Question Time

Energy Market

Mr MARSHALL (Dunstan—Leader of the Opposition) (14:08): My question is to the Premier. Which contracts is the state government considering breaking in nationalising the state's energy grid?

The Hon. J.W. WEATHERILL (Cheltenham—Premier) (14:08): The Liberal Party returns to the scene of the political crime of the sale of ETSA. What an extraordinary question! Much of where we are at the moment in the South Australian energy market can be directly attributable to the decision by those opposite to sell our electricity assets. The truth is that most South Australians—

Mr PENGILLY: Point of order: I ask you to rule as to whether the Premier is indeed debating the question, not answering it.

The SPEAKER: I will listen carefully to the Premier. Thank you to the member for Finniss.

The Hon. J.W. WEATHERILL: An important bit of background about the current state of play in relation to our electricity assets is that most South Australians regard the supply of electricity as a public good. So, therefore, they expect the government to underwrite the supply of electricity. That's why they get so angry when electricity is not available when they need it.

That is why we believe electricity should be in the hands of the government. That's why we opposed the privatisation of the Electricity Trust of South Australia, an essential public service that lies at the heart of the needs of the community and, indeed, our businesses. It's at the heart of South Australia, as the gentleman here recognised all those years ago when he decided to nationalise the Electricity Trust of South Australia.

As we have become aware in recent days, and we expect will become even clearer—even clearer—we have a Prime Minister who has abrogated his responsibilities in relation to South Australia. We also know that we have a Prime Minister who is prepared to engage in economic sabotage by talking down an essential part of the Australian economy—the South Australian economy. It is extraordinary. It is extraordinary that you could have a Prime Minister—

Mr VAN HOLST PELLEKAAN: Point of order, sir.

The Hon. J.W. WEATHERILL: —and a Treasurer talking down and almost encouraging the a lack of investment or the people ceasing to—

The SPEAKER: A point of order. I presume the member for Stuart is as indignant as I am about the Leader of the Opposition's continual interjections?

Mr VAN HOLST PELLEKAAN: No, sir, that's not it.

The SPEAKER: No? Yes, what is it then?

Mr VAN HOLST PELLEKAAN: Standing order 98: after over two minutes, the Premier has still not addressed the substance of the question.

The SPEAKER: He's got two to go. He may approach it soon.

The Hon. J.W. WEATHERILL: The contracts that were entered into by the former Liberal government to privatise the Electricity Trust of South Australia are of long standing. They involve either the complete sale or disposal of critical elements of the South Australian electricity supply system—the transmission assets, the distribution assets, the generation assets, and the retail business. Every single element of the South Australian electricity supply system now is in the hands of a private operator, a private for-profit operator, and what we—

Mr VAN HOLST PELLEKAAN: Point of order, sir: since my last point of order, the time hasn't been restarted.

The SPEAKER: It has started again. Splendid.

The Hon. J.W. WEATHERILL: Thank you, Mr Speaker. You can see that each of the elements of the South Australian electricity supply system is now in the hands of a private company. Indeed, the National Electricity Market itself can't be controlled solely by South Australia. There is no decision we can take that can influence the supply of energy in South Australia through exercising our own independent authority.

What that means, in the light of what the Prime Minister has said about abrogating that national responsibility, in the light of the resistance that we are receiving from the Prime Minister in relation to changing the rules of the National Electricity Market, is that we have to consider all our options, and one of the options that is firmly on the table is intervention in the market. That intervention, if it is not handled carefully, can have negative, unforeseen consequences because intervention in part of the market will have an effect in another part of the market. Any intervention has to be carefully calibrated.

One way of resolving that is an attempt to take back control of the whole of the market, but that represents very substantial and complex issues, being the very substantial long-term contracts and the way in which they have been entered into and the questions of sovereign risk, the extraordinary financial burden associated with them and also the fact that this is an interconnected market. Increasingly, we have an ambition to play our abundant renewable energy into the rest of the market. They are all considerations for the South Australian government.

The SPEAKER: Is the member for Mitchell having a colloquy with himself or is he interjecting?

Mr WINGARD: Sir, your ears are a little bit off. You got me yesterday when I wasn't speaking and now I'm not even moving my lips and you are accusing me.

The SPEAKER: The member for Mitchell is transferring blame to his colleague the member for Chaffey.

An honourable member: The member for Mitchell wasn't moving his lips, sir.

The SPEAKER: The member for Mitchell was pointing at the member for Chaffey.

Mr WINGARD: I turned my head, sir, and my hands and my lips. I'm not sure you can see this far.

The SPEAKER: The leader.