Senator the Hon. Penny Wong
Minister for Climate Change, Energy Efficiency and Water
Lower Lakes irrigation pipeline, water buybacks, Carbon Pollution Reduction Scheme
Transcript
Langhorne Creek
03 November 2009
E & OE Proof only PW320/09
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WONG: Thank you everyone for coming and my apologies that I was a little delayed leaving Adelaide and kept you waiting. I hope you didn’t get rained on – actually, I hope you did get rained on. We’re nearly there.
I’m really pleased to be here today, this has been a project which has had its genesis in the community coming to governments and telling us what was needed by the communities in the Lower Lakes to deal with what is a very difficult problem this region and the Murray-Darling Basin, particularly the Southern Basin, more broadly face.
And I think – I can’t remember when it was, Karlene probably remembers – we were here announcing the project itself and having a look at some of the pipeline being constructed I think. And now here we are, hopefully we get to turn a tap soon. So I’m very excited about being here and I do want to congratulate everyone who has worked on this. This has been a project that has involved enormous collaboration, contribution and coordination and cooperation from community, from State Government, from Paul’s department which project managed this I think, so congratulations on that. And also obviously, Karlene who has done so much work on this issue and for this region. So congratulations to all of you. Congratulations to the company Creeks Pipeline, on getting this project to this stage, within budget I am told and timeline as well.
This is part of the Federal Government’s commitment, not just to South Australia but to the Lower Lakes. Yesterday I was announcing with the Premier and Minister Maywald $65 million for stormwater projects here in South Australia. In total for the Murray-Darling – out of the Murray-Darling funds – we are contributing some $610 million to South Australia. That includes $330 million for the Lower Lakes to support the South Australian Government in its long term plan for the Lakes and the communities around them. Obviously these pipelines are part of that investment and we are very pleased that we have been able to work with the South Australian Government in delivering this project.
I’ll hand over to my colleagues shortly, but there was just one other issue I did want to make sure people were aware of. I am announcing today that the Australian Government is bringing forward some $320 million into this financial year for water purchase in the Murray-Darling Basin. So that will bring in total, by the end of this financial year, the Government’s expected expenditure on water to $1.3 billion. That is expected expenditure on water purchase to $1.3 billion. Now we know we face an uphill battle; a very difficult set of challenges in the Murray-Darling. Water purchase is a key part of dealing with the challenge of over allocation, of improving the environmental flows in the river. Water purchase is a way you return water to the rivers as quickly as possible. So this Government is serious about purchasing water and that’s demonstrated by this bring forward of $320 million. Happy to hand over to Paul or Karlene.
MAYWALD: Thank you very much once again Penny. It is terrific to be here again celebrating the efforts of a community who has been struggling as a consequence of an extreme drought and the effects of lower inflows into the Murray-Darling Basin system. It’s really important for projects like these to recognise the hard work and the effort of the individuals on the ground and the partnerships that have been created in establishing this project. It has come in on time, under budget, in very, very tight timelines with people who had to deal with some very complex issues. And those complex issues have been worked through from start to finish by some extremely dedicated people who had the end of the project in sight.
And it’s quite ironic that we turn on the water today when we’ve had a couple of days over the weekend of 38 degrees where people actually enjoyed being able to turn on the tap, rather than seeing their hard work and effort affected by this hot weather that they would otherwise have seen. So the timing has been absolutely critical and it’s made a big difference already to the Langhorne Creek community and what they are going to be able to produce this season as a consequence of being able to just turn those taps on during those very hot days.
So it’s been tremendous for the State Government to be able to work with the community to deal with those complex issues; it’s not easy to deliver a project of this size. But getting the project through under budget has also meant we have been able to expand the pipeline funding to other projects such as extending potable supplies on Hindmarsh Island and to the Point Sturt communities. And I think that that’s critically important as well, it means that the project management team have worked extremely hard to ensure that we can extend the value of the Commonwealth money even further and we really do appreciate your agreement to be able to transfer those funds over to those other projects as well.
I thank primary industries – Paul, the cooperation between Murray Futures as the overarching project which I manage and the delegation of the responsibility to deliver the project to PIRSA. PIRSA has been fantastic in working through the issues with the community that we have had to deal with and I’ll also like to make a special mention of our community liaison manager Dean Brown who has been often the conduit between the community and the different government agencies to make sure we can deal with problems that arose in a very timely fashion. So thank you to you too Dean, and to Paul and your team, thank you also.
CAICA: Good morning everyone, I’ll be very brief because I’m excited about being part of the process in turning on the tap. I’ll reinforce a few points and that is the cooperation that exists between the Commonwealth and the State Government with respect to projects of this kind and how we manage water in South Australia in the context of the national reform agenda. And Penny thank you for the work that you have done and the cooperative spirit which not only Penny has operated but of course, her department with my department.
