On 24 July I announced that the Commonwealth Government would present legislation to implement the National Plan for Water Security, relying on its existing constitutional powers, during the spring session of parliament.
Existing constitutional powers enable the Commonwealth Government to implement a large part of the $10 billion National Plan for Water Security, without the need for a referral of additional power by states and territories.
On 23 February the Commonwealth sought a reference of additional powers to ensure a single, accountable and comprehensive management arrangement for the Murray-Darling Basin. This was agreed to by New South Wales, Queensland, South Australia and the Australian Capital Territory.
The Victorian state government's position, despite our efforts over five months, is that it will allow the Commonwealth legislation giving effect to a referral of powers by states and territories to apply only partially to Victoria. It shows that the Victorian Government is not serious about a genuine referral of powers to give effect to a genuinely national plan.
Indeed, of the limited referrals Victoria has offered, these could be given effect in almost every respect by relying solely on the Commonwealth's powers. The Victorian government is only willing to refer those powers the Commonwealth already possesses.
Victoria's decision means the Commonwealth has no alternative but to introduce legislation that does not require the referral of state powers. This is not ideal, and it is not what I and all other premiers envisaged. But it is now the best option available to ensure whole-of-basin management, and to enable the Commonwealth to deliver water security to irrigators, rural communities and the environment.
I would like to assure water users in the Murray-Darling Basin that the new approach does not affect existing entitlements and water allocations. As before, the Commonwealth will honour existing state water plans for the life of those plans. Investment security will be retained. In addition, the new legislation will not affect current state water shares under the Murray-Darling Basin Agreement.
As to the $10 billion funding for the plan, the Commonwealth intends pressing ahead with programs throughout the Basin, and across Australia, to meet the commitment I made on 25 January this year.
Once the water bill has been passed by Parliament, the Commonwealth will begin funding programs under the national plan: addressing over-allocation in the Murray-Darling Basin; improving on-farm irrigation efficiency, assessing