Lindsay Tanner (Melbourne, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

The Appropriation (Water Entitlements) Bill 2009-2010 requests urgent funding for the Department of the Environment, Water, Heritage and the Arts to accelerate water buybacks within the Murray-Darling Basin system.

The measures provided for in the bill will enable $650 million for water buybacks to be brought forward from later years of the Restoring the Balance in the Murray-Darling Basin program under Water for the Future.

The objective of the Restoring the Balance in the Murray-Darling Basin program is to purchase water entitlements to restore the environmental health of the Murray-Darling Basin system and to smooth the transition to the lower sustainable diversion limits anticipated in the new Basin Plan. To date, the Restoring the Balance in the Murray-Darling Basin program has secured the purchase of more than 600 gigalitres of water entitlements.

The funding bring forward in this bill will enable a further acceleration of environmental water purchasing and provide for new water purchase initiatives in 2009-10.

The total appropriation sought in this bill is $650 million, comprising:

• $320 million, which the Minister for Climate Change and Water announced on 3 November 2009, and which was included in the Mid-Year Economic and Fiscal Outlook (MYEFO) 2009-10, brought forward from 2010-11 ($220 million) and 2011-12 ($100 million); and
• a further $330 million, brought forward from 2010-11 ($100 million), 2011-12 ($100 million) and 2013-14 ($130 million), to provide for additional water buybacks in 2009-10, and which has been decided since MYEFO 2009-10.

The bill requires immediate passage. The administered appropriations currently provided to the Department of the Environment, Water, Heritage and the Arts are not sufficient to cover the cost of trades that are likely to be offered to the government under the water purchase program in 2009-10. With the additional appropriation, vendors will receive timely settlement of their water trades under the Restoring the Balance in the Murray-Darling Basin program.

Departmental costs of $4.9 million will also be provided to the Department of the Environment, Water, Heritage and the Arts to support the accelerated water buybacks. The departmental funding is outlined in the Appropriation (Water Entitlements and Home Insulation) Bill 2009-2010.

Debate (on motion by Mr Haase) adjourned.