On 16 August 2017, the following matter was referred to the Rural and Regional Affairs and Transport References Committee for inquiry and report by 5 December 2017: The integrity of the water market in the Murray-Darling Basin, with particular reference to: (a) the allegations of theft and corruption in the management of water resources in...

The Australian government bought 29 gigalitres of water for $80m in the Condamine-Balonne valley. The vendors originally insisted on $2,200 per megalitre. But after negotiation, the government paid a higher price - $2,745 per megalitre. Worse, the water has no legal status outside the farm gate and shouldn’t be counted towards the water recovery target.

This issues paper has been released to assist participants in preparing a submission to the inquiry to assess the effectiveness of the implementation of the Basin Plan and water resource plans.

The former Federal Water Minister, Barnaby Joyce, approved the $17 million purchase of water in the Warrego valley, after criticising the Labor government for the same thing. This was a deal that required amendments to the Basin Plan to later adjust Basin Plan limits between valleys, outside the parliamentary process.

This report highlights that whilst the Murray Darling Basin Authority (MDBA) claims to base its recommendations on best available science, the proposed amendments allow the MDBA and the states change the Sustainable Diversion Limits (SDLs) without considering the science.