David Leyonhjelm (NSW, Liberal Democratic Party) Share this | Link to this | Hansard source

by leave—I move Liberal Democratic Party amendments (1) and (2) on sheet 7752 together:

(1) Schedule 1, Part 1, page 5 (after line 12), at the end of the Part, add:

2A Subsection 86AE(2)

  Omit "Paragraphs 105(3)(b) and (4)(b)", substitute "Paragraphs 105(4)(b)".

2B Subsection 105(3)

  Repeal the subsection, substitute:

     (1) The functions of the Commonwealth Environmental Water Holder are to be performed for the purpose of achieving the objects of this Act.

2C At the end of subsection 105(4)

  Add:

     Note: This subsection is modified in relation to water access rights acquired by the Commonwealth with amounts debited from the Water for the Environment Special Account (see subsection 86AE(2)).

2D Subsection 106(1)

  Repeal the subsection, substitute:

     (1) The Commonwealth Environmental Water Holder must not dispose of water and Commonwealth environmental water holdings during a water accounting period unless the water or the water holdings are not required in the water accounting period to meet the objectives of:

        (a) if the water is in, or the water holdings relate to water in, the Murray-Darling Basin—the environmental watering plan; or

        (b) if the water is in, or the water holdings relate to water in, an area outside the Murray-Darling Basin—any plans specified in the regulations in relation to that area; or

        (c) any applicable environmental watering schedules.

(2) Schedule 1, Part 2, page 6 (before line 3), before item 3, insert:

3A Subsection 6.04(2) (note)

  Repeal the note.

3B Paragraph 6.05(3)(a)

  Omit "143 GL", substitute "128.7 GL".

3C Paragraph 6.05(3)(b)

  Omit "425.3 GL", substitute "382.8 GL".

3D Paragraph 6.05(3)(c)

  Omit "458 GL", substitute "412.2 GL".

3E Paragraph 6.05(3)(d)

  Omit "82.8 GL", substitute "74.5 GL".

3F Paragraph 6.05(3)(e)

  Omit "4.9 GL", substitute "4.4 GL".

In this bill the government is proposing some sensible amendments to the Water Act to cap buybacks from farmers to 1,500 gigalitres, which I support. The implementation of the Murray-Darling Basin Plan and its consequences are naturally of great concern to basin communities which produce so much of our agricultural output. As these issues also concern me, I agreed to chair the Select Committee on the Murray-Darling Basin Plan, which will hold its first hearing next week. I and several other senators attended a public meeting of a thousand people in Barham a few weeks ago and toured part of the local area looking at environmental works, irrigation farms and farms that had been dried off. We saw how projects funded by the Commonwealth, such as the Koondrook-Perricoota Forest watering scheme, enhance environmental watering with less water. We saw the improved infrastructure for delivering water to farms more efficiently and the newly lined channels to reduce water loss through seepage. We saw abundant bird life on irrigated farms, and it was pleasing to see. And we saw many farms in a sad state after the withdrawal of water entitlements. We saw too many vacant shops in a couple of towns we visited. These communities have encountered significant change in the last few years and are looking for certainty.

The reduction in available water is a big factor in the productivity of a region, and to a large extent the effects of this are already being felt. What is becoming more apparent is that the demand for the smaller pool of productive water available to producers is driving up prices as farmers compete with one another for water in the temporary market. Temporary market water has tripled in price in the last several years, with the result that it is not viable for some producers to enter the market and purchase water to finish their crops. This reluctant decision starts a downward spiral which ends with less output and less income.

I am proposing two amendments to the government's bill to address these problems in a modest way. The first amendment will counter water-hoarding by the Commonwealth Environmental Water Holder. As the law currently stands, the Commonwealth Environmental Water Holder is required to hold and store water, even when environmental watering plans have been fully satisfied. The amendment removes a ban on selling water that is excess to environmental needs by removing a requirement to retain water if it can be stored for a future accounting period.

The amendment will also improve the willingness of the Commonwealth to sell off excess water holdings by broadening the Commonwealth Environmental Water Holder's purpose beyond environment protection to include optimising economic and social outcomes. It is incredible that the current provision does not require optimisation of economic and social outcomes, as these are primary objects of the Water Act. The effect of this amendment will be to allow the Commonwealth Environmental Water Holder to sell excess water on the temporary market, thereby increasing the water available and driving prices down. This will mean that more water will be available for farmers to finish crops while not hindering the work of the Commonwealth Environmental Water Holder.

