Keith Pitt (Hinkler, National Party, Minister for Resources, Water and Northern Australia) Share this | Link to this | Hansard source

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I move:

That this bill be now read a second time.

In September 2020, the government announced its intention to create the Inspector-General of Water Compliance. Today, on behalf of the government, I'm very proud to introduce this bill. Water is a shared responsibility and water in the Murray-Darling Basin is a finite resource. Water is essential for the health and wellbeing of the Basin's 2.2 million regional and rural people. Water is essential to support our national economy, and the Basin contributes $24 billion in agricultural earnings and $8 billion in tourism dollars in a normal year. Water is essential for the natural environment in the Basin, including the 16 internationally significant wetlands and the endangered species that inhabit them.

To ensure a healthy working Basin, water management is a shared responsibility between the Commonwealth and Basin states. That's why we have a Basin Plan, an agreement between all Basin jurisdictions that we will manage its finite resources in a sustainable way. In developing this bill, the Australian government has worked closely with Basin states to ensure the bill will have their support before it commences. I thank them for their constructive engagement.

Establishing the statutory position of Inspector-General of Water Compliance is the keystone of this bill. This role will combine compliance and enforcement powers currently held by the Murray-Darling Basin Authority with the assurance role of the current interim inspector-general. In this role, the inspector-general will listen to the concerns of Basin communities to ensure that their voices are heard when it comes to water compliance. The inspector-general will also undertake audits, inquiries and reports in a transparent manner. The inspector-general will also work with other Basin states to develop more consistent standards and guidelines.

Compliance is at the heart of a fair water-sharing system. All participants need to know that they are being held to the same standard and that they are playing by the same rules. This bill strengthens compliance by enhancing the existing offences and the penalty regime under the Water Act. This includes strengthening penalties for water theft and water-trading offences. Importantly, this bill recognises that the states are the primary and frontline managers for water compliance. This does not change.

What this bill does is enable the Commonwealth to step in and take enforcement action on water theft if a basin state is unwilling or unable to do so. The inspector-general will work closely with basin enforcement agencies to develop complementary compliance and enforcement policies, and we will ensure independence. The inspector-general will be operationally independent. That is, the bill ensures that the inspector-general is at arms-length from government and has the freedom to choose how to pursue basin compliance. Ethical walls will separate the new regulator from the department's water-purchasing and policy programs, and the inspector-general will be truly independent, with its own work plan and budget and the ability to enter into its own contracts and appoint its own authorised compliance officers.

The inspector-general will work closely with the state authorities in developing these guidelines and standards. This will include careful consideration of input from basin states, such as the relevant state standards and policies. Through the development of standards and guidelines, the inspector-general will seek to improve consistency across the basin. The guidelines and standards will clearly articulate to basin state regulators, communities and other stakeholders what constitutes best practice for basin water management. The standards and guidelines will provide the inspector-general with a framework to evaluate the performance of basin jurisdictions, including the Commonwealth, in delivering the Basin Plan.

Our government is delivering stronger compliance, greater accountability and strength and integrity through this bill. This bill will enable the inspector-general to work across the whole basin, all one million square kilometres of it, to improve trust, strengthen compliance and increase transparency. It is what the community expects us to do.

Debate adjourned.