Murray-Darling Basin Authority

The Hon. J.M.A. LENSINK (14:34): Further supplementary: is the minister saying that he will restore the full $28 million if New South Wales restores its funding?

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Aboriginal Affairs and Reconciliation) (14:34): Let me go through in more detail for the honourable member how the Murray system works. In light of New South Wales' unilateral reduction in funding to about, I think, $8.9 million, basin states and the authority have committed to further discussions of potential efficiencies.

Unlike other water management utilities across Australia, the Murray-Darling Basin Authority has not been subject to an efficiency review since 2006. Ministerial agreements since that time have ensured that jurisdictional contributions have increased automatically in line with the consumer price index. Therefore it is likely that efficiencies could be identified in the way that assets are managed, for example. A review—

The Hon. J.M.A. Lensink: What has this got to do with the question?

The Hon. I.K. HUNTER: Well, this is it: they don't understand how the river system works. They have no clue. They should sit down and listen to the answers that they've asked for and they might come away with a better understanding of how we get dumped on by New South Wales all the time. But no, they come in here once again defending their ideological colleagues in New South Wales, even though, at the very same time, they shift the burden onto the South Australian taxpayers. Stay quiet and listen is my advice.

A review of the existing cost-sharing arrangements for the Murray-Darling Basin joint activities is currently being undertaken. A review will be provided to ministers at the ministerial council meeting on 9 May and covers the activities which basin states jointly fund and are administered by the authority. It is being undertaken in the context of the newly-made basin plan. A review of the costs and efficiency of the River Murray operations is also underway to assist in identifying future cost savings for the governments. The review is expected to be completed in early 2015 in time to inform preparation for the 2015-16 MDBA budget.

In the meantime, South Australia is continuing to work with jurisdictions to discuss funding contributions to the Murray-Darling Basin Authority to identify the most efficient and equitable approach to managing the Murray-Darling Basin in 2014. This is more than just politics, and I wish the Liberals opposite would understand this. It always has been, for our state government, more than politics. This is about protecting the Murray-Darling Basin, our water and our river communities. This is about the long-term sustainability of the entire basin. So, we will pay our fair share to protect South Australia.

Members interjecting:

The PRESIDENT: Order! Let the honourable minister Hunter finish in silence.

The Hon. I.K. HUNTER: Thank you, Mr President, for your protection. We will pay our share to protect South Australia, but we need New South Wales to do the same. The states and the authority must work together to ensure the efficient management of our vital basin infrastructure and ensure that every jurisdiction pulls their weight. Our state takes about 8.5 per cent of extractions of water from the southern connected basin; New South Wales takes 47.2 per cent.

The Hon. G.E. Gago: How much is that?

The Hon. I.K. HUNTER: 47.2 per cent. But in July 2012, New South Wales announced a 60 per cent reduction in their contribution that is to be followed by a capped contribution of $8.9 million in 2013-14 and 2014-15. Their previous contribution, at their 'fair share', was $31.2 million.

Despite the widely expressed concern with the New South Wales decision, it has so far refused to consider increasing its contribution by telling us what it will be. But, as I said, there was movement at the recent ministerial council two weeks ago here in Adelaide. New South Wales owned up to the fact that they have been dragging their contribution right back to unsustainable levels. The minister indicated to the council that he will be doing his level best to get some extra contribution from the New South Wales Treasury, but they have refused to commit to tell the jurisdictions what that might yet be.

As I said in this place before, we have been contributing more than 24 per cent of funding for the Murray-Darling Basin Authority, which is our fair share. We have been contributing I think up to about 29 per cent since New South Wales dropped its contributions. We announced that if New South Wales did not agree to pay their way, we would not maintain our level of funding, which would effectively see us subsidising the New South Wales government, because after the New South Wales cuts, New South Wales will be contributing 13.8 per cent and our share would be 29.3 per cent. New South Wales' contribution is 13.8 per cent, but remember they take 47.2 per cent out of the southern connected basin. There is some disparity there, I would suggest.

So, anyone can see (for all the world I would have thought, but not this lot here) New South Wales is not pulling its weight. Our decision to reduce funding to 2014-15 was not made lightly. It was done to force New South Wales to consider the overall impact of their decision, to acknowledge that they have a responsibility to pay their fair share to protect our most precious resource, but so far New South Wales has refused to come to the table and tell us what their contribution will be. Even though every other state has indicated to the authority what theirs will be, New South Wales refuse and expect this state, other states and the commonwealth to subsidise them. That cannot continue.