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Government Lacks Strategy on Murray Darling Basin Plan, Despite Election Promises

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The Government has exhausted its ideas for implementing the Murray Darling Basin Plan. The Albanese Labor Government has been in office for over two years now and implementing the MDB Plan was one of their key election promises. This implies that they should have had a clear strategy in place even before coming into government. Fast forward two years,    Parliament provides the legislative framework to complete the plan—legislation that should have reflected their intended program.

Yet that’s not what happened. When I inquired about the lack of specifics in the government’s “Restoring our Rivers” draft framework, the response made it clear that no real thought had gone into the plan or the legislation they introduced. After reading the “framework” and hearing the Department’s explanations, my belief is reinforced that the government has no real plan, other than to buy back large amounts of water from farmers. It seems they are deliberately delaying any announcement of buybacks until after the election.

Towards the end of this session, I inquired about the socio-economic test that had previously been applied to all water projects to ensure they did not adversely affect rural communities. This test was abolished under the Plibersek legislation and replaced with a meaningless statement. Their response made it clear that the test would no longer prevent bad projects. Instead, it was substituted with lip service and a small allocation of funds for minor community projects, which falls far short of addressing the real socio-economic damage caused by water purchases.

Transcript | Part 1

Senator ROBERTS: How much has been spent on the Restoring Our Rivers draft framework so far? After two years in office, I expected a more detailed and transparent document than this.  

Ms O’Connell: The Restoring Our Rivers framework followed the amendments to the basin plan and Water Act at the very end of last calendar year. That’s a framework released on 29 January, earlier this year, to go through and explain how we’re proposing to deliver the 450 gigalitres. It was released with a range of principles and programs around the delivery of the 450, and released for consultation. With the new legislation there’s an expanded time frame to the end of 2027 to deliver the 450. This is an important consultation document that was released early to seek views and public consultations on how we’re going to go about delivering that 450 gigalitres. We had over 100 submissions. We had lots of consultations with representative groups. At the same time as releasing that framework for consultation we did open one of the programs. That program is our water recovery infrastructure program, which is state led. It was launched on 29 January, and that’s an opportunity for basin states to bring forward water-saving infrastructure projects. So, that’s actual projects to be delivered. Those projects would include off-farm projects, on the property and non-farm projects. That’s a program that opened on 29 January. 

Senator ROBERTS: This document came out in January this year; that’s what you’re saying?  

Ms O’Connell: The Restoring Our Rivers draft framework document?  

Senator ROBERTS: That’s it.  

Ms O’Connell: It followed the changes to the legislation. That’s the important thing. The legislation changed at the end of November.  The legislation passed parliament at the end of November and commenced on 7 December.  

Senator ROBERTS: I would have thought there would have been a lot of work put into that legislation. I’m assuming there was, but I’m amazed at the lack of any real data in this plan or draft framework. It suggests to me that the department is flat out of ideas. It’s like nobody cares anymore. Just buy what we need in water buybacks and destroy the bush and call the job done. Minister, are you stalling for an election rather than upsetting people now with buybacks?  

Ms O’Connell: When that framework was released, we also opened a program—not something for consultation, an actual program—for state-led infrastructure projects to come forward to be proposed.  The framework is, as it says, a framing document. It articulates three proposed programs. The first program that Ms O’Connell refers to, the Resilient Rivers Water Infrastructure Program, is supported by a range of extensive guideline documents, which are available on our website. There are discussions going on with states about getting access to what I think is almost half a billion dollars worth of funding. We have been consulting extensively in relation to another proposed program under the framework, which is a sustainable communities program. Once the results of consultation have been taken on board and that program commences, additional information and guidance around that program will also be published on the website. The third proposed program is in relation to a proposed voluntary water purchase, and the same thing will occur there. It’s a framing document to articulate a range of proposed programs across a variety of recovery tools.  

Senator ROBERTS: It just seems that it’s lacking in data and detail. It just seems light on. But thank you for your answers. Minister, the draft plan actually proposes on page 16 to count the water overpurchases towards the 450 gigalitres. Minister, will you give an undertaking to do exactly that?  

Senator McAllister: I think it is dependent on understanding what any overrecovery might have involved and officials can give you an update on how the system works to produce an evaluation of the state of play, for want of a better term.  

Ms Connell: Currently, there are approximately 78 gigalitres of overcovered water across the northern and southern basins. In terms of being able to count that amount of water towards the 450 gigalitre target, some of those catchments are in New South Wales and they’re in catchments for which water resource plans are yet to be accredited. To be able to determine what the final overrecovery amount is requires the water resource plan to be accredited and for the MDBA to have assessed and verified the modelling so we can have the assurance of exactly where the overrecovered amount falls. We expect to be in a situation across all of the relevant catchments—and I think there are about seven or eight where there are overrecoveries—where work is completed by the MDBA by about June next year.  

Senator ROBERTS: We’re waiting on some of the New South Wales valleys, I understand?  

Ms Connell: That’s correct.  In earlier evidence today, there are six remaining water resource plans to be accredited out of the 20 for New South Wales. There is a dependence there, as my colleague outlined.  

Senator ROBERTS: I can understand you’re not making a commitment without those plans, but assuming the plans are in place then overrecovery will be counted as part of the 450?  

Ms Connell: The draft framework contemplates that exact situation, and we’re in the process of assessing. We got over 100 submissions and they’re of a really high detailed quality. We recently released a report which digests all of that consultation feedback. That’s been now put on the public record. The next step is to publish the final framework. The final framework will set out the government’s proposed approach in relation to overrecoveries.  

Senator ROBERTS: How is the government implementing the Productivity Commission’s recommendations on a new approach to water recovery while also meeting the legislated requirements to consider the socioeconomic impacts on river communities? 

Ms Connell: As you refer to, the Productivity Commission released its, I think, second implementation inquiry into the basin plan, which was published this year. It had a range of recommendations and many of those recommendations have actually been implemented or acted upon in terms of securing the Our Rivers legislation. Then there are a range of other initiatives that the government is undertaking to implement those recommendations. There’s quite a number of them. If there’s a specific recommendation you’re interested in, I’m happy to give you an answer about that one.  

Senator ROBERTS: Can you give me an overview of how the government is implementing the Productivity Commission’s recommendations?  

Ms Connell: The first key critical step to deal with the range of issues the Productivity Commission raised was actually the passage of the Restoring Our Rivers legislation. The Productivity Commission released its interim report while the legislation was in parliament and progressing through parliament. A lot of the amendments moved in the House of Representatives and in the Senate went to addressing issues in the Productivity Commission report. Time Frame extensions were a key issue the Productivity Commission raised. They called out, as many reports have over the last couple of years in terms of basin plan progress, that more time was required. That was a key component of the legislation. They called out the fact that the 450 gigalitre target would require water purchase. Voluntary water purchase is one of the pathways for recovery. They noted that was more cost-effective relative to infrastructure projects. One of the key elements of the Restoring Our Rivers Act was to make water purchase a feasible pathway.  

Senator ROBERTS: What about in relation to meeting the legislated requirement to consider the socioeconomic impacts on river communities?  

Ms Connell: The legislation included several reforms in relation to that proposal. Firstly, there’s a requirement for a third independent review of the WESA. Unlike the first two reviews, the third review has to actually look at socioeconomic impacts on basin communities. The minister is now also required to consider the social and economic impacts on basin communities of a proposed water purchase program before she launches a water purchase program. There is quite a range of initiatives in relation to socioeconomic impacts.  

Significantly, more broadly, there are three principles that guide overall water recovery. The first of those is enhanced environmental outcomes. The second is minimising socioeconomic impacts, and the third is achieving value for money. So, there’s an overall set of principles.  

I will just note one of the key recommendations of the commission—I think it’s recommendation 2.4—was that in terms of water recovery the government should take a staged and gradual approach and it should provide adjustment assistance to communities to deal with proposed water purchase. As Ms O’Connell said, that’s at the core of the draft framework. One of the three pillars, if you like, is looking at socioeconomic impacts, and one of the responses to that is the establishment of a sustainable communities program. The purpose of that program will be to provide adjustment assistance to communities.  

Senator ROBERTS: I’ll come back to that later. Why has the government not released the Water Recovery Strategy foreshadowed by the Productivity Commission? Six months after the passage of the restoring our rivers bill, why do we only have a draft framework lacking in detail?  

Ms Connell: As I said earlier, the draft framework foreshadows three programs. One of those programs is a water purchase program. When the government moves to commence water purchase, it will release the document that the Productivity Commission refers to.  The legislation passed at the end of November. The framework was released at the end of January, so not long after. It’s important that we go out and consult on these matters. There’s a huge amount of interest. That’s what we were doing, consulting.  

Senator ROBERTS: When will the feedback on the government’s draft framework on recovering the additional 450 gigs be made available?  

Ms O’Connell: That I think was actually published on our website yesterday. I’m happy to table a copy—  

Senator ROBERTS: Yesterday? That’s a funny thing. Pardon me for being a bit—what’s the word?  

Senator Payman: Cynical.  

Senator ROBERTS: No, not quite ‘cynical’. Sceptical maybe. A number of things were published right before the day of standard estimates scheduled hearings. Anyway, that’s good. Thank you.  

Senator McAllister: I suppose the counterfactual is that if it’s not published then you don’t have the opportunity to examine it. You’re very welcome to ask questions about the material that’s in the public domain.  

Ms O’Connell: If it’s useful, we can table the link so that you can go to it, but it is on our website. 

CHAIR: Last question, Senator Roberts, before we rotate the call.  

Senator ROBERTS: Has the department met with industry groups collectively regarding feedback on this draft framework for the additional 450 gigalitres, and where will it come from?  

Ms O’Connell: Yes, there’s been extensive consultation as part of the framework being out there—as I said, over 100 submissions. But we can also go through and talk to you about the discussions with groups that we’ve had, the consultations that we’ve done and webinars that we’ve had.  The nature of the consultation and the groups we consulted with are set out in the document we’ve published. We’ve held many workshops over the last six months with industry groups and peak stakeholder groups, and we’ve met quite a few times with the basin community committee. We’ve had discussions with particular sectors within industry—the rice sector and the dairy sector.  

Senator ROBERTS: Are those workshops online?  

Ms Connell: Predominantly, but we’ve also had face-to-face meetings and meetings out in the basin. So, through a range of different consultation mechanisms and including public webinars.  

Senator ROBERTS: How many online and how many—  

CHAIR: Senator Roberts, we’re now going to have to rotate the call.  

Senator ROBERTS: If I could just follow up on that. How many face-to-face workshops and how many online?  

Ms Connell: I’d have to take that on notice—  

Senator ROBERTS: If you could, please.  

Ms Connell: to give you that answer.  

Transcript | Part 2

Senator ROBERTS: Ms O’Connell or Ms Connell—  

Ms O’Connell: I know—they’re very similar names.  

Senator ROBERTS: Well, for the one with the ‘O’ or the one without the ‘O’, you said the plan water numbers were online. My office is pretty good at surfing the internet, but they clicked right through the website and couldn’t find it. Could you send that link, please, that you offered?  

Ms O’Connell: Yes. Just to be clear, that’s the link on the report on the 450 gigalitre framework consultation?  

Senator ROBERTS: Yes, and the water quantities.  

Ms Connell: The overrecoveries?  

Senator ROBERTS: Yes.  

Ms Connell: We can provide you with that information.  

Senator ROBERTS: How is the government implementing the Productivity Commission’s recommendation on transparency and accountability for basin plan decisions? We’ve got a few here about the ACT. What information has the government released about the Australian Capital Territory Bridging the Gap project announced on 3 April?  

