Lots of news in this newsletter from the sale (and no sale) of Snowy Hydro, on the local front ending the scourge of graffiti, calls for a Commonwealth takeover of water, more local news from Wentworth, new impetus behind the Living Murray Initiative, the first meeting of Australia's water ministers and questions about whether water restrictions aren't more about protecting water companies' cashflow than conserving a scarce resource.
I have made a lot of water visits since my last newsletter; Victoria, South Australia, Western Australia, Queensland and country New South Wales including Gunnedah, Burke, Weilmoringle and a very parched Goulburn. More here.
There has been plenty of interesting water material published recently including the WA Government's report on the Kimberley to Perth Pipeline and Canal proposals, essential reading for anyone planning their own transcontinental aqueducts.
The NSW Legislative Council has also just released a report on Sydney 's Water Supply which is also worth reading; it concludes that recycling should be given greater priority.
We have had a busy month in Wentworth too, with education a key theme – we hosted a community forum with Education Minister Julie Bishop and I was pleased to make Budget announcements on additional funding for local schools as well as hosting several Wentworth school visits at Parliament House in Canberra.
Most importantly, I survived for another year the toughest test of all: discussing the Budget with and being grilled by the economics students at Kincoppal Rose Bay.
So why do we ration water?
I spoke about urban water at a recent CEDA lunch in Sydney: "What is our water policy? Our water policy is to ensure that Australia's water future is secure and sustainable. It is to ensure that we use a precious resource as efficiently and productively as we can. It is to ensure that wherever we can, and we know we cannot do it everywhere, but wherever we can, we drought proof our cities and communities.........
"Are water restrictions designed to conserve a scarce finite resource? Well, yes in the short-term they may be, but in the long-term, the principal contribution is to preserve the profitability and cashflow, strong cashflows of water utilities, and enable the postponement of investment, which would increase the cost base of that utility and either decrease profits, or force an increase in prices."
Read the whole speech here.
Snowy Hydro
The Prime Minister made one of his most popular decisions when he announced that the Commonwealth would not be selling its shares in Snowy Hydro. While the NSW Government had no obligation to follow suit, it did so and the Victorian Government did likewise. The sale of Snowy Hydro was off.
Late last year the NSW Government decided that it would sell its 58% of Snowy Hydro. The Commonwealth (with 13%) and Victoria (with 29%) agreed to follow suit.
Snowy Hydro is an unusual company. It is an electricity generator and because it is able to supply peaking power at the turn of a gate valve, it is able to play the volatile electricity markets with a great deal less risk than other participants who run the risk of being short energy at a time of peak demand and have to cover at a high cost.
But at the same time as it makes a good living trading electricity, Snowy Hydro also manages a complex series of dams and aqueducts which diverts over 1000 billion litres (or gigalitres or GLs) of water from the Snowy catchment into the the Murrumbidgee and Murray Rivers.
The water belongs to New South Wales and its use is licensed by NSW to Snowy Hydro in the Snowy Water Licence. NSW is very much the dominant player on the Snowy Hydro scene.
My own engagement with this issue started when I joined the Murray Darling Basin Ministerial Council in late May. The MDBC, which manages the major dams in the Murray River system and delivers water to thousands of irrigators and farmers, has a vested interest in how Snowy Hydro manages its water releases.
The MDBC had been unable to resolve a number of outstanding water issues prior to the planned sale. These “loose ends” were more than legal niceties. They included resolving the way in which releases from the Snowy would be adjusted during drought years, which have been more frequent since the Snowy Hydro was corporatised.
At the same time, public opposition to the sale was mounting. A lot of it focused on the iconic nature of the Snowy Mountains Scheme: it was like selling the Sydney Harbour Bridge many people said.
All of these concerns had one central issue: water. Snowy Hydro was not just another electricity company. It was not even just another hydro company. It was not simply using water instream and then sending it on the way it had always gone. It was diverting that water and sending it down to farmers and communities whose livelihoods depended on it.
