Question Time

SA Water

Mr MALINAUSKAS (Croydon—Leader of the Opposition) (14:35): My question is to the Premier. Why is the government extracting an additional $250 million from government businesses, including more than $120 million from SA Water over the next three years?

The Hon. S.S. MARSHALL (Dunstan—Premier) (14:36): I thank the Leader of the Opposition for his question. As he would be more than aware, we had a difficult task to deal with on coming to government. The previous government had made it very clear that we were heading towards a surplus. In fact, we found advice had been prepared by Treasury officials, which was available in January, only weeks after the Mid-Year Budget Review was faithfully handed to the people of South Australia, which showed that we were headed towards a deficit at that point approaching $200 million.

We have now seen the state budget. The state budget provided for a return over the forward estimates—in fact, in the first year—to being a balanced budget and into surplus. That is exactly and precisely what we want to deliver for the people of South Australia—balanced budgets, living within our means but at the same time achieving our ambition to get this state on track: more jobs, lower costs and better services.

With regard to the issue of water pricing and any distribution from the SA Water Corporation, we know that those opposite had been essentially raiding and, in fact, fixing the amount of money that was distributed from SA Water to prop up their absolutely hopeless budgets. What we know for a fact is that over the last 10 years the previous government posted seven deficit budgets. In fact, in the budgets that they did conjure up a surplus, it was only after flogging off a whole pile of state government assets.

Members interjecting:

The SPEAKER: Order!

The Hon. S.S. MARSHALL: When we talk about flogging off assets by those opposite—the winding up of the Motor Accident Commission, the selling off of the Lands Titles Office, the forests, our assets that existed with regard to SA Lotteries—

Members interjecting:

The SPEAKER: The member for West Torrens, leader, Deputy Premier, member for Lee!

The Hon. S.S. MARSHALL: —it was all designed to do one thing only, and that was to deal with the issue the previous government had for a long period of time, which was their inability to bring the budget back into balance. Rather than take some of the tough decisions that have been necessary in our first budget, they instead chose to do everything that they could to disguise the real situation that existed for a very long period of time.

I would like to just talk about this for a short period of time, which is the issue regarding water pricing and, in fact, the distribution of money from SA Water to prop up the balance of the previous government's budget.

Members interjecting:

The SPEAKER: Order, members on my left!

The Hon. S.S. MARSHALL: What we know from evidence that has been provided by two former directors and the chief executive of ESCOSA is that it was very suspicious activity from the government in setting the regulated asset base. We see the member for Lee smiling over there because he's got his fingerprints all over this.

The Hon. V.A. Chapman interjecting:

The SPEAKER: Order!

The Hon. S.S. MARSHALL: He's smiling, he's smirking because he thinks he got away with something. What we know is that when asked—

Members interjecting:

The SPEAKER: Order, members!

The Hon. S.S. MARSHALL: —he sent evidence, would you believe, but we understand that he sent evidence or requests to ESCOSA to see what the impact upon the distribution to the state government would be if there was a 5 per cent, 10 per cent, 15 per cent or 20 per cent increase in the regulated asset base. I don't know about you, but I don't think that's the determination of what the regulated asset base should be. It should be based upon what the actual asset base should be, and that's precisely what our water price inquiry will get to the bottom of.

The SPEAKER: Before I call the Leader of the Opposition, I call the following members to order: the Deputy Premier, the Minister for Primary Industries, the member for Kaurna—and I warn him a first time, the member for Lee, the member for West Torrens—and I warn him a first time, the member for Playford and the leader. The leader has the call.