The federal government has announced that as part of its 2021 budget, it will spend $3.5 million to establish an 'expert panel' to implement reforms to Murray-Darling Basin water markets.
The panel will work with irrigators and both tiers of government to introduce reforms recommended by the Australian Competition and Consumer Commission's water markets inquiry report handed down in March this year.
The 18-month study made 29 recommendations and found that mismanagement from federal and state governments had led to a widespread lack of trust in the market.
Resources and Water Minister Keith Pitt said the overwhelming majority of recommendations by the competition watch dog addressed a lack of coordination from governance.
Mr Pitt said the panel will be tasked with rebuilding that eroded trust in the water market.
"This budget commits $3.5m to establish the panel to address the ACCC recommendations that will begin the process to improve the governance, structure and operation of Murray-Darling Basin water markets," Mr Pitt said.
"The recommendations are wide-ranging with around 90 per cent involving coordination with basin states and will require unified action from all levels of governments, which is why we are taking this consultative approach.
"This is an important and detailed report that requires careful and detailed consideration and we owe it to our river communities to take the time to get this right."
The panel has been asked to deliver a draft roadmap by the end of 2021.
"I also acknowledge the hard work of our MPs and Senators across the Basin who are strongly advocating for their communities on this important issue," Mr Pitt said.
The government said the panel will include technical experts with experience in overseeing reform and others with market experience.
