PRIVATISATION

The Hon. J.W. WEATHERILL (Cheltenham—Premier, Treasurer, Minister for State Development, Minister for the Public Sector, Minister for the Arts) (14:30): I seek leave to make another ministerial statement.

Leave granted.

The Hon. J.W. WEATHERILL: Yesterday, I attended the Standing Council for Federal Financial Relations (formerly known as the treasurers' conference). At the meeting, the Secretary of the commonwealth Treasury, Martin Parkinson, provided an overview of economic conditions. Among other things, the point was made how important infrastructure spending is both to sustained economic activity now and in providing economic benefits into the future—a position that was embraced by the federal Treasurer Joe Hockey

Of course, this is the approach this government has taken both before, during and after the effects of the global financial crisis—a once-in-a-generation commitment to rebuilding both our economic and social infrastructure for the benefit of generations to come. It is unfortunate that those opposite have labelled this commitment to improve economic and social outcomes a false economy—a line of thinking that is completely out of step with the rest of the nation, as well as their conservative bedfellows. At the meeting, a proposition was put forward by the commonwealth Treasurer for states to be incentivised to privatise significant assets.

Members interjecting:

The Hon. J.W. WEATHERILL: 'Hear, hear,' I hear from the member for Bragg, 'Hear, hear.' A particular focus was utilities. Under the proposal, state governments would sell existing assets and the corporate tax paid by the new private operator may be returned to the states for a certain period. This should be a frightening proposition to South Australians still reeling from 140 per cent price increases in their electricity bills since ETSA was privatised by the Liberals.

Inherent in all privatisations is the requirement to allow the private sector to generate a profit in excess of the costs of capital and operating margin. In the electricity sector in South Australia, we have seen repeated profit-making at the expense of consumers' electricity bills since privatisation.

Mr Marshall: Talk about the water bills, Jay.

The Hon. J.W. WEATHERILL: I'm getting there. In the last three months, we have had reports of the opposition sounding out the private sector about privatising our prisons. We have had the leader's announcement to a Liberal Party fundraiser at the Arkaba Hotel that he would privatise WorkCover—

The Hon. A. Koutsantonis interjecting:

The SPEAKER: The Minister for Transport is called to order.

The Hon. J.W. WEATHERILL: —and we are being told by those in the business community that they are actively canvassing the sale of SA Water. We will not be privatising SA Water. It has been a long and difficult process to waterproof South Australia after the most acute drought in living memory, and consumers have had to pay—

Members interjecting:

The SPEAKER: The Leader of the Opposition is called to order.

The Hon. J.W. WEATHERILL: Consumers have had to pay for massively improved infrastructure through increased water bills. Yesterday's meeting and today's revelations about the Liberal plans demonstrate that they do not care about cost of living pressures on South Australians.

They sold us out on electricity and they want to sell us out on water. They want to risk the security of our prisons and they want to hang our injured workers out to dry. Privatisation of essential government services is just another name for shifting the burden onto everyday South Australians, and we will not stand for it.