UPDATE: Labor has backflipped on their support for a public, transparent water register by voting down this amendment in the House of Representatives where it went after initially passing in the Senate with Labor’s support. As a result, a transparent public water trading register will not be established. Senator Roberts made a further speech here: https://www.malcolmrobertsqld.com.au/labor-backflips-on-water-trading-register-in-dodgy-deal/

Senator Roberts has succeeded in passing a water trading register in the Senate tonight where others have failed over successive years.

Senator Roberts has campaigned tirelessly to protect farmers in the Murray Darling Basin, which extends from Queensland all the way to South Australia.

The MDB Plan has allowed corporate agriculture to outbid family farmers and dominate water trading. 

Senator Roberts said, “The lack of a transparent water trading register has allowed aggressive traders to inflate prices and starve productive land of much needed water.

“This is forcing family farms off the land with a catastrophic cost to locals jobs and the ruination of rural communities,” he said.

The water trading register was expected to be put in place in 2009.  The Government has spent $30 million between 2009 and 2012, has failed repeatedly and then gave up.  Farmers have suffered because of this ineptness over the past decade.

“This water trading register will give the Inspector General of Water Compliance the information he needs to clean up water trading and restore confidence in Basin management,” Senator Roberts added.

Following the success in the Senate this amendment will move to the lower house where the government will struggle to find the numbers to oppose it.

“We are left bewildered as to why the Liberals and the Nationals would oppose a water trading register,” stated Senator Roberts.

I have been calling for a transparent public water register for several years now. There are too many dodgy dealings happening in the Murray Darling Basin including water possibly held by politicians.

Our view on this aligns with the ACCC who have also backed a public water register. It is simply common sense.

Transcript

[Malcolm Roberts] Thank you Chair and thank you for attending tonight. In reference to your report of the Murray-Darling basin water markets inquiry, is it a fair representation of your findings to say, “There is a lack of quality, timely and accessible information for water market participants. The ACCC’s analysis has highlighted the need for significant improvements in the consistency and completeness of Murray-Darling basin water market trading?”

Sounds like what we’ve found Senator, that rings a lot of bells. It’s obviously a very complex market and it’s grown up. I guess it just sort of evolved and water administrators have been much concerned with the allocation of water rather than the trading of water, so, I think, general judgement is, there’s a range of things that need to be done to get the market working really properly and addressing the problems you’ve just correctly summarised ’cause it is such a fundamental market for farmers.

[Malcolm Roberts] I haven’t read your report, but one of my staff who is intimately involved with the Murray-Darling basin says gives you A plus.

Oh, very good Senator, I appreciate that. I should pass it on to the team.

[Malcolm Roberts] We’ve been all over the basin and we’ve listened to a lot of people and it makes total sense.

Thank you.

[Malcolm Roberts] The Water Act 2007, schedule three specifies that all trades should be recorded in a register for water trades, register of water trades. Your report notes the failed attempt by the Murray-Darling basin authority to introduce a national water market following which they just gave up trying. Is implementing this 14 year old law compatible with the findings in your report about the need for improvements in water trading data transparency?

I’m gonna pass to Mr. Betsy, who’s the person most familiar with this, so.

If I understand your question, Senator, you’re asking me whether the recommendations in our report will improve transparency in the water market? And yes, our answer to your question is that’s what they’re intended to do, that’s the big problem that, or one of the big problems that we think need to be addressed. There are some other issues as well, integrity of some of the mechanisms to ensure that people have confidence in the integrity of market and the conduct of the players in the market, making data available more generally in a more consistent way across the whole market so that people can use it for their purposes. There’re whole range of different recommendations that we think will be carefully considered by the implementation panel over the next year or so.

[Malcolm Roberts] I didn’t wanna interrupt because it was music to my ears but specifically what I was after was, is a register of water trades consistent with your report?

Yes, absolutely, well, and either a single register or registers that are compatible and that record data in a consistent way.

But that’s a classic example of what’s missing so there’s no doubt about that. And that again, reflects the way it’s evolved and why it needs very much to improve.

[Malcolm Roberts] From page 182 of the report, “89% of the volume of all large investors spot allocation purchases and 67% of the volume of all large investors bought allocation sales in the Southern connected basin in the 2018 and 19 water year, were attributed to one investor, can you indicate who that investor was?

I don’t think it would be appropriate to do so.

[Malcolm Roberts] Okay, and that’s why we need a register.

Yeah.

[Malcolm Roberts] But we would know the answer if we had a transparent water register, correct?

Yes.

[Malcolm Roberts] And so without, this is just a statement, without a water trading register shady or crooked operators can hide. And I’m not saying that they’re shady or, but someone could.

The difficulty is that we don’t know whether they are shady or crooked operators.

Exactly, but that’s the problem, that’s the problem, we don’t know and if the market was working with all the normal regimes then, that would make bad behaviour much, much, much harder. So we don’t know about the system, opens itself to that.

[Malcolm Roberts] I’ll bring the cupboard, the cockroaches scatter when the light hits them. Page 185 of your report indicates that in 2018 and 19, 63 gigalitres of water was traded from above the Barmah choke to below the choke, is this correct?

There’s only 700.

[Malcolm Roberts] Okay, it is, so.

If it’s in the report, if it’s in the report it’s very likely to be correct is correct.

It’s correct, right, thank you.

[Malcolm Roberts] It’s correct, yeah, okay. Is this figure net or gross? In other words, we know that 63 was traded from above and moved to below the Barma choke. Was there a corresponding trade moving water from below the choke to above the choke?

That’d be taking the water upstream.

[Malcolm Roberts] Yes.

And that’s a very difficult thing to do.

[Malcolm Roberts] it is, but…

I mean, conceptually, there are ways in which trades can occur where that happens.

[Malcolm Roberts] But that figure would be…

Yeah, I expected it’s a gross figure but it would be pretty close to being a net figure but we can take that on notice.

[Malcolm Roberts] Thank you. In senate estimates last Friday, Andrew Reynolds, the chief executive director of the Murray-Darling basin authority testified that there was no transfer of water from above to below the choke since any trade below was matched by a trade back the other way. This is not what your thorough and detailed investigation has found according to my staff, is that correct?

Look, I think it’s best we take it on notice.

[Malcolm Roberts] Yes, okay.

We’ve got the question that we’ll certainly get back to you and we should have the information.

[Malcolm Roberts] Your data came from voluntary information disclosures. So put simply the trades you examined were the trade people wanted you to see. Is there a chance that trades were hidden from the ACCC inquires?

That’s not correct senator, we use compulsory powers to compel the production of a large amount of the data and the information we received. Some of it we did receive voluntarily from state government agencies, but a very large proportion of it we obtained using compulsory powers.

Paint a picture that others couldn’t because we had the information gathering powers. That’s why we were able to put all the data together in the way we did. Without the powers, the study wouldn’t have had the same thoroughness.

[Malcolm Roberts] Thank you. Moving onto a separate topic now, this is to do with market power. The Commonwealth bank has announced that they are investing $30 million in e-commerce startup little birdie, so far so good. Now the bit that concerns, the Commonwealth will add the little birdie e-commerce portal directly into their banking app. Is the Commonwealth bank using its market power to grow a business that it has an interest in?

Look, I think Senator, I don’t know if any of my colleagues have comment, but, I mean the Commonwealth bank is, don’t know, its probably got 25% of the home loan market. It’s obviously the biggest bank but in terms of what they’re doing, there’s a lot of other players in the market. So certainly happy to keep an eye on it. But I think with all else going on in the market it would be a bit early to call that market power. It’s, you know, it’s an interesting development. They’re trying to match a range of other digital players, fintechs offering various services. So I think, we almost see it as an encouraging sign to improve the mix of economic activity But I accept they’re a big player and when big players do things like that we have to monitor it carefully.

Senator, if you don’t mind, it seems we have a dedicated unit within our agency that focuses on financial services, competition issues and actively monitors this sorts of developments and reports to a financial services competition board. And that, I think it’s a very good mechanism for really tracking what’s going on in competition in financial services.

[Malcolm Roberts] Okay, it’s just that the banks, as Mr. Sims pointed out have got enormous power, the four of them have got enormous power. And if they get behind something.

They’ll do the same thing, senator, that’s a different matter, as I understand, it’s the Commonwealth bank on its own, making that move. If they all did it collectively that would a very different matter and that could well bridge competition laws.

[Malcolm Roberts] Okay, so, next question Wespact are now, Westpac is now offering private label banking services after pay, as their first customer. Does Essec have a point at which the banks could be considered to be misusing their market power? You just mentioned one example.

