Simon Birmingham (SA, Liberal Party, Minister for Trade) Share this | Hansard source

I thank the Senate for the opportunity to speak in response to Senator Patrick's questions and take the opportunity to correct some of the fundamentally incorrect statements in his original motion that brought this matter to the chamber.

Senator Patrick notes that the government denied the Senate access to water-valuation documents used to inform the purchase of water from Eastern Australia Agriculture in 2017. That is not actually the case. The government complied with the order of 16 November 2017 and released documents to the Senate on 12 February 2018. To assert that the minister made an improper public interest immunity claim, as has been done, is simply false. The documents were released in a redacted form to protect the commercial interests of the Commonwealth. Assessments of the potential impact of releasing details of evaluations are made on a case-by-case basis. The valuation documents used to inform the purchase of overland flow water entitlements from Eastern Australia Agriculture in 2017 were assessed in February 2018 as containing commercially sensitive information.

It is now 2½ years since the tabling of those redacted documents—a significant period of time. Logically, valuations become less commercially sensitive as they become more dated and less relevant to any negotiations or decisions of the day being made by government. In light of this, in association with the request under the Freedom of Information Act, the department considered the commercial value of the documents now to have reduced, and so it recently released further material. It is simply a question of the passage of time since the documents were first tabled. If the Senate made the request via an order for the production of documents now, then the valuations would have been released without commercial information redacted, as they have been, under the Freedom of Information Act.

Despite the senator's efforts to undermine confidence in the recovery of water for the environment, he has been unable to identify any nefarious acts in relation to these purchases. More importantly, the Australian National Audit Office recently completed an audit of exactly the purchases that the senator is claiming were overpayments. They found that the department and government did not pay more than the market rate for that water. The Senate has ordered the government to explain why the Commonwealth paid more than the independent valuer's range. To repeat—and to be very clear—the government did not overpay. The ANAO found that all strategic water purchases, including the water purchased from Eastern Australia Agriculture, were at or below the market rate identified by independent market valuations. I quote from the Auditor-General's Audit report No. 2 2020-21: Performance audit:procurement of strategic water entitlements, page 9:

The price the department paid for water entitlements was equal to or less than the maximum price determined by valuations.

The valuation for standard overland flow entitlements of the type purchased provided a market-value range of $1,100 per megalitre to $2,300 per megalitre. The valuation also clearly stated that the department should be prepared to pay 10 to 30 per cent above the standard market rate—that is, up to $3,000 per megalitre—for 'properties of a high standard that have achieved above average levels of water use efficiency' in this region. In fact, the department paid less than the top end of the expanded valuation range provided for in the valuation and purchased some 28,740 megalitres of nominal overland flow entitlements for $2,745 per megalitre, reflecting the nature of the property. This was based on the department conducting a full and rigorous assessment of all available information. Senator Patrick and others in this place have desperately tried to besmirch the name of ministers and of the hardworking and dedicated public servants delivering the Basin Plan and undertaking the recovery of water. However, the ANAO investigated these matters and found no evidence of improper dealings.

Senator Patrick interjecting—

I note Senator Patrick is attempting to besmirch the Auditor-General through interjections as well. What the senator should be mindful of are the environmental benefits for the Culgoa Floodplain and the Lower Balonne River, including the Narran Lakes, a Ramsar-listed wetland of international importance. That, as part of the Basin Plan, is what this water was purchased with an intent of delivering.

The Commonwealth Environmental Water Holder recently estimated that 95 gigalitres of water contributed to flows in the Lower Balonne at the start of 2020, including from the overland flow licences purchased from Eastern Australia Agriculture. These were the most significant inflows to the Narran Lakes since 2013. The Narran Lake Nature Reserve Ramsar site supports 40 migratory bird species, including 19 listed under international agreements, and threatened species such as the Australasian bittern, the Murray cod and winged peppercress.

As we recover from COVID-19, sites like this wetland of significant importance will attract domestic travellers—travellers who will see Australia's flora and fauna on display because of water recovered and used to benefit the environment because of this government's work in delivering the Basin Plan. More importantly than those tourism and travel benefits and economic dividends, of course, is the reality that the work under the Basin Plan to recover this water is delivering the environmental benefits intended through supporting wetlands of this world-class nature and the species that depend upon them.

Our government is getting on with the job of delivering the Basin Plan. We are delivering for the environment, for communities and for farmers, notwithstanding the many difficulties faced in the delivery of that plan. We will not be distracted by ill-founded beat-ups, conspiracy theories or those who seek to shamelessly and shamefully undermine confidence in the Basin Plan, which is one of the most important environmental measures this parliament has put in place.