Steve Fielding (Victoria, Family First Party) Share this | Link to this | Hansard source

My question is to the Minister for Climate Change and Water, Senator Wong. Last month at a Senate estimates committee, Minister Wong reconfirmed that the government’s $57 million Small Block Irrigators Exit Grant Package would provide to farmers who are struggling with the drought an exit grant of up to $150,000. But the minister did not reveal that these grants would be made available to Victorian farmers only if the Brumby Labor government agreed to abolish some water-trading rules. Minister, is it not cruel to string along desperate farmers for months allowing them to believe they would finally get an exit package but then ripping the money from them because the Rudd Labor government cannot sort out a dispute with the Brumby Labor government?

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

I thank the Senator for his question. This is an exit grant that the Australian government announced for small block irrigators of 15 hectares or less. It was announced as a result of representations made by the South Australian government to the South Australian Premier and also as a result of discussions that I and others have had with irrigation communities. It is the case that we made the decision to offer the grant also in Victoria. But I should be clear on what measures are being sought from the Victorian government on this issue. They are, in large part, measures which we believe are necessary to enable delivery of this assistance—and can I indicate that reform requests have been made of the South Australian government as well.

John Hogg (President) Share this | Link to this | Hansard source

Senator Conroy, it is disorderly to carry on a conversation across the chamber. I am trying to listen to Senator Wong.

Honourable Senators:

Honourable senators interjecting—

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

He is all right.

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Senator Wong, ignore the interjections. Just address your comments to the chair.

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

As I was saying, we did seek a range of water market reform commitments from the states. I am pleased to indicate that we have reached an agreement with South Australia. In relation to the issues with Victoria, we are happy to have a discussion with our Victorian colleagues on this issue. I make a number of points. The first is that these reforms are consistent with the National Water Initiative commitments previously made. The second point, and this relates to what I was saying, Senator Fielding, is that we do regard the majority of what is being sought as necessary reform in order to enable delivery of the package. For example, Victoria has a 10 per cent ceiling on the amount of water entitlements that can be held separately from land. Clearly, if one of the requirements, and it is one of the requirements, for access to this package is to be able to sell to the Commonwealth government, and if these limits are reached by irrigators who would otherwise want to exit the industry—who would want to sell to the Commonwealth government but are prevented from doing so because of these market restrictions that remain in place in Victoria—then obviously that would not enable delivery of the package to those irrigators. So we will continue to have a discussion with Victoria.

As I said, we regard these reforms as beneficial—first, because they will enable delivery of the package more effectively to Victorian and other irrigators and, second, because we on this side do believe that an efficient and functioning water market is something that is good for irrigators. That has been demonstrated in terms of the low rainfall and drought we have had to date—the water market has enabled irrigators to purchase water and also to trade water if they wish to exit the industry.

I make the point, Senator, through you, Mr President, that this is a package that was never previously available; it was certainly never available under the previous government. It is a package that does enable small-block irrigators to exit the industry but remain in their communities. We are happy to work with the Victorian government, just as we have with the South Australian government, on those reforms, which we regard as necessary in order to enable its delivery.

Steve Fielding (Victoria, Family First Party) Share this | Link to this | Hansard source

You can dress it up all you like, but this shameful action by the Rudd government accounts for no less than holding—

John Hogg (President) Share this | Link to this | Hansard source

Your question, Senator Fielding?

Steve Fielding (Victoria, Family First Party) Share this | Link to this | Hansard source

It accounts for no less than holding—

John Hogg (President) Share this | Link to this | Hansard source

No, your question, Senator Fielding.

Steve Fielding (Victoria, Family First Party) Share this | Link to this | Hansard source

this is part of the question—those desperate farmers to ransom.

John Hogg (President) Share this | Link to this | Hansard source

No, your question, please!

Steve Fielding (Victoria, Family First Party) Share this | Link to this | Hansard source

My question relates to the answer. The government claimed in its media release the exit package will help small-block irrigators remain in their communities, but how can farmers stay in their communities while the Rudd government refuses to give desperate farmers up to $150,000 because the federal and Victorian Labor governments continue to squabble?

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

Senator Fielding, perhaps I did not make myself clear in the answer to the primary question. I explained to you three things: firstly, this is a package that has never before been made available and it is a package which enables small-block irrigators to remain in their communities whilst exiting the industry; secondly, the reforms that we will seek to put in place through agreement are reforms that we regard as necessary to enable effective delivery of this package for the reasons I outlined; and, finally, we do take the view that it is important, particularly after 12 years of failure to reform in this area, that we continue to reform the water market—

Fiona Nash (NSW, National Party, Shadow Parliamentary Secretary for Water Resources and Conservation) Share this | Link to this | Hansard source

Senator Nash interjecting—

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

because I think even you, Senator Nash, would know that your constituents do want an efficient and effective functioning water market as part of the reform of the Murray-Darling Basin. (Time expired)