The management of that water may have been a very secondary function in terms of the profitability of Snowy Hydro, but it was by far the most important function in terms of the public interest.
The Prime Minister noted these outstanding water issues in his announcement that the Commonwealth would not be selling its shares. He also said that he expected them to be resolved as soon as possible and I have raised them with both the NSW and Victorian Governments.
The Australian Government believes that the resolution of outstanding water management issues between the MDBC and Snowy Hydro as matters of the highest priority.
See my media release on the sale here.
Should the Commonwealth take control of water?
In my experience, Australians regard water as a national issue and naturally they expect the national Government, the Commonwealth, to take a leadership role. And so we have done, with the National Water Initiative in 2004, the National Water Commission and the Australian Government Water Fund as well as many other national water focused programs.
My colleague Senator Bill Heffernan has argued that there should be a constitutional referendum to provide that the Commonwealth Parliament can legislate with respect to water, wherever it may be. Now I have no doubt that if were going to rewrite the Constitution from scratch today, we would certainly provide that all interstate or cross border waters would be under Commonwealth jurisdiction. But our forebears did not do that in 1900.
Now, based on my experience with the republic referendum, I am not inclined to rush into constitutional referenda! They are easy to defeat, as the record shows: 44 changes proposed, with only 8 approved.
Moreover, we need to continue the task of water reform today. The National Water Initiative is delivering results now and while nobody would rule out the possibility of constitutional reform, the main game, at least for me, must be to continue to get results now.
Murray Darling Basin Ministerial Commission
Last month I attended the Murray Darling Basin Ministerial Commission – an intergovernmental meeting to address issues facing one of the nation's most important river systems - for the first time. The Commonwealth has injected a new sense of urgency and drive into tackling the issues facing the Murray .
Specifically we have injected $500 million through this year's Federal Budget to accelerate water recovery and capital works and empower the Murray Darling Basin Commission. We also received support from the states and territories at this meeting for a tender proposal of I developed, whereby in order to meet our commitment to return water to the Murray under the Living Murray Initiative, governments will purchase water from willing sellers under conditions that protect farming communities. The media release for this meeting is available here.
First meeting of Australia's water ministers
On June 16, at the request of the Prime Minister, I chaired a meeting of Australia's water ministers representing all Australian Governments. It was a productive meeting with a unanimous commitment to the National Water Initiative, an agreement to accelerate work on national guidelines for the use of recycled water as well as other initiatives. For the communique click here.
The States complained about not getting enough money from the Commonwealth (a familiar theme at meetings of this kind). Sadly Mr Iemma, in particular, did not get his maths right and he and his ministers accused us of not making grants which he had in fact already made! The Victorians complained again of not getting enough from the Water Smart programme, overlooking the fact that because of the very large Wimmera Mallee Pipeline project commitment, Victoria has already received 46% of all Water Smart funds approved! For my response to Mr Iemma's complaints click here.
But for all that, the overwhelming sentiment of the meeting was positive and collaborative, as it should be. Water is too important. Water visits
Recently I visited Adelaide and other parts of South Australia where I inspected icon sites on the Murray River, met with SA Minister for the River Murray the Hon Karlene Maywald, and outlined my water tender proposal to help meet water recovery targets for the Murray . A release on this tender is attached here.
I also announced funding for four major water projects for South Australia under the Australian Government's Water Fund.
This month also saw me travel to Goulburn where I met with Mayor Paul Stephenson and federal member for Hume Alby Schultz MP and saw firsthand the devastation drought has had on this community. Sporting fields as hard as rock were one of the more distressing examples.
In Goulburn I made an announcement at the empty Pejar Dam that the Federal Government would fund a community consultation process to ensure that the City's water strategy has community support.
Goulburn is proposing to recycle its waste water to potable standard and then indirectly introduce into the drinking water system through a series of wetlands leading into their main storage, Soorley Dam.
