SA Water

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Climate Change) (14:28): I seek leave to make a ministerial statement.

Leave granted.

The Hon. I.K. HUNTER: The South Australian government is committed to easing cost of living pressures on families and I was pleased to announce with the Treasurer yesterday that this government's policy to ease those cost of living pressures have resulted in another reduction in household water and sewerage bills for 2016-17. This has been possible because of the significant reforms we have undertaken in South Australian water management over the past decade. And it has been a real success story. So much so that we have—

Members interjecting:

The Hon. I.K. HUNTER: The success of our reforms lies in the combination of infrastructure investment to ensure long-term water security, as well as an independent regulation of water prices by the Essential Services Commission of South Australia.

The greater transparency in the setting of revenue and prices through ESCOSA allows South Australians to be confident they are receiving value for money when it comes to water and sewerage services. The new water prices that I released this week are further proof that the reforms are working. From 1 July 2016, 97 per cent of all customers will benefit from lower SA Water bills. I was pleased to announce that there will be no increase to residential water supply charges in 2016-17, with charges remaining at the 2015-16 price.

The price of water is set to fall on average by 3.4 per cent, and sewerage prices will drop by over 13 per cent for metropolitan and regional customers. For the average metropolitan residential customer this will mean a combined water and sewerage bill reduction of around $87 in 2016-17. This builds on the reduction to household water bills of $44, announced during the first regulatory period in 2013-14, and highlights the fact that savings for this coming regulatory period are almost double that of the last. This will certainly provide welcome relief to households struggling with the cost of living. A reduced price for water will also have a positive impact for South Australian businesses, which will benefit from a 12¢ reduction per kilolitre from $3.36 per kilolitre to $3.24 per kilolitre, which will further reduce the cost of doing business and support state growth.

I was also very pleased to announce that $1.2 billion will be spent as part of the capital expenditure program over the next four years, and the total spending over the next four years on water infrastructure specifically will be $675 million. This will enable the laying of 274 kilometres of new main piping during this regulatory period, compared with 180.1 kilometres in the last one, and there will be an extensive program of major works, including $15 million to upgrade the Warooka and Point Turton water supply, $11.1 million for the installation of new trunk mains for the Mount Barker water supply and $10.3 million towards the Hope Valley water tank.

There will also be an extensive program of works to accommodate for future growth, including $66.6 million for the Murray Bridge wastewater plant, $17.7 million towards an upgrade of the Lefevre Peninsula wastewater plant, and $10.3 million for wastewater and water mains growth. This is good news for South Australians. This is an investment in our most precious resource, our water. These reductions in water and sewerage prices, coupled with the $50 million annual revenue reduction from the first determination, means that SA Water customers will now be saving $110 million every year compared with 2012.

Last year we abolished the Save the River Murray levy, giving annual savings to most households and businesses of more than $40 and $182 respectively. This government is committed to reducing cost-of-living pressures, and these water prices are further evidence that our reforms are working without undermining security of water supply in what is the driest state in the driest inhabited continent.