Question time - Murray-Darling Basin

04-06-09

Mr GERARD MARTIN: I direct my question to the Premier. What action is to Government taking to secure the water supply in the Murray-Darling Basin?

Mr NATHAN REES: I thank the member for Bathurst for his question and longstanding interest in this matter.

The SPEAKER: Order! Members will cease interjecting. I call the member for Upper Hunter to order. The Premier has the call.

Mr NATHAN REES: I have not had a phone call from anyone opposite on this matter. In the driest continent on earth, water equals life for households, farmers and the environment. Unlike the United States of America—a land mass roughly the same size as Australia—we do not have abundant inland rivers. In fact, all of our rivers combined would fill only 10 per cent of a river the size of the Mississippi in the United States. Our water scarcity has been made worse by a protracted drought, which shows signs of hardening under permanent climate change. A nation or State in that position must value its water, never giving it up lightly, and nowhere does that apply more than in the Murray-Darling Basin.

No member needs reminding of the national significance of the Murray-Darling Basin, which covers over one million square kilometres or 14 per cent of Australia's land area—half of that within New South Wales. The basin claims 41 percent of the nation's gross value of agricultural production, some 71 per cent of irrigated crops and pasture, and 50 per cent of our sheep. Never was the title "food bowl" more appropriate to a region. The basin is also a treasured environmental resource that relies fundamentally on water for its survival. Above all, it is home to thousands of people whose livelihoods—directly or indirectly—rely on that water supply and it is essential for the Government to get the social, economic and environmental balance right.

That is why the New South Wales Government has embarked on bold structural reforms to make our water system more flexible and secure. The Government has created an open and competitive water market, one that respects the environment and considers the needs of irrigators and industry. These reforms have also extended nationally. New South Wales was the first State to sign up to the Commonwealth's Murray-Darling Basin reforms and is the leading State in fulfilling our national water initiative commitments. The support of New South Wales for environmental flows is second to none. We have a proud record when it comes to delivering water to the environment.

New South Wales was the first State to provide the environment with a statutory water right and initiated the $105 million NSW RiverBank program, which has led the way in purchasing water from willing sellers. This will improve river and wetland conditions in the Murray-Darling Basin. It will also contribute 85,000 megalitres of entitlements to be returned to the environment. In fact, New South Wales is doing all the heavy lifting on water policy in the Murray-Darling. The latest purchase by the Commonwealth of 240 billion litres of water entitlements from the Twynam Agricultural Group means that 97 per cent of all Commonwealth water buybacks have now come from New South Wales. For every 32 litres purchased from New South Wales by the Commonwealth, only one litre has been purchased from the other States combined.

Last week the Minister for Water called for a halt on environmental water purchases from New South Wales by the Commonwealth under the Restoring the Balance Buyback program. There will be a halt until a fairer deal between the Commonwealth and all other States is put in place and until the other States, particularly Victoria, remove their barriers to trade and honour the letter and spirit of the national water initiative. I can today inform the House that New South Wales is committed to intervening in the South Australian High Court water challenge. New South Wales believes it is critical that all States should reform their water markets and contribute their fair share when it comes to what buybacks. This is the position New South Wales will seek to advance in the High Court.

I am pleased to say that the stance by New South Wales is already having an affect. It was reported in the Australian today that, as a result of our embargo, Victorian farmers are entering negotiations with the Commonwealth to sell 80 billion litres of water. That is a good start because the towns and communities on the New South Wales side of the Murray have played more than their part in water reforms.

Four States have charge of the Murray-Darling. Four States must bear the burden fairly and equitably. This is not a New South Wales-Victoria rivalry. I have immense respect for John Brumby, the senior Premier of our Federation.

The SPEAKER: Order! I call the member for Terrigal to order.

Mr NATHAN REES: He has made a sterling contribution.

The SPEAKER: Order! I call the member for Murray-Darling to order.

Mr NATHAN REES: As I said, I have immense respect for John Brumby, the senior Premier of our Federation.

The SPEAKER: Order! I call the member for Wakehurst to order.

Mr NATHAN REES: But on this issue Victoria's stance has come at a cost to others. Drought and climate change—although the Opposition does not acknowledge climate change—mean that no State gets a free pass. None of us is immune. Everyone must play a part. That is the message from the President of the Shires Association of New South Wales, Bruce Miller, who said:

While we agree our river systems are in desperate need of protection, New South Wales has borne the brunt of this program for too long.

The Riverina and Murray Regional Organisation of Councils [RAMROC] expressed "appreciation from councils and communities in relation to the strong stand Minister Costa is taking to embargo further sales of irrigation entitlements out of New South Wales at this stage". Further, RAMROC "strongly believed that a coordinated national strategic water plan is urgently required before the buyback program continues any further". The Australian Conservation Foundation said that more needed to be done to get Victoria to surrender some of its water. Arlene Buchan from the Australian Conservation Foundation said that the Twynam buyback threw a spotlight on how much work New South Wales was doing to save the basin, compared to Queensland, Victoria and South Australia. She said that every large water purchase had come from New South Wales and it was time for real progress in Victoria and along the Murray River. The New South Wales Irrigators Council said:

New South Wales has now taken too much of the burden of readjustment in the Murray-Darling basin.

In New South Wales, councils, environmentalists, industry and government are speaking with one voice. They are saying clearly and firmly that the Murray-Darling needs a fair go from every State. There are no excuses and no free passes. The people who live in the Murray-Darling Basin deserve as much.