$42 billion stimulus passed through the Senate

Submitted 13/02/2009

Migration for Business Growth

Deal struck on $42bn stimulus

The Government has reached a deal with Independent Senator Nick Xenophon to pass its economic stimulus bill through the Senate.

Senator Xenophon told the Senate this morning the Government had agreed to an extra $900 million in concessions for the Murray-Darling Basin, ensuring his vote for the $42 billion package to pass through.

The deal also included bringing forward an extra $500 million for water buybacks, an extra $200 million in community grants and $200 million for stormwater harvesting, as well as new rules making properties up to 40,000 hectares able to claim emergency grants, Mr Xenophon told the Senate.

The Rudd Government also agreed to a Productivity Commission inquiry into the most efficient way to manage water buybacks, he said.

Senator Xenophon yesterday joined with the Coalition to scuttle the Government's first attempt to get its economic kick-start through the Senate.

Prime Minister Kevin Rudd immediately reintroduced his emergency economic plan into Parliament, passing through the lower house late last night.

Treasurer Wayne Swan said the government would consider "reasonable propositions" to get the bill passed, but not a major overhaul.