The fate of the Victorian north-south pipeline is still unclear despite a late-night back down in Canberra last night by the Opposition, which opens the flood gates for major water reforms to the Murray Darling Basin to finally be legislated.
The Senate passed the Government's water Bill with the support of Liberal and National Senators, as well as the Greens and Independents, despite a high-profile list of amendments to the Bill they had insisted on last week.
Earlier this week the Government rejected attempts to block the North-South Sugarloaf pipeline from the Murray to Melbourne, along with most of the 16 amendments proposed by non-Government Senators.
But Minister for Water, Penny Wong, didn't quite get the clear run she was hoping for, with support for the Bill still supposedly resting on separate declarations calling on the Government to prohibit construction of the controversial North-South pipeline and an emergency $50 million relief package to farmers and communities in the Lower Lakes and Coorong.
In defending the back down, Opposition Senators argued they did not want stand in the way of the remaining need for a national take-over of the Basin.
While the Opposition says the declaration must be acknowledged, it is believed it essentially means nothing and won't necessarily be adhered to.
In an interview with the Sky News this morning, Senator Wong all but thumbed her nose at the declaration.
While not specifically saying the Government would ignore it, she did say the Bill had been passed thanks to a change of heart within the Coalition and the declaration was merely "making a point" after support for the Bill was given.
She the push to stop the pipeline by the Coalition and The Greens was "inappropriate".
Opposition spokesman for the environment, Greg Hunt, said Prime Minister Kevin Rudd must now indicate whether he will comply with the Senate declaration to stop the pipeline.
"If he ignores the declaration, then either he or his Minister, Senator Wong will be acting in contempt of the Senate," Mr Hunt said.
"The Senate declaration was moved by the Coalition and supported by the Liberal Party, Nationals, Greens and the South Australian Independent Senator, Nick Xenophon.
"By comparison, the Rudd Government voted not to block the North-South pipeline and to deny a $50 million assistance package for the drought-affected Lower Lakes community.
"In short, Labor is saying there is not enough water to save the Lower Lakes, while diverting 75 billion litres of water a year away from the very same river system."