Question Time

Water Pricing

The PRESIDENT: Honourable minister, do you want to continue?

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Aboriginal Affairs and Reconciliation) (15:26): Thank you, Mr President. I apologise for that brief interruption to my answer. It does bear some noting, of course, that the opposition now have trashed the standards of this house—the house that they go out and say they want to uphold. As they are wont to say—

Members interjecting:

The PRESIDENT: Order! The minister has the floor.

The Hon. I.K. HUNTER: 'Standards don't matter,' I heard from the other side of the chamber, 'when you have the numbers.' That's the way they operate now, Mr President. Going back to talking about community service obligation payments and water and sewerage concessions, a total of $222 million is forecast to be available for general government services during the period of 2014-15 to 2017-18.

On an annual basis, this means we are providing $43 million back in water and sewerage concessions during 2014-15 and $126 million in community service obligation payments. After taking these items into account, the expected return to the government this financial year is $26.65 million, I am advised, which again goes back to delivering services to South Australians, and that's not including the $43 million the government spends on concessions.

The net contribution of the government in 2014-15 is $69.96 million. As a comparison in today's dollar terms, the Liberals took out a lot more in their last term of government. They took out a net contribution of $170 million in their last term of government—that's $100 million more than what we have taken out this year.

This government recognises the impact, of course, of cost of living pressures, and so supports South Australians who are doing it tough and provides concessions of 30 per cent for 2014-15, with a minimum of $185 and a maximum of $295 to those who meet the eligibility criteria. The state government is also committed to introducing a single concession payment from July of next year to simplify family budgeting by providing all concession payments for the year in one single payment.

This government has a very proud history of water reform and reform of the industry. We introduced the Water Industry Act to create a level playing field for water retailers. There is already a range of procedures and processes that are designed to ensure fair and appropriate pricing. This government is committed to fair and equitable water pricing.

We have secured our water security for future generations and last year delivered, as I said earlier, a 6.4 per cent reduction in water prices while ensuring water prices will rise by no more than CPI for the next two years. The arrangements for pricing water in South Australia have met and continue to meet all appropriate regulatory requirements and are consistent with the National Water Initiative.

Our water pricing ensures equitable service delivery for all South Australians irrespective of where they live, and these policies take into account essential investment in infrastructure that will secure our water supply into the future. This is particularly important, given South Australia's uniquely dry climate. We can no longer rely on our traditional sources of water to meet our future water needs, and neither are our requirements the same as other jurisdictions.

The government has in place a range of measures to ensure we offer transparent and accountable practices in relation to water services. There is now a requirement for external reporting and monitoring of SA Water's performance and compliance, as well as a requirement for audited regulatory accounts for SA Water. We have increased transparency on noncommercial activities through a direction from the minister, and the water industry now has an independent technical regulation through the transfer of responsibility for technical regulation from SA Water to the Office of the Technical Regulator.

The government has expanded the Ombudsman to the Energy and Water Ombudsman of South Australia to independently assess SA Water customer complaints and, unlike the Liberal Party in this state which sold off our electricity assets, we will not be pitching a 'for sale' sign on SA Water, or any of its assets, and seeing profits going interstate or overseas. This state government will ensure that SA Water remains SA owned, with any benefits going straight back and providing concessions and services to South Australians.

The PRESIDENT: Supplementary.