SA Water

The Hon. S.G. WADE (14:28): I seek leave to make a brief explanation before asking the Minister for Water and the River Murray a question about asset renewal.

Leave granted.

The Hon. S.G. WADE: In ESCOSA's report entitled 'SA Water's drinking water and sewerage revenues 2013-14 to 2015-16' it states:

SA Water stated that, as investment in asset renewal was curtailed in recent years to facilitate major investment in drought-response projects, including the ADP [Adelaide Desalination Plant] and the North South Interconnection System [NSIS] project, it proposed to catch up on previously deferred asset renewal expenditures during the initial regulatory period.

I ask the minister: can you confirm that due to the high cost of constructing the Adelaide Desalination Plant, SA Water's maintenance programs were neglected during those years?

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Climate Change) (14:29): I thank the honourable member for his most important question. Clearly when you are running a business the size of SA Water, which has about $13 billion worth of assets under management, you need to make sure that you apportion your program of spending, your program of maintenance and asset renewal, your refurbishment and your relay of pipes to meet the business demands for that particular period. SA Water, after the period of the millennium drought of course, did undertake a massive asset investment program around the Adelaide Desalination Plant. Of course, that means that they need to re-profile their entire business expenditure around that rather large investment.

I must say that was an investment, I think, that the Liberal Party of course also supported, but only half of it. Like their one-way road to the south, they only wanted to build half of it. It took the Labor Party to duplicate the Southern Expressway, and it took the Labor Party to build a desal plant of the size that will secure water for Adelaide out to 2050. Only a Labor government will do that. The Liberals, on the other hand, are prepared to offer the people of South Australia half a project and that is not what we will ever do.

The PRESIDENT: The Hon. Mr Wade, a supplementary.

The Hon. R.L. Brokenshire interjecting:

The PRESIDENT: Order! The Hon. Mr Wade has the floor.