Ministerial Statement

Murray-Darling Basin Plan

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Climate Change) (14:19): I seek leave to make a ministerial statement.

Leave granted.

The Hon. I.K. HUNTER: South Australians remain deeply concerned about the progress and implementation of the Murray-Darling Basin Plan following the allegations aired on Four Corners in July of this year, and with very good cause. This week, the New South Wales Ombudsman released a damning report into maladministration of the state's water portfolio. The report was scathing of the New South Wales government's inaction and the department for water's poor handling of water compliance in that state.

The New South Wales Ombudsman's report also revealed that three previous investigations and subsequent reports into allegations of water theft and noncompliance had been provided to the department and the minister for water but had been buried—three investigations, all with evidence of water theft, noncompliance and lack of appropriate action. The first investigation was in 2007 when the Ombudsman examined a complaint claiming that the department had failed to take appropriate action in relation to allegedly unlawful farm dams constructed on a flowing river.

The second investigation was in 2012 and was instigated following a complaint that no action had been taken by the New South Wales department or minister for water following the 2007 investigation. The 2012 investigation heard not only that no action had been taken but also that another illegal dam had been constructed on the property. The Ombudsman recommended at the time that strong action be taken on these illegal dam works and we now know, from the 2017 report published this week, that they held serious concerns about the delay in the New South Wales department of water taking any action. The Ombudsman found:

This outcome [the prosecution] was approximately ten years after the owner's activities were first reported to the Department by a complainant, and four years after we made recommendations that the Department accepted. During that time the owner of the property not only continued to utilise the unlawful constructions but had considerably expanded them in size and capacity.

During the decade in which no action was taken, the dam was expanded to 22 times larger than its original size, now holding over 14 megalitres from the original 0.5 megalitres. Then, in 2013, with a lack of serious action to address the outcomes of the two previous Ombudsman investigations, the Ombudsman received a number of complaints from staff inside the department of water, community groups, NGOs and individuals about that very lack of action. This instigated their third investigation into the same issue. It was also the third time the report was not made public and the third time no action was taken.

Then, just yesterday, the New South Wales Ombudsman released their fourth report into the allegations of ongoing water theft and noncompliance in New South Wales. In the report released this week, the Ombudsman said:

The issues highlighted in the current investigation are strikingly similar to the ones we found in our previous investigations. Reports into the earlier investigations were not made public as we received assurances from the relevant Department responsible for water regulation at the time that our concerns and recommendations would be considered and appropriate action taken.

The report also found the department chronically under resourced, with a constant stream of restructures and transfers of water regulation responsibilities (seven times since 2007) and a clash of cultures. Of course, we know that this report comes after numerous allegations of water theft, meter tampering, special treatment for irrigators, corruption and maladministration allegations that have emerged since July of this year. This is as well as the interim report by Mr Ken Matthews which noted that water theft and noncompliance may still be occurring and called for further investigations.

In fact, the report says the Ombudsman undertook this formal investigation on their own volition 'based on the seriousness of these allegations and our prior knowledge of systemic failures in water compliance and enforcement'. This latest report shows that, for more than a decade, the New South Wales Ombudsman's office has been receiving complaints alleging that the water management principles and rules were not being properly complied with and enforced.

The Ombudsman's office has gone against convention and released the report to the New South Wales parliament, circumventing the state government and removing the option of keeping the report secret. This action highlights not only the seriousness of the claims but also the fear of cover-ups. The Ombudsman further notes:

That so many staff members are driven to approach an independent investigation body to bring forward concerns invites inquiry as to whether there is both a lack of trust between staff and management, and a perception by staff that internal reporting mechanisms are not effective.

It is clear that only a royal commission now can protect the integrity of the Murray-Darling Basin and deliver the water required for our communities, our industries, our agriculture and our environment. The other agencies tasked with investigating these claims are doing the best they can within the narrow parameters of the terms of reference they have been given, but even these agencies are publicly saying that more needs to be done in terms of a broad-reaching investigation with judicial powers.

A royal commission with powers to compel these key witnesses, key individuals who are alleged to have stolen water out of the basin system, is now the only credible way forward, the only credible way that we can investigate the depth and the breadth of these allegations and review the way we are managing one of the nation's most precious resources.

I seek leave to table a copy of 'Investigation into water compliance and enforcement 2007-17—a special report to Parliament under section 21 of the Ombudsman Act 1974' by the Ombudsman of New South Wales.

Leave granted.