Subject:
Water summit
E&OE...
PRIME MINISTER:
Well ladies and gentlemen, welcome to this news conference. We have had a very good meeting. New South Wales, Queensland, South Australia and the ACT have agreed to the clear referral of powers sought by the Commonwealth as part of the plan. Victoria's indicated at this stage it's not able to do so, however, Mr Bracks and I have agreed to continue bilateral discussions on this issue. Our water ministers, Mr Turnbull and Mr Thwaites will meet I hope early this week, in the coming week, and our officials will also commence discussions. I don't want to speculate about the ambit of those discussions except to say it's not about more money. Beyond that I don't think it is helpful to a successful resolution of the differences between the Commonwealth and Victoria on this matter to speculate about the ambit of those discussions.
In relation to the operation of the plan, there will be a review of its operation in 2014. That will be a review, there will not be a sunset clause in the legislation. The Commonwealth minister who will have the overall authority in relation to the operation of the new arrangements, subject of course to his or her own cabinet will be advised by an expert body of five people. The chairman will be nominated by the Commonwealth, the other four people will be chosen through a process which involves the calling of nominations for people of defined qualifications and those qualifications will be inserted in the relevant legislation and that group which will be examined jointly by the Commonwealth and the Murray-Darling Basin heads of government. There will be two chosen by the Commonwealth and two chosen by the states and if there is any disagreement in relation to those there is a process agreed between us for resolving those differences. I stress that all of those people will be experts, they will not be delegates or representatives of jurisdictions and the legislation will very carefully define the qualifications of the people involved.
In relation to any high level policy recommendation coming from the authority which is not accepted by the minister, that recommendation will be tabled in parliament, Federal Parliament, however that requirement does not relate to any financial recommendation. In anticipation, but respecting the stated differences that Victoria have placed before the meeting, in anticipation of moving towards implementation of the plan, work will continue on a memorandum of understanding between the Commonwealth and the states to spell out in more detail how the arrangements will work. A lot of work has already been done on that and that work can now go on unimpeded. I want to thank the President of the local government association Paul Bell for his attendance and support of, in general terms of the proposal. This has been a very, very good meeting and although there are some issues which must be addressed between the Commonwealth and the State of Victoria, Mr Bracks and I have discussed these and both of us want to work in a bona fide fashion with each other to resolve them. There is not going to be any side deals, I want to indicate that, I've indicated that to my premiers, other premiers and I do want to thank everybody. I appreciate that this is a very big issue, it does involve a very significant shift of authority, but I'm passionately of the belief that this is in the long term interests of Australia and I appreciate the spirit of national co-operation which has been evident at this meeting. Morris.
PREMIER IEMMA:
Thank you Prime Minister. I see this as an example of what we can achieve by working together, putting aside our political positions and put the interests of the nation first. We've taken a huge step today in establishing a sustainable, secure future for the families in the Murray-Darling Basin and securing the future health of those two mighty rivers. New South Wales has taken the position from the beginning of agreement in principle on the basis that a national approach was the best way forward to manage water in the Murray-Darling Basin and to secure the future of the families and I see today as an example of what we can achieve by working together and putting aside political differences and putting the nation first.
PREMIER BRACKS:
Thank you Prime Minister. Obviously Victoria is not in a position to sign or agree in principle to any arrangement for transfer of responsibilities to the Commonwealth for the constitutional authority for the Murray-Darling Basin. But as the Prime Minister has mentioned, we have discussed the opportunity for our water ministers, for federally Malcolm Turnbull, at the state John Thwaites to have further discussions with officials with a view to achieving the very policy aim which we are in agreement on and that is getting more water down the Murray River, repairing the basin, getting necessary infrastructure in place and making sure we can assist farmers, communities and also our environment as part of more flows going down the Murray River as well. That's the aim and that's the aim of the plan in the paper which Victoria has presented which we believe is a strong way forward to achieve that very policy objective. So the policy objective is shared. We have disagreements about the delivery of that policy objective, but I am pleased to, in good faith, to enter into those discussions on a bilateral basis with a view to seeing how we can accommodate this job on behalf of the nation.
There's no doubt, as I've mentioned this is a one in 100 year chance to get it right, to repair the Murray-Darling Basin, to get water allocations working effectively, to get entitlements working well, to get productive capacity from our irrigation systems, to look at surplus water which can assist our water and communities. These are important tasks to go ahead. We can do that underpinned by a strong water market, but strong regulation and by important water savings. And that's certainly Victoria's objectives. And on that we meet with the objectives which the Commonwealth have expressed and we'll have further discussions on that basis.
PRIME MINISTER:
Peter.
