Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

Mr President, my question is to Senator Conroy, the Minister representing the Minister for Sustainability, Environment, Water, Population and Communities. Yesterday I asked a series of questions in relation to a $265 million funding announcement back in October last year to support the Riverland and other river communities in South Australia. I am grateful for the written response that I received earlier today from the minister. Further to that response, does the government acknowledge that this fund needs to be tailored for the region for which it is allocated—namely, river communities in South Australia—and that, of necessity, funding criteria should consider the early adoption of water-saving technologies by South Australian irrigators?

Stephen Conroy (Victoria, Australian Labor Party, Minister for Broadband, Communications and the Digital Economy) Share this | Link to this | Hansard source

I thank Senator Xenophon for his question. As the senator indicated, he asked a number of questions yesterday. Minister Burke has supplied me with the following information.

The Commonwealth has committed $1.2 million to the South Australian government to undertake a feasibility study and to develop a business case for the River Murray Improvement Program. In accordance with this agreement, South Australia was required to submit by 21 December 2012 a draft business case that met milestone requirements specified in the business case funding agreement.

On 21 December 2012 the Commonwealth received for discussion purposes part of what was described by South Australian officials as a preliminary draft business case for the $180 million River Murray Improvement Program, with further material provided by South Australia on 10 and 17 January 2013. Further detail was sought from South Australia. Discussions on requirements continued between South Australia and Commonwealth officials during January and February 2013. South Australia submitted a partial draft business case to the Commonwealth on 28 February 2013, with other material provided on 1 March 2013.

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

Mr President, I rise on a point of order. Senator Conroy is just reading from the answer that he provided to my office several hours ago. These are fresh questions that I asked.

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

There is no point of order.

Stephen Conroy (Victoria, Australian Labor Party, Minister for Broadband, Communications and the Digital Economy) Share this | Link to this | Hansard source

I appreciate that Senator Xenophon may have seen this and it does not have broader knowledge, but I will add further information as we go.

As I said, the Commonwealth provided South Australia with feedback on the draft business case on 14 March. South Australia is continuing to develop the business case. These are significant projects that need a large amount of detail, including governance arrangements. Negotiation on such projects can take time, and once a final business case is submitted for the RMIP, Commonwealth due diligence assessment will be conducted. Following due diligence assessment, a recommendation will be provided to the Minister for Sustainability, Environment, Water, Population and Communities, including on any conditions required for the program to proceed if approved. If approved, a funding agreement will be put in place with the South Australian government— (Time expired)

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Given that $240 million of this fund is meant to return 40 gigalitres of water to the environment, will the Commonwealth be as innovative with the rules governing the fund as they are in asking river communities in South Australia to be innovative in their approach to optimising water use? For instance, will funding be allocated to projects that assist economies of scale and new tertiary processing facilities?

Stephen Conroy (Victoria, Australian Labor Party, Minister for Broadband, Communications and the Digital Economy) Share this | Link to this | Hansard source

As has been indicated, the $265 million commitment has two components: the $180 million RMIP and $85 million for a separate South Australia industry futures program. The spoke and content of the latter initiative is still being developed by South Australia. Funding for these programs will flow as and when the programs pass due diligence and are approved for funding and the required funding agreements.

As to whether or not they will take into account the matters raised by Senator Xenophon, I am happy to take that and any other parts of his questions that I do not have any information for on notice to see if the minister has some further information for him.

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Does the government acknowledge the fear of many river communities in South Australia that this $265 million fund may go the same way as the PIIP-SA water infrastructure fund, which has such restrictive, unsuitable and poorly targeted guidelines for funding that, after more than four years, only $14 million of $110 million in the fund has been allocated?

Stephen Conroy (Victoria, Australian Labor Party, Minister for Broadband, Communications and the Digital Economy) Share this | Link to this | Hansard source

I will take that on notice and seek any further information.