Ms O’Connell: There was a press release on the ACT Bridging the Gap. The date of that release was 3 April 2024. There was a joint media release on ACT fulfilling its water recovery commitments under the MurrayDarling Basin Plan Bridging the Gap.  

Senator ROBERTS: Has there been any more information?  

Ms O’Connell: We’re happy to provide you with more information.  

Mr Southwell: The FFA, the Federation Funding Agreement, that relates to that matter has been published on the Department of Treasury’s website.  

Senator ROBERTS: The Department of Treasury?  

Mr Southwell: It’s a website for federal financial relations and FFA is there.  

Senator ROBERTS: There are so many bureaucracies and so many departments. That’s fine.  

Mr Southwell: That’s where all of the FFAs have to be published. That relates to the minister’s press release. The FFA itself was executed on 14 March when the ACT signed it, and that provided the $58 million for the 6.36 gigalitres of water that the arrangement related to.  

Senator ROBERTS: So, 6.3 gigalitres, did you say?  

Mr Southwell: 6.36 gigalitres.  

Senator ROBERTS: That was to be my next question. Now my next question instead is: how much per megalitre was paid to the ACT, including previous payments?  

Mr Southwell: This FFA is $58.83 million for the 6.36 gigalitres, and that works out at $9,250 a megalitre.  

Senator ROBERTS: What part of the ACT is the water being recovered from?  

Mr Southwell: The FFA itself doesn’t require specific components from the ACT. The ACT has said that they will use the money received to implement long-term water management changes, including water sensitive urban design activities, incentivising community change to reduce water use and water quality improvement activities.  

Senator ROBERTS: So, no specific water was released?  

Mr Southwell: I think it’s called the Halls Gap site—the Lower Molonglo. 

Senator DAVEY: Only state—  

Mr Southwell: No. The transfer of entitlements has occurred. It is with the Commonwealth Environmental Water Holder. The Commonwealth received a licence of 6.36 gigalitres. That comprised 4.9 towards Bridging the Gap, and an additional 1.46 gigalitres of water towards broader basin plan outcomes. That water has since been specified by Minister Plibersek as being held environmental water to contribute towards the 450 gigalitre target.  

Senator ROBERTS: The water is no longer going to the ACT?  

Mr Southwell: That water is now held by the Commonwealth Environmental Water Holder, that entitlement.  

Senator ROBERTS: Is it water that’s actually being held or is it water that will be held due to savings in the future? I didn’t quite understand.  

Mr Southwell: The entitlement has been transferred now.  

Senator ROBERTS: Okay.  

Mr Southwell: It’s with the Commonwealth Environmental Water Holder. Dr Banks: I can confirm that water entitlement was registered on 18 April to the Commonwealth’s environmental water holdings.  

Senator ROBERTS: So, part of that was part of the efficiency measures towards the additional 450 gig?  

Mr Southwell: 1.46 gigalitres. ACT identified that they could deliver 6.36. Their gap that was remaining for Bridging the Gap—4.9. That’s been met in full. So, the ACT no longer has a gap. With the additional 1.46, that has now been determined as contributing towards the 450 gigalitres, which means 1.46 gigalitres less that has to be recovered elsewhere.  

Senator ROBERTS: When or how did officials agree to this socioeconomic criteria for the funding?  

Mr Southwell: The department evaluated the offer that was made from the ACT. We provided advice to the minister, a comprehensive assessment around the water and the value that it represented and its contribution towards the basin plan, and provided advice to the minister accordingly.  

Senator ROBERTS: I appreciate your answers being so direct and clear. Is that publicly available, that information?  

Mr Southwell: The evaluation?  

Senator ROBERTS: Yes.  

Mr Southwell: No.  

Senator ROBERTS: Can we get a copy of it on notice.  

Mr Southwell: On notice.  

Senator ROBERTS: We’re six months out from the passage of the restoring our rivers bill. Have any new SDLAM projects been started? Mr Ward: No new projects have been started. But as I mentioned earlier in the day, we’re working very closely with our basin state colleagues on identifying ideas and progressing them forward. There were seven that were shortlisted by the basin officials committee earlier this year for the states to undertake further development of those, and the information on that is published on our department website.  Have any decisions been made on new SDLAM projects?  

Ms O’Connell: Not by basin officials committees yet. There are prospective projects being worked on. We anticipate—and I gave this evidence earlier today—that New South Wales will be bringing forward a new project soon. They have advised us they intend bringing forward a new project soon and then basin officials will have a look at that.  

Senator ROBERTS: What timeline is likely for new SDLAM projects?  

Ms O’Connell: It really depends on the project in terms of how long it takes to deliver the project. The delivery timeframe for all SDLAM projects, which applies to new ones, is— Mr Ward: There are three key dates. New projects have to be notified by basin officials by 30 June 2025. States then have until 30 June 2026 to either amend or withdraw projects, and then all projects must be in operation on 31 December 2026.  

Senator ROBERTS: I take it it’s too early to determine what the likely volumetric outcome is, much too early?  

Ms O’Connell: Correct. It is a tight timeframe, as my colleague outlined. 

Mr McConville: If I may add, the reconciliation process will occur, in terms of your question around volumes, after December 2026. The MDBA will be required to do a reconciliation after that.  

Senator ROBERTS: Socioeconomic considerations—how is the government intending to meet the requirements to consider socioeconomic impacts of buybacks when it has such an unrealistic target, in my opinion, of recovery of 100 gigalitres per annum?  

Ms Connell: As the draft framework makes clear, considering socioeconomic impacts needs to be a key consideration in each water recovery pathway. It really depends on the option being pursued, whether it’s infrastructure, rules based or voluntary water purchase. But I can talk in more detail about the work that we’re doing and the investigations we’re undertaking in relation to potential water purchase. We’re undertaking a range of work. There was a quite significant investigation into socioeconomic impacts of the basin plan quite a few years ago chaired by Robbie Sefton. She chaired a panel. The advice of the Sefton report was, given that there are really quite complex drivers of socioeconomic impacts in the basin—climate, drought, technology, labour inputs, energy inputs—it’s important to look at multiple lines of inquiry to develop the evidence base. So we’re doing a couple of things. We’re looking back. We’ve got the benefit of a range of reports that have been undertaken looking at socioeconomic impacts of water recovery options over the last couple of years. AITHER has done some work for the Murray-Darling Basin Authority, which has been a key reference point for us. Marsden Jacobs Associates, another firm, did quite detailed investigations for the Sefton review, and New South Wales has recently published a report which we’ve had reference to as well. I guess the other key significant thing that we’re doing is most of those reports find that it’s quite hard to actually pull apart what impacts water recovery has on regional communities, and it’s important to have a discussion with communities to involve them in those issues. One of the key elements of the consultation we did around the draft framework was to seek very specific feedback about past experience of water recovery programs, past experience of community adjustment programs, and we’re pulling that all together. We’ll also be drawing on advice from ABARES.  

Senator ROBERTS: My understanding is that it used to be the requirement that we must have a socioeconomic benefit. Now it comes down to, at the top of page 18 of your draft framework report, the ‘Sustainable Communities program will seek to mitigate unavoidable socioeconomic impacts’.  

Ms Connell: That’s right.  

Senator ROBERTS: Let’s change the target.  

Ms Connell: Our first order approach is to prioritise a non-water purchase option. We’ve talked quite a bit today about the fact that the infrastructure program opened in January and then the other kind of core program under the framework is the Sustainable Communities program. We’ve been working really quite intensively with stakeholders to get feedback on a draft of principles to guide how funding for community adjustment should be directed. So, we’ve received really quite extensive and clear feedback. There are seven principles that will form the foundation of the community adjustment program. The feedback largely supported each of those principles. Many of them were very strongly supported. There was a strong emphasis from local councils in particular. They’ve been closely engaged in the design of any community adjustment principles. So, that is something we will be definitely taking on board. We’re currently working with basin states to look at getting funding arrangements in place so that funding can flow in the new financial year. 

Transcript | Part 3

CHAIR: Senator Roberts.  

Senator ROBERTS: The draft framework for delivering the additional 450 gigalitres per year outlined in the restoring our rivers bill provided more funding towards finalising the basin plan, but the budget indicated this funding was not for publication. How much funding is required?  

Ms O’Connell: As you mentioned, the budget papers say that it is not for publication, and the reason for that is there will be potential for competitive tendering. You wouldn’t normally publish the figures prior to going to a tender.  

Senator ROBERTS: Thank you. I accept that.  

Ms O’Connell: So it’s not for publication.  

Senator ROBERTS: What provision will be made to support the river communities that will be impacted by water recovery?  

Ms Connell: We spoke about that a bit earlier this afternoon. The framework describes a Sustainable Communities program that’s for community adjustment. The funding will go through states under federal financial agreements. The proposal is for a specific standalone program focused on supporting communities that need support to adjust, and for that funding to be provided through states who are best placed to work with local communities to build on their existing regional stakeholder engagement networks, and also to build on existing funding that’s going into those particular communities that need to be the focus.  

Senator ROBERTS: So federal funding through the states?  

Ms Connell: Funding under FFAs, federal funding agreements.  

Senator ROBERTS: Minister, this seems to be a continuation of the undeclared war on farmers. I’ve been to Dirranbandi in Southern Queensland, the border community there, and the same applies to Northern New South Wales. Senator Davey, I’m sure, will be concerned as well. Who gets the land after you drive farmers off? A lot of farmers have been driven off in Dirranbandi and other places. Who is going to use this land once you get rid of the farmers? For what purpose will they use it?  

Senator McAllister: I don’t accept the scenarios that you set out in your question. Nor do I accept your characterisation of our posture towards Australian agricultural communities. Our view is that a sustainable basin, a healthy working river, is essential to underwrite the future of food and fibre production in this country, to underwrite the future of regional towns that depend, as has been discussed earlier today, on adequate supplies of clean drinking water, and also to protect our environmental assets in the basin. We think those three things are compatible with one another and, in fact, interdependent. The approach we’re taking is working through a difficult and challenging reform. It now looks like it will be a multidecade reform. It’s one that’s been going on for many years. It requires cooperation between the states and the territories and the Commonwealth. It has been bipartisan. Regrettably, not very much progress was made in the decade that the coalition was in office. But in the two years we’ve been in government we have set about looking at the progress that’s been made so far, what more needs to be done and putting in place the legislative arrangements, the financial arrangements and the implementation arrangements, to implement the basin plan in full.  

Senator ROBERTS: Have you heard of the rewilding plan that’s part of the United Nations Agenda 2030 as it is now? It was exposed in the United States. There are similar concepts here.  

Senator McAllister: You’ll have to table the United Nations documentation. I haven’t seen that documentation.  

Senator ROBERTS: What about hollowing out the bush? I’ve been to Moulamein in southern New South Wales and northern Victoria. What about compensation to supermarkets, small businesses in the areas who will all lose business with the water that’s going to be taken, and with that lose the critical mass necessary to keep these towns going? Football teams are dying; sporting clubs are dying. What about the compensation for the people who are not on the land but who depend upon the people on the land?  

Senator McAllister: Over the course of today we’ve had a few discussions about socioeconomic impacts, some of them in response to questions from yourself. I think you heard Ms Connor speak earlier about some of the research that’s occurred already about the multiple drivers of change in Australian rural communities. You’ve also heard Ms O’Connell and Ms Connor speak about the approach to socioeconomic assessment in terms of any decisions that might be taken. You have, thirdly, heard just now a description of the approach that’s proposed in terms of working with the states and territories to provide support for communities. I’m not sure how further to respond to your questions, but I do think a lot of information has been provided over the course of the day about the way we’re thinking about these challenges in implementing the plan in full—something I believe continues to have bipartisan support, as confirmed by Senators Davey and Ruston earlier.  

Senator ROBERTS: What is the total cost estimate to complete the basin plan?  

