Nyrstar

Mr VAN HOLST PELLEKAAN (Stuart) (14:41): My question is for the Minister for Regional Development. Has Nyrstar advised the minister that forecast electricity prices will put its operation in Port Pirie in jeopardy even after its current productivity and environmental upgrades are completed, and, if so, what is the government's response? With your leave and that of the house, I will explain.

The SPEAKER: Well, no, you won't because my arrangement with the opposition is to give the opposition many, many extra questions and lots of supplementaries on the trot. We have not had a Dorothy Dixer so far today. The give for that is no explanations, and the member for Stuart is well aware of it. Minister.

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:41): A lot of companies come to the South Australian government wanting to talk about the situation that they are in and what we can do to assist. It is fair to say that there has been considerable government support through guarantees made available to Nyrstar's external financiers, which has seen a dramatic redevelopment of the Nyrstar smelter. Again, our policy is very, very simple: we are going to take our procurement, we are going to go out to tender and we want to encourage new competition into this market. Unfortunately, this marketplace is dominated by monopolies, which the opposition privatised our system into.

Members interjecting:

The Hon. A. KOUTSANTONIS: The truth is—and as we have seen in The Advertiser, a majority of South Australians know the truth—that we have higher power prices here because of the privatisation of ETSA—

Mr Marshall interjecting:

The Hon. A. KOUTSANTONIS: Again, attacking South Australians, attacking their views is not going to help you win an election.

Mr GARDNER: Point of order: standing order 98, and I will add 137 this time.

The SPEAKER: I will uphold the first. Treasurer.

The Hon. A. KOUTSANTONIS: Thank you, Mr Speaker. I suppose interjecting is completely in order, is it?

The SPEAKER: No, interjecting is always out of order.

The Hon. A. KOUTSANTONIS: Thank you, sir. A lot of companies come to the South Australian government seeking advice, and we do give them advice and we do give them assistance. With Nyrstar and Arrium, and a number of these other companies that are concerned about monopoly practices of the generators, we are doing what we can to increase competition. What we are doing is we want to incentivise new generation in this state. Renewable energy is a big part of that, and we want to see more of it. We also want to see more gas-fired generation in this state or some other form of dispatchable renewable energy in this state that can offset some of that monopoly behaviour by our generators.

I also think that by extracting more gas out of South Australia and making it available to South Australian consumers first, we get more liquidity in the gas market, which will see gas prices obviously maintained at a lower price here in South Australia. Given that nearly 45 petajoules per year are used for gas generation—and Nyrstar use a considerable amount of gas as well, as do Arrium—this more gas in the system will, of course, lower their costs as well. I note that more gas in the system has been ridiculed by the opposition as not working. I will let Arrium and Nyrstar know that. I also note the disdain in which the gas industry is held by the opposition by the interjections of the Leader of the Opposition.

It is no surprise. This antagonistic view they have towards business is why the Liberal Party is seeking to find someone from outside the parliament to come in and take up the shadow treasury. I wonder what negotiations the Hon. David Ridgway has had with Mr Grant Kelley. What has he offered him?

The SPEAKER: The Treasurer is now digressing from the substance of the question. Member for Stuart.