VICTORIAN small-scale irrigators are in limbo because of a Rudd Government "backflip" on promised industry exit grants, the state's opposition country water spokesman Peter Walsh claims.
Federal Climate Change Minister Penny Wong yesterday invited small-block irrigators in the Murray Darling Basin to register their interest in a new “exit grants” program, the Government says will "help farmers wanting to leave the irrigation industry to stay on their farms, while also returning water to the environment.”
In a statement, Ms Wong said small-scale irrigators in areas including the Riverland and Sunraysia regions of the Murray have expressed particular interest in the program.
"The Rudd government has asked that Basin state governments sign off on water reforms that will enable delivery of the package to irrigators and improve the functioning of the water market," it said.
"These include: the removal of a number of state-specific barriers to trade; the rezoning of land so that irrigators can take advantage of the grants; agreement to develop a national water market system by 2010 (including a water register, faster and better transactions and better market information.)
"As soon as a Basin state has agreed to implementing the required reforms, irrigators will be able to lodge formal applications for the exit grant with Centrelink."
Ms Wong said the Small Block Irrigators Exit Grant Package offers up to $150,000 as a special exit payment for eligible irrigators in the Murray Darling Basin on farms of 15 hectares or less, plus up to $20,000 for “transitional assistance.”
But Mr Walsh said it was a disgrace the Federal Government was now demanding a new list of conditions be agreed to by Basin state governments so that small irrigators could receive the grants.
"On the surface these exit grants appeared a positive announcement but the devil has been in the detail," Mr Walsh said.






