WATER PRICING

Mr WILLIAMS (MacKillop) (16:39): This time I have a question for the Treasurer. Will the Treasurer confirm that he plans to double water prices over the next five years? On 11 March on Radio FIVEaa the Treasurer said:

We've announced this year that there will be a 15 per cent price increase in water.

I think it is 12.7, but, anyway. The Treasurer continued:

That scope in pricing increase per annum is probably what we're looking at over the course of the next five years.

An increase of 15 per cent per year over five years equates to a doubling of today's prices.

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations) (16:40): I said that on FIVEaa. I think the Minister for Water Security said that some time earlier when we announced the desalination plant. How do you think one pays for a desalination plant?

Members interjecting:

The SPEAKER: Order! The Treasurer has the call.

The Hon. K.O. FOLEY: I do not know whether I am in some sort of time warp here, but did I not get a question at one point: can the Treasurer assure the house that all the money we raise from water price increases to cover the cost of desal will be used on desal and not go back into general revenue? Didn't you ask me that question?

An honourable member interjecting:

The Hon. K.O. FOLEY: Exactly. So what is the shock revelation now? Hello, anyone home over there? How do you think you pay for a desal plant?

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: Mr Speaker, every—

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: Mr Speaker, every jurisdiction, as we like to call them—in COAG talk, isn't that what you call them, 'jurisdictions'—that is, a state or a territory, that is putting in a desal plant, you recover the capital cost of the desal by water charging. I tell you what, sir, if you borrowed $1 billion for a desal plant and paid for it through general government borrowings, watch the credit rating agencies arc up on that one. It is cost recovery. We have said—

An honourable member interjecting:

The Hon. K.O. FOLEY: Exactly. The federal Liberal Party's national water initiative required the state governments of this nation to lift water pricing significantly. Turnbull wanted us to do it in a big hit. Mr Speaker, we have made no secret of that. We have put a 12.7 per cent increase this year. The expectation is that we are probably looking at a similar price rise next year and probably for the next five years. We will determine that when we do a proper weighting of our—

Mr Williams interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: No, Mr Speaker, it is to cover the cost of desal.

Mr Williams: Get out of it.

The Hon. K.O. FOLEY: What do you think a desal plant costs?

Mr Williams interjecting:

The SPEAKER: Order! The member for MacKillop will come to order!

The Hon. K.O. FOLEY: Maybe we should engage Mitch. Can we maybe make him a minister, because apparently he can do things a lot better? If you can do it for $300 million, you can have my job.

Mr Williams: I never said $300 million.

The Hon. K.O. FOLEY: How much?

Mr Williams: I said, 'A lot less than $1 billion.'

The SPEAKER: Order!

The Hon. K.O. FOLEY: Apparently the member for MacKillop has some great negotiating skill. Maybe he will go out and get those French water companies or Spanish water companies in a headlock—

The Hon. P.F. Conlon: A Chinese burn.

The Hon. K.O. FOLEY: A Chinese burn: that is their way of negotiating. Get real, get serious and understand how you finance things. We have made no secret of it—

Ms CHAPMAN: Mr Speaker, I rise on a point of order. It is entirely unparliamentary for the Deputy Premier to tell you to get real.

The SPEAKER: Order! I will research the list of words that are unparliamentary and if 'get real' has been ruled by a previous Speaker to be disorderly, I will direct the Treasurer to withdraw. Has the Treasurer finished his remarks?

The Hon. K.O. FOLEY: Yes, sir.