Future Fund

In reply to Mr MARSHALL (Dunstan—Leader of the Opposition) (28 July 2016). (Estimates Committee A)

The Hon. J.W. WEATHERILL (Cheltenham—Premier): I have been advised:

A Future Fund model has been developed that sets aside a portion of royalty revenues (taking into account horizontal fiscal equalisation) and above trend growth in taxation and GST revenues, subject to the achievement of a net operating surplus. Under the model, additional monies could also be contributed to the fund at the discretion of the Treasurer.

A bill based on this model has been drafted. The introduction of the bill is pending the government's response to the Nuclear Fuel Cycle Royal Commission.

The need for a Future Fund has become less urgent given the current trends of the mining industry.

The commission's report, delivered in May 2016, proposed the establishment of a State Wealth Fund to ensure that the economic benefits associated with an inter-generational nuclear waste storage facility will flow to future generations of South Australians and also a Reserve Fund, to provide for the costs of decommissioning, remediation, closure of the facility and long-term monitoring.

The government's response to the royal commission's report will be informed by extensive statewide community engagement and consultation, including two citizens' juries.