Victorian farmers angry at SA court challenge over water

Friday, March 06, 2009

The South Australian Government says it's heading to the courts with the Victorian Government over water trading rules.

South Australia's Premier Mike Rann says that a cap Victoria has on trading water isn't fair to other states.

He says diplomatic options have been exhausted, and a court case is the only way to resolve the issue.

The Victorian cap only allows four per cent of a region's water to be permanently traded out of a district per year.

Simon Ramsay, the president of the Victorian Farmers Federation, says that the cap protects irrigators.

"I'm somewhat bemused that South Australia continues to whinge and whine about restrictive trade practices in water in Victoria," he says.

"We've got a four per cent cap for a very good reason, and that's to protect the rural communities along our river system."

Irrigators in South Australia's Riverland have welcomed their government's move to launch the constitutional challenge.

The CEO of the Central Irrigation Trust, Jeff Parish, has been pushing for fairer water trading rules over the past week in Adelaide and Canberra.

He says it's essential that Victoria's trade barriers be removed to create transparency between states.

"I'm pleased that South Australia is going to take a strong stand because I think right now that's what's needed," he says.

"We're all happy to have adjustment in our water use, but only if it's equitable right throughout the basin."

"And at the moment, New South Wales along with ourselves, feel as if we are exposed, because Victoria has barriers in place. "

Sourced from ABC.