PREMIER BEATTIE:
The winner today is the Murray-Darling Basin. This is a win for science over politics. You will all be aware that Mike Rann and I put forward a number of proposals for our agreement, they have all been met. In essence there were three major things. Firstly, the creation of an expert, if you like, authority where science would dominate decisions in the Murray-Darling. That's been agreed and the selection process is one that will ensure experts for example, their qualifications will be in legislation. There will be a call for nominations, there will be a selection process which guarantees experts; in other words science will determine the management of the Murray-Darling. That was the first one.
The second point, and this was one that Mike Rann was strong on, and I agreed with, and that is that if there are decisions by the Federal Minister that are not agreed to, recommendations from the authority, they will be tabled in the Parliament. That was agreed to. The third one was a review. Now in the plan that Mike and I put forward we recommended five years, the Prime Minister has accepted seven. We think under the circumstances that's fair. So for us there were three elements that were deal breakers and they were met today. The winner is the Murray-Darling. We now want to get on and secure the future of those communities.
PRIME MINISTER:
Mr Rann.
PREMIER RANN:
Thank you Prime Minister. I am delighted with the outcome today. There's obviously still a great deal of detail work for us all to do over coming weeks. But as Peter Beattie said, in our plan there was some real deal breakers. I should say we made considerable progress at the last meeting a couple of weeks ago and then the following day at the Council of the Federation. But when it came down to it, we were adamant, and it was a deal breaker for South Australia and for Queensland that there be an independent expert group that would make decisions and give advice to the Water Minister on issues regarding allocations and so on.
And we've come up with a formula that guarantees independent experts, not just the selection process which is somewhat elaborate but guarantees independence but also by legislation they have to be independently defined experts, not Liberal mates, Labor mates, vested interests. These are actually real water experts that will be there to give the advice on the future of the Murray-Darling system. As Peter Beattie said, the other thing is we wanted a review, wanted a review of the legislation that required to refer powers. And I think that the seven year review is a good compromise and that means that we can make sure that what is being promised gets delivered for the best outcome for the River Murray.
So I think that there's whole range of other issues that have been discussed this morning that are particular to South Australia's interests in terms of a guarantee of our minimum entitlement flow, in terms of a strategic reserve for the drought, in terms of a range of other specific issues that directly relate to South Australia as the downstream state. But I think that what Premier Beattie and I were putting forward was a middle course forward. We are delighted with the outcome, our deal breakers have been met and I think that shows a spirit of compromise in the interests of the River Murray.
PRIME MINISTER:
Mr Stanhope.
CHIEF MINISTER STANHOPE:
Thank you very much Prime Minister. Prime Minister the ACT is very pleased to be able to support your proposal today. The Murray-Darling Basin is of particular significance to the ACT. We are indeed the only jurisdiction which is exclusively or entirely within the Basin and it has a particular significance for us.
It's relevant that at the time of the decision to establish Canberra as the national capital, the decision taken then by the Commonwealth in the Seat of Government Acceptance Act was to vest paramount right in the Molonglo, Queanbeyan and Cotter Rivers to the Commonwealth, a paramount right which was transferred to the ACT on self-government.
And it is, I think, particularly important to note the extent to which the ACT is a very good basin citizen. We generate just under 300 gigalitres of water within the Territory a year. We use just 30 gigalitres of that. We use just three per cent of the water that's generated here and that's not counting of course the additional waters, around 200 gigalitres that flow through the ACT. We take a gross 65 gigalitres, we recycle exactly half of the water we take back into the system and are major basin recyclers today.
An issue of particular importance to us, accepting that there is no over-allocation of water in the ACT; we are not major irrigators we have only six licences to take water from the waters within the ACT. The most significant of those I think being probably Royal Canberra Golf Course. So to the extent that there has been an over-allocation of water from within the basin, the ACT is not responsible for that. We are very good water citizens, we don't overuse or over allocate, we recycle and that is a position we wish to see retained or maintained.
We are very happy for the Commonwealth to accept responsibility for this major national project and responsibility. There were only two issues Prime Minister of significance which I raised with you today and I was pleased with your response that acknowledging that the ACT does not have a cap, that issues around the determination of an appropriate cap for the Australian Capital Territory would take into account the basis on which this place was accepted and established as the National Capital and that the Commonwealth will negotiate with the ACT in good faith in the development and setting of a realistic cap for the Australian Capital Territory.
And similarly I was pleased with your response to the ongoing negotiations between our officials in relation to the transfer of the Googong Dam and associated infrastructure. I acknowledge that there have been very constructive negotiations on that issue between the Commonwealth and the ACT in recent weeks and I am very pleased with that. But overall I think it's a very good result today for the Murray-Darling Basin. I am very pleased to work with the Commonwealth and to essentially cede responsibility for the management of the basin to you and to the Commonwealth.
