COLIN BARNETT: Good morning, I'd just very much like to welcome the Prime Minister Kevin Rudd to, not only Western Australia, but to the Ord.
And the Commonwealth and the State are working together to make finally Ord Stage 2 a reality and I think today's visit, Prime Minister, is an important step towards that.
From the State perspective, we've already allocated some money and we can anticipate some construction work starting virtually in the New Year.
But I would like to hand over to the Prime Minister and welcome to the Ord.
PM: Thanks very much Premier. It's great to be here in the Ord.
I'm told by the locals I'm the first Prime Minister to be here in 23 years.
And I think it's high time we actually looked imaginatively and boldly about where we can take this development in the future for Australia's long term agricultural planning.
We've been talking recently about climate change.
Climate change for the Australian Government falls into three big areas - one, reducing greenhouse gas emissions; two, mitigating the effects of climate change; and three, of course global negotiations to bring out a fair deal for the planet.
Yesterday of course on that first question, we released our Carbon Pollution Reduction Scheme, I'll come back to that in a minute.
Second, climate change mitigation goes to the very question about what you do to support sustainable agriculture and to Australia's long term future.
We all know from climate change that we're having a big impact in terms of drought, and farming conditions across southern Australia.
The south-east and the south-west.
So therefore we've got to look boldly and imaginatively about where we turn for Australia's next food basket.
Now of course, the Ord can't solve all the nation's problems, but you know it can start to make a positive contribution for the future.
The other day when I introduced the Government's Building the Nation Plan, I said that we would be prepared to invest $195 million, dollar-to-dollar with the WA State Government.
I'm here today to re-affirm that commitment.
Secondly, what the Premier and I have just agreed to is that in the next three months, between now and the end of March, we'll conduct and conclude a joint feasibility study.
As I said the other day, you've got to pass that hoop before the money flows from the Commonwealth.
The other thing is that we've got to make sure that we tick off also other necessary approvals.
But the point of being here today, apart from being briefed, is to send a very loud and clear signal that the Commonwealth is open for business.
The Australian Government is open for business in partnerships with the States, in partnership with WA to how we develop long term solutions for Australia's agricultural and farming needs off the back of climate change.
One final thing I'll say is this on climate change real generally.
The Australian Government, given the global financial crisis, makes no apologies whatsoever for introducing responsible medium term targets to bring down our greenhouse gas emissions, capable of being built on in the future more ambitiously.
That's what we've done.
We believe it's a responsible course of action, given the global financial crisis. Necessary for the economy. Also a strong step forward in dealing with this environmental challenge.
Minister do you want to add?
BURKE: In the context of a global financial crisis, agriculture's been one of the drivers that's actually been helping with Australia's growth figures.
And what today says is that the planning for the future and with the challenges of climate change, agriculture remains absolutely part of the nation building agenda.
People have been talking about the Ord Stage 2 for so long. Some people when I was here, not that many months ago, were wondering if we'd ever get there.
Well today you've got the cooperation between the WA Government and the Australian Government saying ‘let's start to move forward on this' and let's start to acknowledge that wherever we can open up extra options for farmers and extra potential food production then we're taking those steps in the right direction.
PM: Good. So just to conclude; climate change means we've got to reduce greenhouse gas emissions and plan for Australia's long term agricultural needs. That's a sensible long term strategy for the nation, and the Premier and I want to see the Ord as part and parcel of that long term future.
Over to you folks for any questions.
JOURNALIST: Prime Minister. The funding for this, will this be coming from Royalties to Regions and if so will it be coming from currently existing funds in Royalties to Regions or will it depend on the mining sector in the future?
PM: No, the Commonwealth funding commitment for the financial year 08-09 is straight from the Budget. That is what we've indicated that we would do and we believe that's the right way to go.
As I said before and I said last Friday in Canberra - joint feasibility first, done in three months; secondly we'll deal with the necessary environmental approvals. But the money is there, it's allocated and for this financial year.
JOURNALIST: And why another feasibility study when we've been having feasibility studies and environmental impact statements up here for 50 years?
PM: Well that is what the Premier and I have agreed to do because we need to make sure that the taxpayers' dollars are being properly invested.
So if you're at the point of commissioning $195 million of federal taxpayers' money then you've got to tick off on the bottom line that this investment is sound. We're confident that, having just seen this great potential new food basket for Australia, that this is part of the nation's future. It's part of nation building.
That's why we've allocated the 195 - done. We'll still cross these two remaining hoops.
JOURNALIST: You've described it as a food basket. What do you think about the sandalwood industry up here?
