The WA government, led by Premier Gallop, expresses concerns about the proposed national water initiative, focusing on flexibility in water entitlements and pricing, and seeking specific benefits for Western Australia due to its unique water challenges and existing fiscal contributions.

AnsweredQoN 373Legislative Assembly
Asked
23 June 2004
Portfolio
Premier

QuestionView source ↗

I understand that one of the items for discussion at this Friday’s Council of Australian Governments meeting is an intergovernmental agreement for a national water initiative. What is the Government’s position on that agreement? Dr G.I. GALLOP

AnswerView source ↗

There is a simple answer to that question. The Government will take the interests of Western Australia and its people to those discussions, which is what it does whenever the Commonwealth Government and the other States put propositions to us. We are concerned about three issues and we intend to pursue those in the context of the Council of Australian Governments’ meeting. The first, of course, relates to water entitlements. We are keen to ensure that there is a degree of flexibility in water entitlements. If perpetual water rights are given to anyone, one would have to be very certain of the resource that was available because associated with those rights is the ability to get compensation in the context of change. First of all, we are keen to ensure proper flexibility in water entitlements. Secondly - this is an issue that the Deputy Prime Minister did not raise when he travelled around the south west of Western Australia talking about the federal Government’s approach to water issues - we will seek a degree of flexibility in the associated cost and its impact on the price of water. As members know, there are different arrangements in different parts of Western Australia. We are working with communities to ensure that we can supply water, that it is used sustainably and that the cost impact on industry and, therefore, on consumers ultimately is manageable in our society. Under the federal scheme, the proposed water entitlements will be attached to full cost recovery. As I said, I do not think Deputy Prime Minister John Anderson has told that to those with whom he has talked about this issue. We want flexibility on the pricing question. Finally, I say this: the State of Western Australia will be very vigorous in its pursuit of a specific benefit for its people. I say that in the context that there is already a $2 billion net fiscal subsidy between Western Australia and the rest of the nation. A lot of the debate about the water issue has been focused on the Murray-Darling system. At the last meeting of the Council of Australian Governments I stated that Western Australia also exists. Further, I stated that we have a drying climate, reduced run-off into our dams and pressure on our underground water - we use more underground water than other States - and asked what Western Australia’s interests were in this issue. We have gone to the Commonwealth and stated that before we sign up, we want benefits for the people of Western Australia. I believe that I am taking a position that is in the interests of the State, and those interests are based on having the flexibility to deal with the different regions and circumstances in our State. That flexibility is required so that we can best deal with the connection between our economic and environmental issues and, of course, to make sure that the State receives a direct benefit as it addresses some of its water issues. We have a water strategy. Several opposition members interjected. Dr G.I. GALLOP: The poor old Opposition is way, way behind on this question. It has done no thinking about this issue for years. We have a comprehensive strategy and we are close to receiving a report from our irrigation task force, which we believe will come up with some excellent proposals. I note that the Minister for the Environment has already been active in that area, because we are funding the metering system in the Gnangara area in the outer metropolitan parts of Perth. We are already on the job. The Opposition had a view - I do not know whether it still holds that view - that there was no water crisis and that we had nothing to worry about in Western Australia. That is not the view of this Government. We have a strategy and we are pursuing it. If we sign up to any commonwealth strategy, it will have to be in the interests of the people of Western Australia. Several opposition members interjected. The SPEAKER: I call to order the member for Warren-Blackwood and the Leader of the Opposition.
Dr G.I. GALLOP replied: There is a simple answer to that question. The Government will take the interests of Western Australia and its people to those discussions, which is what it does whenever the Commonwealth Government and the other States put propositions to us. We are concerned about three issues and we intend to pursue those in the context of the Council of Australian Governments’ meeting. The first, of course, relates to water entitlements. We are keen to ensure that there is a degree of flexibility in water entitlements. If perpetual water rights are given to anyone, one would have to be very certain of the resource that was available because associated with those rights is the ability to get compensation in the context of change. First of all, we are keen to ensure proper flexibility in water entitlements. Secondly - this is an issue that the Deputy Prime Minister did not raise when he travelled around the south west of Western Australia talking about the federal Government’s approach to water issues - we will seek a degree of flexibility in the associated cost and its impact on the price of water. As members know, there are different arrangements in different parts of Western Australia. We are working with communities to ensure that we can supply water, that it is used sustainably and that the cost impact on industry and, therefore, on consumers ultimately is manageable in our society. Under the federal scheme, the proposed water entitlements will be attached to full cost recovery. As I said, I do not think Deputy Prime Minister John Anderson has told that to those with whom he has talked about this issue. We want flexibility on the pricing question. Finally, I say this: the State of Western Australia will be very vigorous in its pursuit of a specific benefit for its people. I say that in the context that there is already a $2 billion net fiscal subsidy between Western Australia and the rest of the nation. A lot of the debate about the water issue has been focused on the Murray-Darling system. At the last meeting of the Council of Australian Governments I stated that Western Australia also exists. Further, I stated that we have a drying climate, reduced run-off into our dams and pressure on our underground water - we use more underground water than other States - and asked what Western Australia’s interests were in this issue. We have gone to the Commonwealth and stated that before we sign up, we want benefits for the people of Western Australia. I believe that I am taking a position that is in the interests of the State, and those interests are based on having the flexibility to deal with the different regions and circumstances in our State. That flexibility is required so that we can best deal with the connection between our economic and environmental issues and, of course, to make sure that