DEPARTMENTAL EXPENDITURE

233 The Hon. R.I. LUCAS (7 July 2011) (First Session). Can the Minister for Environment and Conservation advise the actual level for 2010-11 of both capital and recurrent expenditure underspending (or overspending) for all departments and agencies (which were not classified in the general government sector) then reporting to the minister?

The Hon. I.K. HUNTER (Minister for Communities and Social Inclusion, Minister for Social Housing, Minister for Disabilities, Minister for Youth, Minister for Volunteers): The Minister for Water and the River Murray has been advised:

SA Water's actual level of recurrent expenditure in 2010-11, including all operating expenditure, depreciation and borrowing costs but excluding income tax equivalent payments, was $897 million against an original budget of $1.021 billion, an underspend of $124 million.

The underspend was primarily due to the approved carryover of unused temporary water purchases ($54 million), a decrease in recoverable works expenditure offset by a reduction in income ($19 million), lower electricity usage and charges ($17 million) and a reduction in depreciation and borrowing costs ($29 million).

SA Water's actual level of capital expenditure for 2010-11 was $693 million against an original budget of $887 million, an underspend of $194 million, which is primarily due to:

Project spend deferred into outer years—Adelaide Desalination Project ($175 million), Christies Beach Wastewater Treatment Plant Upgrade ($15 million) and Adelaide Airport Stormwater Scheme ($5 million).

The above underspends were partially offset by:

the North-South Interconnection System Project expenditure brought forward $44 million; and

the removal of Water Security Contingency, as this was not required to be utilised ($29 million).