SA WATER SURVEY

In reply to the Hon. I.F. EVANS (Davenport) (19 May 2011).

The Hon. P. CAICA (Colton—Minister for Environment and Conservation, Minister for the River Murray, Minister for Water): I am advised that:

1. Willingness to Pay (WTP) research is a standard market research method for understanding how much customers are willing to pay for different levels of service. Interstate regulated water utilities spend in the order of $500,000 per annum.

This survey was the first of its kind undertaken by SA Water, hence the need to bring in a consultant to investigate the methodology and design the survey. SA Water paid the consultant approximately $78,000.

The contractor (NTF) completed the early stages of work required to undertake the WTP survey, including research, design and methodology development and SA Water conducted focus group sessions and developed options for investing in new infrastructure with the community.

Given the impact of drought conditions in South Australia and uncertainty in terms of future measures to address water security at the time, the then Chief Executive of SA Water determined that it was inappropriate to proceed with the second stage of the assignment at that time. The remaining money was reallocated to respond to critical drought response projects which had emerged since the survey was commissioned.