You mentioned Essec, I think you meant ACCC, again, I think fairly early days, I don’t know whether my colleagues have. I think it’s part of all the rich developments that are going on that we’re monitoring very closely.

And there are a number of white label services provided by various banks. Citibank, for example provides white label credit card facilities. And in a sense, what Westpac is doing is a pro-competitive thing entering into an activity that enables after paid provide a full range of services than it currently does. And we see that as a way for them to become a more viable competitor within the financial services market.

[Malcolm Roberts] Okay, how about the last question on ACCC, how about Westpac shutting down banking facilities for cash handling companies so that it can direct their retail customers to use one specific cash handling company that they have a financial arrangement with essentially De banking, where does this slippery slope end if we let banks do this and they will eventually own everything and force companies that don’t own out of business?

I’m not aware of that particular issue, Senator, happy to take that on notice and have a look at that. We certainly are interested in De banking. And we made recommendations about that when we did an inquiry into foreign exchange because we think there’s got to be rules that people can meet so that they can’t be Di banked in an ad hoc way. So we’re very concerned about Di banking but I’m not aware of, I don’t think we’re aware of that particular

Yeah, no, we are, sorry Mr. Sims, we are aware of certain commercial arrangements that have been made that have been having an impact in the cash delivery market. There’s a couple of firms that dominate that market and we’ve had a close look at some of the arrangements there. It’ll be interesting to understand whether your referring to one of the things that we’ve looked at or whether it’s a new issue. And that might be based on by taking on others of you questions.

[Malcolm Roberts]Would you like one of my staff to contact you?

Yes, yes, that would be helpful.

[Malcolm Roberts] Thank you, thank you very much, Chair.

There are many allegations of criminal activity and water stealing in the Murray Darling Basin. The Inspector General of Water is intended to be the cop on the beat and stamp out a lot of this non-compliance. I’ve travelled extensively across the Murray Darling Basin and spoken to locals on the ground.

I wanted to see if many of the issues I’d been told of had been brought to his attention.

Transcript

[Malcolm Roberts] Have you made contact with the New South Wales Natural Resources Access Regulator specifically in connection with unapproved water storages in New South Wales, including the Northern Basin?

I’ve had a number of contacts with Grant Barnes, the CEO of the Natural Resource Access Regulator and the Chairman Craig Knowles, not on that specific issue, more on general issues about our establishment and about metering and yeah, metering and a little bit about the water sharing plan on our last meeting.

[Malcolm Roberts] Are you aware, I’m not having a criticism of you, but are you aware of how much concern there is about water theft in the Northern Basin from people in other areas of the Murray-Darling Basin?

Oh, without question.

[Malcolm Roberts] Yeah. Okay. Thank you. That’s very reassuring.

Yes.

[Malcolm Roberts] So is there a timeframe for getting to the bottom of the question of how much water is being extracted in the Northern Basin as against the amount allowed by the plan?

Our work plan will, once we are legislated enact a number of assurance checks, auditing processes to get to answer a lot of those questions and then hopefully be able to work off a benchmark so that we can then answer those questions specifically.

[Malcolm Roberts] So I understand the legislation that enables your position is in the Lower House now?

That’s correct.

[Malcolm Roberts] And, so once that’s passed, how long do you think it’ll be before you have a good handle of that, three months, six months?

I can’t speculate on the parliamentary process or the ascension into from the Governor General.

[Malcolm Roberts] Once your position is created, legislated, how long will it take you to get a good handle on the Northern basin and the water?

We’ve already got a handle, we’ve made preparations with the scoping of a number of bodies of work that will be part of our work plan to start day one.

[Malcolm Roberts] And to get to the bottom of the issues and come up with some conclusions. How long roughly, do you think?

Well, there’s different timelines for different projects within that work plan, but they will all be transparently published on our website. So everyone will understand the work that we’re doing and the projects that we’re doing and the timeframes.

[Malcolm Roberts] That’s wonderful. When will that be available? I know it’s subject to the passage of the legislation.

The day we are enacted, it will be published.

[Malcolm Roberts] There’ll be a lot of people pleased to hear that. So we’ll be looking forward to it. If the enabling legislation passes as presented what tools do you have at your disposal to decide who is and who is not cheating on the basin plan? And what strategies would you be following?

It’s a difficult question to answer cause it’s case by case, or there’s holistic views, so, I guess if you’re talking about, if it’s a regional issue, like you referenced the Northern Basin, the legislation would allow us to potentially conduct an inquiry to get through some potential broader systematic issues that may be there. We have the ability through audit and compelling of information to inform potential river operation arrangements and how that’s measured and modelled and things like that. So there’s a number of different mechanisms depending on what the scope of the actual inquiry is. So your questions are very large, broad.

[Malcolm Roberts] So you can work at that level, but you can also work at the property level?

Exactly. Right. The property level would be less regular, we’re a regulator of last resort in that instance but there would be circumstances where we would do that and the legislation allows us to have authorised officers to conduct that work. But yes, it’s a tiered ability from an inquiry through to audit and assurance, checking and through to individual investigations.

[Malcolm Roberts] And you will also have the authority to appoint people to do that work for you?

Yes.

[Malcolm Roberts] So you’re going to have foot soldiers for you?

Yes. I will have under the statute the ability to, not sure of the exact word but to create the authorised officer or officers.

[Malcolm Roberts] So you’ll have all that’s needed to enforce the Murray-Darling Basin Plan, make sure there’s no favouritism to any area.

Yes, and part of the MoG arrangements is making sure that each of those authorised officers have the appropriate training, skill sets and to allow me to approve them as Commonwealth investigators as an authorised officer.

[Malcolm Roberts] Okay. ‘Cause there’s a lot of concern about cheating on the plan.

I’ve heard that loud and clear Senator.

[Malcolm Roberts] What other matters are you investigating right now?

We don’t have the powers to formally investigate.

[Malcolm Roberts] Sorry. Yeah. Okay. What are you evaluating right now? What will you be investigating

We’re scoping and canvassing everything from standards, trying to understand benchmark of standards because the inconsistency from valley to valley, state to state, north to south basin is significant. So we’re canvassing that and have a body of work prepared for that, river operations, metering, trade, which there’s specific legislation in relation to trade. There’s specific legislation that allows me to create standards and benchmarks. Now that’s done in cooperation with the basin states obviously because a lot of the state legislation may need adjustment depending on what agreed standards and benchmarks that are created as well, so it’s a variant scale of work.

[Malcolm Roberts] I’m very pleased to hear that you’ve used the word variation because there is enormous variation, particularly between the north and south, that makes it very difficult for people in those areas to understand the other areas. But what specific topics are on your radar? What issues?

Senator, all of them to be frank and because a lot of them are interrelated, there’s a lot of misinformation out there as well. So we have a role to be a myth buster and independent communicator of truth and make sure that the data that people rely on and the modelling that’s relied on has an independent validation as well. There’s a componentry role that we’ll play there. It’s a very broad role, but metering measurement through to water operations through to environmental water and outcomes. It’s everything.

[Malcolm Roberts] So trading?

I have, yes, I have powers under the act in relation to trading, but limited resources and mindful of of the recent ACCC’s work and recommendations which is currently under consideration by all states and the federal government.

[Malcolm Roberts] And what about making recommendations and changing systems to enable you to better oversee the trading in any breaches of trading regulations?

Yes.

[Malcolm Roberts] You’ve got the ability and the support to be able to make changes?

I won’t have the power to be the– up through the Basin Official Committee into MinCO for those.

[Malcolm Roberts] Because it seems at the moment trading is something that is difficult to enforce for a variety of reasons, but you’ll be able to get through that.

Well, I’ll be able to assist the Ministerial Council and Basin Officials Committee.

[Malcolm Roberts] Okay. Thank you Chair, that’s all I have.

[Chair] Thank you Senator Roberts.

[Malcolm Roberts] And I appreciate your direct answers. Thank you.

No, you’re welcome, Senator.

Chair could I just add to those answers by saying that, of course the relevant bill was introduced to The House of Representatives this week, through the explanatory materials, the minister’s second reading speech and the explanatory memorandum outlines many of the issues that the Inspector General has just been talking about and I’ve just reacquainted myself with the explanatory memorandum. It’s written in a very good style and it outlines the proposed powers of the Inspector General, the offence provisions and the various other issues that have been outlined here. So I would commend that to the attention of the committee.

[Malcolm Roberts] Thank you chair. Mr. Metcalf, Mr. Grant will then have the ability for things that are not defined in the regulations or in the legislation to actually go and talk to someone to make sure that they’re covered somehow?

