SOUTH Australia has accused Victoria of making its controversial water trading rules even more restrictive and blocking millions of dollars of interstate water purchases in a move it says is discriminatory and unconstitutional.
In documents lodged with the High Court and obtained by The Australian Financial Review, the SA government says that rather than relaxing the restrictions as promised last year, the Victorian government has actually tightened them by applying them to a broader range of interstate water trades.
The stoush comes as Prime Minister Kevin Rudd faces questions at a community cabinet meeting in Adelaide today over whether he can end the interstate bickering and enforce a plan for sustainable water use in the Murray-Darling Basin, after Opposition Leader Tony Abbott last week called for a federal takeover of the river system.
The 119-page statement of claim, lodged by SA's Solicitor-General, Martin Hinton, QC, in early December as part of a High Court challenge that was flagged last March, says that Victoria's restriction on water trading is unconstitutional because it "imposes on interstate trade a discriminatory burden of protectionist character".
The statement alleges that Victoria's annual 4 per cent limit on water trades from each region is "preventing the water shares from moving to more productive and profitable uses for the greater good of the Australian community generally".