Ministerial Statement

MURRAY RIVER IRRIGATORS

The Hon. M.D. RANN (Ramsay—Premier, Minister for Economic Development, Minister for Social Inclusion, Minister for the Arts, Minister for Sustainability and Climate Change) (14:06): I seek leave to make a ministerial statement.

Leave granted.

The Hon. M.D. RANN: The current drought continues to ravage South Australia, and whilst some regions in South Australia received good rains a few weekends ago (although in some areas that rain caused severe crop damage), it would be a mistake to think that it signalled the end of the drought. In many areas our rural communities are still suffering the dire consequences of the lowest rainfall on record. All South Australians are feeling the devastating effects of this drought.

Indeed, I am sure that all South Australians are aware of the anguish suffered by our farmers and watch in dismay the continuing impact on the River Murray and those who depend on it, especially our irrigators. As water becomes available from the River Murray, the Minister for the River Murray will make available allocations to licence holders on the river. The government must take a very responsible approach to the allocation of water. We cannot allocate what does not exist. The state government has a statewide drought response.

All the measures applicable to the dryland farmers are also available to the state's irrigators. The government is acutely aware of the risks and uncertainties faced by our irrigators. PIRSA has continued to work directly with the irrigators, communities, industry, local government and community support agencies by hosting workshops to ensure that they are kept well informed about water flows and water quality and to initiate planning and recovery. The government has also supported river communities to prepare socioeconomic studies that included management for drought impacts.

As part of this government's $70 million drought support, we have recognised the specific needs of irrigators by:

waiving the transfer fees for purchase of water to top-up restricted licences, and

concessions on irrigators' NRM levies.

Recently I informed the house that, as part of our commitment to extend the drought-relief program, three drought coordinators would be appointed to assist regional communities. The Premier's Special Adviser on Drought, former premier the Hon. Dean Brown, is overseeing their work. I am pleased to advise the appointment of Jim Caddy as the Drought Coordinator for the River Murray. I am told that Mr Caddy has a strong involvement in all parts of the community and is known as a community leader with high levels of integrity.

I am informed that he has extensive experience through his work with the community, industry and government agencies. Mr Caddy has been a grape grower in the Riverland for more than 20 years, he is currently the Chair of CCW Limited, representing about 750 growers in the Riverland region, and he brings a wealth of knowledge and experience to the position. It is the federal government that has the lead responsibility for drought response across the nation, and I have continued to lobby the Prime Minister for assistance for our farmers.

A week ago, on 7 November, I wrote to the Prime Minister (Hon. John Howard) asking him to consider a proposal developed in conjunction with the South Australian River Murray irrigators. The proposal involves providing federal government assistance through a loan scheme administered by private banks for the purchase of temporary water entitlements by irrigators.

It is intended that the additional water will be used to ensure the survival of perennial plantings such as wine grapes, citrus, almonds and stone fruits. Because many of these plantings take years to become productive, it is vitally important to keep alive as many of them as possible during this drought period. I am told water is available on the open market and that the plan could be funded from the $10 billion fund announced by the Prime Minister in January 2007. I am informed that, as yet, no money—not one cent of money—has been allocated from the federal government's $10 billion fund for River Murray initiatives.

Members interjecting:

The SPEAKER: Order!

The Hon. M.D. RANN: We passed the legislation to hand over control of the River Murray—big announcement by the Prime Minister of $10 billion to save and rescue the River Murray and not one cent spent! I now table a copy of my letter to the Prime Minister. Mr Speaker, it reads:

Dear Prime Minister

In January this year, you announced the National Plan for Water Security (the Plan) to improve water efficiency and address over-allocation of water in rural Australia. The Plan has particular significance for the Murray-Darling Basin and south-eastern regional Australia.

The $10 billion Plan was conceived against a background of the most severe drought Australia has faced since records began. At our water summit [which, of course, I attended], the Murray-Darling Basin Commission advised that the statistical probability was that the Murray-Darling system low water inflows were a one in one thousand year event.

On behalf of the Government of South Australia, I strongly supported the adoption of a National Plan that would bring the management and control of the Murray-Darling Basin under Commonwealth control through a single independent authority.

In fact, not only did I support the national plan but it was I who suggested the independent authority.

The Hon. P.F. Conlon interjecting:

The Hon. M.D. RANN: Which apparently Alexander Downer recognised today. I continue:

Since the announcement of the Plan the drought has not abated. The severity of the impact of the drought on the lives and livelihoods of many Australians should not be underestimated.