Well, Mr. Grant, or the Inspector General, once appointed, would certainly be charged with the administration of those aspects of compliance and Mr. Grant’s interim Inspector General has indicated the work that’s underway at the moment, but also the preparations, the very detailed preparations that have been put in place to ensure that when the legislation and if the legislation is passed, the Inspector General will be able to hit the ground running.

[Malcolm Roberts] Apart from variation, another word that keeps cropping up is complexity in the Murray-Darling Basin Plan and the work of the Authority. So, Mr. Grant is human and he’s already had some input into the legislation, as I understand it, is that correct?

[Mr. Grant] Yes.

[Malcolm Roberts] You mentioned that at the last Estimates I think, but he’s human so he won’t be able to understand everything quickly. So there’ll be need for changes of his approach or maybe changes that he couldn’t foresee a few months ago.

Well, certainly the Inspector General and Mr. Grant has outlined the fact that the Inspector General and the staff of the Inspector General will be a cop on the beat, that they will have staff, quite a significant resourcing out there in the Basin, working on a daily basis on these issues. And of course, if there are views that arrangements are not working properly, as Mr. Grant has explained, there’s a loop back through the Basin Officials Committee, given that this is a shared space between the Commonwealth and the states and the ACT to consider whether adjustments need to be made. So, the fact that there will be an on the ground presence will be a particularly powerful way of ensuring that things are actually working and if they need improvements then things can be done about it.

[Malcolm Roberts] Thank you.

In response to my question, the Commonwealth Environmental Water Office has made a stunning admission that environmental damage along a 100km section of the river was caused by environmental, conveyance and irrigation water sent down under the Murray Darling Basin Plan.

My suggestion that the best way to fix the environmental destruction was to stop water trading below the Barmah Choke was met with an extraordinary comment from Andrew Reynolds. He said there was no extra water sent through the Choke because every trade below it was matched by one moving water back above the Choke. I wonder if that is right?

I am pleased to see that this Estimates has marked the demise of the supposed “sand slug”, which has now morphed into “sedimentation”. I was also pleased to get an undertaking that the MDBA will not create a man-made flood event to drain the Menindee Lakes and the current surge event will be limited below 40GL.

Another major flip flop from the MDBA came when I asked if the water coming into the Coorong and Lake Albert from the South East drains restoration project was environmental water for the basin. This classification was shot down last estimates however this time around Andrew Reynolds agreed this water was basin water to be used for the environment.

With only 350GL left to complete the SDL acquisitions I repeat my call that the restoration project should be stepped up and used to provide the remaining 350GL of SDL water. Farmers in the basin have given up enough water and should not be asked to provide one more drop.

Transcript

[Malcolm Roberts] Thank you, Mr. Taylor. Are you familiar with the damage, the extensive damage, to the banks of the Murray River around the Barmah Choke?

Yes, I am.

[Malcolm Roberts] Okay, that’s good, we won’t need to table that then. It’s caused by nonstop water flows, and the picture that I was going to show you, if necessary, could have been taken anywhere along about 100 kilometres of the river, the damage is so pervasive. The Choke is being eroded by combined environmental, conveyance, and irrigation flows. What’s the Commonwealth Environmental Water Holder doing about this damage?

Thanks, Senator. As you said, it’s a combination of all the water in the river that’s causing the bank erosion there. My colleagues from the MDBA may also want to talk about some of the geomorphology that’s occurring in the bed of the river there. There’s silting in the bed of the river, which is reducing the capacity of that narrow section of the river, between Yarrawonga and down to about Barmah, but the main sedimentation is in the Barmah area. And that damage is part of major studies and scientific work going on in that area, trying to work out what’s causing it, how it might be remediated. And we’re happy to be proud of that. I would also like to add that the water that the Commonwealth environmental water holder puts through that system there, is run counter cyclical to some of the irrigation demand in the system. We also put water around the choke through some of the forest streams and rivers through that area. And I have a bank into the forest there that helps de-energize some of that water, by taking some of that pressure off that peak demand season. We think we may actually be mitigating some of the issues that may otherwise be arising in that area.

[Malcolm Roberts] Before we do things, Pauline, Senator Hanson, and I we try to get the facts. So we went down the Murray River after hearing of extensive complaints from southern Queensland and then southern New South Wales and Northern Victoria. And we went down the Murray. And then when I came back into the Senate, I over flew the whole basin and the number one thing that I noticed I picked up in the first five minutes of my flight out of Aubrey, heading down the river, the river is incredibly tortuous incredibly so, and that tells me one thing the gradient is so, it’s almost flat and you would know that. And yet the amount of water that’s being shoved down that river is just phenomenal. And it’s doing this damage. This is the opposite of what environmental guardian should be doing in our opinion. So let me continue asking questions. This is just physically impossible to get all that water from the Upper Murray, downstream to the large corporate plantations, and all the environmental water. So this is the fourth estimates that I’ve asked about environmental damage to the choke, as the Commonwealth environmental water holder who should be interested in this, or the Murray-Darling Basin Authority, who are administering the plan that has caused this damage, done anything to stop this damage. It sounds like you haven’t just studied at the moment.

Senator, I think it’s fair that certainly the environmental water flows through the choke, as you said, other purposes as well I might ask the Murray-Darling basin authority to come forward and talk about

[Malcolm Roberts] Sure.

what’s being done in respect of the choke.

[Malcolm Roberts] Thank you for acknowledging that there is a lot of water going down through there.

Andrew Reynolds, Executive Director River Management with the Murray-Darling Basin Authority. So management of the choke is a significant concern for the Authority and how we regulate the river system. It has been pointed out there are a number of competing demands on the system, a delivery of consumptive water for irrigation demands, excuse me, environmental water demands through the system as well. There are a number of, as Mr. Taylor said, a number of studies have been underway to understand how the geomorphology of the choke is changing. Certainly sedimentation, which is occurring in the choke reduces the capacity through there in terms of the management arrangements there. Thank you. We certainly are focusing our system planning on how we move water through the system. We work very, very closely with environmental water holders and irrigation operators in terms of understanding demands, planning our system operations, so that we can deliver water to to Lake Victoria at varying times throughout the year. We make extensive use of inter-valley transfers from the Goulburn and Murrumbidgee system to also get a different pattern of water through the system to, in part, limit the amount of erosion that occurs. We certainly are working on getting a study underway to understand how we might better utilise Murray irrigation infrastructure or indeed infrastructure on the Victorian side, through the GMID to also be able to take some of the pressure off the banks through the river system. All of those pieces of work are underway. Some of them we can adapt our operations immediately to try and alleviate some of those concerns. Some of them are longer run pieces of work that will take some time to affect change.

[Malcolm Roberts] Are there any plans to construct a pipeline or a channel around that Barmah choke?

No, there’s no plans to construct anything in particular. We’re looking at a study to optimise how we might utilise existing infrastructure, certainly looking at whether or not there are other flow paths through the forest where we might be able to use some of the existing outfalls particularly from the Murray irrigation system. I had to put water into other smaller creeks to run it past the choke that way. That study may lead to investigation of some enhancements of that system but we’re yet to progress to that stage.

[Malcolm Roberts] So there’s no consideration or idea of a pipeline to get around it, or a channel to get around it? Because some of the locals are telling us that there are surveyors working in the Barmah overflow, but that doesn’t necessarily mean anything.

Certainly there’s no significant studies like that around any major bypasses. We’ve not commissioned any on-ground field surveys or the likes. I’m not quite sure what people have observed but it’s not anything that we’ve commissioned.

[Malcolm Roberts] Okay. So the trading of water used to be limited in the Murray-Darling Basin, as I understand it, from what I was told from by commissioners on the Murray-Darling Basin Commission, that preceded the Murray-Darling Basin Authority, used to be limited to, a certain, limited to within each valley, within each catchment, and only to a certain extent downstream. Now they can be inter-catchment transfers, inter-valley transfers, and extensive transfers along the river. So we’ve got a lot of water moving from the northern part of the valley, Murray valley, down to the, sorry, the upstream part of the valley down to the large plantations. Wouldn’t one option be to stop that trading?

So Senator Roberts, there is actually a limit on trade from above the choke to below the choke. It’s been in place since 2014. And there’s no proposal that that would be relaxed. That limitation on trade requires that the net volume of water traded downstream is zero. So trade from above the choke to below can only occur if there’s been a an equivalent volume traded upstream first. And so the total volume of water moving through the choke is unchanged by trade.

