Final report: Independent assessment of social and economic conditions in the Murray–Darling Basin
Commonly known as the ‘Sefton report’, it provides recommendations to the Australian government on the social and economic conditions of the Murray Darling Basin. The report provides an independent assessment in regional and rural communities while highlighting the positive and negative effects of water reform.
Please login or join for free to read more.
OVERVIEW
This report is an independent assessment of the Murray Darling Basin (MDB) and its social and economic implications on interdependent communities. The panel consists of seven members who provided findings and recommendations to stimulate, support and promote healthy regional communities that rely on the basin. The purpose of the report is to ensure long term equity and sustainability of the MDB so that intergenerational equity is achieved and ecosystems can continue to operate to ensure the longevity of the river system.
The first section of the report explains the context and methodology of the review. The review engaged with stakeholders across the basin between late 2019 and April 2020 in the forms of written submissions, face to face meetings and surveys. After assessing the evidence, the panel made 22 recommendations to the Australian government. These recommendations range from communication between stakeholders to increasing enforceability and accountability over the extraction of water in the MDB. The panel explains the social and economic impacts of the problems they are currently facing but also follow it up with the benefits of what their recommendations could entail for communities if implemented. The report states that it is not undermining the purpose of the Murray Darling Basin plan but seeks to address the social and economic impacts that the MDB and water reform has on communities.
Sections 2-3 of the report focuses on the social and economic conditions of regional communities across the MDB and the impacts of water reform. The findings in this report are mixed in terms of community responses. Recent water reforms over the past two decades have had a variety of interpretations when it comes to livelihood, social and economic prosperity. The review found that there is a noticeable negative correlation between the availability of water and level of personal well-being among affected communities, predominately in mental health. Some communities face more mental stress and pressure than their counterparts due to water availability to use for crops, recreational use and drinking water.
The paper does clarify that some communities are feeling a sense of bias in the treatment of water reforms with many people in water stricken provinces feeling that they are collateral damage while others marginally gain from these reforms. Some towns that are worse off from water reform as they experience de-population and shrinking local economic activity as former members of these town migrate to other ‘better off’ communities such as those that are marginally benefiting from water reform.
Finally, the report makes the case for the importance of identifying the social, economic and environmental impacts of resource management. Sustainable investing and responsible environmental policy play a role to ensure that all stakeholders are treated equitably, and the risks, benefits and impacts are transparent so that no one is worse off because of someone else’s gain which suggests a very inefficient outcome for all participants and the environment.
KEY INSIGHTS
- 22 recommendations made by the panel that can give relief to affected communities and improve water reform. The Australian government have responded to all recommendations made.
- The research collected by the panel consists of 750+ face to face meetings across all basin states, 100+ written submissions that contributed to this report, 600 survey responses and 70+ submissions in response to the draft report before final publication. The diverse data sources seek to ensure the comprehensiveness of the report.
- Demographics in this report in section 2 clarify some of the responses that basin residents have made to the draft report. Data demonstrates a crisis like scenario that showcases a severe decline in mental and physical well being, the damaging and dismantling of communities and the observation of rapid population decline and the deterioration of social cohesion.
- Community on the decline is a common theme in northern Victoria and southern NSW which are communities that rely on dairy and cropping industries that are severely affected by drought and water reform.
- First Nations communities are marginalised from the benefits of water reform. First Nations communities in the Basin are also experiencing poor social and economic conditions caused by drought and environmental decline. Health and wellbeing are suffering and so are their identity and culture.
- Report highlights that there are significant gaps in the information used in previous policy modelling due to out of date data. The use of this data in the creation of water reform has enhanced the damaging effects that these communities are enduring and led to inefficient allocation of water.
- Not all communities were fairing badly, some communities are optimistic about the future as they are reaping the positive benefits of water reform that stimulate economic growth and opportunity in multiple sectors.
- It is worth mentioning that smaller communities with a dependence on a agricultural firm such as dairy or cropping are more likely to face agricultural shocks such as drought that hinder employment and economic activity in these regions that have direct and indirect effects on depopulation and mental health stress as derived before.
- Communities also expressed their concern over how climate change is further limiting the availability of water and the consumptive pool. This pool is used to act as a buffer for post-drought recovery and with the pool diminishing this buffer will lessen and community recovery will become more unlikely.
- This report gives great insight into the concurrent social and economic effects that the Murray Darling Basin is having on communities and the effects of water reform. Prior to Section 1 is the 22 recommendations (pages 15- 32), Section 1 is how the review is conducted (34-37), Section 2 depicts the social and economic conditions across the MDB (39 - 59), Section 3 is the impact of Basin water reforms (57 - 74), Section 4 focuses on future conditions and Basin development (76 - 86).