A couple of points that I would like to make. The first one is that this is a project that is an outstanding project and we’ve said that and I congratulate my department for the work that has been done there and indeed, the community drive behind this project. But importantly too it’s about finding the balance. What we are delivering is water entitlements to people who had entitlements. The simple fact is that what we are able to do is ensure that a better quality reliable water source is being provided to the irrigators down here that ensures that this future and the future of this region is a viable future going forward. It’s about getting that balance, that balance between critical human needs, the environmental flows that we all agree are required and ensuring that primary industries, which underpin this state and many parts of Australia, continues to be catered for with respect to the water allocation. It’s about getting that balance right. So thanks to everyone that has had a hand in this project. Well done to everyone and I look forward to that same collaborative working relationship being at the forefront going forward.
WONG: Happy to take questions...
JOURNALIST: The $320 million that is being bought forward – where do you think you will be buying the water from?
WONG: We buy water where we see most value and that’s assessed after advice to the Department from independent scientists as well as the Department’s own analysis, and drawing on the work that has already been done. But in terms of the benefit for South Australia what we should remember is in the 2008-09 year, some 62% of the water the Commonwealth held was in fact utilised on sites in South Australia. Now that may change obviously, depending on what the advice from scientists is and also where the water is available. Because of course it depends what allocations have been issued by state governments. But that gives you some indication – certainly in the first year – the majority of Commonwealth water was utilised on sites in South Australia. Where water is used is obviously something negotiated and discussed between the states and the Commonwealth and ultimately a decision for the independent Commonwealth Environmental Water Holder.
JOURNALIST: Is there a ball park figure of how many gigalitres that might get?
WONG: If I started saying that I would be telling you exactly how much money I want to spend on how much; it would be a pretty clear indication to the market. We have spent just under $947 million so far, and that has bought 612 gigalitres from memory and that information on water already purchased is public and people can extrapolate from that.
JOURNALIST: How did you read the latest polls – did it make the government a bit nervous?
WONG: Polls come and go and I have also been in press conferences where I have been asked about polls with very different results, and my view about that is we leave the commentary to the commentators. And we will keep focusing on doing what we think is in the national interest, whether it is on water or climate change or on any other policy issue.
JOURNALIST: Does it make you a bit nervous ahead of the ETS negotiations?
WONG: When it comes to action on climate change we have never been committed to this just because it was popular or because it was easy. We have been committed to this because it is absolutely in Australia’s national interest. And we are standing in a region now which even though we have had some rain, we are still looking at substantially below the long term average. I think the figures – although improving – are still nowhere near what the long term average is in terms of inflows. This is an indication of what climate change means for Australia. We know the southern part of Australia in particular is already starting to experience exactly what the climate scientists told us: that we would see less rainfall, we would see increased drought and more intense drought. Australia has a very strong interest in acting on climate change; there isn’t an easy way to do it. But the government is absolutely committed to doing what we told the Australian people we would do at the last election and that is to put in place a price on carbon through a trading scheme.
JOURNALIST: Minister are you concerned, just speaking of those sorts of issue that the CSIRO scientist Clive Spash is claiming that his work is being suppressed because it doesn’t mesh with necessarily what the official view is. Is that the case?
WONG: Well I can tell you the first time I heard of this was when I read it in the papers I think yesterday after I got off the plane from Barcelona, where I was over the weekend on climate change negotiations. I am absolutely happy for people to say what they want on climate change issues, whether they work for the government or not, and I have been very clear about my willingness to debate people on the issue.
JOURNALIST: Would it be inappropriate if his work had been suppressed?
WONG: Well, what I am saying to you is that is not my understanding. I understood from what was in the papers that this allegation has been made. The relevant minister has said that this is an issue for the CSIRO to consider and I wouldn’t be commenting on it until they have done that. But I will be absolutely clear I am happy for people to put their views forward and I am happy to debate them. One of the propositions which was discussed was that we should have a carbon tax instead. I have been very upfront about why I think a carbon tax isn’t the most sensible thing for Australia. I would be very happy to debate many people on that issue.
JOURNALIST: Minister, with the pipeline there has been concern Point Sturt and Hindmarsh Island. Is there enough funds left over to continue that project?
WONG: Karlene actually already referenced this. We have announced that haven’t we?
MAYWALD: (Inaudible)… it’s on its way.
WONG: What Karlene approached the Commonwealth with was a very reasonable proposition that the monies that were originally allocated to this project – that came in under budget – could be allocated to Point Sturt and the Commonwealth agreed that.
JOURNALIST: And there’s enough funds to do it?
MAYWALD: Yes, the project is going ahead and that has already been announced.
ENDS

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