[Malcolm Roberts] Okay, in a meeting that the Commonwealth environmental water holder was in, I think you were there Mr. Reynolds as well, in Parliament House with us in October of 2019 or thereabouts I was advised that the department is working on a report into water loss from over landing through the Barmah forest and has been collecting this data for many years. It’s now May 2021. It’s almost two years later. And this report has not been tabled. Isn’t this a critical, critical report for making good decisions about watering the Barmah?

So we have an ongoing programme of assessing each and every event where we put water through the forest for environmental water holders’ use, or indeed for transfers downstream in the rare occasions when that’s necessary. We use that work to assess the loss of water or the consumption of water within the forest. That’s part of the work that Mr. Taylor was talking about earlier, in terms of assessing the return flows to the river system. In other words, how much of the environmental water holders’ water is consumed in the forest versus how much comes back into the river to be used further downstream for other watering events. That’s an ongoing piece of work that will continue, I would imagine almost indefinitely, because every time you have another event you have another bit of data to assess the basis on which those losses are assigned. Certainly all of that work is done on the basis of making sure that there is no third party impact of water availability for other entitlement holders. So we take a conservative approach to those estimates, but we’re continually refining them.

[Malcolm Roberts] Well, maybe I wasn’t clear with my communication in the previous question. We were told there was a report coming, and this is almost two years later and there’s been no report. I would’ve thought the Commonwealth environmental water holder and yourself would be champing at the bit to get that report.

So we have produced reports on losses in terms of losses through the system, and we’ve just recently provided an update on losses for the last two water years, but the work on individual watering events and the development of effectively the loss rates applied to environmental water holdings is ongoing. It’s not being reported as a single report. We need to refine that,

[Malcolm Roberts] We were told there was a report coming and there’s no report. Are you aware of any report?

There are numbers of pieces of work that have been documented. I’d have to take on notice whether they’ve been published has certainly been shared with states and other others involved in that development of those estimates.

[Malcolm Roberts] So we were told there was a report coming.

[Andrew Reynolds] I don’t,

Let me just clarify, Senator Roberts, from my own knowledge, cause, there’s a report about the environmental water, or a report about the conveyance losses and use, cause I know in 2019 there was a report on that, the conveyance and loss through the Barmah area. And I think you just updated that? That was meant to be annual, but 2019, they didn’t do one last year.

[Malcolm Roberts] That’s what I’m asking about. Reporting the water loss from over landing through the Barmah.

[Senator Davey] That’s been done, in 2019.

Sorry, I misunderstood your question. That report was done in 2019. And we’ve recently in the last month published an update that that completed the data for the 2019 water year and also reported on last year as well.

[Malcolm Roberts] Okay, with regard to that then how much environmental water went into the Barmah in 2020?

I’d have to take on notice the specific number.

Senator Roberts, do you have much more? because it is lunchtime, I,

[Malcolm Roberts] I just have one more question,

One more, perfect, thank you.

[Malcolm Roberts] Floodplain harvesting in excess of allowed take deprives the environment of flows needed to keep the river alive, and that means you have to do more with your water than it was intended to do. Is floodplain harvesting in the northern basin affecting your environmental water permit, remit, and is there anything you wish to say on this matter?

Thanks Senator, there’s been quite a bit of discussion with some northern Victorian irrigators and myself around this issue and other people across the southern connected basin. And I think there was some conversations around floodplain harvesting over the last five years and the potential impact that it may have had on either our resources and other resources in the southern connected basin. And in those conversations, we outlined that in over the last five years in 2016, it was a wet year and there was probably significant floodplain harvesting but had little, or minor impact in the south as it was good allocations in that year. 2017, there was good reserves in stocks in the south. And again, it probably had little impact upon our resources for environmental water delivery, 2018, 19, and 20. So the remaining three years in that period were probably record droughts in the northern basin. And as a consequence there was no water really in the northern basin to harvest. So again, it probably had little or no impact upon our resources available for environmental water delivery in the Southern connected basin. I’d like to add though, that the Commonwealth environmental water holder intends to put a submission in to the New South Wales government on the floodplain harvesting process. We’re very concerned about ensuring anything that occurs in that space is completely transparent, well measured, high levels of compliance, because in certain flow circumstances it could impact upon flows, could have an impact upon our capacity to deliver water particularly in some of the northern basin, probably more so than its likely impact in the Southern basin.

[Malcolm Roberts] Because as I understand it, before we go to lunch, one final thing. And as I understand it, as I understand it the people who end up paying, ultimately, with loss of water, are the farmers in northern Victoria and southern New South Wales. If someone’s going to lose it and water can’t come from the northern basin, they lose it.

So, I guess the impact of floodplain harvesting if there’s less resource makes it through the flows any of the reduced allocations as a core, that as that resource is shared is shared everywhere. It’s my understanding of it.

[Malcolm Roberts] Thanks, chair.

With water availability, labour prices and government all against the farmer, it is too hard for smaller farms to survive and even the large farms are struggling.

If our farms fallover, regional towns will quickly follow and then the rest of the country will be in big trouble. Governments at every level need to help our regions be building cheap, reliable electricity and secure supplies of water.

Decades of government dropping the ball on these issues has left us in a scary position. I talk about this in my new segment, Our Nation Today, with farmer Trevor Cross and Mike Ryan.

Let me know what you think.

Transcript

[Malcolm Roberts] Regional Queensland literally feeds and clothes us, Yet so many short-sighted government policy decisions will hit these regions first and hit the regions hardest. Travelling around Queensland, I’m constantly reminded that the one-size-fits-all policies just don’t meet the needs of rural and regional centres. We’re talking about the fundamentals that urban areas take for granted. Affordable, secure, and reliable water, energy, and food. Reasonable insurance premiums and freight rates, roads, and rail fit for purpose. Access to health and education that gives people the confidence to settle in the regions. There’s nothing more fundamental than food.

A prosperous agricultural sector is essential for supplying Australia’s food needs and the needs of the rest of the world. In the financial year 2021, the gross value of agricultural production is estimated at $66 billion, a staggering figure. And it’s easy to forget that being a farmer is a tough gig because even in good years it’s 24/7 and the balancing acts of risks within a farmer’s control, and those beyond never stops. There’s been a lot of talk about an agriculture-led recovery after the COVID restrictions that smashed our economy and the need for confidence to pick up the pieces and to keep going. Many in our farming community have sustained shattering losses with ready to pick food being ploughed back in and a major reduction in the planting of next year’s crop, simply due to worker shortages.

I see a role for government in creating the right environment for businesses to flourish. Part of that is to help mitigate unnecessary risks, such as having strategically placed dams and a well-connected water infrastructure grid which should have happened years ago. So instead of the Queensland government spending $10 million to cart water for Stanthorpe when the town ran out, it would have been better spent on a longer term solution such as more town weirs to hold more water. We know that our water reserves and existing dams are not keeping up with population growth. Government should aim to minimise its unnecessary intrusions and yet any farmer will tell you that excessive regulations such as the reef regulations and vegetation management laws create an impossible business environment for farmers.

Layer upon layer upon layer of stupid and destructive rules and regulation leaves the farmer with ever-decreasing profits. And yet we expect farmers to just saddle up and continue to make it work. Today Mike Ryan talks with Trevor Cross, a successful Queensland horticultural grower based in Bundaberg. I first met Trevor in 2017 at his farm and was impressed with his passion for farming, his business savvy and the hard work that he and his team do everyday to put many veggies such as tomatoes, capsicums and zucchinis into our supermarkets.

[Mike Ryan] Trevor, thanks for joining us.

[Trevor Cross] Thanks Mike, good to meet you.

[Mike Ryan] Now, tell us about your farming business, the size of your holdings, where you’re located, what you grow and what you export.

[Trevor Cross] We’re in Bundaberg in Queensland, we farm about two and a half thousand acres of small crops. So we grow tomatoes, gourmet roma’s and cherry tomato. And then zucchinis, capsicums, chilies, melon, pumpkin, a few cucumber, snow peas, and sugar snaps, and just a few beans, so we spread that over about a nine-month period in the Bundaberg region. So most of our stuff actually goes Brisbane, Sydney, Melbourne a little bit to Adelaide. And this year in New Zealand, it’ll open its exports again, it’s been out for 12 months with this virus. So it’s supposed to open up again this year, so hopefully that’ll be good for the industry.

[Mike Ryan] I can really empathise with what you do. I mean, my dad will probably kill me for this being from the land. I recall he actually decided to go into rockies and do rock melons and large acreage. Anyway, the bottom fell out of the market. And I recall he got a cheque from the bank for, I think it would have been something like sixpence in those days. And I’m thinking, why would you ever want to do this? And then he decided to go into avocados and citrus and stuff. And that’s just as terrifying. It’s a really hard business, isn’t it?

