Water Pricing

The Hon. T.T. NGO (14:56): My question is to the Minister for Water and the River Murray. Will the minister tell the house about how the state government is working to lower South Australian water bills?

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Climate Change) (14:56): Thank you, Mr President, and what a fantastic question from a fantastic member. Preparations for the next price determination for SA Water under regulation by the Essential Services Commission of South Australia has begun. Members may be aware of an article that appeared apparently in The Advertiser on 1 September that stated:

Householders will receive cuts averaging $51 a year in their SA Water bills under a formal proposal from the utility.

This is a proposed reduction, I am advised, of 3.9 per cent in 2016-17, with increases capped at inflation for the following three years of the regulatory period. It comes on the back of SA Water's first price determination announced by ESCOSA in May 2013 that enabled the government to announce a decrease in prices of 6.4 per cent in 2013-14 and again limit the subsequent increases to CPI.

This is fantastic news for SA Water customers, and demonstrates the corporation's ongoing commitment to finding further efficiencies and affordability. And yet, the opposition continues to mislead the public into thinking that SA Water has the highest water prices in the nation. This is despite clear evidence to the contrary.

As I have outlined in this place numerous times, the latest ranking from the latest National Performance Report (NPR) released by the Bureau of Meteorology on 7 May 2015 found that four other water utilities ranked above SA Water in this nation. The report compares cost based on water consumption of 200 kilolitres per customer per annum. The NPR also shows SA Water was one of only two utilities in the country to significantly reduce combined water and sewerage bills between 2012-13 and 2013-14 for customers using 200 kilolitres of water per year.

This reflects SA Water's strong drive for efficiencies in the first regulatory period, but if this evidence is not enough for the opposition, perhaps they will listen to ESCOSA who, on 3 August 2015, confirmed in evidence to the South Australian parliament's Budget and Finance Committee that SA Water does not have the highest prices in the country. It is clear that the opposition has either failed to do its homework or is unwilling to listen to the truth. This is despite the fact that the state government introduced the economic regulation of SA Water by ESCOSA to ensure greater transparency and accountability around water pricing.

While the opposition remains dazed and confused, as they always are, the state government is acting to address South Australia's concerns about the cost of living. In addition to lowering prices, SA Water has a number of initiatives to assist with water prices.

Members interjecting:

The PRESIDENT: Order!

The Hon. I.K. HUNTER: These include a series of concessions to eligible South Australians on low or fixed incomes to assist with the cost of water and sewerage, introducing more flexible ways for customers to manage their water bill usage and payments, and investigating ways to reduce water and wastewater costs for sporting clubs, schools and council ovals and grounds.

In a recent specific example, it was identified that a change in the Valuer-General's policy for assessing independent living units would have a negative price impact on roughly 9,500 residents living in retirement villages. The state government intervened to ensure that those residents most in need would not be negatively impacted.

We know that ensuring our state's water security has come at a cost. That was always going to be the case. Our relatively small and dispersed population means there will always be significant costs associated with the supply of water and base water, particularly in a state that has none of the natural advantages that they have in, say, Victoria and New South Wales in terms of the high-quality catchment zones that are separated from agricultural areas and centres of population.

The cost would have been much higher, so much higher in the long run, had we not made the decision to invest in water security and infrastructure for the future. We now have an insurance policy for our water supplies and a continued focus on affordability from SA Water. We will work together with all customers to ensure that they are receiving the best service possible at reasonable prices.

I sincerely encourage the opposition to finally change their erroneous record of statements about affordability of water in South Australia. That speech that they have been using time and again in public and on radio land is so outdated, is so last century. Get with the times, get the facts and start telling the people of South Australia the truth.