CARBON TAX

Mr WILLIAMS (MacKillop—Deputy Leader of the Opposition) (14:58): My question is for the Minister for Water. How much will Labor's carbon dioxide tax cost SA Water each year, given that SA Water is one of South Australia's largest users of electricity, and how much federal compensation will be given to offset these increased costs?

An honourable member: Didn't see this one coming.

The Hon. P. CAICA (Colton—Minister for Environment and Conservation, Minister for the River Murray, Minister for Water) (14:58): No, it's like—a man walked into the bar, didn't he see it?

Members interjecting:

The SPEAKER: Order!

The Hon. I.F. Evans: Should give him a note that says, 'Don't disclose the answer unless the media shows any interest.'

The SPEAKER: Order! Member for Davenport!

Members interjecting:

The SPEAKER: Order!

The Hon. P. CAICA: I am happy to take questions on that matter again, Madam Speaker, but we know that they have difficulty changing their strategy at any time. We know where they are going today, and you know that. We know they've got their own internal issues, and they'll have to deal with them. It would seem to me that there are a couple of issues that need to be brought to the attention of the house, and one is that I think that the opposition is attending maybe the Tony Abbott school of denial and sceptics about a price on carbon. Quite frankly—

Members interjecting:

The SPEAKER: Order!

Mrs REDMOND: Point of order: debate. The minister—

The Hon. P.F. Conlon: Stop interjecting.

The SPEAKER: Thank you. Yes, I refer the minister back to the substance of the question.

The Hon. P. CAICA: Thank you very much, Madam Speaker. I would suggest they probably attend the Malcolm Turnbull school, which is a far better school to attend on this particular matter. We also know that the decision was made by this government to ensure that the desal plant was powered by 100 per cent renewable energy.

Members interjecting:

The SPEAKER: Order!

The Hon. P. CAICA: Madam Speaker, whilst it is unruly to respond to interjections, I did hear one of them say, 'What about the pumping station?' I know you know this, Madam Speaker, but it might be, through you, for their benefit. The desal plant can be operated from 100 per cent capacity in 10 per cent increments down to 10 per cent, and then turned off thereafter. So, the arrangement—and a very good arrangement—that we have entered into with AGL is that, when that energy is not being used for the desal plant, it can be used as offset in running the power—

The Hon. P.F. Conlon: So we're ahead of the game again.

The Hon. P. CAICA: We are ahead of the game, as my friend the minister says. In addition to that, the Premier and I and others attended Bolivar recently and had a look at the work and the considerable amount of money that will be spent there to ensure that we utilise the waste products in such a way that that in itself generates power for that plant. Indeed, in days going forward, we would hope that the amount of energy being produced there would be able to be even used off-site.

There is still a little bit of work to do with respect to, as I understand it, the matter of carbon, and the price on carbon still needs to go through a process federally. Whilst we understand what the rules are, we do not know exactly what will occur because it will still be the subject of passage through two houses of parliament. So, it is safe to say that SA Water and my agencies are doing work and preliminary work on what will be the impact of the price on carbon. What I would also say is that this side of the house actually believes—strongly believes—that there needs to be a price on carbon. I would like to know what the position of the opposition is—

Members interjecting:

The SPEAKER: Order!

The Hon. P. CAICA: —and, quite frankly, that work is still a work in progress.