South-East Drainage System

The Hon. K.J. MAHER (14:44): My question is to the Minister for Sustainability, Environment and Conservation. Will the minister update the chamber on recent developments regarding the drainage system in the South-East?

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Aboriginal Affairs and Reconciliation) (14:44): I thank the honourable member for his most important question. The South-East region of South Australia extends over around 28,000 square kilometres. What was once a region dominated by wetlands has been converted to fertile agricultural land, thanks primarily to an extensive network of drains.

The drainage network has a long history in the South-East. It includes about 2,500 kilometres of public and private drains, floodways and associated infrastructure built over a very long time—some of that legal and some of it not quite so legal. The infrastructure supports the agricultural productivity of a significant portion of the South-East region, it delivers water to wetland habitats from the South-East through the Coorong, reduces flooding on farmland, and helps to manage groundwater salinity. The extensive network of bridges and crossings on private and public land is essential to the regional road transport network and the movement of produce.

The network of drains forms a critical part of the economic and social infrastructure of the South-East region, which contributes over $3 billion annually to state GDP. The drainage network is currently managed and operated by the South Eastern Water Conservation and Drainage Board under the South Eastern Water Conservation and Drainage Act 1992. There has been ongoing debate regarding the long-term funding of the drainage network. The infrastructure is ageing and needs to be maintained, and, in some places, replaced. The South Eastern Water Conservation and Drainage Board annually receives $2.1 million of state funding to manage the system. The state government has been very clear that it will not be increasing its contribution beyond this amount of funding.

A business case prepared in 2009 identified $7.4 million plus indexation as the optimal operating budget for the South-East drainage system. Since then the government has been working on identifying possible solutions to make up the shortfall. In 2012 the South East Drainage System Operation and Management Bill (SEDSOM) was introduced into parliament. The bill proposed to broaden the funding options available for the operation, management and maintenance of the South-East drainage system, and included the option of a levy. I have taken the decision not to reintroduce the SEDSOM bill at this stage to allow public dialogue on the future management of the drainage system. Discussions must include the question of who benefits from this important infrastructure and how those beneficiaries can contribute to the system's ongoing maintenance.

This is why I visited the region on Thursday 12 June. I met with a range of stakeholders, including local government, the Aboriginal community, farming communities and conservation groups to discuss future maintenance of the network. In my discussions I made it very clear that the community must have a voice in the solution and that no decision would be made on this matter until the consultation process I have set in train is complete.

In order to facilitate such a consultation I have tasked the South East Natural Resources Management Board with establishing a new community panel. The panel, consisting of local community members, will develop options regarding how best to provide increased funding for maintenance of the South-East drainage network, and will examine the value of the drainage system to the region, who it benefits, who it impacts and how that can be calculated. I am looking forward to receiving a series of recommendations from the local community through the community panel regarding increased maintenance to the network and how it will be funded.

In addition to my discussions with stakeholders, it was also a real pleasure to go to the South-East to announce the recent approval of $60 million in funding for the Coorong South East Flows Restoration Project. This is a project that has been discussed over a long period of time. It is a great achievement and I am very pleased that is now being progressed.

We are all aware that increasing salinity levels have had an enormous environmental impact on the Coorong. This program will take fresh water from the drainage system and redirect it through a combination of watercourses and existing drains back into the South Coorong. Currently the South-East drainage system delivers on average 30 gigalitres per year to the Coorong at Salt Creek; the South-East flows project will provide an additional 26 gigalitres per year on average, and this will allow us to better control salinity levels in the Coorong in the event of another drought in the future. The project will also enable additional water to be diverted into South-East wetlands en route to the Coorong, addressing priority local environmental needs along the way.

In addition, we know that drain water flowing out to sea has a harmful impact on ecosystems, particularly the natural seagrass beds at the outlet. The South-East flows project will have the added benefit of minimising this environmental impact into the future. The Australian government is providing $54 million in funding and the state government is providing an additional $6 million. The funding will cover expenses for landholder consultation, broader community and Aboriginal engagement programs, and an environmental management program to support monitoring and understanding of the South-East drainage system and the Coorong. A steering committee which includes representatives from the South East NRM Board and the South Eastern Water Conservation and Drainage Board will manage the project.

As with the long-term funding of the drainage system, it is very important that local communities have a say in these projects. This is a great achievement for the South-East and for the communities involved, and shows how much can be achieved when all levels of government and the community work together effectively. Whilst I acknowledge that the approval is just the beginning of the program, it is a very important first step.

I would like to thank all the parties that have played a part in ensuring this important project reaches the stage it has, particularly the Department of Environment, Water and Natural Resources major projects team, the water and climate change branch, the South East NRM Board, the South Eastern Water Conservation and Drainage Board and natural resources South-East staff. Their hard work helped to secure this project which will improve the health of the Coorong, the Lower Lames and the Murray Mouth, the marine environment and the significant wetlands in the state's South-East and benefit landholders in the region and the broader community.