From the ABC Online service

Murray-Darling ... the PM says the states need to relinquish control. (File photo)

Murray-Darling ... the PM says the old way of managing the river system has reached its use-by date. (File photo)

States reluctant to hand over Murray-Darling

State premiers have reacted with scepticism to the Federal Government's $10 billion national plan for water management.

The Prime Minister, John Howard, has warned the states his plan can only work if they hand over control of Australia's largest river system.

Mr Howard today unveiled the plan, which includes the Commonwealth assuming control of the Murray-Darling Basin.

It also includes a massive buy-back of water allocations from farmers and an increase in irrigation infrastructure.

A task force will be set up to explore water development in Australia's north.

Mr Howard says the old way of managing water in the Murray-Darling has reached its use by date.

"The tyranny of incrementalism and lowest common denominator must end," he said.

"The $10 billion plan I have just outlined will only work if the governance arrangements for the basin are put on a proper national footing."

Rudd supportive

Opposition Leader Kevin Rudd says he supports the plan, but most of the premiers in the Murray-Darling states are cautious.

Mr Rudd says he is looking forward to working with the premiers and the Prime Minister because water should not be political, it should be bipartisan.

He says the idea of centralising control of the river systems belongs to him.

"In recent days I've called for the establishment of a single national water agency in Canberra - Mr Howard's done that," he said.

"I've also called in recent days for the establishment or the appointment of a single national water minister, and Mr Howard has done that.

"Because I've called for these things I want to support them and I do so today."

'Collaboration'

The South Australian Premier, Mike Rann, says he'll only support a national takeover if it is run by an independent body.

"One that is a really independent Murray-Darling Commission, one that is independent of politics and one that actually acts in the interests of the river and in the national interest," he said.

"And for me, national means collaboration, not a hostile takeover."

Mr Rann says a legal challenge to the plan would be a waste of money.

"And rather than collaboration or seeking agreement, the first thing that [new Environment Minister] Malcolm Turnbull talked about on radio this morning was a High Court challenge, and then boasted that he was no stranger to the Constitution.

"We want these bucket loads of cash to go into water, not into lawyers' pockets."

The Victorian Premier, Steve Bracks, says he would like to meet with his federal counterparts before the plan goes any further.

"I would really request that Prime Minister as a matter of urgency bring together the relevant premiers from each of the affected states again to talk about how this will operate and how it'll work in the future," he said.

The New South Wales Premier, Morris Iemma, says New South Wales is 100 per cent in favour of a national approach and will co-operate fully with Canberra.

"But don't stop on water - this is an example of climate change - I've been calling for some time for a national summit on climate change and the Prime Minister should go further and call such a summit and he'll find that Australians will follow if he does choose to do so," he said.

'Catch-up'

Queensland Premier Peter Beattie says the Commonwealth has been dragging its feet on water and is now trying to play catch-up.

"I just say to the Prime Minister, let's not have a war about water," he said.

"Let's cooperate on water in the national interest. I mean frankly what's going on here is politics intervening.

"You've got Kevin Rudd working with the states, you've got the Prime Minister trying to fight with the states for political advantage."

Mr Howard says parochial differences need to be put aside in order to protect Australia's water resources.

He says water management is Australia's greatest environment challenge and must be approached on a national basis.

"This is our great opportunity to fix a great national problem - it can only be solved if we surmount our parochial differences, it can only be realised if, above all, we think as we should, on the eve of Australia day, overwhelmingly as Australians," he said.

The New South Wales Premier, Morris Iemma, says New South Wales is 100 per cent in favour of a national approach and will co-operate fully with Canberra.

Murray-Darling Association

The general manager of the Murray Darling Association, Ray Najar, says he supports the Federal Government's plan.

"It seems now that the Prime Minister has been listening to what's going on out at the ground level rather than the top level, and I think he feels that it's worthy of pursuing as long as the states are prepared to understand the big picture," he said.

The Western Australian Farmers Federation (WAFF) has welcomed the plan, but wants to ensure WA gets a fair share of the funding.

WAFF president Trevor De Landgrafft says there is huge potential for agricultural development in the Kimberley.

"We've got development that could take place in the Fitzroy Basin and in the Fitzroy River itself and there's a number of other aquifers that could be exploited in the northern districts," he said.

"I would really like to see some focus put on those particular areas."