Referral and conduct of the inquiry
1.1
On 23 July 2019, the Senate established the Select Committee on the Multi‑Jurisdictional Management and Execution of the Murray-Darling Basin Plan to inquire and report on the following matters by 1 November 2020:
(a)
responsibilities in relation to the management and execution of the Murray-Darling Basin Plan consistent with the objects of the Water Act 2007, in particular:
(i)
Commonwealth responsibilities,
(ii)
state and territory responsibilities, and
(iii)
areas of uncertainty or potential conflict in respect of responsibilities;
(b)
the effects, positive or negative or otherwise, of the different approaches of the states and territories to water resource management in the Murray‑Darling Basin including, but not limited to:
(i)
legislation, regulations and rules,
(iv)
management and administration, including differences in management organisations,
(v)
measuring, monitoring and compliance,
(vii)
openness and transparency;
(c)
complications in respect of basin-wide or cross jurisdiction oversight, including the oversight roles and jurisdictional limitations of:
(i)
state, territory and federal parliaments,
(ii)
state, territory and federal courts, and
(iii)
state, territory and federally-instituted inquiries and Royal Commissions;
(d)
any bill related to the Murray-Darling Basin referred to the committee; and
1.2
On 25 August 2020, the reporting date was extended to 30 June 2021. On 14 December 2020, the reporting date was further extended to 30 September 2021.
1.3
The committee received 62 submissions, listed at Appendix 1.
1.4
The committee held 13 public hearings. A list of witnesses who appeared at these hearings is at Appendix 2.
1.5
The committee also conducted four site visits as part of its inquiry:
Bureau of Meteorology, Melbourne (22 November 2019);
Murrumbidgee Irrigation infrastructure and Fivebough wetlands near Griffith, NSW (11 December 2019);
A private cotton farm in the Gwydir Valley, NSW (21 April 2021); and
Boggabilla Weir, located on the Macintyre River near the towns of Boggabilla and Goondiwindi (22 April 2021).
1.6
The committee received a number of additional documents and responses to questions on notice, listed at Appendix 3.
Inquiry into Constitution Alteration (Water Resources) 2019
1.7
On 13 September 2019, the Senate referred the Constitution Alteration (Water Resources) 2019 to the committee for inquiry and report. The bill is a private members bill which would put the following question to the Australian people via a referendum process: Whether the Constitution should be amended to give the Australian Parliament the power to make laws in relation to the use and management of water resources that extend beyond the limits of a state.
1.8
The committee called for submissions by 6 March 2020. The committee received eight submissions, listed in Appendix 4.
1.9
The committee considered the bill in the course of its work addressing the terms of reference generally but it did not hold public hearings that were specific to the bill.
1.10
The committee's views and recommendation in relation to the bill are provided as part of Chapter 2 of this report.
1.11
The committee’s reporting date was extended in parallel in with its main inquiry.
Structure and scope of report
1.12
In addition to this introductory chapter, this report comprises the following chapters:
Chapter 2 outlines Murray-Darling Basin (basin) governance arrangements and the complexities of federalism and water management.
Chapter 3 considers the limitations of scrutiny mechanisms within a multijurisdictional framework.
Chapter 4 considers transparency challenges within a multijurisdictional basin.
Chapter 5 explores inconsistencies in the compliance and enforcement approaches of states, and the division of compliance roles.
Chapter 6 canvasses issues relating to environmental watering.
Chapter 7 explores issues relating to Indigenous basin communities.
Chapter 8 outlines issues relating to the Sustainable Diversion Limit Adjustment Mechanism.
Chapter 9 considers issues relating to climate variability and the sustainability of Australian agriculture.
1.13
Some of the issues considered in Chapters 6 to 9 of this report are related to but go beyond the core committee focus on the multijurisdictional complexities of management of the basin. However, in considering the matters raised by the terms of reference, it became apparent that it was necessary for the committee to consider the Murray-Darling Basin Plan (Basin Plan) and the basin in a holistic manner.
Acknowledgements
1.14
The committee wishes to acknowledge the significant contribution made by the late Senator Alex Gallacher to the work of this committee. Senator Gallacher was a full member of this committee from its inception, and remained active in its work through his illness and up until his recent passing. As with all of his work in the Senate, Senator Gallacher approached his role on this committee with dedication and a strong commitment to the interests and wellbeing of Australian communities.
1.15
The committee also thanks all the individuals and organisations that contributed to the committee's work, and takes this opportunity to express its gratitude to those that took the time to write submissions and appear at public hearings.
Note on references
1.16
As page numbers may differ, references to Hansard transcripts in this report distinguish between proof and official versions of transcripts.
Terminology
1.17
'Basin governments' has been used to refer to the Australian Government and the governments of the five basin states that is, New South Wales (NSW), Victoria, Queensland, South Australia, and the Australian Capital Territory (ACT).
1.18
'Basin states' refers to the governments of the four basin states and one territory: NSW, Victoria, Queensland, South Australia, and the ACT.
1.19
For clarity, abbreviations of state and territory departments and agencies listed in this report include their jurisdiction, such as Department of Environment NSW. No jurisdiction is listed for Commonwealth level departments.
1.20
In February 2020, the Department of Agriculture became the Department of Agriculture, Water and the Environment. For ease of reading it is referred to as the Department of Agriculture throughout this report.
Background information on the Basin Plan
1.21
The Basin Plan was agreed to by the basin states and the Commonwealth and introduced in 2012. The Basin Plan was not intended to drought-proof the basin or return to pre-development conditions. The Basin Plan is a piece of Commonwealth legislation which aims to address over-extraction of water resources. The Basin Plan has several key components: it places limits on how much water can be extracted from water sources (known as 'sustainable diversion limits'); it sets water recovery targets to bring environmental systems back to a healthier level; it allocates water for environmental protection purposes; it regulates trade of water across the basin; and it sets out monitoring, evaluation, and compliance activities.
1.22
Water resource plans (WRPs) are the main way in which the Commonwealth regulates state water extractions through the Basin Plan. WRPs are local plans which aim to keep diversions to a sustainable level. They set out how basin states will share available water between communities, the environment, and industry.
Next chapter
1.23
The following chapter explores basin governance arrangements and the complexities of federalism and water management.