Fed: No extra money for states at water summit - Costello

AAP General News (Australia)
02-18-2007
Fed: No extra money for states at water summit - Costello

CANBERRA, Feb 18 AAP - Treasurer Peter Costello says there will be no extra money offered
to the states for the federal government's takeover of the Murray-Darling Basin at a meeting
this Friday.

Prime Minister John Howard last month outlined a $10 billion, 10-year water security
plan and asked the four Murray-Darling states to hand over control of the river basin.

But Victorian Premier Steve Bracks said "billions more" would be needed.

The premiers are meeting Mr Howard this Friday in Canberra where a decision on rejecting
or accepting the plan is expected.

Asked if there would be more money on the table at the meeting, Mr Costello said: "No."

"The package has been allocated - $10 billion," he told the Ten Network.

"Here's an interesting question for Mr Bracks - how much was he budgeting to put into
the Murray-Darling Basin Commission over 10 years?

"If this plan doesn't go ahead, you would be lucky to get out of the states collectively
a twentieth of that."

Mr Costello said it was the biggest water investment in the nation's history.

"The states will save whatever they were planning to put in, which was a paltry amount
anyway," he said.

"For them it's a saving, for the commonwealth it's a cost, but most importantly for
Australia it's a win and that's why it ought to go ahead."

Questions have been raised about the costings of the scheme after it was revealed it
was put together without Treasury input and announced without going before cabinet.

But Mr Costello said the numbers added up.

"To be frank, the financials are not a problem here because we decide to allocate an
amount of money for works and that's it," Mr Costello said.

"The money lasts for the works that it buys, there's no doubt about the financials."

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KEYWORD: WATER COSTELLO

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