[Trevor Cross] Yeah. The biggest problem with farming it’s actually almost like an addiction. You go out and start growing something, it’s very, very hard to stop it. It’s not so much about money, I don’t think, when you’re a farmer. It’s about just seeing a crop planted, seeing the crop grow and getting it picked. But the biggest problem is there needs to be some rewards on the way through.

[Mike Ryan] What’s the greatest challenge, say, to business such as yours on the land?

[Trevor Cross] In our industry it’s, because it’s a high-labor industry, it’s probably, at the moment, getting enough people to actually harvest crops. Because when we’re in peak-season we have about 350 people here, so… And there is going to be a shortage. I’m not quite sure how far we’ll be down, whether it’s going to be 10- or 20-percent down. So that’s probably one of the hardest parts. Water supply’s another major component to our operation, and just general costing. The costs keep going up and up and up and the end prices doesn’t really reflect what it’s costing to do business, anymore.

[Mike Ryan] So you have two and a half thousand acres, which is a very large, large piece of land. Do you think the days of the smaller farmer, for example, 20 or 30 acres are gone, and that you need to have, just to accommodate your cost and make sure you get a decent return, that you’ve got to have a large business instead of those, not micro, but the smaller businesses used to be.

[Trevor Cross] It’s volume now, whereas before it was just a family, a family could actually survive on a hundred acres and live fairly comfortable, now a hundred acres unless you’re doing really niche market product, you would never, ever survive. So everything’s been turned into bigger farms. We’d be one of the largest, freehold personal farms in town now, there’s probably a couple other families about our size that are just doing it, and the rest is a lot of consolidated money from investment companies, and they’re now are doing nut trees, mainly.

[Mike Ryan] What’s greatest impact on your business when it comes to costs? Which ones are the ones that stand out? Is it labour?

[Trevor Cross] Yeah, Labour used to run about 33- to 35-percent we’d work on for labour, and the way it’s going, last year I think hit early forties, about 42-, 44-percent, and this year, unless there’s a big market change I think it’ll go 50%.

[Mike Ryan] Wow. That’s incredible, isn’t it? How do you survive?

[Trevor Cross] Well, I just hope that there’s actually money paid at the other end. At the point of sale, at the first point of sale at the marketplace, most stuff is fairly cheap. At the last point of sale, it could be three… between two and four times what it’s paid for. So, that’s what the average customer doesn’t think, They think if it’s dearer in the shop, the farmer’s making the money.

[Mike Ryan] I was talking to Senator Malcolm Roberts, and he was saying, just talking about how the consumer in the major metropolitan areas, they all think that the produce that they see almost is manufactured in the supermarket, but, you know, prior to that, you’ve got so many factors. I mean, from the farmer to the chain. Farmer, to the, what do you call it?

The grower. Not grower, the buyer who buys up for the land and then they on-sell it to someone else. And then it’s sold to the supermarket. You think from the farmer to the actual supermarket, ’cause my dad used to always say, he would love to be able to take out a shotgun with some pellets and get rid of those middlemen. Is it still the same headache and pain in the backside?

[Trevor Cross] The biggest problem is with the whole system, if you actually get out of the place what’s supposed to set the right price how do we know what the right price is? And I think the days when people were actually stealing at the first point of sale, I don’t think it’s there anymore because everyone’s fighting for a dollar. So they’re getting screwed down more and more. All the grower actually needs is probably about 20- 30-cents a kilo more and they become very sustainable. And that’s not a lot.

It’s only 2 to 3 dollars a box on average, and everyone’s paying bills, because the Ag industry, and this is not just what we do, It’s every Ag industry, there’s a lot of people get employed before it even gets to the farm. And then after it leaves the farm there’s a lot of people employed from transport, through to your retailers, your wholesalers, and then the processors… there’s many, many people relying on the farming industry.

[Mike Ryan]What are your thoughts of the future of farming, say, in Australia?

[Trevor Cross] Well, I know if we keep going down this track we can’t last much longer. Even our business now we’ve actually got 400 acres of nut trees, and we’ll probably continue to change over just because of the labour price and for our small profits we’re making out of employing all the people, we may as well not have them. We may as well just go to where it’s all mechanical.

So, I don’t know if my boys will actually take over and do what I do, ’cause it’s a seven-day-a-week job. You’ve got to be in amongst the people and see what’s happening. I actually think, even in this area around Bundaberg, there won’t be too much of this industry left within probably four or five years. I think the majors will be all gone.

[Mike Ryan] That’s just terrible, too, because once you have less growers like yourself then you’ve got this monopoly and the monopolies are not what we want. I mean, look at the US and you’ve got these multi-billion-dollar corporations that control the price of produce, although you go to a supermarket and they do the same thing there too, they screw down the grower, although the grower being a lot bigger than what they’ve dealt with, they’ve got their sort of, at least it’s coming up to almost 50-50 between the grower and the actual supermarket chain.

It’s a really, really tough life. What do you think is the most important thing in keeping our farming sector successful and growing? What do we actually need to do besides revise wages, for example, on the land. You can’t keep paying out 50%. You’re going to make no money.

[Trevor Cross] Yeah. Everyone’s entitled to money, Mike. The wage earner is entitled to money, and they all want to lead a good life, but we’ve just got to get a share of that sale price at the end. Basically, I think all growers need just a little bit more money, and it’s not a lot, a couple dollars a box, as I say, it’s not a lot of money. And then everyone’s happy because I don’t think any man who’s been on the land for all his life deserves to actually have the bank come and sell him up, because of the poor market prices. I think everyone can work together.

If capsicums or zucchinis or whatever, ’cause we’re only seasonal, we do about eight months a year in Bundaberg, and then the South is just finishing up now, they would have had the most horrible year in their life. And people have been on the land all their life and next minute they gotta sell their farms because of poor prices. It’s only a couple of dollars a box, they wouldn’t have needed much more and they’d be still viable.

[Mike Ryan] So what do you do, though? If you weren’t on the land, what would you do?

[Trevor Cross] I don’t really know what I would actually do cause I’m not much into fishing, I don’t like doing anything else. And so that’s what I call it, a hobby.

[Mike Ryan] An expensive hobby though, isn’t it?

[Trevor Cross] Yeah but most… a lot of farmers grow because they’re addicted to growing. That’s what they’ve been bred to do. They grow. And they show up nearly every day. So it’s a challenge because you’re challenged against the weather, challenged against people and you become a plumber an accountant, you know, almost doctor, sometimes. So there’s nothing you can’t actually do. A good farmer can do just about anything there is to do.

[Mike Ryan] If somebody was wanting to find out more about what you do, do you actually have a website we could go to and have a look, just to get an idea and appreciation what it’s all about.

[Trevor Cross] No, I would say I keep pretty well under cover but we could actually have a bit of a look at doing something if there’s people interested and actually do something.

[Mike Ryan] Yeah. We must do that. I’m sure you’ll handle the technology as well as my dad.

[Trevor Cross] I have to get someone to help me, yeah.

[Mike Ryan] Trevor, great chatting with you. All the best. Thanks for giving us your time today, and also say thank you to your wife in the background, she’s done a wonderful job.

[Trevor Cross] No worries. Thanks, Michael.

[Malcolm Roberts] The harsh reality is that we, as a nation, will either flourish or decline with our regional centres and with Australian farmers. Our farmers must make a profit to make their livelihoods sustainable. And that, after all, is where we get our food. Our rural and regional communities have unique challenges and need a different set of solutions to ensure fair and equitable access to basic services and to grow viable communities. Thank you for joining me Senator Malcolm Roberts on Our Nation Today.

From last week on 2SM with Marcus Paul: why Christine Holgate was unfairly treated, how the government has bungled the vaccine rollout, the untapped potential of Queensland agriculture and more.

Transcript

[Marcus] G’day, Malcolm, how are you mate?

[Malcolm] I’m very well, thanks Marcus. How are you?

[Marcus] Well, I don’t have a $5,000 Cartier watch, do you?

[Malcolm] No, I don’t. And I’ll never buy one, but you know, that’s not the issue really at Australia Post. That’s what you’re talking about?

[Marcus] What is the issue, Malcolm? I mean, the whole thing in my mind, is really become a gender thing, which is a concern to me. Christine Holgate by all accounts, seems to be a pretty good operator, has she been unfairly punished here, do you think?

[Malcolm] Definitely there’s no doubt about that, Marcus. She did a remarkable job. She turned that, Australia Post around, from a big loss into, quite a substantial profit. And what surprised us, we were about to start holding the Government accountable about these Cartier watches.

