Water buyback funds must benefit communities, not bureaucracy

Published on 27 August 2026

Gannawarra Shire Council continues to call on the State Minister for Agriculture, Water, and Rural and Regional Development, Michaela Settle, to meet and discuss its proposed allocation of the Federal Government's $150 million Sustainable Communities Fund, warning that excessive spending on administration, consultants and planning risks denying affected communities the support they deserve.

The Sustainable Communities Fund was established to help irrigation communities adjust to the social and economic impacts of water recovery under the Murray-Darling Basin Plan. However, Mayor Garner Smith said communities most affected by water buybacks were being sidelined from discussions about how the funding should be spent.

"As a Mayor representing one of the communities hardest hit by water reform, I find it deeply disappointing that local government leaders have been excluded from key briefings and discussions regarding this funding," Mayor Smith said.

"Minister Settle has publicly stated that local government has been consulted on these proposals. That is not the case, and the exclusion of elected Mayors from these conversations leaves communities feeling ignored and disrespected."

The Gannawarra had already experienced devastating impacts from water recovery measures, including the loss of 51 per cent of its irrigated pastures and crops footprint from 1995-2000 to 2015-2019, 38 per cent of agricultural jobs between 1996 and 2021, and 57 per cent of food manufacturing jobs.

"We are being told this funding is designed to strengthen regional communities, yet current proposals would see $75 million directed towards strategies, plans and studies,” Mayor Smith said.

“Agencies already have shelves full of reports, and if the Victorian Government continues to proceed with its plans, the Sustainable Communities Fund risks becoming a sustainable public service and consultants' fund.

“Communities do not need more paperwork. They need investment and implementation."

Council is also concerned about the State Government's proposed administration costs, including $10 million being allocated to manage the program.

"Every dollar spent on bureaucracy is a dollar not spent creating jobs, supporting businesses, improving infrastructure and building long-term resilience in our communities,” Mayor Smith said.

“Despite carrying such a significant burden, Gannawarra appears likely to receive only around $1 million from a $150 million fund intended to support affected communities. This is one tenth of the $10 million the Victorian government will take to administer a program spread across seven northern Victorian municipalities.

"The purpose of this fund must be to deliver real outcomes on the ground. We know which communities have been impacted, and those communities should be trusted to identify and deliver projects that support their future prosperity."

Mayor Smith also expressed disappointment that requests for a meeting with Minister Settle to discuss Gannawarra's concerns remain unanswered.

"We stand ready to work constructively with government, but genuine consultation starts with engaging with the communities most affected," he said.