Helen Coonan (NSW, Liberal Party, Shadow Minister for Finance, Competition Policy and Deregulation) Share this | Hansard source

I will speak very briefly in response to the Appropriation (Water Entitlements and Home Insulation) Bill 2009-2010 and Appropriation (Water Entitlements) Bill 2009-2010. We in the opposition have made it very clear that we will not obstruct the passage of these bills through the Senate even though we take issue with the purpose of the funding. I will be very brief in outlining our objections.

The bill seeks to provide funding of $1.4 billion to cover rebate payments made under the government’s home insulation pink batts program and to accelerate water buybacks within the Murray-Darling Basin system. The home insulation program has been riddled, of course, with reports of waste, rorting and safety fears. The bills before us now confirm that. It is also a program with a billion-dollar blow-out in the 2009-10 year alone. Back in February this year, when the program was announced, the opposition warned that the government induced demand would far outstrip supply, and in spite of these warnings Labor raced its home insulation rebate for homeowners through the parliament with minimal industry consultation. We are seeing the effects.

I now turn to the water buybacks within the Murray-Darling basin. The government wants to accelerate water purchasing in the Murray-Darling and provide for new water-purchase initiatives in 2009-10. To date, the government has secured the purchase of more than 600 gigalitres of water entitlements. The coalition also, in respect of this program, has abiding concerns about the acceleration of the water buybacks within the Murray-Darling Basin system, because it is to the detriment of replenishing and investing in farming infrastructure. Water infrastructure would deliver real water savings of hundreds of billions of litres a year. It would also improve the health of the river system and secure a future for our vital food producers. Instead of investing in infrastructure, the Rudd government’s alternative is to buy out farmers and farming communities, which will simply cost jobs and jeopardise our food security. The sad reality is that the government is buying entitlements to air, not real water. Most regrettably, the government is not assisting these farmers and farming communities to find new ways of sustainably farming or adjusting to the situation they find themselves in.

Nevertheless, we have of course said that if the government were serious about effective stimulus spending, they would looking at value for money, they would be investing in Australia’s water security and they would reduce real water losses through evaporation and seepage by piping lining and covering channels and dams. Instead, the government obviously intend to continue with a dodgy insulation program and phantom water buybacks and to ignore the infrastructure works that would really help to save the Murray-Darling Basin. I did indicate that we would not oppose this legislation, but even at this time of year and in the circumstances of these extended sittings of the Senate I think it is only right that I identify on behalf of the coalition our concerns about the serious deficiencies in the government’s approach to policy and administration in relation to both the Home Insulation Program and water buybacks in the Murray-Darling Basin. I commend the bill.