PRIME MINISTER:
Thank you. Do you want to say something representing Mr Carpenter?
THE WESTERN AUSTRALIAN MINISTER FOR FEDERAL AFFAIRS:
Western Australia of course doesn't have a direct interest in the Murray-Darling, but we're very pleased today to accept the Prime Minister's assurances that national water funding is not just limited to the Murray-Darling but is for worthy projects across the country.
PRIME MINISTER:
Thank you.
THE WESTERN AUSTRALIAN MINISTER FOR FEDERAL AFFAIRS:
You're welcome.
PRIME MINISTER:
Local government?
PAUL BELL:
Thank you Prime Minister. Look, can I say local government certainly has welcomed the thrust of the plan that's been put forward and we agree with the premiers, the Prime Minister, that this plan has got the opportunity now for us to really deliver on behalf of the Murray and the Murray-Darling system and certainly the environments within those, that system. We have 210 local governments located along the system, many of those in New South Wales and Queensland provide water services and therefore local government has a vital interest in this plan, particularly the way in which the plan will affect local government infrastructure, the way in which the plan will maybe alter standards and requirements in regards to not only that infrastructure but the way in which water either taken out or put back into the stream. So therefore we see that local government has a significant part to play in the further development of the MOU and the arrangements in regards to communities and even more importantly we certainly put on the table today that we believe there needs to be a recognition of some structural adjustment that might need to take place in these local communities where water which has been a basis of the economies of many of those communities built up along the Murray may in some ways alter or take a new shape and we certainly welcome the assurances of the Prime Minister that local communities and local government will have you know, those concerns in certainly embellished in the MOU as it's moved forward. So we want to thank certainly the Prime Minister for his leadership and the premiers in the way in which they've embraced those concerns of local government.
PRIME MINISTER:
Thank you. Questions?
JOURNALIST:
Victoria can't seriously continue to hold out given the other states and the mighty ACT has backed this plan; how quickly will Victoria back this plan. What are you major concerns going forward?
PREMIER BRACKS:
Well I set out the major concerns in the policy document which we have released and the policy document which we've released we believe is a better plan forward for the nation for getting water flowing and having targets for extra water to flow in the Murray, reward for effort, improving infrastructure, getting the water market working effectively. But in good faith, I think it's important that Victoria discuss on a bilateral basis opportunities for being a part of an arrangement in the future, whether that occurs or not will be the result of those discussions, I don't presuppose those. But can I say in our plan we have indicated already in our plan an extra role and responsibility and extra powers for the Commonwealth as part of that, we recognise and acknowledge that. This is not about state rights; this is about getting it right, getting it right for the nation, getting it right for the Murray-Darling Basin, making sure we've got more water flowing down the Murray. You see, there is a shared policy objective of making sure we improve water allocations and water flows within the Murray-Darling Basin. Where there's a difference is Victoria's position on how we achieve it. That's what we'll be discussing in a bilateral way.
JOURNALIST:
...your negotiations with a view to in the end trying to reach a position where you cede powers or are they about living together with a system where you have some independence and the other states have ceded their powers. What's the long run aim of these negotiations?
PREMIER BRACKS:
Well we're not presupposing the outcome of the negotiations, but they will be entered into in good faith to try and make a way through in the national interest and that's exactly what we will do and of course we have Michelle as a basis for that discussion a plan and proposal which we think is a workable one. The Commonwealth has a plan; now they're good basis for negotiations.
JOURNALIST:
Mr Bracks, haven't the other states effectively repudiated your plan by signing up to this one. I mean, both plans can't operate in tandem presumably?
PREMIER BRACKS:
Well other states have a different view on the application of the policy, but our view is clear and it's backed in Victoria, it's backed of course by the farmers in Victoria, by the Victorian Farmers Federation, by the National Party in Victoria, by most groups and organisations who'd back such a proposal. Now we'll be taking that forward in discussions, but I don't want to presuppose the outcome, we'll be entering those in good faith.
JOURNALIST:
The Prime Minister did say there won't be any side deals, so if you sign up you're signing up to the same agreement.
PREMIER BRACKS:
Well we'll see what happens to the following discussions. The Prime Minister was referring to any extra money that might be there as a consideration for signing up, that's not what Victoria is seeking, we're seeking the best deal for the nation. We're seeking the best outcome. The policy objective is the same. We have differences on how it could be achieved and I think we've got in the market place a very solid and strong plan and I'm happy to have further discussions around that and the Prime Minister's plan.
JOURNALIST:
On a way to sign up eventually, do you want to find common ground that would allow that or are you determined not to sign up?
PREMIER BRACKS:
Well I am not pre-supposing the outcome but we will enter these negotiations in good faith and good faith means that we enter the negotiations with an open mind to do the best for the nation.
