Anne Webster (Mallee, National Party) Share this | Hansard source

I rise to support this motion and welcome the strengthened role of the Foreign Investment Review Board and the changes to the regulatory framework aimed to address what FIRB has described as 'increasing risks to the national interest'. Of the nearly $4 trillion of foreign investment in our country, more than 20 per cent comes from the United States, more than 10 per cent from each of the United Kingdom and Japan, and a little over five per cent from China. This might surprise some. Foreign investment drives economic growth, creates skilled jobs, improves access to overseas markets and enhances productivity. While acknowledging the value and contribution of foreign investment to our national prosperity, it is important to strike a balance between maintaining an attractive and welcoming environment for foreign capital on the one hand while maintaining community confidence in the foreign investment regime on the other.

The Treasurer has introduced reform to the FIRB, giving the Australian community confidence that there are rules in place that protect the national interests and our nation's critical assets. By extension, it follows that the government should work to ensure that Australian farming communities have confidence that rules are in place to protect our nation's most critical asset: water. In principle, the sale of water rights should be subject to approval by the Foreign Investment Review Board.

Since beginning my term in government, I have been listening to local voices, industry and organisations about the challenges posed by the operation of Australia's water trading markets. There is a widely held view that these markets are exploited by local and foreign speculators, who have played a role in artificial price increases in temporary water prices. I have also heard numerous calls from concerned communities requesting that access to these markets be restricted only to those who have productive use of water. Players without a productive use for water add yet another straw to a diminishing cup, driving up scarcity in the market.

While I support water trade associated with productivity, I am sensitive to the fact that annual croppers trade water in dry years as part of their business model when they cannot sow. There are also retired farmers who rely on water trade as their self-funded retirement system. These complexities need to be acknowledged and managed. The government is listening to community concerns about the water markets and water trading and is working through these complexities. This is why the ACCC was directed to conduct an inquiry into markets for tradeable water rights in the Murray-Darling Basin. To inform their inquiry and recommendations, the ACCC held public hearings in regional towns and communities to hear the views of those engaged in and affected by water markets. One public hearing in Mildura was held in the recent drought at its worst and when the price of temporary water was up to around $900 a megalitre. I know that this was a charged meeting, with many expressing their anger and distress at the operation of the markets. Again, the role played by market speculators and foreign investment in the market were key issues at the hearing. The attendees also lamented the view that their voices were not being heard.

I've been working hard to ensure that irrigators, farmers and concerned community members have the chance to raise their views and experience with me. Recently, I convened a teleconference roundtable discussion with the Minister for Resources, Water and Northern Australia, Keith Pitt, along with stakeholders in the water space, including growers, industry peak bodies and water management authorities. We discussed the issue of water trading, and many of these concerns were expanded on. I was pleased that the minister was able to hear Mallee voices.

I, like many others, eagerly await the findings of the ACCC inquiry into water markets. The ACCC will recommend options to enhance markets for tradeable water rights, including options to enhance their operations, transparency, regulation, competitiveness and efficiency. I understand that it will be prudent for the minister to await the commission's findings before taking action with regard to water markets.

Based on the work I have done with members of the Mallee community, expert water management bodies and Minister Pitt, I'm of the opinion that the sale of water rights should be subject to approval by the Foreign Investment Review Board. This will ensure that Australian farming communities have confidence that rules are in place to protect their livelihoods. We owe it to our farmers, irrigators and drought affected communities to restore confidence in the complex system that governs the management of Australia's water resources. (Time expired)

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