Cost recovery agitates water group

By Geoff Adams

Feb 7, 2025

A new draft agreement could see farmers footing the bill for water management reforms, sparking concern in regional NSW.

The principle of cost recovery for water services in the latest draft of the new National Water Agreement is worrying a regional lobby group.

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The agreement draft requires governments to sign up to achieving pricing transparency in respect of water storage and delivery in irrigation systems and cost recovery for water planning and management.

The states would be obliged to report publicly on cost recovery for water planning and management as part of annual reporting requirements.

The Murray Regional Strategy Group is urging NSW Premier Chris Minns and Water Minister Rose Jackson not to sign the agreement in its current form.

Group chair Geoff Moar said they had significant concern about the agreements full cost recovery model which would exacerbate the significant increase in the cost to NSW growers who were already facing a 184 per cent increase in fees and charges through an IPART review.

“This is unsustainable and will undermine the viability of agriculture for the NSW Murray Valley and further increase the cost of living for all Australians,” Mr Moar said.

“In effect, full cost recovery under the NWA would see farmers slugged with the cost of implementing ideological changes to water management and policy.”

The Federal Government has been consulting stakeholders to create a new agreement to replace the former NWA.

A draft has been written and the Federal Department of Water is working with states and territories to draft the new agreement.

By Geoff Adams

Shepparton News assistant editor and Country News journalist