Eric Abetz (Tasmania, Liberal Party, Minister for Fisheries, Forestry and Conservation) Share this | Link to this | Hansard source

On 8 February Senator O’Brien and Senator Bartlett asked questions and I undertook to take aspects of them on notice. I seek leave to incorporate the relevant information in Hansard.

Leave granted.

The information read as follows—

Senator O’Brien asked on Thursday 8 February 2007 about tax changes and consultation with industry regarding non-forestry managed investment schemes.

Senator Abetz answer to the question that he took on notice is as follows.

The Minister for Agriculture, Fisheries and Forestry regularly meets with relevant Government Ministers to discuss matters, such as managed investment schemes, in the normal course of his business as a Government Minister.

The Minister for Fisheries, Forestry and Conservation is aware that the Australian Government, through the Department of the Treasury, held discussions with major non-forestry managed investment scheme companies over the future tax treatment of investments under the proposed new arrangements. Companies such as Timbercorp, Great Southern Plantations and Gunns were aware of the possible implications of a new tax ruling prior to the Government’s announcement.

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Senator Bartlett asked the Minister representing the Minister for the Environment and Water Resources, upon notice: 8 February 2007

Does the Minister agree with the concerns expressed that the organisation charged with running the basin will need ownership rights and that this will cost billions of dollars, which will severely reduce the amount available for other measures?

Senator Abetz The Minister for the Environment and Water Resources has provided the following answer to the honourable senator’s question:

I refer the honourable senator to the media release issued by the Chief Executive of the Murray Darling Basin Commission on February 8, 2007.

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Media Release

Thursday, 8 February 2007

Statement from Wendy Craik, Chief Executive of the Murray-Darling Basin Commission

Murray Darling Basin Commission,

On 7 February 2007 the Murray-Darling Basin Commission President, Chief Executive and Executive Team released to partner governments to the Murray-Darling Basin Initiative a document entitled “Comments on the Australian Government National Plan for Water Security”.

This document contains a statement that “the available budget for a new Commission will be decreased by approximately $900 million over 10 years”. I am now aware that this statement is incorrect.

The funding in the Australian Government National Plan for Water Security to cover the activities of the Murray-Darling Basin Commission or its successor is $600 million. This covers:

• $100m for expanded capacity for the Commonwealth to set and administer the Cap; and
• $500 million to cover costs associated with the ongoing operation of the Commission Office activities (covering all partner government contributions).

Further, other funds will be available including:

• the $500 million (plus interest) the Commonwealth invested in the Murray-Darling basin Commission in June 2006;
• the funds `passed through’ from charges for water service provision totalling around $500 million over 10 years; and
• ongoing Commonwealth investment in the Commission of around $150 million over 10 years.

Together these represent an increase in the funds currently available to the Commission.

I appreciate that the matter has been clarified and regret the misunderstanding and withdraw the statement quoted above.

Wendy Craik

Chief Executive, Murray-Darling Basin Commission