The money is being provided in compensation for the impact of water buybacks.
The Commonwealth reached the agreement with the NSW Government, despite the state being unable to complete four water resource plans which have been delayed for years.
The funding was announced by Federal Environment Minister Tanya Plibersek.
The money is expected to be spent on job creation projects, establishing new industries, supporting industry to diversify and stimulating economic development.
The VFF described it as an attempt to “splash some Christmas candy” while walking away from the devastation caused by the Murray-Darling Basin Plan.
VFF Water Council chair Andrew Leahy said it was ironic the Commonwealth wanted to reward NSW with funding, as they still haven’t submitted water resource plans that are five years overdue and they have pulled out of major projects that means they are not delivering their share of basin plan water savings and environmental outcome targets.
“We know from the government’s own reports that water purchases will take out over $100 million in agricultural production each year, a $300 million compensation package has always been inadequate and offers no more than a short term sugar hit,” Mr Leahy said.
“The Commonwealth should be investing in projects that replace the $100 million in lost agricultural production, rather they want to splash a small amount of cash around and walk away from the problems they have caused.
“It’s outrageous for states to be accepting these payments when they don’t even know where the water will be purchased from in their state and what impact it will have.
“Comparing the Victorian Government’s closure of power stations in the Latrobe Valley saw a $309 million transitional support package to support the lost jobs.”
Mr Leahy said an Ethos Urban report for Great Shepparton City Council concluded that as a result of water buybacks, the Goulburn Murray Irrigation District alone would need $527 million to support the loss in jobs due to reduced water.
Federal Shadow Water Minister Perin Davey said the first beneficiaries of this election-eve funding were state bureaucracies, receiving millions for ‘consultation.’
“This raises the question: what have governments at all levels been doing in the 14 months since the announcement of this support?,” Senator Davey said.
She said the state governments have gained a reputation for being all talk on delivery and taking millions for bureaucrats’ salaries and consultants when it comes to Murray-Darling Basin projects.
“While the Labor government pours taxpayer dollars into endless consultations and delayed projects, their failure to act decisively is leaving communities high and dry without the support they were promised to adapt and thrive,” Senator Davey said.
The Commonwealth is providing $200 million for its Urban Rivers and Catchments Program.
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