WATER SUMMIT TAKES ACTION ON RIVERY MURRAY SYSTEM

Canberra: Queensland’s Acting Premier Anna Bligh described today’s water summit in Canberra as “productive and constructive”.

Ms Bligh said the summit brought into sharp relief the need for the State and Commonwealth Governments to work together to secure the future of the ailing Murray Darling Basin system.

“While Queensland only represents about 5% of total diversions from the basin we recognize that we have a part to play in the future health of this vital river system,” she said.

“A presentation by the Murray River Darling Basin Commission showed that the inflows into the system were the worst on record and if the same rainfall patterns continued in 2007-08 the situation will become critical.

“That’s why State Premiers and the Prime Minister today agreed to a range of urgent actions to make the best use of the available water.

“Queensland has agreed to be part of a national program to examine the sustainable yield of water available in the Murray River Darling basin in light of the new reality now confronting the system.

“This work will be undertaken by the CSIRO and will provide an accurate assessment of the water available in light of the changing environment across the basin.

“The States will also work with the Commonwealth on contingency planning to secure urban and town supplies in 2007-08, with the first report due to Ministers by 15 December 2006.”

Ms Bligh said the states also secured a commitment from the Prime Minister to fast-track the assessment of major water projects submitted by States and Territories under its national water fund.

“I hope that we will have an answer if not by the end of the year, then early next year, on whether the Commonwealth will contribute funds towards our western recycling pipeline project, which will deliver recycled water to industrial users, including Tarong and Swanbank power stations.

“While Cubbie Station was raised briefly at today’s summit it was not discussed at length as it cannot provide any solution to the short-term challenges facing the system because the drought gripping the lower reaches of the Murray also means that there’s virtually no water in the Lower Balonne.

“I reiterated to the Prime Minister that Queensland was willing to be part of a national approach to the buy-out of large irrigators as a long-term water planning strategy.”

Ms Bligh welcomed the Prime Minister’s announcement of $210 million in assistance for small businesses in exceptional circumstances affected areas.

“Queensland has agreed to meet its share of the 10 per cent interest costs component of the assistance package,” she said.

“I’ve also agreed to examine other relief measures as requested by the Prime Minister.”

Attached is a communique from the summit.

Media contact: Deputy Premier’s office 3224 6900

SUMMIT ON THE SOUTHERN MURRAY DARLING BASIN (MDB)

KEY OUTCOMES

The Commonwealth and Governments of New South Wales, Victoria, South Australia and Queensland agreed or noted:

1. The need for a shared understanding of the likely water availability over the next year and a half.
2. The need for an informed whole of Basin approach to be developed collaboratively, not by jurisdictions acting without regard to the consequences for other States.
3. Establish a group of high-level officials drawn from First Ministers’ Departments and the MDB Commission to examine contingency planning to secure urban and town supplies during 2007-08. This group will report to First Ministers by 15 December 2006.
4. Accelerate the implementation of key aspects of the NWI, especially on water trading, overallocation, water accounting and data sharing. Ensure that permanent interstate trading will commence in the southern MDB States by 1 January 2007 as recommended by the National Water Commission. New South Wales, Victoria, South Australia and Queensland also agreed in substance to accept the advice from the Australian Competition and Consumer Commission on exit fees.
5. Not intervene in Snowy Hydro Ltd commercial arrangements this year.
6. Commission the CSIRO to report progressively by the end of 2007 on sustainable yields of surface and groundwater systems within the MDB, including an examination of assumptions about sustainable yield in light of changes in climate and other issues.
7. The Commonwealth will process speedily its response to major projects under the Australian Government Water Fund.
8. The Commonwealth indicated it was providing over $2.3 billion for a wide range of drought assistance in EC-affected areas, and announced a new initiative (costing approximately $210 million over two years) to extend income support and interest rate subsidies to the owners of small businesses that receive 70 per cent of their income from farm businesses.
9. The States have agreed to pay 10 per cent of interest costs under the Commonwealth’s small business announcement. The States have also agreed to consider a Commonwealth proposal that they follow the lead of Victoria in providing a 50 per cent rebate for municipal and shire rates to eligible recipients, and also to waive or rebate water charges (or equivalents thereof) in EC declared areas where water allocations have been substantially reduced.
10. It has already been agreed that water and climate change would be items for consideration at the next COAG meeting.