This is a similar approach to that of Toowoomba whose citizens are voting on the issue in a referendum next month. For more on Toowoomba's water plans click here.
Graffiti Plague
Yesterday we hosted a forum on graffiti at my electoral office in Bondi Junction with local Councillors, police and other community representatives. The meeting concluded that local governments need to take further action promptly to remove graffiti and also concluded that the laws dealing with the juvenile offenders who perpetrate this graffiti is too lenient. The response of local councils is not uniformly effective and Jenny Coppock from Auburn Council (whose very interesting presentation is here) urged the three local councils to make a combined effort. More on this very valuable meeting here.
Funding for Wentworth Schools
It has been a particularly busy time on the schools front in Wentworth. On 2 May I hosted an Education Forum for the Wentworth community, with special guest, Federal Minister for Education, Science and Training, the Hon Julie Bishop MP. The event at Easts Leagues Club in Bondi Junction was attended by 14 Wentworth school principals. We announced that students and staff at Double Bay Public School , Glenmore Road Public School , Wairoa School and Woollahra Public School will benefit from almost $400,000 in Federal Government grants under the Investing in our Schools Programme. More details are here.
On 5 May I visited Rose Bay Secondary College following the Federal Government's additional grant of $3.174 million for major refurbishments at the school.
On 7 May I attended Paddington Public School 's 150th anniversary. The occasion was a remarkable milestone and an indication of the long and rich educational tradition in Wentworth.
On 18 May I launched a federally funded flagpole at a flag raising ceremony at Holy Cross Primary School in Bondi Junction and on 23 June did the same at the McAuley School in Rose Bay.
I encourage schools in Wentworth who do not have a functioning flagpole to phone my Electorate Office on 9369-5221.
On 9 May 80 Scots College students visited me at Parliament House in Canberra . See photos here.
On 22 May I also met with 60 students from Waverley College Junior School and 115 students from Clovelly Public School on their tour of Parliament.
Bellevue Hill Public School was here at Parliament last week and the girls from Brigidine College in Randwick were here last week. They had the added treat of meeting the Prime Minister who obligingly knelt down for the group photo so that he did not obscure any of the girls!
Three organisations in Wentworth have received funding from the Federal Government under the Settlement Grants Program. ECHO Neighbourhood Centre in Bondi Junction will receive $141,400, the Indonesian Community Council based in Randwick will receive $60,000 and Jewish Care in Woollahra will receive $40,000. Eastern Suburbs Little Athletics
On 4 May I handed out awards at the Eastern Suburbs Little Athletics annual presentation evening, also at Easts Leagues Club. Little Athletics is a wonderful pursuit; it instils values and keeps our young healthy. The Federal Government recognises the importance of sport to our nation and last year provided almost $380 million to various sporting programs in Australia .
Boosting entrepreneurship skills in Wentworth
The Eastern Suburbs Business Enterprise Centre Limited has received Federal Government funding of $135,260. The grant will be used for customised training workshops and mentoring sessions on a range of varied themes to 210 business owners/managers.
On Sunday 4 June I represented the Defence Minister, the Hon Brendan Nelson MP, at the official opening and handover ceremony of the Randwick Community Centre at 23 Munda Street in Randwick . Built at a cost of $4 million, this new building has multi-functional rooms and a children's play area. This outstanding Centre which will benefit Randwick and the wider Wentworth community for many years to come.
‘No Lives Lost' – Tamarama Surf Life saving Club documentary
An hour long documentary by independent filmmaker William Wolfenden on the 100 year anniversary of the Tamarama Surf Life Saving Club is now available for sale. The production celebrates the Club's centenary and its perfect safety record over 100 years of patrolling the beach.
I participated in this documentary along with Club President Bill Shires, Club Historian Dick Sheldon, ex-Olympian and life member Graeme Brewer and Mambo creator Dare Jennings. More here.
To purchase a copy click here or contact William Wolfenden on 0413 733 172.
Yours sincerely,
Malcolm Turnbull MP Member for Wentworth