Water Pricing

Mrs POWER (Elder) (14:40): My question is to the Minister for Environment and Water. Can the minister update the house about developments in water pricing and how residents in the seat of Elder and, of course, residents in South Australia will benefit?

The Hon. D.J. SPEIRS (Black—Minister for Environment and Water) (14:40): Of course, this government was elected in March 2018 on a mandate to reduce cost-of-living pressures across South Australian households and businesses.

Members interjecting:

The SPEAKER: The member for Cheltenham is called to order.

The Hon. D.J. SPEIRS: As soon as we were elected, we got on with that work. We looked at a massive reduction in the emergency services levy rate across this state. We took action on payroll tax. We have taken a suite of very significant reforms ahead on land tax, which will see substantial relief to the majority of people who pay that. We have tried to put in place a cap on council rates. Sadly, that did not get through in another place. But another major area of cost of living for South Australians—

Members interjecting:

The SPEAKER: The member for Lee is warned for a second time.

The Hon. D.J. SPEIRS: —and of course the cost of doing business is the cost of water in this state. So we have seen the first part of the journey towards reducing water prices in this state get underway with the announcement at the beginning of our time in office of the independent inquiry into water pricing in this state, undertaken by the very respected utility administrator, Lew Owens. That has been a substantial body of work that will create a foundation for decision-making around water pricing going forward. But today we also saw SA Water's submission to—

The Hon. S.C. MULLIGHAN: Point of order: this submission is publicly available on the Essential Services Commission of South Australia's website.

Members interjecting:

The SPEAKER: I have the point of order. Members on my right, I will handle this matter. I don't need cries of 'bogus' from those on my right. I will listen to the minister's answer. If he provides information in addition to what is available in the public domain, that may be in order, so I will listen carefully.

The Hon. D.J. SPEIRS: Thank you, Mr Speaker, and I will continue to give a little bit of background to the process of reducing water bills. Today, we have seen our plan submitted to ESCOSA, that is, SA Water's pitch for how it is going to undertake its business for the next four years. Water pricing is determined in this state in four-year tranches. The next determination period is 2020 to 2024. We have seen good news from the body of work that SA Water has undertaken and their desire to see downward pressure placed on water bills, which will see the average water price reduce by 1.6 per cent.

The Hon. S.C. MULLIGHAN: Point of order: the information that the minister is now referring to was on the front page of The Advertiser this morning and is also on the Essential Services Commission's website.

The SPEAKER: Yes, I am going to warn the member for Lee. If points of order become frivolous, then I will be asking members to leave. I have—

Members interjecting:

The SPEAKER: I said 'if they become'. It's a hypothetical proposition. I didn't say that his point of order was frivolous, but if they become frivolous then I will deal with them. I am going to uphold my earlier ruling. The minister has the call.

The Hon. D.J. SPEIRS: Thank you, Mr Speaker. We will also see a reduction in sewerage rates. This is obviously in substantial contrast to what we saw under 16 years of Labor rule in this state. During that time, in 2001-02 the average household bill was $236 per household; in 2017-18, it was $782, a 232 per cent increase in the average water bill in this state. That is a substantial burden on the cost of living for South Australians and on the cost of doing business.

This government is determined—absolutely determined—to put downward pressure on water prices in this state. We have the ESCOSA determination, which is a complex process. We will now head through that process in the coming months, with a decision to be made next year. It is also important to take into consideration the value of the asset base held by SA Water as well. We know some pretty shocking things about the value of that asset base, as was determined by Mr Owens' independent report into water pricing.

We know that that report found that the Labor government, during their time in office, ignored criticism and advice from the Essential Services Commission, overinflated that base and, as a consequence, that resulted in South Australian households and businesses providing far too much to the government for their water. I do want to get this damning quote correct. I'm happy to table this. The well-respected Mr Owens said:

…despite the [Labor] government claiming it was acting in the interests of consumers, that was not apparent and it appeared that the main driver of the decision was the securing of revenue for the Government.

We are putting downward pressure on water bills. The direction is good news for South Australians.

Members interjecting:

The SPEAKER: Order, members on my left! The minister's time has expired. I am going to call the member for West Torrens. I can see the member for Mount Gambier. He was pipped at the post by the member for West Torrens.