WATER PRICING

The Hon. I.F. EVANS (Davenport) (15:04): My question is to the Premier. Does the Treasurer's pricing order require ESCOSA to increase water prices in the regulatory period commencing 2016-17 to offset any shortfall in revenue collected in the regulatory period commencing on 1 July this year?

The Hon. J.W. WEATHERILL (Cheltenham—Premier, Treasurer, Minister for State Development, Minister for the Public Sector, Minister for the Arts) (15:04): I thank the honourable member for his question. The first thing to note is that we are taking $80 million less revenue from SA Water to achieve these water price reductions. That's the hit that's been taken to the state budget to achieve the outcome that has been achieved in this budget.

As I said before, any of the potential effects, depending on how this plays out over the next three years—water consumption, the changes in any of the other parameters that affect water pricing—will be the subject of review. I have made a specific request to ESCOSA that, before they take any further steps in relation to the setting of pricing, we will review that, to ensure that there are no additional burdens on the consumers of water in South Australia.