PM: Well agriculture is a broad and varied feast. It is things that you eat and things that you build with as well. So whether it is sandalwood or whether it's horticulture or whether it is other crops, all these things are building the nation.
This Government wants to be a government of nation building. Part of nation building means building the nation's long term agriculture in all of its dimensions. Horticulture, other forms of crops as well as of course, the sandalwood products I've been introduced to today.
JOURNALIST: So when you look at this country here, what would you prefer to see grown? Food, fibre, (inaudible)?
PM: You know something? I grew up on a farm. We had dairy and beef. And I know enough about farming to know what I don't know. And that's to provide these farmers here with advice about what they should put in here.
They are smart about this soil. They are smart about what grows here. I grew up in south-east Queensland. It's different.
JOURNALIST: And when agriculture-
[Laughter]
PM: I think they kind of, they agree.
[Laughter]
JOURNALIST: When agriculture faces the music of an emissions trading scheme, will you allow for deductions like the resources sector? Say, like New Zealand has done for dairy?
PM: Well the first thing is, we've got to make some decisions between now and 2015 about the inclusion of agriculture into the Carbon Pollution Reduction Scheme. This is really complex, as I said at the National Press Club yesterday.
The reason is, if you look at the rest of our national scheme, it deals with the thousand largest Australian carbon emitters; a thousand large companies. When you look at agriculture, while it does represent 15 per cent of Australia's total greenhouse gas emissions, you're looking at a huge number of individual emitters. It becomes very difficult to actually design a system around it.
That is why the Minister has strongly advised me, I think in consultation with the farm industry groups, that we should hasten slowly, get this right, that's why we've made provision for it but for 2015.
If ag is included, then of course we would be clear then about the conditions attached.
JOURNALIST: (Inaudible)
PM: What does the funding mean for Kununurra and the Ord, Premier? More than currently exists.
I think it is time for the nation to think boldly about its future. You know, Australia is at its best when we're laying out big plans for the future. And implementing them - not just doing bits here and bits there. Bit of piecemeal here, bit of piecemeal there.
We've got to actually look at strategic threats and strategic challenges. Wht's the strategic threat: climate change. How do you deal with that as a strategic challenge?
Well, reducing greenhouse gas emissions - that is important. Dealing effectively in global negotiations to get other countries to do the same -that is critical. Preparing for climate change, in terms of its impact on farming, is just as important.
And the truth of climate change is that when we look to Northern Australia, the potential in terms of rainfall, obviously creates different circumstances to what exists in the rest of the country.
So you know something? We're positive about this plan.
But this community to which I've been introduced this morning at Kununurra is a great little town. Community of seven or 8,000 people and we want to be partners in its long term future.
I'd thank the local authority for their briefing to us this morning about turning this into sustainable communities, supporting sustainable agriculture and with opportunities for inclusion of long term sustainable Indigenous employment.
The Premier is passionate about indigenous employment. We've talked about this at COAG. I am too. We want to make this work for Indigenous people as well.
JOURNALIST: And do you wish this was taken on by the Northern Territory Government? (Inaudible) development on their side?
PM: I know enough about Commonwealth-State relations not to preach beyond the State line. And the State line is over there.
[Laughter]
JOURNALIST: (Inaudible)
PM: But you know. Ord 1 is here in WA. Ord 2 is here in WA. Ord 3 - we'll have some discussions with our friends in the Northern Territory and of course the WA State Government about its long term feasibility as well.
But the Government embraces ambitious plans for the nation's future. Ambitious plans for our farming future. Ambition - ambitious plans for what can be done here. Okay folks? All done?
JOURNALIST: One more question. When can we expect to see the first heavy lifter? Like, the first earth mover?
PM: Premier.
BARNETT: The State Government has already put some money aside, around $30 million, for some of the initial works in the existing M1 area. For example, widening the M1 channel. So we expect that work to be underway basically in January. So we'll start.
And just following on from what the Prime Minister was saying, apart from the development of the M2, the extra 14,000 hectares, essentially doubling the size of the irrigation area, a lot of money will go into upgrading the school, work into the airport, roads.
So there is a broad economic, social and infrastructure program and that adds up to the $195 million -thank you Prime Minister - which the State Government will match, which will see, after 50 years Ord finally realise its potential.
I think that I can say that this is the farming frontier of Australia up here. This is the future of the country in many respects. So I am delighted the Prime Minister could come today and I'm delighted with his commitment to supporting the development of the North, and particularly the east Kimberley.