The fight over the Federal Government’s grab for water for the Murray-Darling Basin lifted to a new level with a Coalition panel sitting in Shepparton on Monday.
A Senate committee looking into the proposed law on the Murray-Darling Basin Plan is not visiting the regions, so the Coalition decided to mount its own inquiry and submit its findings to the official committee.
Chaired by Queensland Nationals Senator Matt Canavan, the panel heard statements from SPC chairman Hussein Rifai, City of Greater Shepparton Mayor Shane Sali, the Australian Dairy Products Federation, the Committee for Greater Shepparton and several farmers.
They all warned of the social and economic impacts of removing more water from the consumptive pool of the southern basin.
Cr Sali explained the ramifications of reduced agricultural production on the wider economy and how a contracting level of production touched a large range of businesses and could affect even sporting organisations relying on sponsorship and membership in small communities.
Mr Rifai said SPC had no interest in party politics but was keenly aware of any change to production costs that would put it at a competitive disadvantage.
He said the company had to compete with companies producing food from low-cost labour in Europe and Africa.
“Our goal is to be a global food producer, and anything that impacts on our production will get in the way of that outcome,” he said.
Rising water costs due to a smaller consumptive pool would impact his suppliers’ costs.
“Our orchardists are not arms-length suppliers but are part of our business,” Mr Rifai said.
Mr Birrell said the Senate committee couldn’t be bothered to visit basin communities and would only sit in Canberra to take submissions.
“We think that is a massively disrespectful move,” he said.
The panel has no legal status and does not have the protection afforded to official committees of the parliament.
The panel hearing is the latest venue to air opposition to the proposed changes to water law, which would see the Federal Government use buy-backs to fulfil a commitment to secure 450Gl more water for the environment.
The basin plan has already recovered 2100Gl for the environment.