A FUTURE federal government may have to spend an extra $2 billion to $3 billion purchasing water in addition to $3 billion of existing water buybacks to fulfil promises made by the two parties to buy all the water needed for the Murray-Darling river system.
Both Julia Gillard and Tony Abbott this week promised farmers would not be left out of pocket because the federal government would foot the bill for any water needed for the environment.
The value of the promises is difficult to quantify, but economists and water experts say they could double the cost of the existing buybacks, The Australian Financial Review reports.
Neither side has earmarked new funds for the commitment, saying it would occur when the current budgeted buybacks and spending on upgrades to irrigation infrastructure were winding up, and beyond the four years covered by the projections of the federal budget.
The eventual cost will be determined by what limits on water use are adopted after the Murray-Darling Basin Authority releases a plan to put water use in the river system on a sustainable footing.
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