Mr Dadswell: Current public commitments to the basin plan are around $13 billion. That’s over the life of the plan, over the last 12 years. There’s about—  

Senator ROBERTS: So that includes past—  

Mr Dadswell: Yes, past programs and existing, and including the ones from the 2024-25 budget. There’s around $3 billion in publicly stated funding that remains against that $13 billion to be spent.  

Senator ROBERTS: Thank you. 

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Labor Dashes Hopes for Murray Darling Basin Community

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The Albanese Labor Government are shifting the goalposts on the Murray Darling Basin Plan. There’s only 42GL left to complete the water acquisitions across the whole basin, so the pain is almost over and there’s still the 450GL of water for South Australia, which means this doesn’t need to be taken from irrigators. And there’s another 3 years to find that water through capital works.

In this Estimates session I asked whether these last few measures would be the end of the nightmare for Basin communities. I was expecting a yes – instead I got a no.

It seems the bureaucracy and the Albanese Government are hell bent on taking everything for themselves, forcing even more farmers off their land. Their answer certainly sounds like they intend to demand more water for the environment when the plan ends in a few years, starting the nightmare over again.

Landholders, including farmers, just want to know what the government is planning so they can adjust. Clearly the Government does not understand farming to know this, or simply don’t care.

The science underpinning the scheme is flawed, which is unsustainable, hurts farmers, fibre producers and the environment.

One Nation would complete the remainder of this plan and then call it done. No more water to be taken off the farmers. We would also sell the 78GL of water over-purchased by the department back to the farmers, to grow food and fibre to feed and to clothe the world.

Anything else is sabotaging the bush. #nofarmersnofood

Transcript

Senator ROBERTS:  With all the numbers flying around, I feel confused sometimes; things don’t seem to change. I would like some clarification. Talk of water buybacks created a lot of anger when the Albanese government came to power. That talk seems to have gone quiet. There was a plan to buy back 44.3 gigalitres immediately, a threat to use buybacks to get another figure to complete the plan—I will raise that in a minute. How much has been purchased so far? Your website is still saying that you need another 38 gigalitres, yet we heard the tender was oversubscribed.  

Ms O’Connell:  In terms of the open tender, we were seeking 44.3 gigalitres for the Bridging the Gap component. I want to be specific here; that was for Bridging the Gap. It was oversubscribed. We had 250 tender responses, which accounted to 90.34 gigalitres in terms of across the catchments.  

Senator ROBERTS:  So double?  

Ms O’Connell:  Yes, just over double. These Bridging the Gap requirements are catchment specific. There is a certain amount of water to be recovered in a certain catchment. It was oversubscribed in total, but specifically we are purchasing to an amount in a particular catchment. It also has to represent the right type of water, and value for money, before we proceed. From that 44.3 gigalitre tender we have agreed to purchase 26.25 gigalitres towards that target. We will, as a result of that, complete the requirements in three of those specific catchments.  

Senator ROBERTS:  So you still have the fourth catchment to do?  

Ms O’Connell:  There are six catchments in total.  

Senator ROBERTS:  You still have three of the six to do.  

Ms O’Connell:  That’s right; to complete the recovery.  

Mr Southwell:  That is correct. There are three catchments that we expect to recover through this tender, subject to all contracts being finalised, and three to go. I might take this opportunity to give an overview of where we are in the process. The tender sought to recover 44.3 gigalitres. When all of those contracts are signed, we expect to have spent around $205 million. Contracts are still being signed. That is important to note in terms of where we are up to. A table on our website provides an outline of each catchment, the volumes we expect to have recovered and the volumes that remain.  

Senator Davey:  That table was only uploaded today.  

Mr Southwell:  It was uploaded yesterday, I think, Senator.  

Senator Davey:  Late yesterday.  

Mr Southwell:  I understood it was later than 9 am yesterday morning.  

Senator ROBERTS:  You will still buy the 90 gigalitres that came in as tenders?  

Mr Southwell:  No.  

Senator ROBERTS:  Just the 26.25?  

Mr Southwell:  That tender process was specifically for Bridging the Gap, and the volumes that we are purchasing are for Bridging the Gap.  

Senator ROBERTS:  That is 26.25?  

Mr Southwell:  Correct.  

Senator ROBERTS:  I note that the Restoring our Rivers Framework, currently under consultation, is for the full 450 gigalitres South Australian flow; your website says 424. Can I have this confirmed: this is the same bucket of water, whether it is 424 or 450—not two buckets?  

Ms O’Connell:  No, there are not two buckets. The requirement is 450 gigalitres, of which 26 gigalitres is contracted, delivered or underway. The remaining component is 424. So it is one lot of 450, with 26 already recovered.  

Senator ROBERTS:  Senator Hanson-Young, in an interview with the ABC last November, said there was a further 300 gigalitres of water to be found to complete the plan, not 38 gigalitres. This was not including the 450 gigalitres. Is that statement correct? If so, can you explain how that figure is arrived at?  

Ms O’Connell:  We would have to see what exactly she was referring to and get that quoted number.  

Chair:  Could you table it? Do you have it with you?  

Senator ROBERTS:  I don’t have it with me, no.  

Mr Fredericks:  We will take that on notice.  

Ms O’Connell:  For us to be able to answer that, would you be able to provide the document as well, so we can make sure we are referring to the right thing?  

Senator ROBERTS:  Yes. By our calculations, if you get the remaining 38 gigalitres on buybacks, you will also have 78 gigalitres of excess purchases in some bailees. Will you sell this back to the farmers?  

Ms O’Connell:  On Bridging the Gap, which is what we have been talking about, it is a catchment-specific amount that we need to recover. We don’t intend to buy more than what is needed. There is a minor amount of incidental overrecovery that happens when you buy water, but that is minor and incidental. Our intention is to bridge the gap through the 44.3 gigalitres.  

Ms Connell:  In relation to the 78 gigalitres of overrecovery you referred to, there are two issues to highlight. The number of overrecoveries won’t be confirmed until New South Wales water resource plans are accredited. A significant proportion of that figure relates to overrecoveries in New South Wales. The other thing to keep in mind is that water is currently held by the Commonwealth Environmental Water Holder and used at the moment.  

Senator ROBERTS:  Minister, once you get that figure, the 38, and the 450, minus what is underway now, is it done? Is there anything else? Can what remains of farming in the Murray Darling Basin get on with growing food and fibre to feed and clothe the world, without this nightmare of the plan hanging over farmers? Is that the end of it?  

Senator McAllister:  I think the best way to describe the government’s intentions is to implement the plan in full. That was the purpose of the legislation that went through the parliament. As you have observed, there is substantial work to do. That work includes the recovery associated with Bridging the Gap, which the officials have been talking about. It also includes establishment of the framework for reaching the 450-gigalitre target. The government is presently consulting on that framework. That document is in the public domain and we are seeking public comment about that approach. There are other elements of the work associated with completing the plan; the officials can talk you through that. Rather than accepting your summary of the work before us, I would prefer to point to the way the government characterises the work that is underway.  

Senator ROBERTS:  What amounts are required to finish the plan? That is what I heard you say: when the plan is finished, that is it—no more buybacks.  

Ms Connell:  In the first instance, the plan doesn’t finish. It is an ongoing instrument, subject to a review by the Murray Darling Basin Authority in 2026. That will be the first review of the Basin Plan. Under the current Basin Plan, there are two key targets.  

Senator ROBERTS:  That means that the plan could change.  

Chair:  Senator ROBERTS, the river is a living thing. The reason why we ended up with the Murray Darling Basin Plan in the first place was over-extraction and the utilisation of the river.  

Senator Davey:  Happy to replace the chair to answer questions from the committee. Thank you, Chair.  

Chair:  Thank you, Senator Davey. Minister, maybe you could help us out here. It is a point of clarification that is worth making.  

Senator McAllister:  I am happy for officials to talk through the approach. The main point is that the government’s commitment is to implement the Basin Plan in full. Under the previous government, insufficient progress was made on some important initiatives. Progress basically stalled for an entire decade. We talked about this a lot during the committee stage of the Senate debate. You are aware of the government’s perspective on this. It is for that reason that we had to change the legislation. We are presently consulting on the key initiatives that are underway. The officials can talk you through all of the important next steps.  

Ms O’Connell:  In terms of the Basin Plan, it is about sustainable river systems long-term management. There are two major components in the plan to be fulfilled that need to be delivered. We have been talking about Bridging the Gap. The remainder is the 450 gigalitres. There are new legislative time frames for delivering those that provide more time, more options, greater flexibility and greater accountability to be able to deliver on those targets. Beyond that, there is a review role for the Murray-Darling Basin Authority in terms of the long-term sustainability and sustainable management of our river systems. That review is not until 2026, which would foreshadow what might be required in the longer-term future.  

Senator ROBERTS:  Let me understand that, Ms O’Connell. The plan as it is—as we have just been told, it’s a living document and a living plan and it could change—the 450 and the 38, that’s it; but it could change in 2026 when the review is done. Because it is a living plan, the plan could grow another arm and leg.  

Ms O’Connell:  Yes.  

Mr Fredericks:  I don’t think we can pre-empt that review.  

Senator ROBERTS:  People’s livelihoods are at stake, Mr Fredericks.  

Mr Fredericks:  I understand that fully. There is a review. It is in 2026. It will be very well conducted by the MDBA. I don’t think that, sitting here in 2024, we, as departmental officials, can really pre-empt that review.  

Senator ROBERTS:  I am thinking of farmers in southern Queensland, New South Wales, Victoria and South Australia who are wondering whether or not to invest in their future and the future of their communities. Businesses in many rural communities have gone downhill, in large part due to the Water Act and the plan. These people want to know that they’ve got something more than two years. They just want to know: is this the end?  

Senator McAllister:  Can I make this point, Senator Roberts? The origin of the plan lay in a recognition across the country that we had overallocated the Murray-Darling Basin system. That had very significant consequences for basin communities. It had very significant consequences for the food and fibre producers in the Murray-Darling Basin, who depend on reliable access to water. It had consequences, of course, for the natural systems in the Murray-Darling Basin, which were under enormous pressure. It’s a while back now, but it really came to a head in the millennium drought. We saw some very severe impacts across the basin at that time. There was a recognition across the country, including within the basin, that we couldn’t go on in this way and that the overallocation needed to be addressed. That is the origin of the plan.  

It matters to farmers and food and fibre producers that these issues are tackled and addressed because there is an interrelationship between the access to water by communities, the access to water by farmers, the availability of water for environmental purposes and, increasingly, the recognition that cultural water matters to First Nations people as well.  

All of these things are interrelated and, at their heart, the success of all of those stakeholders, and the interests of all of those stakeholders, lies in having a healthy, working river that is being appropriately managed. Those are the underlying ideas that drive our government’s commitment to implementing the Basin Plan.  

Senator ROBERTS:  Minister, while we do argue about the science underpinning the Basin Plan, let’s set that aside. Modern civilisation cannot exist without a healthy environment. We get that. A healthy environment cannot be achieved without modern civilisation because it reduces the pressure on the environment. Landholders are the number one protectors of the environment—that means farmers. At the moment, farmers and small businesses in rural communities see a shifting of the goalposts repeatedly. That’s what’s bothering them. They get the point about the need to protect the environment. They’re tired of having the goalposts shifted on them. That’s why my question was: is this the end of it? So far, what we’ve got is: ‘No, it’s not. In 2026 we’ll have a review and see what happens.’ 

Senator McAllister:  The plan has been in place for a very long time, Senator Roberts.  

Senator ROBERTS:  Since 2007.  

