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Buybacks to increase basic food cost

Photo by Karisssa

Consumers have been warned to brace for further permanent increases in the cost of their food.

The Central Murray Environmental Floodplains Group (CMEFG) has issued the warning following what it refers to as “an Albanese Government decision to deliberately restrict food production”.

CMEFG chairman Geoff Kendell said this was the only possible outcome from the government’s budget announcement that it would recover more water from food producers.

Mr Kendell said farmers and rural communities were extremely disappointed that within months of returning to government, Labor was proposing water buybacks, despite the significant damage they had previously caused.

“It seems incomprehensible that we can have reports telling us of workforce declines of 50 per cent in rural communities, largely as a result of previous buybacks, yet the evidence is being ignored and the buybacks are being reintroduced,” he said.

“In some respects, we have come a long way in the past 10 years with water reform and implementation of some aspects of the Murray-Darling Basin Plan.

“But, it’s hard to fathom that anyone in public office would refuse to learn from mistakes that have been made.”

Mr Kendall said without doubt, water buybacks were devastating for some communities and that was why responsible Water Ministers in Victoria and NSW had strongly opposed their reintroduction.

“Although they are on opposite sides of the political fence, they have seen the damage to their rural towns and don’t want it repeated,” he said.

“It’s hard to believe all the evidence of this damage is being ignored by Prime Minister Albanese, Water Minister Tanya Plibersek and their colleagues.”

Mr Kendell said basic economics tells us that decreasing the supply of any commodity is going to increase demand and therefore force its price up.

Food is no different, so when we reduce the amount of food being grown the only possible consequence is increased cost to the consumer.

“It is especially frustrating for our rural communities because they want to continue feeding both our domestic population and people throughout the world, but are being hamstrung for nothing other than political ideology,” he said.

“Various reports tell us that delivering the additional 450 gigalitres of water (nearly the capacity of Sydney Harbour) that the government wants to recover is not possible without first addressing issues around constraints.

“In other words, this water will not fit down the river system without causing more flood damage.

“After the season we are enduring, surely we do not want more floods, especially those that are man-made.”

Mr Kendell urged Ms Plibersek to heed advice that has been given and not rush into these devastating water buybacks.

“Why can’t politicians and staff learn from past poor decisions that buybacks don’t work?” he asked.

“History shows us buybacks have caused irreversible damage to our environment, economy, and the society of communities that once supported a viable, thriving and growing system that no longer exists.

“It is blatantly obvious to those of us who live and work in the basin that buybacks have been the catalyst behind so much destruction and are now heavily impacting our ability to produce a secure supply of food and fibre for our nation’s population into the future. One that is also affordable,” Mr Kendell said.

He said that both sides of politics have had this ridiculous notion that the Basin Plan must be completed ‘in full and on time’ by 2024.

“In business, if you get something so horribly wrong you don’t continue to make the same mistakes over and over again, hoping for a better outcome,” Mr Kendell said.

“If you want to be successful you change it and that’s not happening with this present Basin Plan and water buybacks.”