WATER PRICING

Mr WILLIAMS (MacKillop—Deputy Leader of the Opposition) (14:44): My question is to the Premier. Does the government believe that the assumption used in the 2009 KPMG report, released only last week, that water prices would rise by 8 per cent per year post year 2008-09 was a reasonable assumption? Last week the Premier released a report by KPMG, which was dated 3 June 2009, almost a month after the announcement to double the size of the desalination plant. The report assumes that water prices would rise by 8 per cent per year from 2008-09, yet post the 2010 election water prices in South Australia rose each year, according to government budget papers, by 22 per cent, 40 per cent and 25 per cent respectively.

The Hon. J.W. WEATHERILL (Cheltenham—Premier, Minister for State Development) (14:44): There is no doubt that the desalination plant is an expensive way of delivering water. That is why we hesitated to make the decision. It is why we are not going to run the plant unnecessarily, and it is why also in the last budget we introduced a $45 and $75 rebate, depending on the amount of consumption you have, to reduce the burden on consumers of water. We do understand cost of living pressures and we understand that we need to respond to them, but I think most people realise they live in the driest state on the driest continent and that this is an insurance premium worth paying.

Mr WILLIAMS: Standing order 98: relevance. The question was: does the Premier believe that the assumption of 8 per cent water price increases was a reasonable assumption?

The SPEAKER: The Premier is talking about substance relevant to the question and he can continue if he chooses. There is no issue of debate. Have you finished Premier?

The Hon. J.W. WEATHERILL: Yes.