SA WATER

The Hon. J.A. DARLEY (15:05): I seek leave to make a brief explanation before asking the Minister for Communities and Social Inclusion, representing the Minister for Water, a question relating to SA Water and Allwater.

Leave granted.

The Hon. J.A. DARLEY: On 9 February 2011 the Minister for Water announced that Allwater had been chosen as the preferred bidder to manage metropolitan Adelaide's water and wastewater services, and that the $1.129 billion contract would take effect from 1 July 2011. I am told that, understandably, the $1.129 billion is paid by SA Water to Allwater in periodical payments.

I also understand that Allwater subcontracts a number of smaller operators to assist in the management and maintenance of Adelaide's water and wastewater infrastructure and networks. I have been contacted by constituents who have raised concerns about the delay in which Allwater is paying these subcontractors, putting enormous financial pressure on these small businesses. My questions to the minister are:

1. Is my understanding of periodical payments for the $1.129 billion contract correct?

2. Can the minister advise whether any of these payments from SA Water to Allwater have been late and, if so, how many and how late?

3. Is there any penalty for late payment?

4. Is there a provision in the contract for SA Water to become involved should Allwater fail to pay subcontractors?

5. Is the minister aware of any situations where Allwater has been late in paying subcontractors and, if so, on how many occasions?

6. I understand United Water used to pay within 30 days of invoice and that there were two cheque runs per month. Is the minister aware of Allwater's payment schedule for outstanding invoices and, if so, can he provide details?

The Hon. I.K. HUNTER (Minister for Communities and Social Inclusion, Minister for Social Housing, Minister for Disabilities, Minister for Youth, Minister for Volunteers) (15:07): I thank the honourable member for his important questions on Allwater regarding periodical payments, late payments, penalties, contractual provisions and the payment schedule. I undertake to take that question to the Minister for Water and the River Murray in the other place and bring back a response.