MURRAY-DARLING BASIN

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 second ministerial statement.

Leave granted.

The Hon. M.D. RANN: I informed the house yesterday about key elements of the memorandum of understanding between the federal government and the Murray Darling Basin jurisdictions for the reform of the management of the basin system. The agreement reached meets the conditions I set when I attended the water summit in February 2007, convened by former prime minister John Howard, and supported a national plan.

Mr Hamilton-Smith interjecting:

The Hon. M.D. RANN: The leader of the Liberal Party is now describing John Howard's plan as a 'scam'. He did not say that at the time: he urged us to sign it. He asked us to sign the deal last week because he believed it was not on the agenda.

Members interjecting:

The SPEAKER: Order!

The Hon. M.D. RANN: To his eternal disappointment, we have got the deal that he believed we could not get.

Members interjecting:

The Hon. M.D. RANN: Physical violence and abuse don't get you a deal; being a grown up and painstaking negotiation get you a deal.

Members interjecting:

The Hon. M.D. RANN: I agree: he is selling out South Australia's interests. The Leader of the Opposition will put his party interests and more importantly his personal interests before our state's interests, and that is the difference.

Members interjecting:

The SPEAKER: Order!

The Hon. M.D. RANN: What a divided lot!

Members interjecting:

The SPEAKER: Order!

The Hon. M.D. RANN: It is very important to recognise that the agreement reached is in the interests of the health of the River Murray, and anything that is in the interests of the health of the River Murray is in the interests of South Australia as the end of the line on the river. The focus of the agreement is the development, implementation and monitoring of a basin plan that will deliver enhanced environmental flows, provide for sustainable industry needs and critical human needs, including for Adelaide and other South Australian domestic users.

The governance arrangements that I outlined yesterday will mean that the basin plan will be prepared by an independent authority on the basis of scientific knowledge and objective conditions. The Murray-Darling Basin is a national asset, and it must be managed in the national interest. No state jurisdiction (and this is where they got it wrong yesterday), whether it be the ACT, New South Wales, Queensland, Victoria or South Australia, will have the power to block or veto the basin plan.

An honourable member interjecting:

The Hon. M.D. RANN: Western Australia is not part of the Murray-Darling Basin. What an incredibly idiotic thing—he will be asking me about Tasmania next.

Mr Williams interjecting:

The SPEAKER: Order!

The Hon. M.D. RANN: No state jurisdiction, whether it be the ACT, New South Wales, Queensland, Victoria or South Australia, will have the power to block or veto the basin plan. Parochial or state interests will no longer prevail over the national interest and the health of the River Murray. The commonwealth minister is the final decision maker on the basin plan—as it was under John Howard, when you told me to sign it. The big difference is that I managed to get an independent authority in between. The states will manage their share of the water resource—

Members interjecting:

The SPEAKER: Order!

The Hon. M.D. RANN: —within the cap and environmental flows set by the independent authority. The commonwealth government has agreed in principle to fund up to $1 billion for the Victorian Food Bowl project (stage 2) subject to a joint due diligence assessment. The Food Bowl infrastructure project will significantly improve water efficiency in the Victorian irrigation districts.

An honourable member interjecting:

The Hon. M.D. RANN: So, you do not believe that money should be spent on the other states? It is about gravity: don't you get it? It is about getting more water over the border. This infrastructure investment will capture—

Members interjecting:

The SPEAKER: Order!

The Hon. M.D. RANN: —and return to the system water losses through inefficient plant, inefficient practices and irrigation infrastructure, seepage and evaporation. The project is expected to return 100 gigalitres—that is, 100 billion litres—of water to the system in environmental flows, in addition to the 100 gigalitres to be reinvested in sustainable industry. This is great news for South Australia and, in particular, the Lower Lakes, where increased flows are critical for the environmental—

Members interjecting:

The SPEAKER: Order!

The Hon. M.D. RANN: —and economic survival of that important area. In fact, because of my insistence, the Ramsar and other icon sites in that region, including the Coorong, the Lower Lakes and the Murray Mouth, are the only areas to be specifically mentioned by name in the memorandum of understanding in the context of the need for improved environmental outcomes for the river system. The Leader of the Opposition said, 'Put Brumby in a headlock and make him sign the deal.' Now we have got the deal—because he did not think that that would happen; he does not like it. He put himself in a headlock on national TV.

Members interjecting:

The SPEAKER: Order!

The Hon. M.D. RANN: It is vital for South Australia that infrastructure projects such as the Food Bowl project in the upstream states—especially New South Wales and Victoria—are developed and funded from the commonwealth $10 billion infrastructure fund. The water savings generated by these projects will deliver real benefits to South Australia and will help to ensure the survival of the River Murray. That is what John Howard told us. That is what you asked me to sign when it did not have an independent authority and when it did not mention the Lower Lakes or the Coorong. The purchase, or buyback, of overallocated licences in the upstream states from funds allocated in the $10 billion pool is also essential.

South Australia, too, needs its share of infrastructure funding from the $10 billion allocation. As you know, and as I am sure you will acknowledge in your retirement, I fought for an independent authority to manage the River Murray in the national interest. Now I intend to fight for our share, South Australia's share of the infrastructure funding so that we can help secure the future of our sustainable river-based industry.

Members interjecting:

The SPEAKER: Order!

The Hon. M.D. RANN: As a first priority—

Mr Pengilly: We've stopped listening to you, Mick.

The Hon. M.D. RANN: No, the River Murray does not flow on Kangaroo Island. Didn't you know that?

Mr Pengilly interjecting:

The Hon. M.D. RANN: No, you didn't know that; okay. As a first priority, I have given instructions that a range of projects, including projects that are driven by local communities, be developed for consideration at the July 2008 COAG meeting. I expect that projects will be submitted across all areas that depend on River Murray water. Our agricultural industries in the Riverland that depend on irrigation will be a prime area for consideration. I understand officers from Primary Industries and Resources SA and the Department of Water, Land and Biodiversity Conservation are involved in developing projects in these areas.

The Lower Lakes is another priority area. I visited this region in early February with the Minister for Water Security and the Minister for Agriculture, Food and Fisheries, and again last week with the federal Minister for Climate Change and Water, Senator Penny Wong, and also the Hon. Karlene Maywald. I was very concerned about the condition of the lakes and on the impact on local communities, industry and the environment. I was, however, heartened by the positive response from the people we met because they recognise, unlike the Leader of the Opposition, that we cannot make it rain. Although, I am sure that will be a feature of the leader's future announcements, given things that he has said in the past.

The degree of thought, organisation and commitment to deal with these issues is remarkable. Let us today, in a bipartisan way, pay tribute to a former premier. They were very capably assisted in their endeavours by my special adviser on the drought, the Hon. Dean Brown AO, because he puts his state before his party. A number of projects are being developed specifically to assist the Lower Lakes region that may attract commonwealth funding. Those projects potentially cover areas such as Langhorne Creek, Currency Creek, Raukkan, Narrung and Meningie.

In conclusion, I wish to acknowledge the contribution of our Minister for Water Security and Minister for the River Murray. Her insight and knowledge on Murray-Darling Basin issues was invaluable and her local and national contribution was also invaluable. I also want to record my appreciation for the work of minister Wong. The fact that she was able to broker an agreement in three months in the portfolio where the former prime minister and Malcolm Turnbull could not speaks volumes of her ability and commitment.

Members interjecting:

The Hon. M.D. RANN: Members opposite said, 'Oh that is because of the $1 billion.' Well, $10 billion was put up by John Howard: not one cent spent and not one drop of water came across the border.