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

I raise just two difficulties with this, apart from the obvious political one, which Senator Xenophon is aware of, in relation to this issue. The first is that this essentially bilegislative fiat seeks to impose the reforms that are currently the subject of reform through negotiation, collaboration and cooperation with the states. I would make the point, Senator Xenophon—and I am sure the four per cent issue was high in your mind when you considered this amendment—that it is quite possible that there would be fees or other charges or other restrictions well beyond that, including possibly some that apply in South Australia, which might well fall within the ambit of this provision. There would be different views from some irrigators in South Australia about that.

I have made it clear publicly that we do see an efficient and well-functioning water market as very important for reform. It is not an ideological position around markets; we actually think it is in the best interests of irrigators and their communities to ensure the water goes to where it is most highly valued. It is one of the ways in which the adjustment process can be managed and enables people to have choices about selling a portion of their water, investing or, if they wish to, choosing to exit the industry or invest in some other way. We will continue to work through the processes that are in place around these issues. I am advised that there are a number of policy and legal concerns associated with this proposed amendment.

The other point I would raise, Senator Xenophon—and it is possible you simply were not aware of this—is that I am not aware of any specific funding program under the National Water Initiative. That was an agreement reached with the states in 2004 but it is not currently the way in which Commonwealth funding for water is delivered to the states. So that is a technical issue in relation to the second part.

Question negatived.