WATER INDUSTRY ALLIANCE

The Hon. J.S. LEE (15:10): I seek leave to make a brief explanation before asking the Minister for Water and the River Murray a question about the Water Industry Alliance.

Leave granted.

The Hon. J.S. LEE: The Water Industry Alliance stated that it had been working closely with the state government to develop a business case and proposal to attract funding from the commonwealth government for irrigators using Murray water in South Australia. In October 2012, the Premier announced that the commonwealth government had committed $265 million for water recovery and industry regeneration projects in South Australian River Murray communities. However, in a recent letter addressed to Water Industry Alliance members from the CEO of WIA, Mr Andy Roberts stated that the funding was a $240 million program rather than a $265 million program, as previously announced by the Premier.

On 12 February 2012, in Senate estimates, Ms Mary Harwood, First Assistant Secretary to the Water Efficiency Division, revealed that the state government did not lodge a business case to the commonwealth government by the deadline of 21 January 2013. My questions are:

1. Why has the CEO of the Water Industry Alliance stated the program was a $240 million program rather than the original $265 million, as announced by the Premier?

2. Will the minister advise the council exactly where the remaining $25 million of commonwealth funding will go? Will the funding be allocated to the River Murray communities?

3. Will the minister advise the council why the state government business case did not meet the guidelines for the commonwealth government application?

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Aboriginal Affairs and Reconciliation) (15:12): I thank the honourable member for her most interesting and important question. She got part of it right at least. On Sunday 28 October 2012, in Renmark the Premier, Jay Weatherill, welcomed a $265 million commitment by the federal government for water recovery and industry regeneration projects in South Australian River Murray communities—so far we agree. But, $240 million of this funding package is for the Water Industry Alliance South Australian River Murray Improvements Program, which aims to return 40 gigalitres of water to the environment and provide opportunities for regional development and the reconfiguration and renewal of the South Australian River Murray irrigation industry.

The $265 million funding announcement is comprised of $180 million from the commonwealth Sustainable Rural Water Use and Infrastructure program, all of which will be put towards the Water Industry Alliance program, and $85 million from the South Australian Industry Futures Fund to be established for research, regional development and industry redevelopment in South Australia, with $60 million of the $85 million to be forwarded to the Water Industry Alliance program.

The South Australian government continues to work to improve environmental outcomes along the South Australian River Murray and strongly supports the Water Industry Alliance and its development of this program. This investment in South Australian industry will assist our irrigators to further improve infrastructure and practices and consolidate our state's position as international best practice irrigators.

The proposed program will provide South Australian irrigators with an opportunity to be rewarded for their previous responsible behaviour by investing in the future sustainability of the industry and the region. The Australian government has also provided additional funding up to $1.206 million to assist the Water Industry Alliance to prepare its business case, and the state government has contributed an additional $134,000 as well as providing significant project assistance to support the development of this business case.

The final business case is expected to be completed and submitted for the Australian government's consideration in March 2013. Water savings resulting from implementation of the WIA program will be transferred to the commonwealth Environmental Water Holder and will count towards South Australia's share of the basin water recovery target. The funding of this proposal is an example of how industry, communities and state and federal governments can work together to develop innovative and practical solutions to complex problems. I am advised that the $265 million in funding would be made available over six years starting in 2013-14.

This is an example of how our Premier, Jay Weatherill, has led the fight up to the commonwealth and to the Eastern States and won an outstanding amount in contributions to our state. As far as I can tell, the $265 million is composed of $180 million, as I said, and $85 million and, I think that adds up to $265 million.