Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Hansard source

As I was saying, we did seek a range of water market reform commitments from the states. I am pleased to indicate that we have reached an agreement with South Australia. In relation to the issues with Victoria, we are happy to have a discussion with our Victorian colleagues on this issue. I make a number of points. The first is that these reforms are consistent with the National Water Initiative commitments previously made. The second point, and this relates to what I was saying, Senator Fielding, is that we do regard the majority of what is being sought as necessary reform in order to enable delivery of the package. For example, Victoria has a 10 per cent ceiling on the amount of water entitlements that can be held separately from land. Clearly, if one of the requirements, and it is one of the requirements, for access to this package is to be able to sell to the Commonwealth government, and if these limits are reached by irrigators who would otherwise want to exit the industry—who would want to sell to the Commonwealth government but are prevented from doing so because of these market restrictions that remain in place in Victoria—then obviously that would not enable delivery of the package to those irrigators. So we will continue to have a discussion with Victoria.

As I said, we regard these reforms as beneficial—first, because they will enable delivery of the package more effectively to Victorian and other irrigators and, second, because we on this side do believe that an efficient and functioning water market is something that is good for irrigators. That has been demonstrated in terms of the low rainfall and drought we have had to date—the water market has enabled irrigators to purchase water and also to trade water if they wish to exit the industry.

I make the point, Senator, through you, Mr President, that this is a package that was never previously available; it was certainly never available under the previous government. It is a package that does enable small-block irrigators to exit the industry but remain in their communities. We are happy to work with the Victorian government, just as we have with the South Australian government, on those reforms, which we regard as necessary in order to enable its delivery.