Senator McAllister:  Our party has been very consistent in supporting the implementation of that plan. Our view is that the plan should be implemented. For much of that period, that was the stated position of the coalition parties as well. Unfortunately, in the final years of the last government—in fact, really across the period of the last government—the Liberal and National parties undermined and sabotaged the plan’s implementation.  

Senator Davey interjecting— 

Senator McAllister:  That has caused a very significant problem.  

Chair:  That is the minister’s view. She is entitled to answer the question as she sees fit.  

Senator Davey:  I dispute that. The terminology ‘sabotaged’ is absolutely— 

Senator McAllister:  Senator, I think you said— 

Chair:  The minister will finish her— 

Senator Davey:  We might have had a different perspective on how to implement the plan.  

Chair:  Senator Davey, the minister will finish her answer and then you will have a turn.  

Senator McAllister:  I think the core facts are before us. In nine years, that government delivered just two of the 450 gigalitres—two gigalitres, under the 450-gigalitre target— 

Senator Davey:  We were focused on the environment and a sustainable level— 

Chair:  Senator Davey! 

Senator McAllister:  which would have meant that the plan would have been completed at some time around the year 4000. Steps needed to be taken to get the plan on track. We are taking those steps. I think the government’s priorities in terms of implementation are very clear. As I’ve indicated a couple of times now, we’re engaged in consultation with the community about the practical ways that we’re going to take the next steps together. 

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Water is Crucial for Snowy 2.0

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Hydropower comes from flowing water and for that you need the key ingredient — water. While Snowy 2 will pump water up and then generate electricity by letting it flow down, its’ water needs are much more than just re-using the same water.

Snowy 2’s profitability depends on keeping water in storage to provide immediate baseload power when the unreliables in the grid go down from inclement weather. What we do know is there’s definitely no water in the high mountains as an insurance policy essential for underwriting the unreliable solar and wind power generation.

All the water in Tantangarra is needed for environmental flows into the upper Murrumbidgee. Water taken from the lower dam, Talbingo, is water owned by other users.

I would have thought a $12 billion scheme that uses water for electricity generation would have already sorted out where that water is coming from, but apparently not! I put questions to the department around water availability, water licences, and agreements. I also asked whether Snowy Hydro has sufficient water allocated to meet its agreed insurance policy against the shortfalls of wind and solar.

The responses suggest the disaster movie that is Snowy 2.0 is still playing Act 1.0.

Transcript

Senator ROBERTS: I want to reference the Snowy Montane Rivers Increased Flows: Safety Management Plan 2022-2027. The plan calls for increased flows into the upper Murrumbidgee in a series of high-flow releases from Tantangara Dam. Page 37 is headed ‘Key issues/considerations’. The very first one refers to an increase of 40,755 megalitres to be released into Snowy montane rivers from Tantangara reservoir. This is an increase of 35,800 megalitres from the 2022-23 water year. Is that correct?

Ms Connell: I don’t have that document in front of me. We can take it on notice to look at that. Given conditions over the last couple of years, I wouldn’t be surprised if there had been an increase from 2021-22 to 2022-23. I would need to take it on notice.

Senator ROBERTS: It seems to be to repair or restore the Murrumbidgee. I am not arguing that case.

Senator McAllister: Senator Roberts, I think you’ve heard the official say that she doesn’t have the document in front of her.

Senator ROBERTS: I will get it on notice.

Senator McAllister: If you did want to ask further questions about that, presumably we can find it. Providing the reference would assist us to do so.

Senator ROBERTS: It is by the New South Wales government. You can have this, if you like.

CHAIR: Maybe table it, Senator Roberts.

Senator ROBERTS: Tantangara storage holds 250 gigalitres. However, Tantangara reservoir has never been more than 70 per cent full in the 23 years to December 2020. This means there has never been water available to generate 350 gigawatt hours of electrical energy. In addition, the long-term average weekly volume of the Tantangara reservoir in the same 23 years is 18.15 per cent, which allows only 32 gigalitres to be used for generation. The long-term average storage available in Talbingo is found to be approximately 33 gigalitres. These new high-surge flows, plus the existing daily water inflow into the upper Murrumbidgee, will account for 100 per cent of the water storage in Tantangara, based on the last 23 years of inflows. There’s no water in Tantangara for Snowy 2.0. Is this correct?

Mr Fredericks: Senator, in fairness to you, the questions that you are asking are really about the business of Snowy Hydro Ltd. I suspect they will be able to give you a high-quality answer to your question. If it is okay, I will take that on notice for them to come back on notice and respond to it.

Senator ROBERTS: I would like you to answer it.

Mr Fredericks: I can’t answer it. I will take it on notice.

CHAIR: Senator Roberts, the officials from the department will answer what they can. In directing your questions, if the questions are about the operation of Snowy, they need to go to Snowy.

Senator ROBERTS: I understand that.

CHAIR: The department can help you, via the interface they have there.

Senator ROBERTS: I understand that, Chair, very clearly.

Senator DAVEY: To be fair, I was at the Snowy hearing. Senator Roberts did ask these questions of Snowy, and Snowy were a bit ambivalent and suggested that he ask the department.

CHAIR: Put them on notice to both sets and then, through the committee, we’ll deal with whether the response covers your questions.

Senator ROBERTS: I want to know because Snowy Hydro 2.0 said, ‘There’s plenty of water in Tantangara.’ Clearly, there is not.

Mr Fredericks: I will take that on notice for Snowy Hydro.

Senator ROBERTS: Thank you. I would like you to answer the question about the availability of water. This is crucial.

Mr Fredericks: That is fair enough. I will take it on notice.

Senator ROBERTS: The water in Tantangara cannot be used for hydro via the existing connection to Lake Eucumbene, which flows into the Murray, or the new Snowy 2.0 connection, which flows into the Tumut and then the lower Murrumbidgee. This means that all the water for Snowy 2.0 will have to be pumped up from Talbingo before coming down. That’s not a problem. We understand that, because with pumped hydro you either start with the water at the bottom or you start with the water at the top and you end up in the same place. My critical question is about the availability of water. Here is the second question. Snowy 2.0 is making one-third of its revenue from selling insurance policies to underwrite the lack of continuity of supply of unreliable wind and solar as generators. The basic idea is that if an unreliable renewable project, like solar and wind, can’t supply its contracted power then Snowy will let the water flow down the hill and generate power for them. One-third of the revenue of Snowy 2.0 comes from insurance, we were told.

That suggests the water must be available in Tantangara year round to provide for immediate electricity dispatch. We’re talking about critical peak hour generation. The water in Tantangara is fully allocated, so water will have to be pumped up the hill and stored against future needs, under these insurance contracts. Some of that will be lost in seepage and evaporation—quite a lot. How has that been dealt with in Snowy Hydro’s water licence? Does Snowy Hydro have a water licence?

Mr Fredericks: I’ll need to take that on notice. In deference to you, I’ll take it on notice for Snowy and for the department as well.

Senator ROBERTS: I would like an answer from your department in particular. We can get it from Snowy. Do they have water agreements?

Mr Fredericks: On notice.

Senator ROBERTS: If they do have any water agreements, are they sufficient to match the insurance policy that Snowy Hydro is going to be getting one-third of its revenue from?

Mr Fredericks: On notice for both—Snowy Hydro and us.

Senator ROBERTS: This deals with water in the high mountains. Thank you very much.

Mr Fredericks: You’re welcome.

CHAIR: Thank you, Senator Roberts. Senator Davey.

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Making Sense of the Murray-Darling Basin Water Amendment Bill

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During its passage through parliament, the government’s Water Amendment Bill 2023 was subjected to almost 70 amendments. Deals were being made on the run. Nobody has a clear idea of how this massively amended Bill will affect farming, communities or the environment.

The Murray Darling Basin Plan can’t be changed without the consent of every State Premier. This government failed to follow that step, not only for the bill but also for these amendments that were introduced at the last minute. The Bill is a mess, the process is a mess, and it will leave a mess behind it.

The motion I put forward here is to refer the Bill to the relevant committee to try and make sense of the changes and see what else needs to be done to make the changes workable. The issue of the Commonwealth buying back water from a State that opposes water buybacks also needs to be sorted.

Transcript

As a servant to the many different people who make up our one Queensland community, One Nation continues to support a fair outcome for all those in the Murray-Darling Basin in Queensland and across the connected river system. The government last week advanced a bill that evolved drastically as it passed through Senate debate—some would say catastrophically through Senate debate. First, the Greens demanded changes for their support. Then Senator Van, Senator Thorpe and Senator Pocock added some tinsel for their respective ideologies. Much like a Christmas tree that the whole family decorated, it looks a bit crook. In fact, I would suggest that nobody knows how the bill is going to actually work. 

The council of water ministers dealt with the bill in August this year and failed to issue a communique, which is a record of proceedings that would ordinarily detail any specific approval or rejection of suggested changes to the Murray-Darling Basin Plan 2012. A communique is available on their website for every meeting, going back years, except for August. When I requested it, Assistant Minister McAllister failed to provide it, after first saying it was available. Instead, the federal water minister, Tania Plibersek, put out a political statement that an agreement was made between the federal, New South Wales, South Australian, Queensland and Australian Capital Territory governments to deliver the Murray-Darling Basin Plan in full. Firstly, the ACT is not a state. It is not a voting signatory to the Murray-Darling Basin Plan, so the so-called agreement reached was only between three of the required four states. Secondly, what was the agreement? I hear you saying an agreement was reached, yet no proof of that has been posted, beyond the minister’s statement. 

Did New South Wales sign on to allow as much as 700 megalitres of buybacks from New South Wales farmers, or not? New South Wales Premier Minns said in a recent press release that he did not sign off on water buybacks and instead only signed off on $700 million in federal money for water projects. Victoria has not agreed to this legislation and is not a party to the buybacks. They’ve made that abundantly clear.  

South Australia has not been honest with their farmers. I have not heard a word about the buybacks being planned from South Australian irrigators. I hear you say, ‘Hang on just a minute; the water is for South Australia.’ That’s true. The government is about to buy back water for South Australian river flow from South Australia. Their irrigators can wave to their water as it flows out to sea. I call upon the South Australian Premier, Peter Malinauskas, to answer a simple question: how much water did you agree could be purchased from South Australian farmers in that August meeting? How much, Premier? I’m hearing as much as 40 gigalitres is intended to be purchased from South Australia, which only has an irrigation pool of 400 gigalitres. That’s 10 per cent.  

Queensland Premier Palaszczuk has not said a word about water buybacks. With an election coming up next year, the farming community should know what the Premier has just done to them. But they don’t know; she won’t tell them. I ask the Queensland Premier to be honest and to come clean: how much Queensland water did you agree to be bought back into Queensland? I understand the game that all the premiers except Victoria’s are playing: ‘Don’t talk about water buybacks. Blame the federal government. Defend Labor’s vote against the Greens and the teals. Get re-elected. Shhhh!’ It’s such a simple plan—except that it breaches the rules around the operation of the Murray-Darling Basin Plan itself. All state premiers must sign off to every change. The minute one state is out of something like water buybacks, the other states have to pick up the slack. 

My state of Queensland loses more water and without a further hollowing out of the bush. The Water Amendment (Restoring Our Rivers Bill) 2023 was heavily amended—and many of us say catastrophically amended. In the House of Representatives the water amendment had five crossbench and 31 government amendments. In the Senate the bill had a haphazard mishmash of 20 government amendments. That’s a total of 51 government amendments to a bill that was introduced to parliament, plus five in the Senate from the Greens and eight from the crossbench. That’s 20 amendments to the bill in the Senate plus 31 in the House of Reps, reflecting yet another bill brought into the Senate without adequate thought and becoming a scrambled me due to opportunistic trading and deals. 

