House of Assembly Fifty-Fifth Parliament, First Session (55-1) 55 1 Parliament of South Australia House of Assembly published Question Time SA Water Infrastructure SA Water Infrastructure Mr COWDREY House of Assembly Colton SA Water Infrastructure Mr COWDREY (Colton) (14:21): My question is to the Minister for Climate, Environment and Water. Will the government supplement SA Water's infrastructure costs to lower or maintain the price of SA Water bills? With your leave, sir, and that of the house, I will explain. Leave granted. Mr COWDREY House of Assembly Colton Mr COWDREY: The South Australian government has seen significant increases in stamp duty revenue due to increased property values and will further benefit from the sale of properties in new developments. The Hon. S.E. CLOSE House of Assembly Port Adelaide Deputy Premier Minister for Industry, Innovation and Science Minister for Defence and Space Industries Minister for Climate, Environment and Water Minister for Workforce and Population Strategy The Hon. S.E. CLOSE (Port Adelaide—Deputy Premier, Minister for Industry, Innovation and Science, Minister for Defence and Space Industries, Minister for Climate, Environment and Water) (14:21): I am pleased to be able to answer this question because I think it is important that we understand how SA Water develops its proposal for what it is going to spend customer money on, and the way in which that needs to be balanced both in what investment is required for the state and for the state to grow, as well as to make sure that the price impact isn't too much, if at all, on customers. When SA Water is developing its proposal, it needs to pay attention to the increase in costs, which we have all seen occurring, to the needs of infrastructure to be maintained so that we are not seeing the infrastructure breakage, and also and crucially to recognise the importance of growth, of the need for our children to be able to have a home in the future. I might take a moment to contrast that with the previous government's attitude, which was that that didn't really matter too much. So while the regulatory proposal that SA Water has put forward— Members interjecting: The Speaker House of Assembly The SPEAKER: Order! The Hon. S.E. CLOSE House of Assembly Port Adelaide Deputy Premier Minister for Industry, Innovation and Science Minister for Defence and Space Industries Minister for Climate, Environment and Water Minister for Workforce and Population Strategy The Hon. S.E. CLOSE: —has over $600 million worth of growth investment, including $365 million dedicated to supporting housing growth in the north of Adelaide, where we know it is desperately needed, the previous regulatory proposal under the previous government had $166 million in total for growth, much of which was taken up by desalination plants which, incidentally, I would say, were vastly underestimated and we have had to pick up the cost that was missed in that proposal. Of course, what then happens is that you need to look at how much we charge people, how much is that then passed on to the customers? While the previous government's approach was to simply whack on CPI, this government has chosen not to do that in the last two years. This government has chosen to restrain the increases in order to recognise the challenge in the cost of living for people. The member asked questions like what about government money? What about giving more government money to pay for this infrastructure? Let me have a look at the flow of money between the government and SA Water in contrast to the first two years of the opposition's government and the first two years of this government. In the first two years of the Liberal government, $251 million— Members interjecting: The Speaker House of Assembly The SPEAKER: Order! The Hon. A. Koutsantonis interjecting: The Speaker House of Assembly The SPEAKER: The member for West Torrens is called to order. The member for Morialta under 134. The Hon. J.A.W. GARDNER House of Assembly Morialta Deputy Leader of the Opposition The Hon. J.A.W. GARDNER: The point of order goes to standing order 98. We are well past compare and contrast. The minister is yet to go anywhere near answering the substance of the question, which is actually to do with her time in office and what she plans to do. The Speaker House of Assembly The SPEAKER: That may be, although, of course, the house is familiar with my enthusiasm for a ruling of Speaker Eastick, which of course, as you will recall, provided that although members, including ministers, may not debate the answer to a question, ministers have always been allowed more latitude than have other members. This has been the practice in this house and in the House of Commons for many years. I have the point of order. I have the standing orders. I will bring the Deputy Premier to the question. The Hon. S.E. CLOSE House of Assembly Port Adelaide Deputy Premier Minister for Industry, Innovation and Science Minister for Defence and Space Industries Minister for Climate, Environment and Water Minister for Workforce and Population Strategy The Hon. S.E. CLOSE: In the first two years of the opposition when they were in government, $251 million came from SA Water customers to government. In the first two years of this government, $125 million— Members interjecting: The Speaker House of Assembly The SPEAKER: Order, member for Colton! The Hon. S.E. CLOSE House of Assembly Port Adelaide Deputy Premier Minister for Industry, Innovation and Science Minister for Defence and Space Industries Minister for Climate, Environment and Water Minister for Workforce and Population Strategy The Hon. S.E. CLOSE: —has gone from government to SA Water in order to keep the prices down. Not only have we managed to keep the prices down— Mr Brown interjecting: The Speaker House of Assembly The SPEAKER: Member for Florey! The Hon. S.E. CLOSE House of Assembly Port Adelaide Deputy Premier Minister for Industry, Innovation and Science Minister for Defence and Space Industries Minister for Climate, Environment and Water Minister for Workforce and Population Strategy The Hon. S.E. CLOSE: —not only are we giving more government money to SA Water rather than taking it, but we are also paying attention crucially to the future. It is so easy to claim that you have lowered water prices because interest rates were low, but the reality is that if you don't invest in future housing— Members interjecting: The Speaker House of Assembly The SPEAKER: Order! The member for Morphett! Deputy Premier, please be seated. Members to my left, I am unable to hear the Deputy Premier and therefore I will have to exercise the relevant standing order very soon unless the house returns to order. The Hon. S.E. CLOSE House of Assembly Port Adelaide Deputy Premier Minister for Industry, Innovation and Science Minister for Defence and Space Industries Minister for Climate, Environment and Water Minister for Workforce and Population Strategy The Hon. S.E. CLOSE: If you don't invest in future housing now, our young people will simply not have anywhere to live. We know that's important and we know that what has to go into SA Water's proposal must be of the highest priority. Earlier today, I was listening to the radio and I heard the Treasurer talking about perhaps a contrast in priorities and I can note— Members interjecting: The Hon. S.E. CLOSE House of Assembly Port Adelaide Deputy Premier Minister for Industry, Innovation and Science Minister for Defence and Space Industries Minister for Climate, Environment and Water Minister for Workforce and Population Strategy The Hon. S.E. CLOSE: We are a team. I can note that tens of millions of dollars were paid by SA Water customers, tens of millions of dollars of SA Water money paid by customers was spent in order to open up those reservoirs— Members interjecting: The Speaker House of Assembly The SPEAKER: I will give the Deputy Premier an additional 15 seconds. The Hon. S.E. CLOSE House of Assembly Port Adelaide Deputy Premier Minister for Industry, Innovation and Science Minister for Defence and Space Industries Minister for Climate, Environment and Water Minister for Workforce and Population Strategy The Hon. S.E. CLOSE: —rather than open up housing in the north.