[Marcus] Yeah.

[Malcolm] But we noticed that Angela Cramp, she’s the head of the licensed post office operators. You know, not all Australia Post, post offices are owned by the post office. They’re licensed out, to the licensed post office representatives. And Angela Cramp-

[Marcus] Franchisee’s, franchised.

[Malcolm] That’s it, thank you, thank you. So Angela Cramp jumped in strongly to support that and we thought, hang on, what’s going on here? Because we’ve worked very closely with the licensed post office operators and they’ve been really hard hit by, by Australia Post. What we found out, was that Christine Holgate, when I held her accountable in Senate estimates, when she first came on board, she actually took note of what I said.

And she followed up with Australia Post licenced post office operators and she helped them and started sorting out their problems. First time, in a long, long time, these guys have had any support. So they jumped in and supported Holgate, that alerted us, because we knew that that the LPOs weren’t in favour of the Australia Post executives normally.

And so then Pauline and I, both spoke with Holgate separately and then Pauline got the inquiry up, into what’s going on now after negotiating successfully with Labor, Greens and all the cross benchers. You just cannot treat people this way. I believe the Prime Minister is not telling the truth. Holgate is telling the truth. Holgate’s very competent, there are other issues here driving this.

The Prime Minister should apologise at the very least. And some of the statements from Australia Post, the Chairman of Australia Post and the ministers, just don’t add up. And I think the Prime Minister, if this keeps going the way it is, should resign, and you know at the very least Marcus, he must apologise. He must apologise.

[Marcus] Well, he doesn’t know how to say the word, sorry, Malcolm. We know that. He doesn’t take any responsibility for his actions. He likes to obfuscate. He likes to lay the blame elsewhere. He got fairly close yesterday by saying that he regrets any hurt, that Miss Holgate may well have felt, but he’s certainly not apologising.

[Malcolm] Yeah, exactly. And look, what does this say about the taxpayer funded empathy training? It’s gonna be a complete waste of time. The empathy training that the Liberal Nats have going on and what a lot of rubbish.

[Marcus] All right. Now, the vaccination rollout. Boy oh boy, you say it’s falling apart, mate?

[Malcolm] It is. There’s a critical thing here, that the Government has forgotten. It’s called informed consent. Before someone puts anything in my body, they need to get my consent. Now, the vaccine, there are two vaccines out there at the moment, the Astrazeneca and the Pfizer one.

We were told by the Chief Health Officer, that no one would know what vaccine was being distributed at which outlet, because they didn’t want people to come up and have a choice about the vaccine. I want this vaccine. I want that vaccine. That is completely unethical in my view. That’s the first thing.

The second thing is that they have rushed these vaccines. Both of them, they both have serious questions about them. Both, have bypassed some of the details in the testing procedures. The testing procedures have been accelerated, and now we’ve got problems. So, It’s the process here. The problem is the way the vaccine has been introduced, before proper trials.

[Marcus] All right.

[Malcolm] It’s a lack of data and there’s a lack of clear aims. And even the Minister for Health now, Greg hunt, has admitted that even with the vaccine, it won’t stop the restrictions. So what’s the point?

[Marcus] Fair enough. All right. Now, you’ve been out and about you’ve been in western Queensland, well, north and western Queensland. You’ve been to Townsville, Charters Towers, Hughenden, Richmond, Julia Creek, Cloncurry, You’re in Mt Isa as well. You’ve been looking at water infrastructure and potential for agriculture up there.

[Malcolm] Yes, and Marcus, what an amazing place this is. It’s untapped really. Big skies, big horizons, rich soil, plenty of sunlight, regular rain. And that’s what’s surprised us. The regular rain up here, at Richmond. And what’s really stunning up here, is that the local councils, the shire councils, have got off their backsides and started to stimulate thinking about irrigation projects, because they can turn this black soil and sunlight into bountiful production.

Richmond has now got, the Shire of Richmond, led by John Wharton, has got a project, that’ll cost a total of $210 million. Tiny amount, tiny amount of money. 8,000 hectares of irrigated land will come out of it. No dam, no dam whatsoever, just a diversion channel. Off flood seasons. ‘Cause the surprising thing is the rainfall is huge, but it comes at very short intervals and it’s very regular.

So they can basically get a diversion channel, take the flood water, harvest across the floodplains. So you’ve got no environmental impact of a dam and this whole area is buzzing. But what it needs is, is the government will, to actually get off their backsides and do it. The State Government is holding things back at the moment and the Federal Government is a bit lost. There seems to be a lack of vision in this country.

[Marcus] Well, I mean, look at the Murray-Darling basin. I mean, that’s been a complete and utter schmozzle. You would’ve thought lessons have been learned, mate?

[Malcolm] Well, you know, that’s really interesting. We’ve got the Murray-Darling basin has been decimated, by the Turnbull-Howard Water Act of 2007, which brought in the Murray-Darling basin authority. And it’s interesting. They changed from a highly successful, Murray-Darling basin commission in 2007, to the Murray-Darling basin authority.

That tells you what it’s about. The primary aims of the Murray-Darling basin of sorry of the Water Act in 2007, included the compliance with international agreements. What the hell are we doing that for, in our country? So they’ve made a mess of the Murray-Darling basin and it’s helped the corporates, destroyed farming communities, destroyed family farms.

And we’ve actually got people up here now, with a tonne of energy, from the northern New South Wales area of the Murray-Darling basin, and they’re making a go of things up here and just getting in and rolling up their sleeves and tearing into it. They’re doing a wonderful job.

[Marcus] Good to hear, Malcolm and great to have you on the programme as always. We’ll talk again next week.

[Malcolm] Thank you very much, Marcus. Have a good week mate.

[Marcus] My pleasure, you too mate. There he is, One nation Senator, Malcolm Roberts. Somebody sent me a note yesterday. Marcus, “Why just, why oh why,” “do you speak to people like Malcolm and Pauline” “and also Mark Latham?” Well Malcolm Robert’s, just explained it perfectly this morning.

I mean he and Pauline Hanson, spoke to Christine Holgate initially, when she took on the job at Australia Post and she took their advice, turned things around. You know, these people, do hold the balance of power. Quite often, they are voting and the government depends on their votes, to get important legislation across the line.

So I would argue they’re actually, some of the most important politicians to speak to on the programme, because ultimately they have to weigh everything up. They have to listen to all sides of politics and then decide which way they want to go. That’s why we talk to people like Malcolm Roberts.

Senator Malcolm Roberts is heading into north and western Queensland on Saturday 10 April, for a week long trip to see first-hand the tremendous horticultural potential of this area.

Genuine development of northern Queensland holds great promise for local communities bringing enormous wealth and opportunities for locals, making regional Queensland an even better place to live.

Senator Roberts will start with a charter flight from Townsville over to Mt Isa and then Normanton to look at the current irrigation projects, future dam sites and the connectivity between critical infrastructure.

Senator Roberts said, “We need to grow our way out of the devastating affects of border and business closures from COVID and north Queensland offers exceptional opportunities in horticulture and mining if we could just add water and affordable energy.

“To make north Queensland hum we need to ensure all the critical infrastructure works seamlessly together – the roads, railways, ports, affordable energy, well placed transmission lines and reliable water.”

After the charter flight Senator Roberts will visit dam sites and irrigation projects, broadacre cropping trials, and areas of future horticultural cultivation in the towns of Charters Towers, Hughenden, Richmond, Julia Creek, Cloncurry and Mt Isa.

Senator Roberts added, “Just add water and affordable energy through hydro and we can transform this area of north Queensland.

“There is the potential to add between $10-20 billion worth of new agriculture to Queensland’s economy through increase production of food and the value adding that becomes affordable through hydro.”

“In addition to horticulture there is huge potential for mining rare earths in this area, yet outrageous electricity prices make these small mines unviable.”

During this visit Senator Roberts will look at our stranded assets that are languishing and wasting taxpayers money.

“North Queensland is an exciting place full of unrealised potential and it is a priority that we have a well thought out vision for this area to ensure the momentum of development gathers pace. “Every Australian would be proud to see more manufacturing brought back to Australian shores and affordable and reliable water and energy are foundation pieces.”

Too often, we are seeing ideas silenced and censored at our universities. University is a place where the exchange of conflicting and opposing ideas should thrive and be encouraged. Thanks to One Nation lobbying, this bill ensures that the definition of academic freedom to do that is put into law.

We only need to look at examples such as Peter Ridd to see why we need to protect academic freedom. He describes his experience of standing for academic freedom against that university as feeling ‘hunted’.