This is no way to govern our country. It is shoddy governance. It is dishonest governance. And who pays? It is farmers, farming families, rural communities, regional Australia—everyone and anyone who eats. The reason there were so many amendments, including government amendments, is that the process of consultation was a complete farce. The government consulted with everyone they knew who would agree with them, and that was it. Irrigators in rural communities were ignored. The bill was pushed through a committee that the government controlled and was sent for a vote when it was so full of holes—51 holes that the government recognised. So the parliamentary process tried. The question remains: did we fix it? Did the premiers approve all these amendments? The amendments could not possibly have been approved. The Senate barely had time to read them. The premiers have most notably not even seen the amendments. The Environment and Communications Legislation Committee reported on what has become a very different bill. The premiers voted on a different bill—a bill they couldn’t agree on, and they haven’t seen the latest version. 

At the very least, we need to see how these amendments fit together and what the impact of these amendments will be on the Murray-Darling Basin, on the environment and on the communities in the basin. Potential harm from the bill needs to be detected now and plans for mitigation canvassed immediately. We need to determine exactly what the rules around changes to the plan are so that amendments are done correctly next time. We need to assess what happens when the federal government starts buying up water in Victoria and the Victorian government rejects or objects. This legislation may be a High Court challenge waiting to happen. 

As a new senator back in 2017, when I was in south-west Queensland in the town of St George in the Balonne shire I heard firsthand of the enormous damage to Queensland and northern New South Wales communities. As a result of that, Senator Pauline Hanson and I travelled the Murray from Albury to the Murray mouth, listening to regional communities in southern New South Wales, northern Victoria and South Australia. Later, when I returned to the Senate in 2019, I flew over the whole basin, listening closely to farmers, to communities and to people who had an argument for the environment. I then crossed the basin four times from east to west listening—in Queensland, northern New South Wales, central New South Wales, southern New South Wales, Victoria and South Australia, including the regions of South Australia. We developed a credible water policy based on science and people’s needs, environmental needs and national needs. 

The late John Bristow was a world-renowned expert on water. He visited our country in 2007—I’ve read a paper he published on it—and he declared that we had the best water management in the world. He was an international water expert, and he said we had the best water management. Later, in 2007, John Howard as Prime Minister and Malcolm Turnbull as water minister introduced the Water Act 2007. As has been repeated four or five times now, the aims of the Water Act are: to include compliance with international agreements—what the hell has that got to do with our federal legislation?—and to change the Murray-Darling Basin Commission to the Murray-Darling Basin Authority. That destroyed cooperation that had successfully managed the basin with cooperation between states and the Commonwealth. Commonwealth departments started to dictate and started to lie. John Howard and Malcolm Turnbull’s Water Act separated water allocations from land ownership—a catastrophe that has to be corrected. 

The Water Act, to its credit, required a register of water trades, yet the Liberal-National and Labor parties have refused to install a water registry, even though it’s required by the legislation known as the Water Act. I moved an amendment to require a water register to be developed. It was passed in the Senate and rejected in the lower house by the Liberals, Nationals and Labor Party. 

We now see that another feature of the Murray-Darling Basin Plan is that it led to contradictions of science and nature. It completely reversed the science. This is a mess due to globalist policies, working through the Greens—the Howard-Turnbull Water Act of 2007. On his next visit to Australia in 2011, John Bristow proclaimed that Australia had slumped to the worst—the world’s worst—water management for one reason: politically driven policy. He belled the culprit. The people in this parliament, the federal parliament, at federal level. 

While mindful of the Murray-Darling Basin Plan’s catastrophic foundation, for now, as a result of the catastrophic mish-mash of the latest legislation changes last week, we need to scrutinise the latest legislation while keeping in the back of our minds the mess that the Murray-Darling Basin Plan is. Only a committee inquiry can sort this out and ensure such a monumental, haphazard, dishonest change to a 10-year-old plan is the right thing to do. I move: 

  1. That the Senate notes that:
    1. the water Amendment (Restoring our Rivers) Bill 2023 was passed with substantial amendments; and
    2. the amendments were not reviewed by a committee and have not been approved by the Murray Darling Basin Ministerial Council.
  2. That the following matters relating to the Water Amendment (Restoring our Rivers) Bill 2023 be referred to the Rural and Regional Affairs and Transport References Committee for review and report by the 30 March 2024: 
    1. the operation, effectiveness and implications of the amendments made;
    2. matters relating to the approval of the amendments by the Murray Darling Basin Ministerial Council; and 
    3. any related matters. 
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The Murray-Darling Basin Environmental Catastrophe Bill

I’ve travelled the Murray-Darling Basin from its northernmost point in Queensland, through New South Wales, Victoria and into South Australia. I’ve listened to the people along the way including the Aboriginal people for whom the water in the river is their life and central to their culture, health and happiness. As one elder said, “We were used to justify buybacks and now we have been forgotten”.

The mismanagement of the river flow across the basin is based on unmeasured guesses, not data. Government bureaucracy attempting to control the water in the river spells death to farming, death to our precious natural environment, death to the regions, and death to Aboriginal culture and society. The real agenda here is that the many towns along the river are considered to be ‘in the wrong place’.

Entire agricultural areas are on the minister’s hit list because they ‘shouldn’t be there’. But you can’t grow food on politics alone, Minister Plibersek. You need water and you need irrigators crazy enough to try and feed Australians while negotiating the insane levels of bureaucracy imposed over the years by politicians who haven’t got a clue how farming works.

The Murray-Darling Basin accounts for $22 billion in food and fibre production. What effect will this cruel policy, delivered to satisfy ignorant leftist city dwellers, have on our beautiful country? With 2.2 million new arrivals requiring food in the last 12 months alone, measures to reduce water for food production are the reverse of the policy we need.

As a servant to the many different people who make up our one Queensland community, the Murray-Darling Basin is an important topic for One Nation because the Murray-Darling Basin starts in Queensland. Just because the water ends up in South Australia does not mean it’s South Australian water. Queensland has a say in this as well, and I will continue to stand up for Queensland farmers, regions and communities. 

During the last Senate session, I spoke about this Labor government’s decision to withdraw funding from the Emu Swamp Dam near Stanthorpe in Queensland’s Southern Downs. This area is in the Murray-Darling Basin and is one of the areas that ran dry in the last drought, requiring water to be trucked in for weeks using a convoy of water tankers. The Emu Swamp Dam was a proposal for a modest dam to retain 22 gigalitres of water for local residents. When I asked Minister Watt about the suffering and economic damage that decision would cause, the minister led the Senate on a merry dance that social media has rightly smashed and ridiculed. 

Minister Watt avoided admitting that, yes, the Albanese government cancelled the Emu Swamp Dam and, yes, the Albanese government came back a year later and cancelled all the infrastructure upgrades in the region just to make sure the dam was never built. Such is the ideology behind the Water Amendment (Restoring Our Rivers) Bill 2023. Minister Watt, a Queensland senator, was happy to tell the residents of the Southern Downs that, in the next drought, they will have to truck their water in again—and in the next and the next and the next. Wow! What arrogance from Canberra bureaucrats and city politicians like Minister Watt! What arrogance from environmentalists who would see Australia destroyed as long as they get their way and as though humans don’t matter!  

These same urban elites go to Coles and buy their Australian almond milk for their half-strength lattes—organic, of course—buy Australian bread, buy Australian meat and buy Australian vegetables. Where do these Green and Teal fools think these products come from? From the Southern Downs and from farmers across Queensland right through to the Murray-Darling Basin—the very farmers this legislation is smashing, gutting. Among all of the technical, I speak in favour of humans and people. 

Before you say it’s not happening, let me share with the Senate a Hansard record of question time in the Victorian parliament from just two weeks ago. One Nation member for Northern Victoria, Rikkie-Lee Tyrrell, asked the Victorian water minister what her government’s position on water buybacks was. Here’s part of Labor Minister Shing’s excellent, heartfelt response: 

At the moment, we are in a process of discussion and debate at a federal level about the future of the Murray–Darling Basin plan. 

Oh, really? I thought it was settled. Apparently that was government misinformation as well. Her remarks continued: 

In 2018 all jurisdictions party to the Murray–Darling Basin plan signed up to what is known as the socio-economic criteria, meaning that water could not be returned if it did harm to communities—that is, that any return would need to satisfy a test of positive or neutral socio-economic outcomes for communities. 

Victoria remains committed to achieving the outcomes and the objectives of our share of returning environmental water to the plan in the terms that we agreed. Victoria opposes buybacks. 

Her words. Victoria: 

… oppose buybacks for a range of reasons and based on modelling … showing that irrigated production job losses of over 40 per cent were observed in Victorian communities due to water recovery for the environment, including in Cobram, 40 per cent of job losses; Kerang, 43 per cent of job losses; Cohuna, 43 per cent of job losses; Kyabram, 42 per cent of job losses; Tatura, 42 per cent of job losses; Rochester, 42 per cent of job losses; Pyramid Hill, 66 per cent of job losses; Boort, 66 per cent of job losses; Shepparton, 61 per cent of job losses; Swan Hill, 53 per cent of job losses; Red Cliffs, 76 per cent of job losses; and Merbein, 50 per cent of job losses. 

The Victorian government has this information because they funded Frontier Economics to conduct a study on the effect of water acquisition on rural communities. Queensland Premier Palaszczuk has not done the same thing. Under Premier Palaszczuk, if you don’t live in a Labor electorate in the urban south-east, you don’t exist. For the Queensland Labor Party, Queensland ends in Toowoomba and Noosa. Good on Victoria for defending their rural communities; shame on Premier Palaszczuk for selling out regional Queenslanders. 

Forty per cent job losses is a common figure I hear when I travel to Queensland basin towns like St George, Dirranbandi and Charleville. This is not a matter of those people walking away and having to make a new start somewhere else—if they can find accommodation and a job, of course. Rural communities have a critical mass, the point below which the whole town ceases to be viable. The doctor leaves, the bank closes, the school closes, small businesses close and, suddenly, the town becomes unlivable. Many towns in Queensland and across the basin are facing that point now. Another 760 gigalitres of buybacks will kill them off. The shocking truth is this: wiping out towns and agriculture across the basin is an intended consequence of the Murray-Darling Basin Plan. 

When I was first elected to the Senate and travelled down the Darling and Murray system, I spoke with a representative of the Murray-Darling Basin in the river lands. His words have stuck with me: ‘The Murray-Darling Basin agenda is based on the principle that many towns along the river are in the wrong place. Those towns would not be built today because of their reliance on irrigation and have to go.’ They have to go? That’s the real agenda here. That’s why this bill allows the minister to buy water from anywhere in the basin, not just within a valley. As Minister Shing, the Victorian Labor Minister for Water, rightly pointed out, ‘This act removes the socioeconomic test.’ 

Now, finally, Minister Plibersek’s intentions are out in the open. Entire agricultural areas are on the minister’s hit list, areas that ‘shouldn’t be there’. When environmentalists and city politicians like Minister Plibersek hold this bill high, declaring, ‘Let the rivers run,’ what they really mean is death to family farms and death to the towns they support. At least be honest about it. What effect will this cruel policy, delivered to satisfy ignorant leftist city dwellers, have on our beautiful country? The Murray-Darling Basin accounts for $22 billion in food and fibre production needed to feed and clothe the world. Hell, it’s needed to feed the two million people this Labor government let into Australia in the last 12 months. We have 2.2 million new mouths to feed and the government’s response is to reduce the water available to grow food. There are five million tourist visa holders that have to be fed. No wonder our beautiful country is in trouble. We have a government that can’t put two and two together. 