JOURNALIST:
Just to clarify Prime Minister, if Victoria doesn't sign up or doesn't refer its powers, there's no money out of the $10 billion for Victoria?
PRIME MINISTER:
The Premier and I had a discussion and we have in good faith agreed to continue talking and the only thing that I am saying is that part of that future discussion is not more money. I want to make it clear publicly and I made it clear to the other Premiers that there are no side deals because that can work to the disadvantage of other states who've come in good faith for these discussions. But like the Premier I am not going to pre-empt the nature of those discussions beyond the comment about money. I hope that we can resolve our differences because plainly we want Victoria to be part of the plan but you can sit here all day I am not going to say any more than that. I have an understanding with the Premier which I will honour and that is that these discussions will be entered into in good faith and we'll get our water ministers talking, we both want to resolve the differences, I am hopeful that we can because I am very committed to having everybody involved in this exercise delivering water security. But I am not going to say any more that because we want the discussions to be fruitful and I want to honour the understanding I have with the Premier.
JOURNALIST:
The other states which have signed up although ...depending on what happens with the Victoria one, while that's going on with the other states be eligible for funding from the package or do you have to wait until you know the final position?
PRIME MINISTER:
Look I think we will know fairly soon how the discussions are going, when I say fairly soon I am not trying to put days or weeks on it, but I think we'll know fairly soon how the discussions are going so in a sense that question becomes a bit academic. There's quite a lot of work to be done, bear in mind we are going to set about preparing the legislation, we've got to prepare a memorandum of understanding, I mean there is an enormous amount of work that has to be done before dollars start to flow.
JOURNALIST:
Mr Bracks, of not signing up to this deal do you just miss out on the money, what actually happens if Victoria doesn't sign the deal?
PREMIER BEATTIE:
Well I think we've made it pretty clear that Victoria stands ready to contribute something like $3 billion to the Murray-Darling Basin system over the next ten years, we've contributed something similar in the past. So we continually invest in good infrastructure on good irrigation systems, on better metering, better support, better prevention of seepage and evaporation that has been a long-stand commitment that we have made, that successive governments have made in Victoria as well. We have one of the most efficient irrigation systems in the country, we want to keep it that way. So what I am saying to you is we come to the table with a significant support and resources to increase supporting our irrigation system, so in a sense the Prime Minister is right, this is about policy and getting it right, it's not about the money, the money will flow where it should flow, where it is most needed in Australia. This is really about getting the policy right on what we believe and we will enter negotiations on this and discussions is in the best interests of the nation.
JOURNALIST:
Are you disappointed that it's not a done deal today, that you haven't got all the states on board?
PRIME MINISTER:
I'm pretty happy with today's meeting and... because I think we've got a large amount of agreement, we still have to have further discussions with Victoria but this all comes together with everybody in, it is a generational shift in water security in this country and I think we've achieved a great deal today and I'm very appreciative of the contribution that everybody has made, I understand the differences that currently exist between the Commonwealth and Victoria and we're going to work very hard to remove them and I think we can do that but that's a matter for us to work through but if we can get it all together I think it will be fantastic and we're a long way down that path and Rome's not built in a day and water security is not achieved in a day but if it takes just a few more days or weeks, if the achievement is there that is a wonderful outcome for Australia and I will go into those discussions with Victoria in a very optimistic frame of mind, but respecting the well held views of the state and I'm not trying in any way to suggest otherwise.
JOURNALIST:
Kevin Rudd has sought the plan activist role in these talks, particularly over the past couple of days, do you think he's been a help or a hindrance?
PRIME MINISTER:
Look I don't think I'll talk about Mr Rudd today.
JOURNALIST:
Mr Beattie, did the Bradfield scheme enter any of the deliberations?
PRIME MINISTER:
We called him Dr Bradfield.
PREMIER BEATTIE:
Absolutely, you've been calling him a bit more than that too.
PRIME MINISTER:
Not me...
PREMIER BEATTIE:
You're very generous Prime Minister, I accept that. The answer is yes and we've agreed to work with the Commonwealth to evaluate the scheme and we will do that. You've got to remember that there are a number of aspects to this, one of the things that the Prime Minister has established recently which Senator Bill Heffernan is heading is looking at agriculture and opportunities in the north and sometime in the next few months the Premier of Western Australia, the Chief Minister of the Northern Territory and I will meet with Bill Heffernan in Darwin. We'll be looking at what water could be provided in terms of coal mines, in terms of hydro electricity agriculture in the north, that would be one of the direct spin offs and then secondly to see whether it is possible in an engineering sense, in an environmental sense to get flows into the Murray-Darling. So that would be evaluated jointly between the Commonwealth and the state. So the answer is yes.
PRIME MINISTER:
Thank you. Thank you very much.
[Ends]