WONG: Thanks very much for coming. On the day after we see the sort of risk Tony Abbott would be to the Australian economy, we are reminded again what a risk Barnaby Joyce would be on water.

We are reminded again that water reform is an important reform for the nation and that Senator Joyce clearly does not support the water reform that the nation needs. The Murray Darling Basin is an important reform and the Rudd Government is getting on with the job.

JOURNALIST: With the Basin Plan due to come out, you have said that farmers are in for – or could be in for – a bit of pain. Can you give us an idea of roughly what those cuts could be?

WONG: In relation to the Basin Plan – that’s obviously coming out later this year. And the sustainable diversion limits– that is the reductions – it’s a matter for the Authority to consider in the Draft Plan.

What I said today in this speech is true: that we expect all of us will have to take some pain. We know that we will have to use less water out of the Murray Darling than we previously have. That’s why the Government is investing. That’s why we are investing in water purchase and investing in irrigation infrastructure so we can be more efficient. It’s all about investment in bridging the gap.

JOURNALIST: Are irrigators likely to be the biggest losers though, as opposed to householders?

WONG: I am not going to pre-empt what the Basin Plan will say. That’s obviously something the Murray Darling Basin Authority is working on and will consult on. But I think everybody knows that we can’t continue as we have been. We are going to have to use less water than we have out of the Murray Darling Basin. And what the Government is doing is investing so we help make the transition to lower levels of use.

JOURNALIST: You said you have spent $800 million on the buybacks so far. If the environment…

WONG: It's $1.2 billion; it's in the speech.

JOURNALIST: Sorry, yes it is in the speech.

WONG: It’s 800 billion litres – gigalitres.

JOURNALIST: That’s what I had in my head. If the environmental flows aren’t included in the Plan, would that be a waste of all that money?

WONG: No, I want to make it very clear. Every megalitre of water we purchase, every megalitre of water that’s saved by investing in more infrastructure goes towards bridging the gap between our current levels of use and where we know we have to be under the Plan. This is an investment in bridging the gap.

JOURNALIST: Okay I just have a question about…

WONG: Anyone else on water?

JOURNALIST: Water is just not, still just not flowing down to the Murray Mouth. Why is it not flowing? I mean we have had massive rains. Are irrigators still taking out more than they should be taking out?

WONG: Well actually my recollection – I can’t recall the most recent figures– is that we’ve seen a few hundred gigalitres more go into the Lower Lakes than previously. So obviously there is water coming down. But I think the point is that there has been a lot of rain, a lot of floods. The water is moving slowly downstream. We will get a sense of how much it will be in the weeks and months ahead. But we also have to remember it’s been a pretty dry and thirsty Basin. So obviously a lot of the water does get soaked up along the way.

JOURNALIST: We had an announcement this morning about wind farm-powered desal plants. Is this the way that we should be going?

WONG: It’s an interesting business proposal that has been announced today. I certainly look forward to seeing where that goes. Certainly in this era we are going to have to be more efficient about the water we use. We also have to look at getting different supplies of water, not just being dependent on rain-fed sources. So I anticipate there will be a range of businesses looking to take opportunities in this space.

JOURNALIST: Ross Garnaut this morning has said that he’s backing the Greens’ position on putting a $20 cap or price on carbon. He’s saying that you should have kept pushing the ETS more. What do you have to say to those comments?

WONG: We have to deal with the political reality that is the Australian Senate and the fact that the Greens along with Tony Abbott’s Senators voted against a price on carbon. And I think the question on a carbon tax is why there is any likelihood that that would pass the Senate.

The reality is we couldn’t get a carbon price through the CPRS through the Senate because the Greens and Mr Abbott’s Senators voted against it. I haven’t seen anything that demonstrates why it would be easier to get a carbon tax supported through the Senate when just last year Mr Abbott’s Senators and the Greens voted against one.

JOURNALIST: Is this hope now, though, for the new laws that were tabled again yesterday on the...

WONG: The Renewable Energy Target.

JOURNALIST: The RET as opposed to the ETS?

WONG: We are absolutely committed to the Renewable Energy Target. It will ensure we increase the amount of renewable energy in this country by 400 per cent by the end of the decade. It’s an unprecedented investment in renewables, in clean energy.

I notice that, again, members of the National Party are criticising it. I would say to Mr Abbott and the Opposition: get behind this renewable energy legislation. We need more clean energy here in this country.

JOURNALIST: Just lastly on the Basin Plan. Obviously there will be less water for irrigators, no matter how much it is. Is there likely to be compensation or a transition period for them?

WONG: Look, what we’re doing now is investing in that transition. That is the investment the Commonwealth is making through both water purchase and investment in infrastructure. And that is to return water to the River. So we are already investing in that transition.

JOURNALIST: But if they’re going to have less water than they did the day before this comes in, will there be a step-down period or will it be have this much water and straight away, there’s the cut?

WONG: These are matters which will be dealt with as the Basin Plan is rolled out. But again I want to emphasise: we are not waiting for the Basin Plan to help make that transition. That’s why we are investing now and we are not finished. There’s a lot more investment that’s going to roll out, both in infrastructure – in irrigation efficiencies on- and off-farm – and also water purchase.

JOURNALIST: Do you think Ross Garnaut’s comments would help the Government get the ETS passed? Meet halfway with the Greens?

WONG: I think the Government’s tried three times now in the Australian Senate to get the CPRS through. And what we’ve seen is Mr Abbott’s Senators and the Australian Greens voting against it.

JOURNALIST: The Opposition has, as you said before, caused a bit of problems with the RET. This morning managing director of Panax Geothermal, Bertus de Graaf, said if this doesn’t go through, they may as well put down their tools and walk away from renewable energy.

WONG: Renewable energy is a key part of this nation’s future. We should get behind this legislation. Mr Abbott should get behind this legislation and help business in Australia invest in the renewable energy that Australia needs and that the world wants.

ENDS