I’ve travelled the basin, listening to people across the whole basin—from the northern basin, including Charleville, Dirranbandi, St George and Stanthorpe in Queensland; from Albury and Tenterfield in the east of New South Wales; from Broken Hill in the west of New South Wales; from Cobram in regional Victoria; through Menindee, Mildura and Renmark; all the way to Goolwa and the Murray mouth in South Australia. I’ve listened with farmers, irrigators, researchers and environmentalists. I’ve consulted with Aboriginal people, for whom the water in the river is their life, the centre of their culture and the centre of their health and happiness. Drought harms Aboriginal people and much damage was done even as the plan was nearing completion. And damage continues to be done. 

To illustrate this, I saw an ABC video made in October this year that talked to Aboriginal Australians along the river. When buybacks were happening in 2012, they were promised some of the water would be returned to their river in improved flows. Two thousand eight hundred gigalitres of acquisition later and those improved flows for Aboriginal water have never happened. What we’ve seen is a pattern of water flow that’s harming the connected system. One reason is water trading. I’m not talking about productive water trading to keep family farms going; rather, we see foreign owned corporations exploiting water trading to keep their massive monoculture plantings alive. Hundreds of thousands of hectares of permanent planting—almonds, citrus and grapes—are pulling water from places like southern Queensland down below the border to western Victoria and to South Australia. Those water allocations are being sent down in floods to increase the amounts that arrives. Aboriginal communities are left without the regular environmental flows that are so much a part of a river tribe’s life—that’s their word: ‘life’. As one elder said, ‘We were used to justify buybacks and now we have been forgotten.’ It sounds like the Voice. They were used to try and get it through, and now they are forgotten. 

The other major culprit is environmental watering. That watering is being sent down in floods, which, once again, contribute to flooding along the river and do enormous environmental damage. In years past, the flooding that happened in the spring and early summer and during tropical storms in the Queensland basin went down the river as a flood, watering the associated forests. The difference today is that those short periods of natural flooding were between natural long periods with low river flow. That natural cycle allowed the banks to dry and harden to withstand the next flood. What used to happen was the water in the dams was released across the year for mostly local use. If it was not used, it was carried over. Most areas in the basin still have carryover water. Now we have huge amounts of water being sent south to keep massive permanent plantings watered and huge amounts being sent down to water native forests that don’t need it, and the river is stuffed with severe, catastrophic riverbank erosion and forest drowning—and forests dying. That’s the problem this government should be addressing. Instead, Minister Plibersek and her electorate full of city lefties were declaring, ‘Let the river run!’ The minister is killing the natural environment in the name of saving it, ignoring the harm that’s being done—and being done in the name of the Basin Plan. 

There’s nothing in this bill that addresses the fundamental flaw in the plan. The mismanagement of river flow is based across the basin largely on unmeasured guesses of water flow—not on data, not on measurements. It does not matter if you’re mismanaging 2,800 gigalitres or 3,200 gigalitres, the outcome will be the same: death to farming, death to our precious natural environment, death to the regions, death to Aboriginal culture and Aboriginal society. 

Where are the targets for minimum and maximum heights of riverbanks to protect and repair the environment? Not here. Where’s the plan to repair hundreds of kilometres of erosion down the Goulburn, Murray and Edward rivers? The Murray-Darling Basin Plan destroyed those rivers, and nothing in this bill will fix them. This bill will continue the environmental catastrophe. I see limits to diversion for irrigation, yet I don’t see limits for diversion for environment watering—meaning how much water is to be taken out for the drowning and killing of forests as opposed to how much water is to be kept in the river for desalination, fish health and so on. Where are the hard limits? Rivers suffer when water is taken out. It makes no difference if the water is being extracted for irrigation or to drown forests. Where are the water quality limits to control blackwater, which is caused through the overwatering of wetlands, like the Barmah-Millewa Forest, under orders from the Commonwealth? Not here. Where’s the ratio of water over the barrages as against basin inflows, which would ensure the rivers actually flow? Not here. Where are the explicit statements of minimum flows for Aboriginal water in each river? Not here. Real plans are based on measurements and data. Without measurement of river and creek flows across the Murray-Darling Basin, there is no plan, just political patronage, corruption and control. 

Where’s the solution to this salination in the lower lagoon of the Coorong? It’s time to talk about the subject that shall not be spoken: the basin inflow from the south-east of South Australia, which is water supposedly from outside the basin that flows into the basin to refresh the water in the Coorong and Lower Lakes, inflow that before Western settlement delivered hundreds of gigalitres of water a year and flushed the Coorong and Lower Lakes to maintain a healthy environment. Years of draining the south-east to create a productive farming area have sent the flow directly out to sea, bypassing the basin instead of into the basin, where, by the way, it’s damaging the saltwater environment of the sea and the seagrass beds that stabilise the coastline. 

One Nation supports the farming community in the south-east of South Australia and seeks to protect vital agriculture in the area. The initial round of redirecting the drains back into the basin was completed, and basin inflow has been partly restored. The South Australia government now counts this flow is basin SDL recovery, after many years of my campaigning for that very outcome. Thank you. The south-east flow restoration project takes water from some of the drains and redirects the water into Tilley Swamp and then along natural watercourses through Salt Creek into the lower Coorong. Being a swamp, the water soaks in and forms part of the unconstrained aquifer that flows into the Coorong and Lower Lakes at a depth of as little as one metre. 

The aquifer flow is not measured, yet it should be. The improvement in water quality in these waterways suggests more water is arriving that the 25 gigalitres that has been credited—much more. I foreshadow my second reading amendment calling on the Murray-Darling Basin Authority to measure all inflow into the basin from the south-east, both surface and aquifer flow. This surely must be a prudent exercise before embarking on costly water buybacks that will have a catastrophic effect on the basin just to meet arbitrary water acquisition targets—and those are the points that I don’t have time to go into. 

This plan is already highly complicated, and this bill makes it more complicated. It involves micromanaging with slogans. It involves taking taxpayer money to defeat productivity on farms and to raise food prices. Taxpayer money is being stolen to raise food prices. New South Wales farmers are moving to the Flinders River in North Queensland, and we now see the Labor-Greens-Pocock-teal coalition in full flight, destroying our country. The Water Amendment (Restoring Our Rivers) Bill 2023 isn’t a plan to improve the health of our rivers and lakes; it’s an open declaration of war on farming and rural communities, ideology driving a political and social war to the exclusion of decency and common sense. Making farming harder will reduce the supply of fresh fruit and drive up prices at a time when inflation is already out of hand. The Albanese government does not need another policy failure to add to its collection. I urge the government: don’t do this! For the sake of every Australian who eats food, we oppose this bill accelerating the death knell of economic food production and food security. In opposing this bill, One Nation protects the natural environment, protects food security, protects economic activity and protects regional communities. 

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Labor Cover Up Emu Swamp Dam Cancellation

Labor is hollowing out the bush and lying about it. I asked why the Emu Swamp Dam near Stanthorpe in Queensland was cancelled and Minister Watt responded that it was the road that was cancelled. What Minister Watt did not admit was that Labor had cancelled the dam last year and had recently cancelled the infrastructure around the dam, just to make sure it never gets built.

During the recent drought, Stanthorpe, famous for its apples and grapes, had to resort to water tankers to keep it’s residents supplied. Access to clean water is a basic human requirement. The Emu Swamp Dam was a modest solution to water shortage in the Southern Downs of Queensland. Labor are refusing to build dams for drinking water and instead plan to use treated recycled water for drinking water. I will speak more on that next year.

Labor destroy where One Nation would build.

Transcript

Senator ROBERTS: My question is to the Minister representing the Minister for Infrastructure, Transport, Regional Development and Local Government, Senator Watt. Minister, why is the Australian government no longer proceeding with construction of the Emu Swamp dam and pipeline located near Stanthorpe in our state of Queensland?

Senator Watt (Queensland—Minister for Agriculture, Fisheries and Forestry and Minister for Emergency Management): Thank you, Senator Roberts. I welcome a question about Queensland infrastructure from a Queensland senator on the other side of the chamber. It’s a shame people like Senator McGrath didn’t manage to get a question up about these important issues. Senator McGrath, of course, is just reduced to interjections, rather than asking serious questions about these matters.

The President: Senator Watt.

Opposition senators interjecting—

Senator Watt: You don’t want to hear that? You don’t want to hear about your failures on infrastructure? If you’ve heard what I’ve had to say this week, Senator Roberts, you’ll know that the infrastructure budget that we inherited from the coalition was hopelessly overblown. There was a budget blowout of $33 billion.

Senator Birmingham: I rise on a point of order. This is actually a good example of the type of point of order that I made before. Senator Roberts asked a question about a particular infrastructure project, the Emu Swamp dam. That should not then be a licence for the minister to go off talking about infrastructure projects in general, or the former government in general. It was clearly a question specific to a particular project, and the minister should be drawn to answer on that project.

Senator Wong: On the point of order, I can recall many times when coalition ministers went much farther than 41 seconds in before they even got close to the question. I’d remind you of Senator Brandis. We all remember Senator Brandis when he was sitting in this chair.

Senator Birmingham: And I can remember you sitting in this chair and what you had to say.

Senator Wong: And I never got very far with that argument, but hope beats eternal.

Senator Rennick interjecting—

The President: Senator Rennick!

Senator Watt: Poor old Gerard. You’re not going to be here long, though, are you? Enjoy it while you’re here, Gerard.

Senator Henderson: That is really nasty, Senator Watt. You’re a nasty piece of work.

The President: Order across the chamber! Senator Henderson, I ask you to withdraw that remark.

Senator Henderson: Can I take a point of order?

The President: I’ve asked you to withdraw the remark, Senator Henderson.

Senator Henderson: I wish to make a point of order, President.

The President: Senator Henderson, I’ve asked you to withdraw your remark.

Senator Henderson: I withdraw, but can I take a point of order?

The President: If you sit down, I will entertain a point of order—as long it’s not on me asking you to withdraw. Thank you. Senator Henderson.

Senator Henderson: I rise on a point of order. Senator Watt just made a very uncalled for and offensive remark in relation to Senator Rennick, and I would ask him to withdraw it.

The President: Senator Henderson, I didn’t hear any remark. The chamber was incredibly disorderly at the time. All I can do is ask Senator Watt, if he made a personal reflection on Senator Rennick, to withdraw that.

Senator Watt: I’m happy to withdraw. Senator Rennick has a lot to say. I’m happy to withdraw.

The President: Senator Watt, before I call you again, I will draw your attention back to Senator Roberts’s question.

Senator Watt: Senator Roberts, I was explaining the basis for the decisions. The particular project that you’re talking about that won’t be proceeding is a road to a dam that is not proceeding. This government thinks that it’s a good idea, if you’re spending infrastructure money on a road, that it should be a road that leads to something that is actually happening and exists. That dam was a promise that was made by the former coalition government that never had the funding, wasn’t properly planned and is not proceeding. Senator Roberts, I know you’re someone who cares very much about the appropriate use of taxpayers’ funds. You would agree, I’m sure, that it’s not a good use of taxpayers’ funds to build roads that lead to dams that don’t exist and won’t exist.

But, Senator Roberts, I’m sure you’d also be pleased to have heard me talk about some of the projects in Queensland that are getting funding and that are only possible because of those sorts of decisions about the responsible allocation of funding. Because of that we can now fund the cost increase in the Rockhampton Ring Road project with an extra $348 million in addition to the money that the federal government had allocated. I know Central Queensland is an area that you’re interested in, Senator Roberts. By cutting projects that won’t exist and that aren’t needed, we can fund other things like that. (Time expired)

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Labor’s Latest Scheme to Buyback More Farmers’ Water

The Murray Darling Basin river system has driven prosperity in our beautiful country and it can continue to do so if we can save it from the city bureaucrats and Labor’s ideologically driven policies.

I put forward a motion on the Water Amendment Restoring Our Rivers Bill 2023 because it should not have any further consideration until the Albanese Government properly consults with the States. There was no Murray Darling Basin consultation and that’s the problem with this bill.

