National Water Commission under threat from Federal Government budget cuts

The National Water Commission could be axed as part of the Federal Government's savings drive.

The decade-old commission, an independent statutory authority which advises the Commonwealth on water policy, is "in the mix" for cuts and the ABC's AM program understands it is likely to be wound up.

Scrapping the commission would save the Government about $30 million over four years.

Staff at the commission - which also monitors and audits programs like the Murray-Darling Basin Plan - have been told their future is under review.

Simon Birmingham, parliamentary secretary to the environment minister - who has responsibility for water policy - has refused to confirm the commission's fate but says it is under review.

"As everyone appreciates the Government has a huge budget challenge to bring the budget back into a sustainable shape and we've made it very clear that all areas of government are under review for efficiency opportunities and of course, across the water portfolio we're looking at that," Mr Birmingham said.

"But that doesn't in any way undermine our commitment to deliver on key policy promises. Especially promises like delivering on the Murray-Darling Basin plan in full and on time."

Senator Birmingham said the Government was keen to find the most cost-efficient way of receiving advice on water policy.

"The National Water Commission does some very valuable work, what's important for us is to look at what that work is, how it can best be done and best be undertaken in the context of our policy promises as well as of course, ensuring that we have good environment and water policy advice," he said.

"Of course, any use of consultants needs to be done as carefully as possible and be as limited as possible to ensure that we're not wasting taxpayer dollars and that's what I would expect any and every agency to do now and well into the future.

"Everything is being considered and looked at carefully to ensure that we give taxpayers best value for their money."

Dr Richard Davies from the Wentworth Group of Concerned Scientists says a 2011 independent review of the commission found that the body had been successful.

"[The review] came to the conclusion - and I might say that this was in a period when the Government was looking to save money - it came to the conclusion that the commission has done an outstanding job and also needs to continue its functions," he said.

"It's pretty clear that there's still work to be done, and in fact new challenges have arisen of course in the area of climate change."

Dr Davies says the commission is important because of its independent status, and doubts the same work could be done by consultants.

"The reason for having an independent standing body is that it is outside of government and if you have consultants ... they will immediately be beholden to the Government when really we need someone outside who is independent keeping an eye on progress," he said.