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

I think there is a very intended consequence, and that is to avoid any existing restrictions—and I use the term non-pejoratively—on trade applying to the Commonwealth. I am sure, Senator Siewert, that you are aware that this would be opposed by the states, and that it would establish, essentially, certain special treatment for the Commonwealth Environmental Water Holder. It is important to recall that the Commonwealth Environmental Water Holder does not have a different class of entitlement to other users. We are actually stepping into the shoes of any other entitlement holder. So what we would essentially be saying is that as an entitlement holder we would have different rules applying to us. From a regulatory perspective, that might be regarded by many as problematic.

I have been very clear about the government’s view. We think there are benefits for the basin communities in a water market that is working as openly, efficiency and transparently as possible. We also recognise the significant community views of certain irrigation communities and regional communities—for example, in Victoria in relation to the four per cent cap. So we recognise that what will need to continue to occur is dialogue, both with community representatives and state governments, on these issues. We do not believe, in the context of this bill, that imposing this sort of requirement is going to lead to the sort of overall outcome that is required given that this bill is the subject of cooperative arrangements and that, as the senator and the committee would know, this measure would be opposed certainly by one, if not all, of the states.

Question negatived.