SA WATER

The Hon. I.F. EVANS (Davenport) (15:05): My question is to the Treasurer. Following SA Water's CEO's comments that future water prices are to be kept to inflation, how does this reconcile with SA Water's submission to ESCOSA seeking approval to increase their spend on water infrastructure by some $194 million, or 21 per cent, above the government's 2012-13 water pricing submission to ESCOSA?

The Hon. J.J. SNELLING (Playford—Treasurer, Minister for Workers Rehabilitation, Minister for Defence Industries, Minister for Veterans' Affairs) (15:06): There will always be argy-bargy between the regulator and SA Water over the amount of capital spend that SA Water want to do and the amount that ESCOSA thinks reasonable; so SA Water have put forward a submission. ESCOSA will make a determination about what is a reasonable amount of capital expenditure. However, as the government has consistently said, our expectation from next year on, with water prices, is for them to go up roughly in line with inflation. We should not see any of the significant water increases that we have seen over the last number of years.