NSW Farmers have called for a freeze on water buybacks in the Murray Darling Basin as an independent audit exposes major flaws in federal water management.

The audit, conducted by the Inspector-General of Water Compliance, found the Department of Climate Change, Energy, Environment and Water (DCCEEW) had failed on a number of counts to properly manage water for farms and communities in accordance with the Basin Plan.

NSW Farmers Water Taskforce Chair Richard Bootle said the federal government’s failure to effectively manage conflicts of interest while handling Basin water was just one of the concerning findings of the audit released this week.

“As the federal government owns and manages more and more water, their influence on water markets and management is getting murkier and murkier,” Mr Bootle said.

“We have a government department who is supposedly setting and reforming the water market rules, while also being a major buyer in this multi-billion-dollar market – and yet they don’t even have the proper processes in place to prevent insider trading or manage conflicts of interest.

“The risk that our precious water is being mismanaged is now very real, and we can’t stand by and let the lifeblood of our Basin farms and families get sucked away by poor management and poor process.”

As the Murray Darling Basin prepares for the next wave of water buybacks, Mr Bootle urged the federal government to put a freeze on its water purchases until the findings of the audit were addressed.

“This audit is the writing on the wall – buybacks are not only going to put a handbrake on farmers’ ability to produce food but are also opening up opportunities for misuse and mismanagement,” Mr Bootle said.

“Time and time again, we have said water buybacks aren’t feasible or fair, and this is just further proof of the damage and destruction they will wreak on what is our nation’s largest freshwater resource.

“There are smarter solutions to water recovery, and we need to explore these now or else farmers, towns and communities will feel the effects of a poorly executed Basin Plan for generations to come.”

The Murray Darling Basin (Infographic: Murray Darling Basin Authority)