A think tank has questioned the cost benefits of Murrumbidgee Irrigation’s latest water-saving project and says plans for a surge reservoir are simply “a new dam”.
Key points:
- The Murrumbidgee Irrigation project is forecast to recover 6.3GL for the environment
- The Australia Institute says the federal government is paying more than $20,000 for every megalitre recovered
- It says the proposed “surge reservoir” is “a new dam”
Earlier this week the federal government announced $126 million in funding for the irrigation company to undertake efficiency works to halve its water losses and save 7.4 gigalitres of water.
The money from the $1.54 billion Off-Farm Efficiency Program is to be used to help achieve a 450GL water recovery target under the Murray-Darling Basin Plan without causing negative socio-economic impacts.
Murrumbidgee Irrigation said the $126 million will be spent on finalising automation works, reconstructing open channels and creating a “surge reservoir”.
Of the 7.4GL in water savings, close to 6.3GL will be recovered for the environment and 1.1GL will be retained by Murrumbidgee Irrigation.
Plan’s most expensive recovered water
Think tank The Australia Institute wrote a submission on the project, arguing it would be some of the most expensive water recovered under the Basin Plan to date.
Co-author of the submission Kate McBride said the government would be paying more than $20,000 for every megalitre recovered.
“They’re actually going to use 8 per cent of the funding to recover just 1.4 per cent of the water required under this Water for Environment Special Account,” Ms McBride said.
In response to the concerns, a spokesperson from the NSW Department of Planning and Environment said water prices were significantly higher in the current water market than in previous project funding programs.
“The Australia Institute’s submission’s dollar per megalitre calculation does not consider the additional benefits of investment for the local community through the project,” the spokesperson said.
Murrumbidgee Irrigation chief executive Brett Jones said many of the easier, less-expensive options for recovering water had been completed.
“But in principle, I think the key thing is the investment in infrastructure which is a win for the environment … it’s a win for irrigators … and it’s a win for the community.”
How much water will a surge reservoir save?
Part of the project is to build a 5,000ML surge reservoir which is proposed to save 256ML, just under 4 per cent of the total water savings.
Ms McBride questioned whether funding designed to recover water from the environment should be spent on building “a new dam”.
Mr Jones said the surge reservoir would allow the company to deliver water more efficiently by reducing water losses that would usually occur when irrigators turn off high flows.
“By having these surge reservoirs, as soon as an outlet closes you can divert water into the reservoir,” Mr Jones said.
“It’s not a dam, it’s a 5,000ML, small reservoir.”
The spokesperson from the Department of Planning and Environment said the reservoir would also have socio-economic benefits.
“The reservoir will ensure water is available for crops when required and increase water security for the community and business particularly during drought,” they said.
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