Wednesday 26 October 2022
Budget 2022: Secret Funds, Missed Opportunities and Energy Headaches
The new Federal Government has delivered its first budget with a few surprises, including ‘significant funding’ which has been set aside for finalising the Murray-Darling Basin Plan – the problem is only the Government knows how much is allocated and what the secret fund will buy.
NIC CEO Isaac Jeffrey said: “It’s not a secret the new Government wants to finalise the Basin Plan, which we broadly support. What we cannot support are secretly allocated ‘significant funds’, with no transparency on what those funds will be used for and how much it will cost.
“Our food and fibre growing regions have suffered through years of water reform and they want certainty. Allocating secret funds to secret projects does not build trust or confidence, in fact, it shatters both in a cloud of uncertainty.
“MinCo is not meeting again until February where Ministers will discuss work plans to finalise the Basin Plan. Allocating secret funds seems to pre-empt that decision-making process. If decisions have already been made, they should be immediately put to public consultation.
“The Minister has on numerous occasions promised ‘everything is on the table’ to consider how we finalise the Plan. I strongly encourage the Minister to deliver this promise and consider sensible investments in infrastructure and outcomes through programs such as complementary measures.
“The Plan started with bi-partisan support and with the Commonwealth and States working together. It must relentlessly persist in holding these relationships and support, as well as the goodwill of Basin communities, if it has any chance on continuing to deliver outcomes for the productive sector, environment and local communities.”
Last night’s Budget allocated ‘significant funds’ to water markets reform to restore transparency, integrity and confidence.
“NIC has welcomed moves to reform the water market, including support for the majority of the recommendations handed down by Principal Adviser, Daryl Quinlivan,” Mr Jeffrey said.
“It’s hard to have faith in a system promising transparency and integrity when the ‘significant funding’ is not disclosed, nor is the implementation process for the new system.
“I also note the Minister’s comments on ‘dodgy behaviour’ and remind the Minister the ACCC found no evidence of such behaviour. While there is work which can be done to restore faith in the system, there is a difference between perception and reality.”
The Budget allocated $22 million for updating the science and $29 million for transparency and trust, through metering and monitoring.
“NIC welcomes the allocation of $22 million to update Basin science, which comes at a critical time leading into the review of the Basin Plan, especially considering outdated science and figures continue to be used by decision-makers on future rainfall and inflows in public commentary which may be misleading,” Mr Jeffrey said.
“We welcome further investment in metering and monitoring. Farmers and irrigation schemes have invested heavily in telemetry and metering to date, so further investment from the Commonwealth is welcomed. It would be great to see this monitoring program focused on environmental water and ensuring the Australian public is getting the right outcomes, in the right areas, with this water.”
The Budget made substantial changes to water infrastructure investment, regional development, infrastructure and agricultural programs.
“NIC welcomes the $1.1 billion investment in water infrastructure, but we would have liked to see further funds allocated to Wyangala Dam – which would help with water security and flood mitigation in New South Wales,” Mr Jeffrey said.
“The Federal Budget handed down last night was a missed opportunity to invest in the Murray Reconnected Floodplains Project which will help divert water around the Barmah Choke, while getting environmental water into over 2000 kilometres of rivers and creeks, and over 2000 wetlands delivering real environmental outcomes.
“We are also disappointed to see Hell’s Gate Dam funding has been shelved. We strongly encourage the Government to reconsider this project or similar projects to deliver water security and to help grow more food and fibre in Queensland. It is important to note, dams are not just investments in food and water security, they are investments in the environment as they are used to store e-water and water which keeps the rivers running.
“NIC was disappointed to see Ag funding cut in the Budget, but we do welcome the investment in biosecurity and drought preparedness, and in the $1 billion Disaster Ready Fund.
“NIC strongly welcomes the investment in a strategic fleet of twelve Australian flagged and crewed maritime vessels. We welcome the investment in regional roads, following recent floods, and ask the Government to strongly consider additional funding to regional road safety and in connecting our farming regions to the ports.
“NIC welcomes the Growing Regions Program and the Regional Precincts and Partnerships Program announced in the Budget, and the election commitments Investing in Our Communities Program and Priority Community Infrastructure Program.”
The Budget notes energy costs will jump dramatically over the next few years and invests significantly in our nation’s energy transition.
“The Federal Budget says Australians can expect a twenty percent increase in energy bills this year and a thirty percent increase next year,” Mr Jeffrey said.
“While large blame can be placed on the war in Ukraine and global inflationary pressures, it cannot forgive over a decade of climate and energy policy partisanship here at home. NIC is energy agnostic and supports the transition to renewables, however it must be done with care and due diligence to ensure Australians are not slugged for poor planning and management.
“NIC welcomes the $1.9 billion Powering the Regions Fund and the over half a billion dollars allocated to hydrogen projects. We welcome the investment in community storage, but note the missed opportunity to invest in regional batteries for local farmers, production and manufacturing.
“Australian food and fibre growers need affordable, reliable and secure energy to ensure they can deliver the highest quality, world class produce, while driving jobs creation and our economy. The transition must be managed carefully and we urge the Government to put downward pressure on bills, not just in the long-term, but during the transition.”
Ends.
Media Contact: Isaac Jeffrey 0407 083 890 ceo@irrigators.org.au