This solution was in fact supported in the media yesterday by Victorian Nationals leader and former water minister Peter Walsh, who was quoted as saying:

"The CEWH should have the option to sell water on the temporary market," …

The article said:

Mr Walsh suggested the money—

gained from such sales could—

be spent on projects such as pumping environmental water into the Hattah Lakes and Gunbower Forest.

Mr Walsh said that the use of such profits from water sales on environmental outcomes would be a win-win situation.

The second amendment that I am proposing increases the total water that can be used by farmers in the basin by around one per cent. This is a modest change that will benefit farmers and will not threaten the environment. The increased water for farmers is achieved by reducing water use reduction targets that are listed in the Basin Plan.

The government may argue that these sorts of amendments will fall out of their current review process and that we should not push ahead with these amendments now. But we have a responsibility in this parliament to promptly amend Commonwealth law when a clearly beneficial change is before us. We should not delay in the hope that bureaucratic committee processes will come up with something sensible in the future.

My amendments do not threaten environmental outcomes, and additional water will also be available to farmers who wish to purchase it at a reasonable price. These improvements to the Basin Plan will deliver practical benefits to basin communities and the environment. Adoption of the amendments will also signal to basin communities that we in this place feel their pain and are not indifferent to their trials.

The inquiry I am chairing may well recommend more substantial reform but, in the interim, these measured and modest amendments signal a resolve to improve outcomes and reduce the uncertainty of necessary water reforms.

Lisa Singh (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary to the Shadow Attorney General) Share this | Link to this | Hansard source

The Murray-Darling Basin Plan needs strong bipartisan support, which I outlined in the opposition's second reading contribution, and serious and robust consultation, of course, with those key basin states. As such, Labor will not support changes to the framework that have not been through a process with those key basin states.

These amendments, to be honest, are laughable because they effectively accuse the Commonwealth Environmental Water Holder of hoarding water, against the broad triple-bottom-line consensus achieved by the Murray-Darling Basin Plan, and change the rules of the Commonwealth Environmental Water Holder at the last moment to enable it to sell off excess water in the face of necessary and confidence-building accounting practices.

So the opposition does feel that these amendments have been sprung on the Senate at the final moment, without anything like the necessary consideration and consultation required. Consultation has already occurred to bring this bill to this place, with various stakeholders—including Indigenous stakeholders, as I referred to in my second reading contribution. They are key to ensuring that we have a robust outcome when we are talking about water in these key regions in these key states. So, because this is an amendment that has not gone through any of that process, the Labor Party will not support this amendment.

Simon Birmingham (SA, Liberal Party, Assistant Minister for Education and Training) Share this | Link to this | Hansard source

The government will not be supporting the amendment. I do understand where Senator Leyonhjelm is coming from, though. These are issues that were canvassed by the Water Act review. The government is preparing its response to the review of the Water Act. We are cognisant of the concerns in communities that he is reflecting through this amendment, but it is appropriate, as Senator Singh alluded to, that any such amendments do need to be worked through with basin states before this chamber can seek to agree to them.

David Leyonhjelm (NSW, Liberal Democratic Party) Share this | Link to this | Hansard source

Mr Temporary Chairman, I am assuming this debate is now going to be terminated for questions without notice?

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

I am going to put the amendments—

David Leyonhjelm (NSW, Liberal Democratic Party) Share this | Link to this | Hansard source

In that case, I have more to say.

The TEMPORARY CHAIRMAN: You have the floor.

I cannot allow Senator Singh's comments to pass unchallenged. The accusation that the Commonwealth Environmental Water Holder is hoarding water is indeed written into its charter. That is precisely what it is there for. That is precisely what it is doing. It is hoarding water that could be used productively for agriculture, and that water is not benefiting the environment. The objectives of the Commonwealth Environmental Water Holder do not include the triple bottom line—economic, social and environmental. It does not include all three of those. It has only one objective. That needs to change. This seeks to implement those changes. As for the final introduction—

The TEMPORARY CHAIRMAN: Order! I shall report progress.

Progress reported.