the report found.
“Accountability for implementing the supply projects is weak, and Commonwealth funding arrangements have failed to drive effective project implementation by basin state governments.
“Key projects are unviable, but basin governments are not transparent about the need to re-scope or withdraw these projects, or the implications of failing to deliver projects on time.”
Federal Water Minister Tanya Plibersek said with another drought around the corner, they were “getting straight to work to put the basin plan back on track by providing more time, more funding, more options, more accountability and more transparency”.
“This report shows we are on the right track to ensure a healthy and sustainable river system for generations to come,” Ms Plibersek said.
The report said the Federal Government should cease funding any supply measure that is unlikely to deliver on its planned outcomes or is found not to be cost-effective.
Given the substantial water recovery task, the Commonwealth should develop and implement — without delay — a renewed approach to water recovery.
“This approach should consider all water recovery options, including voluntary water purchases,” the report said.
“Any purchasing should be undertaken gradually, to avoid driving water market disruption and community adjustment pressures.
“Water purchases should also be coordinated with irrigation network rationalisation where necessary to avoid impacts on irrigation network viability.”
Half of the Water Resource Plans for NSW remain outstanding more than 10 years after the basin plan was put in place and almost four years after an already extended deadline.
NSW Water Minister Rose Jackson said her government had been “working collaboratively with the Federal Government to fix and resubmit our Water Resource Plans prioritising those that we know can be accredited”.
“I am pleased we are now halfway there and are working hard to help ensure the next nine plans get over the line,” Ms Jackson said.
The report notes there were some recommendations made by the Productivity Commission five years ago that haven’t been implemented.
Similarly, warnings were issued about the plan not meeting its 2024 deadlines.
The report acknowledged that buybacks have had negative socio-economic impacts on some basin communities.
“However, at a basin-wide level, some aspects of economic performance have improved since the basin plan was put in place — for example, the gross value of irrigated agricultural production in the basin increased by about 12 per cent between 2013 and 2018, despite the volume of water used in irrigation declining by more than 16 per cent over the same period,” it said.
“People who sold water entitlements were compensated at market prices, with proceeds often funding on-farm capital works, or market exits.
“Larger and more diverse regional centres in the basin have largely adjusted to less water.”
However, there have been negative socio-economic flow-on effects in some small irrigation-dependent communities, particularly following major irrigators selling large parcels of entitlements.
“Some basin communities saw agricultural employment fall rapidly, without offsetting growth in other employment areas (the negative effects have been only slightly tempered by improvements to tourism resulting from improved ecological outcomes).”
