Senate fails to agree on Murray bill

A DISPUTE over a crucial part of the Murray-Darling Basin plan has forced a federal government bill to further debate in the Senate.

The upper house on Tuesday adjourned without passing a bill allowing for changes to be made to the amount of water that can be sustainably taken from the basin.

The legislation must pass the chamber this week if Environment Minister Tony Burke is to present a final basin plan to parliament for consideration by the end of the year.

After a protracted debate, the coalition's spokesman for the Murray-Darling Basin, Simon Birmingham, said the bill signalled that parties were coming close to the end of a very long, tortuous and drawn out process in water reform.

"For more than 120 years, particularly the Murray Darling Basin states have argued and squabbled and bickered over water reform," Senator Birmingham told the chamber.

He welcomed government co-operation with the opposition on this legislation.

Labor senator Doug Cameron said the bill "might not be everyone's nirvana, but it's a massive step forward".

But Australia Greens senator Sarah Hanson-Young said the "something is better than nothing" argument didn't fly because the plan was "locking in failure".

The minor party moved a flurry of last-minute amendments, but all were defeated.

Any adjustments to the sustainable diversion limits (SDLs) cannot exceed five per cent above or below the total amount, and must be put to parliament and the public.

Under amendments made in the lower house, the environment minister of the day has the final say on any adjustment levels, not the Murray-Darling Basin Authority (MDBA).

Opposition water spokesman Barnaby Joyce said it was the 2.1 million basin residents who stood to lose considerably if any more of their water was diverted downstream.

"We have to be extremely cautious of how this process works," Senator Joyce said, adding he'd need to know exactly how the adjustment process would work before agreeing to any final basin plan.

The opposition, though agreeing with the bill, moved an amendment to ensure any adjustments must operate on a "no-detriment" basis - meaning they wouldn't have adverse social, economic or environmental outcomes.

Independent senator Nick Xenophon also moved amendments to recognise the water-saving efforts of basin communities in his home state of South Australia, but both were voted down.

Debate on the Water Amendment (Long-Term Average Sustainable Diversion Limit Adjustment) Bill 2012 has adjourned.

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