Peter’s so-called crime was to question the quality assurance of research outcomes related to reef science. But it is his duty, as a scientist, to question, to be rigorous and to protect the integrity of science. Every scientist’s first duty is to be a sceptic and to challenge what he or she is being told.

Transcript

As a servant to the people of Queensland and Australia, I want to start my contribution to the debate on the Higher Education Support Amendment (Freedom of Speech) Bill 2020 with the statement that central to scientific endeavour is an environment that gives permission for the work of talented people to challenge the status quo, to develop ideas and to deepen our knowledge and understanding. This work demands a creative and innovative spirit, courage and objectivity, and a deep respect for the scientific method. Universities had, and should once again have, a central role to play in advancing thought and finding better ways of doing things. Therefore, their scientific staff must work in an environment that supports academic freedom. The Dalai Lama said:

In order to exercise creativity, freedom of thought is essential.

One Nation introduced these concepts and requested action from the then education minister, Dan Tehan, and I commend Senator Stoker for commenting that the government supports this initiative. Mr Tehan took these concepts from One Nation, particularly from Senator Hanson. He made sure that the now education minister, his replacement, Minister Tudge, continues to champion true freedom of speech in academia.

Therefore, One Nation wholeheartedly supports the new and expanded definition of academic freedom and hopes that no-one will ever need to endure what Professor Peter Ridd is still going through to fight for these fundamental academic freedoms. Professor Ridd was an employee of James Cook University for nearly 30 years. He describes his experience of standing for academic freedom against that university as feeling ‘hunted’. Peter’s so-called crime was to question the quality assurance of research outcomes related to reef science. But it is his duty, as a scientist, to question, to be rigorous and to protect the integrity of science. Every scientist’s first duty is to be a sceptic and to challenge what he or she is being told.

Quality assurance is a concept that many corporate organisations are familiar with. They do not invest money, time, energy and effort without that quality assurance. Yet it seems that some of our universities have strayed away from the discipline of the scientific method so much that they don’t feel the need to justify research outcomes or to deal with challenges to quality and assurance. Considering that billions of dollars of taxpayers’ money is funnelled into policy development based on so-called research, it is not negotiable that these research outcomes must be above reproach. When we consider that the opportunity costs and the consequent costs for some policy based on so-called science are in the trillions of dollars for our whole nation, it is essential that science is challenged.

I have listened firsthand to many canefarmers and industry bodies from North Queensland and Central Queensland who attended the hearings into water quality in the Great Barrier Reef. These farmers and community members are exasperated, with one saying:

They trusted reef scientists to get the science right, … that trust has been destroyed. Instead cane farmers are being publicly demonised …

They also said that the reef regulations reflect a systematic abuse of science, based on assumptions and not evidence.

Communities are being gutted. Apart from the destruction of so many livelihoods, think of the cost to our society, to Queensland, to communities and to our nation when policies are knowingly based on poor science—which, by definition, is not science. Energy policies, climate policies and renewable energy policies based on so-called science are costing $13 billion in addition to the normal costs of electricity. That’s an average of $1,300 per household across Australia in addition to the cost of electricity. For every so-called green job created, 2.2 jobs in the real economy are destroyed. The Murray-Darling Basin act—the Water Act 2007—is now destroying communities across the Murray-Darling Basin, our No. 1 food bowl, and it’s based on rubbish that contradicts the empirical evidence.

Any scientist worth their professional reputation should have the freedom to stand against poor scientific outcomes and the lack of appropriate peer reviewing. I’ll go beyond that: it is the duty of every scientist to do so. The professional integrity of scientists should compel them to defend spending billions of dollars of taxpayers’ money on policies that do not have a robust scientific basis and which are destroying people’s livelihoods.

Professor Peter Ridd has over 100 scientific publications and he has co-invented a worthy list of instrumentation, including an instrument for monitoring the effect of sediment on the reef, which is technology now used around the world; a water current meter, which is marketed by James Cook University worldwide; an optical system for measuring pipeware, which is used in mines Australia wide; and a system for managing agricultural weeds, which is marketed through AutoWeed. This is an impressive list of achievements. After three decades of work, such a scientist ought to be held in high esteem. If a scientist of this academic calibre and such commercial achievements and practical nous can still feel hunted down by a university for challenging the quality of research results in other departments—and hunted to his emotional and financial detriment—how the hell can we ever expect our upcoming brilliant minds, with far fewer runs on the board, to ever have the courage to do the same? We can’t. The simple answer is that these newcomers will not challenge, because they do not have the safety of freedom of speech and can’t risk their careers crashing and burning before they’ve started. Instead, these upcoming brilliant minds will fall into line and continue to expand the increasing pool of homogenous groupthink. And there is the death of creativity and the narrowing of truly great solutions to tomorrow’s problems.

In recent decades we’ve seen our society, our country, being decimated by policy driven science—and that is not science. It’s costing us trillions. We need to return to science driven policy—policy that is driven by science, true science that passes quality assurance tests and questions from sceptics. Professor Ridd has become the modern-day Galileo, for daring to challenge the common myth that farming methods in the Great Barrier Reef catchment areas are damaging the reef. Professor Ridd’s research shows that commonly held myth to be incorrect, to be a lie. James Cook University didn’t like it, maybe because there is no doubt, in their view, that there would be a gaping hole in James Cook University’s funding for Great Barrier Reef research if water quality was indeed just fine, as Professor Peter Ridd’s work and the work of others confirms and suggests.

I acknowledge that universities are required to enshrine in their policy statement clear messages around freedom of speech and academic freedom. While we cannot intrude upon the enterprise agreements between universities and their employees, the amendment I will put forward today in the committee stage requests that higher education providers must take reasonable steps to ensure that enterprise agreements include provisions to uphold the freedom of speech and academic freedom. This commitment to academic freedom needs, wherever possible, to move beyond a policy statement that sits on the shelf and to enter the enterprise agreements, since that is where the cultural change will be brought about.

We cannot afford to be timid and ordinary when it comes to scientific endeavours. One Nation supports this bill, because we must give our scientific staff the academic freedoms they need to be at their creative best. Universities, businesses and governments all need to be prepared to update their outdated views when our brilliant minds in academia show us a better way. I’ll finish with the words of the late Steve Jobs, talking about his company Apple, one of the leaders in the world in new technology:

It doesn’t make sense to hire smart people and tell them what to do; we hire smart people so they can tell us what to do.

I spoke on the National water reform 2020: Productivity Commission draft report. There have been way too many desk audits from bureaucrats in the big cities, falsely declaring the Murray-Darling Basin Plan is working just fine.

I ask our rural supporters listening to this speech: when was the last time you saw someone from the Productivity Commission on your farm, asking you about how agriculture really works?

Transcript

In serving the people of Queensland and Australia, tonight I will review the National water reform 2020: Productivity Commission draft report, dated February 2021, a periodic review of the operation of the National Water Initiative. Put simply, this report is a celebration of profit over people. Let’s go through the many failings of this report.

Failing No. 1: the National Water Initiative has resulted in water being taken from family farms that were producing food and fibre for the world. Instead, large corporate agriculture purchased that water. The result has been a huge reduction in the number of family farms growing varied crops that support a wide range of local services and local communities. Commercial agriculture, also known as monoculture, uses large acreage devoted to crops like almonds, grapes or oranges. These properties are highly mechanised, reducing local employment to just a handful. Compared with family farms, corporate agriculture puts a fraction of the wealth back into local communities. The profits from corporate agriculture are moved to capital cities and then to overseas tax havens. There’s nothing in corporate agriculture for everyday Australians and their communities. The Productivity Commission celebrates this increased profit, even though it comes at a massive cost to employment and the health of regional Australia.

Failing No. 2: corporate agriculture uses its ability to run at a loss during the growth phase to purchase water at whatever price it takes. That’s forcing family farms out of the water market and ultimately off the land. This water is then moved downstream through natural constraints like the Barmah Choke in search of cheaper land. Water has to be stuffed through these constraints to meet downstream irrigation requests. The environmental devastation in the Barmah Choke, the Goulburn River and elsewhere in the connected basin is not included in the Productivity Commission’s calculations, yet protecting the national estate matters. The extra profits accruing to the big end of town must be balanced against the environmental damage that the creation of these profits causes. Money might be all that matters to the Productivity Commission. One Nation suggests it goes back and factors environmental damage into its calculations now, not at some point in the future. These natural constraints can’t wait for the next review in 10 years, as suggested on page 13, table 2. By then, the damage will be irreparable.