The Council of Water Ministers met in August, yet as of this November sitting we have still not seen the communication from that meeting. It seems clear that the states have not collectively signed off on the bill. I urged the Senate to support my motion to send the bill back to the Minister with a clear message to remove the sections the States do not support. Let’s complete the plan, and let’s do it properly for a change.

Transcript

I rise to take note as a servant to the many different people who make up our one Queensland community. It’s no surprise to One Nation that the Senate is once again debating the lack of government transparency—transparency in this case being defined as: what’s the government hiding this time? Consultation from the Labor Party always stops at 39 votes. Everyone else is on a need-to-know basis. 

In the case of Senator Davey’s document discovery, the government has decided the Senate does not need to know the basis for government policy in a basin that accounts for $22 billion in food and fibre needed to feed and clothe the world, a basin that’s home to 2.3 million Australians, including those in my home state of Queensland. Apparently, we Queenslanders do not need to know what informed Minister Plibersek’s Water Amendment (Restoring Our Rivers) Bill—a bill on which this document discovery would have cast light. The fundamental failure of the Albanese government when it talks about consultation is its failure to understand that consultation requires disclosure. Already the government has been forced to make three pages of amendments to the bill to make it legally workable. How does anyone get a bill that wrong? Refusing to disclose—that’s how. Refusing to consult—’consult’ does not mean a quick whip around the staff room at the CFMEU or asking the luvvies at the ABC and the Guardian how to run the country. The Albanese voice referendum showed the stupidity of asking the Canberra bubble and inner city socialists what the rest of the country thinks is a fair thing. In real Australia, consulting means listening, sharing and learning. 

Senator Pauline Hanson and I have consulted with industry stakeholders and toured the basin, starting in Charleville, in Queensland, all the way to Goolwa, in South Australia. I’ve spoken to independent researchers and even shared a plane for three days with Topher Field as we flew over the basin to understand it and film it. I’ve driven the length of the Murray-Darling Basin three times and my staff another two times, most recently last Christmas. Along the way, I’ve listened to amazing farmers displaying a level of resilience that at times is superhuman. I’ve consulted with Aboriginal people, for whom the water in the river is their life, the centre of their culture and the centre of health and happiness. I’ve spoken with business owners fearful for their future in an agricultural industry this government is determined to replace with fake food made in urban intensive-production facilities. This is an amazing connected river system that has driven prosperity in our beautiful country and can continue to do if only we can save it from Labor’s inner-city ignorance and ideologically driven policy. 

Today the Senate will vote on my motion to prevent the Water Amendment (Restoring Our Rivers) Bill 2023 from being given further consideration until the Albanese government properly consults with the states. The Water Act 2007, upon which the Murray-Darling Basin Plan is based, is very clear. The plan is a consensus document of the four states. The federal government does not get a vote, because it’s a servant to the states, not the master of the states. The ACT does not get a vote as it’s a territory, not a state, and that’s fine since the ACT clearly runs the federal government anyway. Giving the ACT a vote would be, in fact, two votes. 

The bill digest contains all the information needed to support my motion. It admits Victoria has refused to sign the new agreement, because Victorian farmers have given up enough water already. Good on the Victorian parliament for standing up for its constituents. Good on New South Wales Premier Chris Minns for being brutally honest in saying the New South Wales government is only signing up to the $700 million in federal buybacks federally for water projects and he is not signing up for water buybacks until after those projects are completed in 2027. The government has no consensus on water buybacks, which are, at best, two all. The rest of the bill contains a lot of good reforms to add accountability, improve measurement and reporting, align spending guidelines and budgets with what is needed and extend the deadline for completion. 

The council of water ministers met in August, yet we still have not seen the communication from that meeting. It’s now November. It seems clear that the states have not signed off on the bill in toto. I urge the Senate to support my motion to send the bill back to the minister with a clear message: take out the bits the states do not support, and let’s get the rest of this bill, which is almost all of it, through the Senate this sitting. Let’s complete the plan and let’s do it properly for a change. 

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Malcolm Roberts’ review of Labor’s first budget

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This budget will jack up power prices, keep inflation roaring to new heights and do nothing to help you from day to day. I joined Sky News the night it was delivered to talk about my initial reaction.

Transcript

Welcome back to our coverage of the budget. Tonight the Treasurer has laid out his economic plan, and while Labour has the numbers in the House of Reps, the Senate cross-bench will be critical for whether the government can pass its various measures. Here’s a reminder of the state of play: 39 votes are needed to pass bills into law. The government has 26, meaning it needs another 13 to get its agenda across the line. The Greens have 12 of those, with another five Senators representing minor parties, and one independent. Joining me live on the desk, is three of those crucial cross-benchers that could make or break the Labour budget. Senator Jacqui Lambie, One Nation Senator Malcolm Roberts, and Greens Treasury spokesman, Nick McKim, great to see you all. Senator Lambie, let’s start with you. What did you think of Jim Chalmers’ first budget?

Oh, I have to say, they’ve played it very safe, haven’t they? It’s really is a mini budget. They’ve got five months up their sleeve, they’re buying time here. They’re gonna have to make some tough decisions by May. We’ve got a massive blowout in the NDIS. We’ve got the cost of living pressures out there, and I think we’ve just, I’ve just seen on the TV in the last five minutes, the gas prices are gonna go up 20% in two years. I tell you what, we are really under the pump in this country, and then we have a major deficit we’ve gotta payoff. That’s where we’re at, some tough decisions. They need to go back to the drawing board. It’s lovely, it’s all been touchy-feely. Let’s see what the May budget looks like, but they’re gonna have to make some cuts, and they’re gonna have to be tough.

Nick McKim, what’s your take on Jim Chalmers’ first effort?

Oh look, there’ll be a lot of disappointed people in the country, I reckon. I mean, this budget’s got more than a width of austerity about it. The government, and the Treasurer, have acknowledged the challenges, and Jacqui talked a little bit about those. I mean, they say they want wages to go up. Wages are gonna go down, then they’re gonna flat-line. They say they want employment to go up, but actually unemployment is going up. They say they want to be fair to people, but actually they’ve got stage-three tax cuts, which give a quarter of a trillion dollars in tax breaks, overwhelmingly benefiting the top end of town. And people who are really struggling to make ends meet, are not getting much assistance at all in this budget.

Malcolm Roberts, is it a budget for the times, as Jim Chalmers argues?

[Malcolm Roberts] It’s a budget for the continuation, and falling off a cliff I think, because workers have already gone backwards 10%. Anybody who earns a wage or salary is going back 10%, and will continue to go back because we’ve got rapid inflation. Wages won’t move anywhere nearly as quickly. We’ve got high cost of living pressures. We’ve got high energy prices. Prices are forecast to go up 50% next year Kieran, and 50% the year after. People can’t handle that. That’s a doubling of prices. 100% increase over two years, that’s a doubling. We’ve got a climate change, there’s very few specifics. The housing, we talk about a million houses.

[Jacqui] Yeah.

Yeah, yeah, I can see you nodding your head Jacqui, a million houses, how? Where’s the provision?

Yeah.

[Malcolm Roberts] We can see 20, $25 billion on climate. Well, 20 of it is on poles and wires. It’s just gonna increase the cost of electricity from far-flung areas. We’ve already got the poles and wires we need from coal-fired power stations. This is absurd.

With that rewiring the nation, that project that Malcolm Roberts is alluding to there, it’s $20 billion. A lot of challenges in terms of workforce and supplies in getting that done. Does that mean that power prices rise at least in the short term until that’s all established?

Well, this budget makes it very clear that, retail electricity prices will go up 56% in the next two years. So there is no doubt that we are facing massive pressures on household bills. I wanna talk a little bit about the housing announcement.

[Kieran] There were those numbers there. So you have 20% this year, 30% next year-

[Nick] That’s right, they have compounded.

[Kieran] -for electricity and gas. Yeah, that’s 56. And then the gas 20 and 20.

[Nick] That’s right.

[Kieran] As Jacqui suggested.

[Nick] That’s right.

[Kieran] So, we’re talking a massive hit to-

We are talking massive hits on household budgets, and what the government could have done is walk away from the tax cuts for the top end, and put in place genuine cost of living measures. They could have put dental into Medicare, mental health support into Medicare, done more on childcare, built more affordable homes, wipe student debt. Like there’s plenty the government could do. And the money was there. A quarter of a trillion dollars, $250 billion over 10 years overwhelmingly favouring the top. We’re all gonna get a 9,000; Jacqui, Malcolm, and I will all get a $9,000 a year tax break, and there is nothing in that package for minimum income.

Do you think there should have been direct support on power prices? Because obviously there’s this challenge with the inflationary environment right now, that if they write checks,

Yeah, the challenges.

they could have a counterproductive effect.

The challenges with this country over the years of both major parties have sold us out. We no longer own things. This is the problem. So, we’re relying on other people to generate our power for us, and that cost us a lot more money instead of leaving it in the hands of what we should have been as private investors. That’s where we were at in 2021. And that’s been really unfortunate. I don’t know what you do about those power prices, ’cause quite frankly, we have no control over the companies that run them. They can pretty much run amok all they like, and that’s where we’re at.

Should there be price caps or something of that sort?

Something needs to be done, whether it’s price caps or, I think Daniel Andrews is buying his lot back. Isn’t he in Victoria? He’s worked out, it’s costing them a fortune. He’s got no control over it. He’s buying it off. We have control over ours in Tasmania. We’re very lucky the state government owns ours, and they could give us, they could relieve that pressure as well by giving us cuts. They don’t do that, that is their choice. We pay a little bit less than the rest of you, but I can tell you now, this is where the state government of Tasmania is really gonna feel it, because there’s no way Tasmanians can afford for our power prices to go up 5%, let alone 20.

We’re talking of massive impact. What do you think? Should there be price signal or price cuts?

[Malcolm Roberts] No, definitely not. If you look at childcare, it’s increasingly getting more and more subsidies. The prices go up, whenever you subsidise something, people charge more for it. I mean it’s that simple, this is basic economics. Manufacturing will get really decimated by this. First of all, the cost of electricity is now the number one cost category in any manufacturing, any manufacturing. It used to be labour, labor’s not anymore. It’s electricity. What we’re doing is, we’re subsidising the Chinese to instal these parasitic mal investments. They’re kamikaze investments, solar and wind, to raise the price of electricity, everywhere in the world, where they’ve increased solar and wind, they’ve increased the price of electricity, startlingly. Manufacturing will be driven out of the country yet more.

What’s your read on that? Because obviously in the short term, there are challenges with transmission. The poles and wires that we spoke about, they need to be done to accommodate.

Absolutely.

But Malcolm Robert’s argument there, that it’ll just simply continue to drive prices up, renewables.

Oh no, I mean you could legislate to put in place price caps. I mean there’s a very common thing to do around the world, and I don’t accept Malcolm’s argument there. I mean ultimately…

[Malcolm Roberts] It’s in the figures, empirical figures all around the world. Every country, Spain, Germany, any country that goes heavily into solar and wind, it increases their prices of electricity.

I know Malcolm doesn’t believe in climate change, but the sciences-

[Malcolm Roberts] I believe in climate variability Nick.

absolutely have to to rapidly reduce our emissions in this country. And the best way to provide the cheapest power is more investment in renewables, and less into propping up the dirty, old coal-fired clunkers because they are unreliable. They’re old infrastructure, building new fossil fuel plants, including gas, is more expensive than putting in place distributed generation of renewable energy close to the centres of demand, supported by battery store.

The challenge in the the short term obviously, workforce shortages, supply shortages, these are all bottlenecks,

[Nick] They are.

in terms of that process, aren’t they?

