Rex Patrick (SA, Nick Xenophon Team) Share this | Hansard source

I rise to contribute to the debate on the disallowance motion moved by Senator Hanson-Young. I can indicate to the chamber that the Nick Xenophon Team will be supporting this disallowance. It is a decision that we have considered carefully, and it is a decision that we have not taken lightly. The Murray-Darling river system is a vital national resource. In my first speech I said that ensuring the health of the Murray-Darling river system so that it's sustainable from both an economic and an environmental point of view was an important priority.

There is a rich history behind the Murray-Darling Basin, and the establishment of an overarching management for the whole of the basin was not without dispute. It took the severe Federation Drought, from 1895 to 1902, to bring the states together to start to agree on the management of the Murray. From the 1970s through to the 1990s, state governments undertook initiatives to sustainably manage land and water. An intergovernmental approach was needed, and in 1987 the first Murray-Darling Basin agreement was reached, which established the Murray-Darling Basin Commission. With the passage of the Water Act in 2007, the establishment of the Murray-Darling Basin Authority and the development of the Basin Plan with bipartisan support, there was a hope that the dispute would be resolved. However, over 100 years later, and five years after the plan was implemented, it is apparent that that dispute still exists.

While NXT is supportive of the plan being implemented in full, there has been a significant reduction in public confidence in the plan's implementation over the past 12 months. We've heard a few of the allegations around the chamber. I did travel to Goondiwindi last year and visited one of the farms that have been talked about on the ABC, and these allegations are serious.

NXT is not alone in its view about the lack of confidence. It is a view that has been expressed by a variety of stakeholders and, indeed, government authorities, and that includes the New South Wales government's Matthews review and the federal Murray-Darling Basin Water Compliance Review. The solution to restoring this confidence lies with a range of measures relating to both transparency and compliance. I would like to take this opportunity to put on the record some of these measures.

NXT is firmly of the view that transparency must be codified before proceeding further with the plan. As a minimum, the following must be released publicly for any proposed water measure, including water buybacks: all modelling and modelling reports, not limited to the final proposals, but those carried out to evaluate the effects of any measures; an independent assessment of the measures; and, in the case of water buybacks, all valuation and assessments made by the government and including independent valuations assessments, which must be made public. The contracts to implement the measures must also be made public. In the case of water buybacks, the contracts should show as a minimum the expenditure amount, the scope of the work associated with the expenditure amount, and the associated volumes of water. In respect of the contracts, we also need to see verification reports showing that the contracts have been complied with. We also need to disclose validation reports—I will talk about those a little bit later—to make sure that we understand that the measure that was intended has been achieved. All complaints in respect of noncompliance must be published on an annual basis, de-identified as required, including a report as to the outcome of any investigation triggered by a complaint.

NXT is also of the view that a number of compliance measures must be put in place before proceeding with the plan. Measures that must be addressed include basin-wide accurate, reliable and tamper-proof metering and the implementation of real-time water accounts. These are not radical ideas. These are ideas that actually reside within the Murray-Darling Basin Water Compliance Review recommendations. Furthermore, all water measures should be subject to strict verification and validation procedures to show contract compliance and, again, the effectiveness of the measure. So, we do something to the river and then we measure it to make sure that what we've done is achieving the results that we thought we were paying for. There must be a substantial increase in the number of compliance officers across the basin, including the Murray-Darling Basin Authority compliance officers. New South Wales has one compliance officer per 355 gigalitres of diversions. Queensland has one per 235 gigalitres. South Australia has one per 56 gigalitres.

It is acknowledged that there have been a number of useful recommendations flowing from the Matthews review and the Murray-Darling Basin Water Compliance Review, particularly in relation to compliance measures. It is noted that timetables have been put in place to implement the recommendations. Nonetheless, the implementation of the recommendations is subject to risk. That's been overtly stated in the case of the Matthews review.

Time is required for the recommendations to be implemented and to bite into the issues they are intended to resolve. It is not an unreasonable position to delay any changes to the plan until the recommendations start to deliver positive outcomes. It is noted that Queensland's independent audit of Queensland's non-urban water measurement and compliance will not report until March 2018. This may be a critical piece of the compliance puzzle. Let's wait and see what it says.

