Introduction

Thank you for inviting me here today.

It’s good to be in Adelaide speaking with you all.

I acknowledge the traditional owners of the land we meet on today and their elders past and present.

Today, I would like to speak with you about some of the challenges we are facing in water and the steps we are taking to meet them.

Water Challenges

Despite good rains in Adelaide recently, I am sure I don’t have to remind anyone here that we are still facing a monumental challenge in the Murray-Darling Basin.

To put this into context in this era of climate change and extended drought:

• Over the last ten years, the average amount of water flowing into the River Murray was less than half the long-term annual average.
• And over the last three years, the average amount of water flowing into the River Murray was just one-fifth of the long-term annual average.

The challenge of climate change is further compounded by decades of mismanagement in the Murray Darling Basin.
 
This has resulted in too much water being taken out of the system, and a need to modernise outdated infrastructure.

• Since the 1950s, Basin governments have tripled the amount of water that can be taken from the Murray Darling River System.
• In the southern Basin, over 20 percent of water is lost through leaky old irrigation systems.

As we prepare for a future with less rain due to climate change, many cities, towns and small communities are also facing significant challenges in securing their water supplies.

What are we doing about it?

The Rudd Government is acutely aware of the work we have to do in water to prepare Australia for a future with less water.

And we are getting on with the job.

We are tackling climate change by reducing carbon pollution, adapting to the climate change we can’t avoid, and helping to find a global solution.

We have a $12.9 billion plan, Water for the Future, that is effectively Australia’s biggest and most ambitious climate change adaptation program.

Of this, $1.5 billion is committed to help Australia’s cities, towns and households reduce their reliance on traditional potable water sources.

This means investing in desalination, water recycling, stormwater harvesting, rainwater tanks and household greywater systems.

In the Murray-Darling Basin, we have taken over Basin-wide planning and will put a new, lower, scientifically-based limit on water use in the Basin for the first time ever.

• We have set up an independent authority to drive this process.
• This is the only take-over that counts. Anything else will just cause further delay to getting the Basin back onto a sustainable footing.

We are buying back water to help restore health to our rivers.

• As of the 30 September 2009, the Australian Government has secured the purchase of 612 gigalitres of water entitlements at a cost of $947 million.
• And so far out of Water for the Future, we have committed $4.45 billion to upgrade and modernise water and irrigation infrastructure in the Basin to help our farmers and regional communities and to protect food security.

Investment in South Australia

In South Australia, the Australian Government is making a significant investment in water related projects.

We have committed $328 million to the Adelaide desalination plant. From 2012, this plant will deliver 100 gigalitres of drinking water per year, about 50 per cent of Adelaide’s current water needs.

When you consider that in times of drought Adelaide draws up to 90 per cent of its water supply from the River Murray, it brings home the significance of this project in securing Adelaide’s water supplies.

In urban water, we are already contributing some $137 million towards eight stormwater harvesting and wastewater recycling projects.

By 2012 these projects will have capacity to recycle approximately 45 billion litres of treated wastewater and stormwater each year. This represents close to one quarter of Adelaide’s current water needs.

The Australian Government is also providing up to $610 million for South Australia’s State Priority Projects along the River Murray.

This includes funding of up to $110 million for more efficient irrigation and $100 million for the Murray Riverine Recovery project.

It also includes $330 million for projects related to the Lower Lakes and Coorong.

Lower Lakes

The Rudd Government is supporting the South Australian Government as it develops a long-term plan to secure a sustainable future for the Lower Lakes.

Like most of the Basin’s 16 Ramsar-listed wetlands, the effects of past over-allocation are now being compounded by this record-breaking drought, and by the emerging effects of climate change.

Our funding commitments include $200 million to support an enduring response to the environmental problems facing the Lower Lakes and Coorong.

Another $120 million of this funding is for pipelines to secure water supplies to Lower Lakes-dependent communities and irrigation farmers.

As part of this commitment, a few days ago we announced over $6 million in funding towards the Point Sturt and Hindmarsh Island water pipeline extensions.

This pipeline will secure potable water supplies for Point Sturt and Hindmarsh Island communities.

We have also committed $10 million to bioremediation and revegetation to help address the risk of acid sulphate soils in the short term.

The number one priority must be to prevent the Lower Lakes from turning acid.

As the South Australian Government works on its plan for a sustainable future for the Lower Lakes, we are determined that the outcome must be well grounded in science.

To that end, this week I announced the Commonwealth has established an independent panel to advise the Commonwealth on long-term planning for the Lower Lakes.

The panel will provide expert advice to inform the Commonwealth’s contribution to South Australia’s long-term planning process – helping to ensure that the final plan strives for the best and most practical outcomes.

Biennial Assessment

Last week, the National Water Commission released its Biennial Assessment of water reform in Australia.

The report supports the Government's Murray-Darling Basin initiatives including our take-over of Basin planning, setting a scientifically-based limit on the amount of water use in the Basin, and our water purchase program.

However, we agree with the report's assessment that there is still work to do to secure Australia's water future.

The report expressed concern that a commitment to reduce over-allocation by 2010 has not been fulfilled.

On this, I would note that the Basin Plan, to be finalised in 2011, will make significant progress on this commitment with its new, scientifically-based limits on water use.

Once the Basin Plan is in place, Basin states must ensure that their new water plans comply with the new, lower limits on water use.

The report also recommended that farmers and regional communities receive more information and clarity about water reforms.

This is a message we have certainly received.

As part of our response, my department is currently running a series of community information sessions on Basin reform and investment programs in regional centres throughout the Basin.

This is in addition to my regular tours of the Basin, along with the community consultation processes that the Murray-Darling Basin Authority is undertaking as it develops the Basin Plan.

The NWC report also commented on the slow pace of intergovernmental processes and on the interstate bickering that gets in the way of water reform.

The Rudd Government has achieved some significant movement in this area since coming to power less than two years ago.

We have forged an agreement with the Basin states that will see the Basin run as a single entity, recognising that its rivers cross State borders.

Again, I emphasise that this agreement sees the Commonwealth effectively taking over Basin-wide planning – the only take-over that counts.

We have also hammered out agreements with New South Wales and Victoria that enable us to continue to roll out our water purchase program and secure a greater share of the Basin’s water resources for our rivers and wetlands.

However, as was also raised by the National Water Commission, I want to highlight one area where the rate of progress is not as fast as it should be.

That is: the roll-out of $3.7 billion in Commonwealth funding for water and infrastructure projects identified by Basin states as their priorities for investment.

I note that Commonwealth government departments are now conducting a thorough audit of the status of these projects, and of the achievements we can expect to see by the end of this financial year.
                                               
Once we have a clear understanding of roadblocks and impediments, and of our options for overcoming them, we can then consider what further action to take. 

Conclusion

Since coming to government just under two years ago, the Rudd Government has made real progress in laying the foundations for securing Australia’s water future.

We are making real progress in the Murray-Darling Basin, and real progress here in South Australia.

Nevertheless, given the scale of the task we inherited, there is still much work to do.

The National Water Commission has identified many areas where Australian governments can do better, and the Commonwealth will take the lead on these through COAG and other inter-governmental processes.

And as we have recognised in our Water for the Future plan, local government, local communities and the private sector all have an important role to play in preparing for, and adapting to a future with less water.

It’s important that all involved - governments, industry and communities -  work together in meeting the challenges ahead.

By and large we all agree on what needs to be done, so let’s end the background bickering and finger-pointing, and get on with the job that we know we have to do.

Thankyou.