Commonwealth Environmental Water Holder Commission of Inquiry Bill 2026; Second Reading

Continued the debate

Senator Cadell argued that the bill was necessary to scrutinise the Commonwealth Environmental Water Holder, which he claimed was spending up to $2 billion annually on water buybacks while failing to use existing allocations. Cadell contended that significant funds had been diverted from water infrastructure, such as the National Water Grid, to purchase water rights, leaving towns like Bourke and Louth with reduced water security and population decline. Cadell stated that environmental water releases were causing localised flooding in agricultural areas rather than benefiting wetlands, and that state governments were not fulfilling their obligations under the Murray-Darling Basin Plan. Cadell advocated for the commission to provide transparency and report directly to Parliament, rather than waiting for a royal commission or government action.

Government response

Minister Watt opposed the bill, describing it as a political stunt by the National Party ahead of the Farrer by-election. Watt argued that the previous coalition government had failed to recover the required 450 gigalitres of water for the environment, leading to deterioration in the basin's health. Watt defended the current government's approach, which combines voluntary water buybacks with significant investments in water efficiency and infrastructure, citing the Sustainable Rivers Audit as evidence of improved river health. Watt stated that the Commonwealth Environmental Water Holder had achieved significant environmental outcomes and that the plan was vital for the long-term sustainability of agriculture and communities in the basin.

Opposition response

Senator McKenzie supported the bill, arguing that the 450-gigalitre water recovery target was a side deal not part of the original Murray-Darling Basin Plan agreement. McKenzie claimed that water buybacks were harming agricultural communities and that environmental outcomes were not being achieved through current methods, citing damage to forests like the Barmah Choke. McKenzie stated that the commission of inquiry would allow for a targeted examination of water policy impacts and give communities a voice, contrasting this with what she described as government arrogance and disregard for regional concerns. McKenzie urged the Senate to support the inquiry to pause buybacks and review the effectiveness of water management strategies.