the State receives a direct benefit as it addresses some of its water issues. We have a water strategy. Several opposition members interjected. Dr G.I. GALLOP: The poor old Opposition is way, way behind on this question. It has done no thinking about this issue for years. We have a comprehensive strategy and we are close to receiving a report from our irrigation task force, which we believe will come up with some excellent proposals. I note that the Minister for the Environment has already been active in that area, because we are funding the metering system in the Gnangara area in the outer metropolitan parts of Perth. We are already on the job. The Opposition had a view - I do not know whether it still holds that view - that there was no water crisis and that we had nothing to worry about in Western Australia. That is not the view of this Government. We have a strategy and we are pursuing it. If we sign up to any commonwealth strategy, it will have to be in the interests of the people of Western Australia. Several opposition members interjected. The SPEAKER: I call to order the member for Warren-Blackwood and the Leader of the Opposition.
There is a simple answer to that question. The Government will take the interests of Western Australia and its people to those discussions, which is what it does whenever the Commonwealth Government and the other States put propositions to us. We are concerned about three issues and we intend to pursue those in the context of the Council of Australian Governments’ meeting. The first, of course, relates to water entitlements. We are keen to ensure that there is a degree of flexibility in water entitlements. If perpetual water rights are given to anyone, one would have to be very certain of the resource that was available because associated with those rights is the ability to get compensation in the context of change. First of all, we are keen to ensure proper flexibility in water entitlements. Secondly - this is an issue that the Deputy Prime Minister did not raise when he travelled around the south west of Western Australia talking about the federal Government’s approach to water issues - we will seek a degree of flexibility in the associated cost and its impact on the price of water. As members know, there are different arrangements in different parts of Western Australia. We are working with communities to ensure that we can supply water, that it is used sustainably and that the cost impact on industry and, therefore, on consumers ultimately is manageable in our society. Under the federal scheme, the proposed water entitlements will be attached to full cost recovery. As I said, I do not think Deputy Prime Minister John Anderson has told that to those with whom he has talked about this issue. We want flexibility on the pricing question. Finally, I say this: the State of Western Australia will be very vigorous in its pursuit of a specific benefit for its people. I say that in the context that there is already a $2 billion net fiscal subsidy between Western Australia and the rest of the nation. A lot of the debate about the water issue has been focused on the Murray-Darling system. At the last meeting of the Council of Australian Governments I stated that Western Australia also exists. Further, I stated that we have a drying climate, reduced run-off into our dams and pressure on our underground water - we use more underground water than other States - and asked what Western Australia’s interests were in this issue. We have gone to the Commonwealth and stated that before we sign up, we want benefits for the people of Western Australia. I believe that I am taking a position that is in the interests of the State, and those interests are based on having the flexibility to deal with the different regions and circumstances in our State. That flexibility is required so that we can best deal with the connection between our economic and environmental issues and, of course, to make sure that the State receives a direct benefit as it addresses some of its water issues. We have a water strategy. Several opposition members interjected. Dr G.I. GALLOP: The poor old Opposition is way, way behind on this question. It has done no thinking about this issue for years. We have a comprehensive strategy and we are close to receiving a report from our irrigation task force, which we believe will come up with some excellent proposals. I note that the Minister for the Environment has already been active in that area, because we are funding the metering system in the Gnangara area in the outer metropolitan parts of Perth. We are already on the job. The Opposition had a view - I do not know whether it still holds that view - that there was no water crisis and that we had nothing to worry about in Western Australia. That is not the view of this Government. We have a strategy and we are pursuing it. If we sign up to any commonwealth strategy, it will have to be in the interests of the people of Western Australia. Several opposition members interjected. The SPEAKER: I call to order the member for Warren-Blackwood and the Leader of the Opposition.
Several opposition members interjected. Dr G.I. GALLOP: The poor old Opposition is way, way behind on this question. It has done no thinking about this issue for years. We have a comprehensive strategy and we are close to receiving a report from our irrigation task force, which we believe will come up with some excellent proposals. I note that the Minister for the Environment has already been active in that area, because we are funding the metering system in the Gnangara area in the outer metropolitan parts of Perth. We are already on the job. The Opposition had a view - I do not know whether it still holds that view - that there was no water crisis and that we had nothing to worry about in Western Australia. That is not the view of this Government. We have a strategy and we are pursuing it. If we sign up to any commonwealth strategy, it will have to be in the interests of the people of Western Australia. Several opposition members interjected. The SPEAKER: I call to order the member for Warren-Blackwood and the Leader of the Opposition.
Dr G.I. GALLOP: The poor old Opposition is way, way behind on this question. It has done no thinking about this issue for years. We have a comprehensive strategy and we are close to receiving a report from our irrigation task force, which we believe will come up with some excellent proposals. I note that the Minister for the Environment has already been active in that area, because we are funding the metering system in the Gnangara area in the outer metropolitan parts of Perth. We are already on the job. The Opposition had a view - I do not know whether it still holds that view - that there was no water crisis and that we had nothing to worry about in Western Australia. That is not the view of this Government. We have a strategy and we are pursuing it. If we sign up to any commonwealth strategy, it will have to be in the interests of the people of Western Australia. Several opposition members interjected. The SPEAKER: I call to order the member for Warren-Blackwood and the Leader of the Opposition.
Several opposition members interjected. The SPEAKER: I call to order the member for Warren-Blackwood and the Leader of the Opposition.
The SPEAKER: I call to order the member for Warren-Blackwood and the Leader of the Opposition.

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