Across the nation’s foodbowl in the Murray Darling Basin, 44 First Nations groups share in 0.12 per cent of the water market, which is worth a total of $16 billion. Their 64 entitlements give them rights to a cumulative annual water take of 13 gigalitres, worth just $15 million.

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The $40 million fund was announced in 2018 by former Water Minister David Littleproud as a part of a policy package that included a legislative change to reduce by 70 gigalitres the volume of water to be bought back from irrigators in the northern Murray Darling Basin for the environment.

Under the plan, water for Indigenous entitlements would be bought from irrigators who are seeking to sell. “I’m determined to protect the Basin and its communities, and its Indigenous people are an important part of that,” Mr Littleproud said when he launched the fund.

Grant Rigney, vice chairman of the Murray Lower Darling Rivers Indigenous Nations said the Indigenous water fund is a “major political commitment” and spending it on non-water assets would be a “huge breach of faith and backward step” for the Morrison government.

First Nations groups argue that water assets are held as a perpetual property right and deliver sustainable economic returns while other stimulus investments could be one-off benefits.

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Northern Basin Aboriginal Nations leader Fred Hooper said he was “disappointed the Minister would say he’s even looking at using (the fund) for other purposes”.

“If this fund was for irrigators (the government) would be jumping through hoops to get the money out the door to buy water,” Mr Hooper said.

Senator Patrick told the estimates hearing that the Department’s progress on rolling out the fund made him “question the commitment of the government to assist these people”.

“Again we have a member of the Nationals party doing everything possible to make sure water goes nowhere else but to big irrigators,” Senator Patrick told this masthead.

The Closing the Gap agreement has set a June 2020 target for Indigenous water ownership, and Australia is a signatory of the United Nations declaration of rights for Indigenous peoples which includes a recognition of their rights to control resources including water.