Minister for Climate Change and Water, Senator Penny Wong, today welcomed the removal of the Victorian 10 per cent limit on the amount of water that can be owned separately from land in individual water supply areas.

Royal assent to legislation removing the 10 per cent limit was obtained today.

“The Rudd Government has long argued for a removal of barriers to water trading so water in the Murray-Darling Basin can go to where it has most value – for irrigators, communities and for our rivers,” Senator Wong said.

“We therefore welcome Victoria’s removal of the 10 per cent limit on the amount of water that can be held by non-landowners.

“The removal of the 10 per cent trade barrier was part of landmark reforms agreed in June between Prime Minister Kevin Rudd and Premier John Brumby to deliver water for the environment and provide more flexibility for irrigators.”

The agreement enables the Australian Government to acquire 460 billion litres of water entitlements over five years from 2008/09, including at least 300 billion litres over and above those purchases already permitted under Victoria’s four per cent annual cap from irrigation districts.

Under the agreement, and subject to a review of progress on the modernisation project, Victoria will phase out the four per cent cap on permanent water trades from irrigation districts from July 2011, with a view to removing the cap entirely by 2014.

“The removal of the 10 per cent limit will benefit irrigators by providing them with more flexibility to manage their water assets, which is particularly important during these times of drought,” Senator Wong said.

“It will also enable the Commonwealth Government to continue to purchase water from willing sellers to put back in the rivers and wetlands of the Murray-Darling Basin.

“Meanwhile, we will continue to roll out our investments in irrigation infrastructure to support farmers and regional communities and help protect food security.

“These actions are crucial parts of our plan to secure a strong and vibrant future for our irrigation communities in the face of extended drought and the emerging impacts of climate change.”