WATER PRICING

Mr PEDERICK (Hammond) (14:46): My question is to the Minister for Water. What modelling has the government done in regard to the impact of the increases in water price to the viability of running livestock in this state? Many producers have contacted me indicating that the high water price—which has increased 70¢ per kilolitre from $2.75 per kilolitre in 2011-12 to $3.45 per kilolitre as of 1 July 2012, and almost tripled the price of 2007-08, which was at that time $1.16 per kilolitre—will have a huge effect which will make running livestock unviable and this will have a significant impact on the food production capability of this state.

The Hon. P.F. CONLON: Point of order. Not only does it contain argument, the argument virtually answers the question. He has just said it would be unviable. It is an argument and it is out of order.

Members interjecting:

The SPEAKER: Order! I agree. I uphold that point of order. Member for Hammond, you need to be careful about your explanations. However, there was a question at the start of it and the minister should be given the opportunity to respond to it if he wishes to.

The Hon. P. CAICA (Colton—Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Aboriginal Affairs and Reconciliation) (14:47): That is right. It was so long ago, Madam Speaker, but I do remember the question that relates to modelling. I have met with a significant number of primary producers across this state not only in my time as minister for agriculture, food and fisheries but also since as Minister for Water and in my other portfolio responsibilities. I am acutely aware of the impact of increased water prices—when I say 'increased water prices' I mean the use of potable water for the purposes of feeding stock; and, indeed, in other areas, of course, grape production as well.

Of course, during the debate on the Water Industry Bill, motions were put forward within this house to look at ways by which a privilege could be provided with respect to some concessions that were being called for to be made to primary producers. Quite rightly, those amendments were knocked off. Notwithstanding that—

Mr Williams: You said you were going to go for third-party access.

The SPEAKER: Order!

The Hon. P. CAICA: Ask me a question on third-party access, if you like.

Ms Chapman: Have you done any modelling?

The Hon. P. CAICA: Madam Speaker, I'm not going to respond to their rudeness and their interjections.

An honourable member interjecting:

The Hon. P. CAICA: No, I am telling Madam Speaker I am not going to.

The SPEAKER: Order!

The Hon. P. CAICA: What we need to do is work with primary producers to look at alternative supplies of water. Third-party access in the medium to longer term may be one of the advantages. We see in the BIL, in the wonderful member for Schubert's area, the way BIL is operating up there. We are not comparing apples with apples, because that is not water that is being drawn from potable sources.

An honourable member interjecting:

The SPEAKER: Order!

The Hon. P. CAICA: No, you won't. Let me make this point, Madam Speaker. Instead of modelling, I go and talk to the primary producers.

Members interjecting:

The SPEAKER: Order!

The Hon. P. CAICA: Quite simply, under the arrangements, if we were to provide additional support for potable water for any sector, and I will add that primary producers and industry are capped at the second tier level—

Mr Pederick interjecting:

The SPEAKER: Member for Hammond!

The Hon. P. CAICA: —if we were to do what it is that the Liberal opposition wants, what that means is that the 600,000 or 700,000 other customers in this state would see their prices increased to provide that level of support and subsidy that the opposition are calling for.

Members interjecting:

The Hon. P. CAICA: That is the arrangement and I have made it perfectly clear to all primary producers that we have no intention of revisiting that aspect of what is the policy for potable water use as it relates to primary production in this state.