SA challenges Vic over River Murray cap

South Australia has launched High Court action to force the Victorian government to
lift a cap on water trading along the River Murray.
The proceedings, foreshadowed for several months but issued on Tuesday, argued the
four per cent cap was an unconstitutional imposition on trade.
Premier Mike Rann said South Australia wanted free water trading along the Murray.
"It has become increasingly urgent to force these changes as the drought continues
and the River Murray suffers more and more environmental damage," he said.
Victoria's trading cap is set to remain in place until at least 2014 and was
described by Mr Rann as a mechanism designed to protect inefficient and wasteful
water practices.
"It is also a trade barrier that severely hinders the ability of governments to
purchase water for the environment and critical human needs," he said.
"The Rudd government has allocated $3.1 billion to buying back water licences to
restore flow to the river system.
"Because of restrictive trade barriers in Victoria, the vast majority of the water
for environmental flow was being purchased by the commonwealth from New South
Wales."
Water Security Minister Karlene Maywald said the Victorian trading cap had placed
undue pressure on SA's irrigation community while Environment Minister Jay
Weatherill said the Coorong and the lower lakes were on the verge of collapse
because of record low inflows.
"What we need most is to return healthy flows to the River Murray and this High
Court action is part of South Australia's campaign to achieve that," Mr Weatherill
said.
Victorian Water Minister Tim Holding says the four per cent cap protects vulnerable,
drought-stricken communities from being destroyed by huge volumes of water being
traded out of their area quickly.
"What Mike Rann's political stunt fails to recognise is that Victoria has already
reached an agreement with the Commonwealth to suspend the cap where necessary to
enable more water to flow to the environment," Mr Holding said.
"I think all Australians are getting sick and tired of the South Australian
government's faux outrage on these issues."