In relation to the northern basin, NXT has concerns with respect to the modelling associated with the Northern Basin Review. For example, the modelling omitted certain hydrological indicators on the Barwon-Darling River, thereby not properly considering the impact of reduced water recovery on low flows, and the modelling was based on best-case scenarios. Another aspect of the changes, for instance, is a lack of statutory requirement to protect water that is recovered with taxpayers' money. These concerns have been exacerbated by The Australia Institute's 'Northern disclosure' paper, which came out a few days ago, which makes a claim that the effect of the proposed SDL adjustments to South Australia has varied from 20 gigalitres down to four gigalitres without any explanation as to the change. Some light needs to be shed on the reasoning behind those changes so we can be confident that what is finally presented is correct.

I will also talk to the SDL adjustments, because—as I will come to—we need to think about an integrated approach to moving forward. Talking about some of the issues associated with the 36 projects that will be used to offset the 605 gigalitre changes, NXT has sought the Murray-Darling Basin Authority's acceptance of the 36 projects by way of a Senate order for production last week so that we can examine the authority's view on the projects as a counterweight to the public perception, which is currently bad. It is important to see this information in order to be informed with respect to any final decisions on the SDL adjustment mechanisms. I note the government is cooperating.

It is also NXT's understanding that the Water Act states that, in setting the SDLs, the Murray-Darling Basin Authority must act on the basis of best available scientific knowledge and on socioeconomic analysis. They must take into account the principles of ecological sustainment and development and give effect to relevant international agreements. The proposed amendments include a provision for states to request a reallocation of the SDLs between valleys within basin zones, for example, within the northern basin of New South Wales. This amendment suggests the MDBA has left it open to a state to vary the SDLs by valley outside the recommendations in the Northern Basin Review or the SDL adjustment mechanisms. Such a change would be outside any parliamentary process and there is no requirement for the revised SDLs to be set with regard to best available scientific knowledge and socioeconomic analysis, principles of ecological sustainable development or relevant international agreements—so there's a problem there.

Any scientific algorithm that was used to initially justify the SDL can subsequently be replaced by an alternate algorithm by the MDBA and the states behind closed doors, and this proposition is clearly unacceptable. The MDBA did not consult publicly on this amendment. It is NXT's view that changes to the plan should be presented in an integrated package: that being, changes resulting from the Northern Basin Review—and we accept that there needs to be some adjustments—changes to the southern basin SDLs and the 450 gigalitre efficiency measures. Ernst & Young reported into the feasible of the 450 gigalitre efficiency measures, but we note that it is, at this stage, only advice to government. This advice needs to be transformed into an approved action plan, which is presented at the same time as changes flowing from the Northern Basin Review and changes to the southern basin SDL adjustments. NXT support for the changes to the plan are contingent on this sort of integrated approach.

The Nick Xenophon Team strongly believes there is a way forward. The Murray-Darling Basin Plan is a national plan that represents a sensible compromise across competing requirements, including socioeconomic and environmental requirements. No stakeholder was completely happy with the plan, but they recognised its importance. It is noted that some stakeholders have indicated that the disallowance of the instrument before this parliament would cause the plan to collapse. That is in nobody's interests and it will be for the government to ensure this does not occur. In support of the government, NXT indicates that it is willing to support the passage of the instruments through the parliament, just not under the current circumstances. A pause is required for some issues to be addressed and to permit implementation of the recommendations of the various reviews, including the Queensland review when it reports. The Northern Basin Review instrument can be brought back before the parliament, and NXT is open to agreeing to amend the Water Act to allow the SDL adjustments to come back before the parliament.

There is a suggestion from the New South Wales government that a successful disallowance today would cause them to walk away from the plan. I have to say this is a little disingenuous, considering the New South Wales government has its own serious river compliance problems. Their own Matthews review stated this clearly. Indeed, there is an ICAC investigation underway into corruption on the Barwon-Darling.

Everyone needs to remain cool headed. We are dealing with a national river system that must be managed on a national level. Abandoning the plan would be counterproductive, and, again, the government must act to ensure that does not occur. It seems everyone agrees there is a problem, including governments, and there is general agreement on what needs to be done to fix it. The solution just needs time to be implemented, and the Nick Xenophon Team believes supporting the disallowance on the Northern Basin Review gives us that time.