Yeah, absolutely they are. And, now there was some welcome investment in the budget into TAFE and vocational education. I think that’s a good thing, but that does take obviously time to flow through.

Do you see Jacqui Lambie, I think you alluded to it earlier, but with this spending approach, Jim Chalmers says it’s 99% of the additional commodities, and tax revenue has been banked. Is this an attempt to say, “Okay, we’re not doing a Liz Truss budget, we’re gonna be responsible, and this is almost like a stepping stone to the May budget, where those broader changes might eventuate.”

Well, I think if you follow Liz’s Truss’s track, you’re not gonna last very long. That would be my my first point. But look, we’ve been really, really lucky with our commodities in this country. We’ve made a lot of money outta them. We don’t know if we’re gonna do that next year, the year after. We don’t know whether there’s gonna be a call for as much of those resources as around the rest of the world. I wouldn’t think there will be. We’ve had a really great year on that. That’s great. And we’ve all got a little bit GST extra outta that for our states, that’s a fabulous thing. We’ve seen that, I’m sure $360 million extra in Tasmania is gonna help us a lot. We’re only a small state, and that that will go to fixing things. But we cannot rely on this. We really need to look at those stage-three tax cuts. I believe that, those people in those lower incomes, certainly give them a tax cut, give them a bit of a break. It’s gonna be tough for them over the next few years. There’s no doubt about that. But people on the 120, a 100 or 1,000, where’s the cutoff to say, “You know what? We can’t afford to give you a tax cut at this point in time. Something needs to be done.” We can save billions of dollars there. There’s no doubt about that. I have to laugh about their TAFE, when they, they’re gonna chuck a billion dollars back into TAFE, Kieran, which is lovely. I’d remind the Labour Party, they cut $4 billion outta that education fund about three years ago alongside the Labour Party. So good on you for putting it back. Better late than ever. And I’ll be very grateful for that. But right now, we have a deficit and we cannot ignore that. And we have to start paying that back. We also have to pay up there for that NDIS, and something has to give here.

Malcolm Roberts, the Treasurer says that we need to have a conversation, a national conversation, and the tax needs to be part of that conversation. Where should we head in terms of the debate about the structural deficit? Because quite clearly, he’s identified the illness, not necessarily the entire cure this evening.

[Malcolm Roberts] Good question. First of all, we need the end, I’ll get into tax in a minute, but we need to end the black armband view of mining. Mining has pulled this country out of a mess for the last two years. And the coal prices were forecast in last budget are around about $60 a tonne. They’re $400 in actual fact, iron ore similarly, very much higher than they were forecast be. If it wasn’t for mining, we’d be well and truly deeper in the brown stuff. Now, tax, we need to make it simple. We need to make it, so that the multinationals automatically pay their tax. They’re not doing it at the moment. The Liberal Party in 1953 put in the Double Taxation Recognition Act, which basically made large foreign multinationals, not pay company tax, that’s absurd. The petroleum resources tax, that Bob Hawke’s Labour Party brought in the ’80s, made sure that the largest tax evader in the world, Chevron, pays not a cent, while they export billions of dollars worth of our natural gas. And we’re the largest gas, we’re the largest exporters of energy in the world. And we get bugger all for it here. We have the highest gas prices, we have the highest-

So do you think a profits tax, a super profits tax or something like that?

[Malcolm Roberts] I think you get back to basics, and you actually tax multinationals on the widgets they make. That’s an interim one. But we’ve gotta have a simpler tax system, bring it back to basics. We’ve got way outta kilter. It’s far too complex. The GST was supposed to-

New mines, new gas projects and so on. But this remains a lucrative transition fuel, does it not?

We have argued consistently for a corporate super profits tax. We have argued consistently for super profits taxes particularly targeted at fossil fuel companies. And I wanna make this point about taxation. In this budget, it was revealed tonight, that the petroleum resource rent tax is gonna bring in $450 million over the forward estimates, less than what we were told it would last year. We are in the middle of a so-called gas boom, and the big gas companies are gonna be paying $450 million bucks less tax along with the other companies. The petroleum resource rent tax targets less tax than what they were forecast to last year. It’s an absolute roar.

So obviously that’s your,

And it needs to be fixed.

that’s your thinking, in terms of where the Treasurer should start this conversation.

He could do that. He could walk away from the quarter of a trillion dollars, the $250 billion in stage-three tax cuts. That’s what they will cost over the next 10 years. Negative gearing, reform capital gains tax reform, which would stop these spiking house prices, which are pricing too many people out of a home. And meaning that at the moment, homes are like an investment class, rather than a human right. There’s so much we could do, and so many levers at Jim Chalmers’ disposal, and he’s basically pulled none of them.

[Malcolm Roberts] I think we might have found something that Nick, and I agree on, because the government is talking about, housing price is a simple matter of supply and demand, right Kieran?

Is is that a first by the way? I think it might be.

[Malcolm Roberts] Yeah, no, no. Nick and I have helped each other-

I’m worried, I’m worried.

[Malcolm Roberts] on quite a few things. Housing prices are a matter of supply and demand. The supply is up to the local governments, and some extent the state governments. Federal government’s got nothing to do with that. The demand, the federal government’s gonna shoot up by increasing immigration, 180,000 net, permanent.

No, now, just to be clear, we don’t agree on that. And I just wanna say about housing, the headline from the government is a million new homes. When you look at the fine print in the budget, it’s 10,000.

We’ve got two and a half minutes left, before we cross over to Paul Murray and his special tonight. Let’s get some final thoughts, overarching thoughts if we can, Jacqui Lambie to you as we wrap up this evening. What would you like to leave our viewers in terms of your assessment? Obviously, you believe that this is really a stepping-stone budget in many respects, and a lot of work to come over six months.

Yeah, I think it is a stepping-stone budget. They’re just dipping their toe in the water at the moment. They’ve got some big decisions to make over the next six months. And-

And is it largely around the NDIS? Is it your view that that’s the role?

I think it’s around everyone, everything. I am just gonna step forward here, and say that they’re giving the GST to the states, because they’re gonna expect those states to start giving some heavy lifting and they’re gonna say, “Hey, we gave you extra GST. You go fix that.” I reckon that’s exactly what they’re doing. It is not going to be enough. Our people are really hurting out there. It’s gonna get worse before it gets better, especially if we do go, we’re already heading into recession. If we hit a recession, we’ve got interest rates going up out there. Houses are losing their value. We’ve got many young kids that invested in them. We’re in dire straits going in, into the next 12 months, and they’re gonna have to make some really tough decisions for that May budget. And you know what, this is what we’re gonna say, “Is Labour made of the steel that it thinks it is?”

Malcolm Roberts, your final assessment as we wrap up?

[Malcolm Roberts] Yeah, they’ve completely missed the major points, A paper presented, I’ll read these figures. A paper presented to Cabinet, calculated the value difference in exporting bauxite, the ore, versus processed aluminium in ’19, $70. Just imagine what these figures would be today, exporting 1 million tonnes of bauxite, the raw material earned $5 million. Processed one step into alumina, earned $27 million, more than five times as much, processed again into aluminium, earned a $125 million, and processed finally into aluminium products, earned $600 million. If they’re fair thinking about manufacturing, they need to fix electricity prices and get on with the tax reform.

Malcolm thank you, and Nick McKim finally to you as we wrap up.

Yeah, sure. Look, I’ll be brief ’cause I know we’re nearly outta time, but in one word, disappointing. People voted for change at the Federal Election this year. They didn’t get much change in the budget tonight. It was pretty bland, pretty disappointing. It’s left an awful lot of people behind, but the top end of town are pretty happy with it.

Greens Treasury spokesman Nick McKim, Malcolm Roberts of One Nation and Jacqui Lambie, great to see you all. Thanks for joining.

Thank you.

Thank you Kieran.

Thank you for your company at home, here on our Sky News.

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Media Release: Hells Gates Dam Business Case To Be Revealed After One Nation Motion

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The Senate has voted in favour of a Malcolm Roberts motion this afternoon calling on the government to release a business case prepared for the Government by Townsville Enterprise Development Centre. Senator Roberts said:

“One Nation has scored a win for North Queensland with the Senate ordering the government to publish its confidential business case behind Hells Gate Dam.”

“The business case was given to the State Government in July and passed on to the Federal Government in September. The Albanese Government wants to keep the Hells Gate Dam business case a secret because they don’t want to build any dams in this country.”

“This business case will be especially embarrassing because the Labor Budget delivered last night removed $5.4 billion dollars previously allocated for the dam.”

“We need water for Queensland to thrive. This dam and many others should have been started decades ago so we can capture the La Nina rains which are currently swelling rivers before flowing straight out to sea.”

Only Labor voted against the motion in an attempt to keep the Hells Gate Dam business case secret however One Nation was successful by 40 votes to 19. The government must table the business case in the Senate no later than 9:30am tomorrow, 27 October 2022.

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Australia ill-prepared for food crisis

Who would have thought that affluence would be measured by who could afford lettuces at $20/kg, rather than Lamborghinis?  The humble zucchini is now $2 each, and meat and fuel prices are continuing to rise. Inflation will remain with us for the next 18 months.

A small percentage of these rises are caused by supply issues relating to the war in the Ukraine however to blame Putin is to misdirect the blame to a convenient fall guy.  Australian governments cannot use the war in Ukraine and Putin to explain away the prices rises and supply issues.  Like COVID, Ukraine’s war has highlighted the deep flaws already existing in Australia’s approach to strategic industries. 

Years of flawed climate ideology has destroyed our ability to grow food in Australia.

The government’s forced uptake of expensive, unreliable wind and solar power at the expense of cheap sources has increased electricity bills, one of the largest costs of doing business at every stage from farm to table.

Australia imports 1.7 million tonnes of the most common form of fertilizer – urea and only produces 200,000 tonnes locally, most of that here in Queensland. Urea is made from natural gas. Australia has one of the world’s largest reserves of natural gas so why are we paying 400% more for imported products when Australia could be self-sufficient?

Australian Governments have been asleep at the wheel when it comes to protecting strategic industries such as fertilizer. Production shortages will continue and prices will continue to rise and that is on successive short-sighted, LNP and Labor State and Federal Governments.

There is also “green tape”, thousands of pages of heavy handed, draconian laws which do very little to protect the environment and are not based on solid data or science. Instead, they just make it too hard or too expensive for many farmers to use their land. In Queensland some farmers are being prevented from working their land at all.

Our most essential need for surviving and thriving is water. Supposed environmentalists have stopped major dam building initiatives for nearly 30 years. Responsible use and environmental management is of course necessary. Australia has enough water to feed and clothe the world. A lack of vision and forward planning from politicians means that we are at the whim of every weather cycle.

If there’s one thing we should have learnt from the COVID response and now from regional conflicts it is this. Australia can’t rely on the rest of the world. We need to be able to grow every bit of our own food here with minimal government interference.

More than that, Australia has an obligation to use the gifts this country has been blessed with to take our place in the worthwhile endeavour to feed and clothe those who would otherwise be in need.

Our farmers have been extraordinary in their commitment to growing food and fibre because this is a noble endeavour. Successive LNP and Labor Governments have made this endeavour harder and harder in the name of ideology and failed climate “science”.

Now the result of years of mismanagement is being felt in petrol stations and supermarkets across Australia.

Australians can no longer afford to go backwards at the hands of climate zealots whose inner-urban, well-off lifestyles are the least affected by climate madness.

Build dams, install the cheapest available power sources and get government out of the tractor-driver’s seat. If Australia is to survive coming food crises, we must do all of this now.

An old quote says a country is only three missed meals away from a revolution. We have enough arable land to feed Australia and millions overseas, government just needs to get out of the way and let farmers do what they do best.

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