In South Australia in 2006-07, the water flowing across the border in the River Murray was 1,470GL. I am advised that in 2007-08, water flowing across the border into South Australia could be as low as 990GL. This compares with the average flow of 4,800GL.

The Government of South Australia is working closely with the Commonwealth Government and the upstream States to ensure water quality and quantity will meet critical urban needs in 2007-08.

The dire circumstances of our irrigators must not be overlooked in dealing with this emergency.

The Farm Help Package, together with the Professional Advice service and Grants system adopted by the Commonwealth government offers significant support.

The Government of South Australia provides Planning for Recovery Grants, Community Support Grants, as well as a range of other support measures including the waiver of stamp duty on water transfers, apprenticeship retention arrangements and technical assistance.

However, water allocations to irrigators in South Australia have been cut to 16 per cent of entitlements, with little prospect of further allocations this year. The impact of minimal water allocations will have a profound effect on regional and individual incomes with severe long-term consequences.

It is widely accepted that the minimal water allocations will result in the extensive loss of perennial plantings including citrus, almonds, wine grape and stone fruits. The prospect of a loss of perennial crops will result in significant economic and social impacts.

I am informed that South Australia's Riverland irrigators have developed a proposal to provide their industry with assistance to reduce the risk of long-term damage to the region's productive capacity.

Former Liberal Premier, the Hon. Dean Brown, who was appointed by my Government as the Premier's Special Adviser on Drought, has been working with irrigators to help them manage their acute problems.

Dean Brown has assisted in developing the proposal. The proposal, if adopted, could avert the need for substantial Commonwealth outlays in income and industry support in the event of a collapse of production. The proposal involves the provision of loan funds to irrigators in South Australia and other states to purchase temporary water on the open market. The additional water would be used to supplement the existing allocations to assist with the survival of perennial plantings. The loan funds would be made available only to irrigators who are viable. I understand sufficient water is available from upstream irrigators with annual crops who have been allocated water in 2007-08 but who do not intend to plant this year and who are willing sellers.

Members interjecting:

The SPEAKER: Order!

Members interjecting:

The Hon. M.D. RANN: You want to attack Dean Brown now. They want to attack Dean Brown. He has been working on this proposal. He is now—

Members interjecting:

The SPEAKER: Order!

The Hon. M.D. RANN: —attacking Dean Brown, their own former premier—

Members interjecting:

The SPEAKER: Order!

The Hon. M.D. RANN: —because they always put their own needs before the interests of the state. My letter continues:

The attached document outlines the proposal—

An honourable member interjecting:

The Hon. M.D. RANN: Just wait for it:

The attached document outlines the proposal and is supported by South Australian Murray Irrigators—

see, you are against Dean Brown, now you are against the irrigators—

The document has been made available to the Minister for Agriculture, Fisheries and Forestry, the Hon. Peter McGauran, and the Minister for the Environment and Water Resources, the Hon. Malcolm Turnbull. I seek your urgent consideration of this proposal. Funds could be made available by allocating—

and this is the key point—

Ms Chapman: By you.

The Hon. M.D. RANN: We, this government, and I, as Premier, this parliament, agreed to hand over control of the River Murray to the federal government in exchange for a $10 billion River Murray rescue package, and not one cent of that River Murray rescue package, the $10 billion that was promised, has been spent.

Members interjecting:

The SPEAKER: Order!

The Hon. M.D. RANN: I continue:

Funds could be made available by allocating a relatively small amount of the $10 billion you announced under the National Plan for Water Security which I understand has not been drawn upon since the initiative was released by you in January. Yours sincerely.

I understand that the Leader of the Opposition was with the Prime Minister on Monday of this week. He told an audience of the Pan Macedonian Association that he was going to raise Greek issues with the Prime Minister, and that was good; it would be interesting to see whether or not he did. It would be interesting to see because it is the test of honesty in this parliament. I want to know whether the Leader of the Opposition raised with the Prime Minister of Australia, spending some of that—

Mr PENGILLY: I take point of order.

The SPEAKER: Order! The Premier will take his seat.

Mr PENGILLY: The Premier is clearly debating the issue.

The SPEAKER: There is no standing order to prevent anyone debating during a ministerial statement; that only applies to answers to questions, not to ministerial statements.