Australian Senate wants changes to stimulus laws

The Australian Greens and key independents called for changes to the government's €21 billion stimulus package yesterday, in return for support for the package in the upper house Senate.

Prime Minister Kevin Rudd announced the new spending on February 3 to help the country avoid slipping into recession, but the package is stalled in the Senate, where the conservative opposition has vowed to vote against the measures.

To pass the laws, the government needs the votes of the Greens and independent Senators Nick Xenophon and Steve Fielding, with Mr Xenophon yesterday saying he wants changes so money can be spent to help fix the ailing Murray-Darling river system.

"The river is dying, the lower lakes are taking their last gasp. River communities are on the brink," Mr Xenophon told Parliament. "That is why we must act now.

"While I concede that a time of economic decline might not be the easiest time to fight for environmental and social bottom lines, I believe we have no choice."

The Murray-Darling basin is Australia's food bowl and the main source of water for Mr Xenophon's home city of Adelaide. But a decade of drought and years of over-allocating water for irrigation has left the river system struggling to cope.

Mr Xenophon said he wants the government to bring forward €2 billion earmarked to buy water back from irrigators, to help restore the river and struggling river towns, and said he reserved the right to vote against the stimulus plan.

Mr Fielding said he had been in talks with the government, but wants the package changed to divert €2 billion into unspecified job projects in local communities.

"There is no doubt this €21 billion should be targeted at easing the economic crisis, but surely some of it should also be targeted at easing the inevitable human tragedy over the next two years," Mr Fielding said.

The government's stimulus package will provide €6.6 billion in immediate cash payments to workers and families, and €15 billion for infrastructure and building projects, including 20,000 new houses for the poor and new school buildings.

In a report tabled in the Senate late yesterday, the Greens said they want money earmarked for housing and schools to only go to projects that meet higher than normal standards of energy efficiency.