Failing No. 3: the Productivity Commission failed to quantify the risk to Australia’s economy from shifting agricultural production from diversified family farms to monoculture. For example, one negative movement in the price for almonds, for oranges or for table grapes—and that has happened before—will decimate billions of dollars of agricultural production. The Productivity Commission might not understand risk; One Nation does. Before the National Water Initiative corrupted the water market, Australian agriculture was resilient and diversified; not now.

Failing No.4: the report praises water trading as transparent. This government tried to introduce a transparent water scheme register in 2012, and it failed. Following this sole attempt, the Murray-Darling Basin Authority simply gave up. We do not have a national water register. Water trading is a feeding ground for ruthless water traders and speculators. If the Productivity Commission considers this system to be transparent, the Productivity Commission must be using X-ray glasses. It’s not transparent; it’s broken. Shortly, the Senate will be asked to vote on a bill to create the office of the inspector-general for water compliance. The key responsibility of this office will be to investigate water trading. Since its inception in 2007, the Water Act has provided for a water register on which to record these trades. No such water register has ever been created. The Liberal-National government continues to break its own laws. How does the inspector-general inspect water trading when there is no register of water trades? It doesn’t and it can’t. A complete, transparent, basin-wide water register is 14 years overdue and should be started immediately.

Failing No. 5: water licences, once taken from family farms through unequal economic power, are then being traded into different valleys. The Productivity Commission report applauds this. There’s no analysis in the report of the effect on the land of this changed distribution of agricultural production. Corporate agriculture is buying up marginal farmland cheaply, then miraculously it’s brought to life with water transferred from traditional agricultural areas.

This is not for cropping purposes where the land can rest. These new areas are being devoted to permanent plantings that require continuous watering and continuous run-off. The result is massive salination and environmental damage. This is a time bomb with a short fuse. Just a few years of this irresponsible agriculture due to unrestrained water trading and the issue of salination will be back in the headlines. At that time we’ll ask: how did this happen? Well, it happened because we listened to the Productivity Commission. We valued corporate profits and so-called market efficiency over careful custodianship of the land, custodianship that family farms practised for almost 200 years successfully.

Failing No. 6: custodianship of the land goes back much further than just 200 years, and the Productivity Commission has ‘provided some views on Aboriginal submissions for consideration by the committee’. Meaningless nothing words is all the Productivity Commission has to offer, because Aboriginal use of water can only be quantified by volume, not by utility. Soon after my return to the Senate in 2019, I flew over the whole Murray-Darling Basin and then toured the whole Basin, including the northern Basin, which is northern New South Wales and southern Queensland. In Wilcannia, I spoke with Aboriginal community leaders, Wadi and Eddie Harris. I thank Eddie and Wadi for explaining that their people are a river tribe. At the heart of their culture is their connection to the river, the Darling River. Kids used to spend the day in the river entertaining themselves in a healthy and constructive way. Sometimes there were fish or yabbies for dinner. Elders used to take the young ones and sit in the river and tell Dreamtime stories to encourage respect for themselves and their culture. When mismanagement drains the river, these things are not possible. River tribes can’t move downstream chasing the water; they need water where they are—there.

Wilcannia has the same problem many country towns have; their town weirs are insufficient. Wilcannia’s weir is in the wrong spot and frequently suffers blue-green algae blooms. The New South Wales government has been promising a new weir for 30 years yet still construction has not started. What a metaphor that is for the way in which the Nationals have abandoned their so-called country constituency. That’s why One Nation’s weirs for life program will build new weirs in country areas to increase water storage for human needs. One Nation listens to and engages with rural Australians, with family farms. I ask our rural supporters listening to this speech: when was the last time you saw someone from the Productivity Commission on your farm, asking you about how agriculture really works?

In summary, the Productivity Commission report into water policy does not consider the damage to rural communities. It does not consider environmental damage in a meaningful and responsive way. It does not consider the risk to Australia’s economy and exports of having billions of dollars of production tied to monoculture. It does not consider employment lost from monoculture. It does not consider the final mile of the financial transactions, where the money winds up and who pays tax on the income. It does not consider that water-trading accountability must have a transparent accurate water register. It does not consider custodianship of the land, in particular, salination from corporate agriculture’s permanent plantings in areas that are not suitable for permanent plantings. Finally, it does not consider or factor in the dislocation of Aboriginal river tribes for whom water is the centre of their culture.

There have been way too many desk audits from bureaucrats in the big cities, falsely declaring the Murray-Darling Basin Plan is working just fine. They are audits that cannot quantify environmental damage, damage to rural communities and deprivation of Aboriginal cultural use of water. These things are ignored, and a glowing report card issued—falsely. Meanwhile, the Nationals, the self-proclaimed party of the bush, is busy chasing city votes and saying ‘yes, Sir’ to the Liberals. Rural Australia can’t take this. Rural Australia has had a gutful. If the final report does not widen its calculations to include the full issues, One Nation will move to reject the report.

The governance of our country is appalling. My adjournment speech.

Transcript

As a servant to the people of Queensland and Australia, I draw attention to the Australian parliament’s failure to protect the interests of the Australian people. In the Senate yesterday, the Liberals, the Nationals and the Labor Party united in standing beside big banks against the interests of everyday Australians. Together they voted down my bill to prevent bank deposits being bailed in—meaning that when banks get into trouble they can steal depositors’ money.

Their madness is simple: Australia has the world’s safest banks; the only thing that could bring our banks down is a loss of confidence; that’s the very thing my bill was designed to stop. Not once has the Treasurer, the Prime Minister or APRA, the banking regulator, come out and said, ‘We will not bail in your deposits.’ It’s time the Australian people heard those words.

The right to use a banking service without losing our money is just one of many rights that everyday Australians have lost—another is the loss of property rights. Prime Minister John Howard’s government’s response to the UN’s Kyoto Protocol in 1996 was to use the deceitful trick of protecting junk vegetation from destruction. The carbon dioxide that this saved counted to our UN Kyoto targets and it still does.

It enabled his government to bypass its constitutional duty to compensate farmers for stealing their property rights. This is a perfect example of mad climate policies that are about bowing to unelected, unrepresentative foreign UN bureaucrats, rather than showing actual environmental outcomes. The land that John Howard’s capricious actions supposedly protected was not something worthwhile like an old-growth forest or repairing vegetation, no, it was agricultural land that was stolen.

John Howard’s government stole our farmers’ rights to clear junk vegetation that grows on a field not used for a few years. It prevents farmers making productive use of their land. To this day the general public think this ban on land clearing relates to actual forests. This conjures up images of evil farmers chopping down virgin forests and sending koalas of to their deaths.

The reality is this ban stops farmers clearing salt bush and junk vegetation that’s stopping productive agriculture on land that has been farmed many times. The old parties never let the truth stand in the way of virtue signalling. The Liberal-National government with John Howard as Treasurer is largely to blame for banking misconduct. It was John Howard who deregulated banking.

This exposed bank customers to the atrocious behaviour that was found during the Senate inquiry into rural and regional lending that I chaired. Our inquiry led to the banking royal commission finding even more wrongdoing. The Morrison government recently demonstrated another failure in looking after small business. Aussie company CuDeco operated the Rocklands copper mine near Cloncurry in Queensland.

It was driven into insolvency from the actions of the minority Chinese owners. The mine was sold to a local Chinese company who promptly onsold it to a Chinese government entity. China now owns an important Australian copper mine thanks to the ineffective Morrison government. The mine’s workers will never get their missing wages and local contractors are out of pocket $60 million.

The only way we will see CuDeco’s copper again is if we buy that copper inside Chinese manufactured electronics. Chinese corporations continue to cherrypick their way through our resources sector. China is buying mines, real estate, farms and even our water. I do compliment Treasurer Frydenberg though on his recent decision to block the sale of PURA milk to the Chinese, resulting in the Australian company Bega buying PURA.

It’s a welcome break after the Liberal-National and Labor parties selling Australia out for a generation. Since my return to the Senate last year the Liberal, Labor and National parties have been acting together and have voted down One Nation’s motions—many motions—to restore farmers’ water rights.

The 2007 Water Act takes their water rights and forces Aussie farmers, family farmers, off the land. Even now with all the rain this year farmers are on as little as 39 per cent allocation. Who passed the 2007 Water Act? Prime Minister John Howard. Who introduced the Murray-Darling Basin Plan in 2012? Prime Minister Julia Gillard.

The whole point of the Water Act was to remove family farms from the land, then to remove their water rights to new irrigation areas on cheap land belonging to corporate agriculture. Windfall profits all round. Australian farmers and local communities being gutted. The Australian parliament must decide whether it represents the interests of big business or the interests of everyday Australians.