By Nick Pearson 23 Apr 2019 02:28

Barnaby Joyce has strongly denied any wrongdoing in relation to a controversial water deal, labelling it a "Labor distraction".

The coalition government bought 28.7 gigalitres of water from two Eastern Australia Agriculture-owned Queensland properties, Clyde and Kia Ora, for $78.9 million, when Mr Joyce was Water Resources Minister.

"We were completely within the remit of the policy," he told reporters in Tamworth.

"This is nothing more than a Labor Party distraction because of their own concerns that they can't explain their own tax policy or explain to the Australian people where the money to pay for their promises will come from."

He said he had no doubt he would be cleared by the Auditor-General.

Opposition Leader Bill Shorten has called for a judiciary inquiry into the August 2017 deal, saying the government is "running and hiding" on the issue.

"It won't be good enough if you have a tick box review, Mr Morrison,” Mr Shorten told reporters in Gladstone today.

Mr Shorten said a redacted version of the paperwork was not good enough.

"Unless the department provides all of the paperwork, not with a big texta marking out all the interesting details but the fair dinkum paperwork, without the redactions, or the secret squirrel business which this Government loves.

"It should be a judicial inquiry where you have the power to compel witnesses and you have the power to get to the bottom."