March 26, 2008
The word coming from the Rudd Government is that CoAG means business. It will be the reform workhorse of the nation and it will deliver on the reform promises made in December. Just watch this exciting space of co-operative federalism with everybody working together and in such wonderful harmony.
I am watching this space on water and the governance of the Murray-Darling Basin. I do not like what I am seeing, given our history of having taken too much water out of our rivers for too long. I see very little movement towards putting water back into the river soon. That history continues to shape the present.
Nicholson
What I am hearing is that Victoria is refusing to sign to any deal that would disadvantage Victorian irrigators. Since any deal is going to involve cutting back on irrigator's entitlements to water due to reduced flows into the Murray, all I see is that Victoria only willing to play ball if it gets its own way. Yet the Brumby Government is willing to take water from its irrigators to ensure that Melbourne's water supply continues.
Oh, I understand that high level talks are taking place amongst senior bureaucrats and ministers and that progress is being made according to Penny Wong, the Federal Water Minister. The progress? States would retain their powers to set yearly water allocations within their borders. So how does that square with the basin wide need for major reductions in water allocations?
It would seem that water and sharing river flows discloses the limits of co-operative federalism have been reached, inspite of all the spin about a deal being close to breaking the Murray deadlock.
Update
Well, a deal has been struck. Victoria keeps control of 50% of its Murray allocations, with current water plans for the state to remain in force until 2019. Victoria will also secure $1 billion in federal funds for the Food Bowl modernisation project across the north of the state.The federal $1 billion would come on top of $1 billion already pledged by the State Government, with water savings from the ambitious scheme to be split equally between Melbourne, farmers and the environment.Victoria would also have a seat at the table of a new body set up to manage the river in the decades to come.
Nicholson
If Victoria has the best and most irrigation system in the nation then why does it need $1 billion to upgrade irrigation in the Goulburn and Murray valleys to prevent leakage from leaks evaporation and other inefficiencies. They held the nation to ransom to get commonwealth money to modernize their ramshackle irrigation system. It's a patchup job that refurbishes old systems that may never meet the demands of modern agriculture in a basin that now averages 37% of its long term average inflows.
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Rudd is in serious danger of losing credibility over this issue. If he can't pull the states into line on this it wont look good for that cooperation that we heard so much about before the election.
That first domino is wobbling again.