Gas Infrastructure

The Hon. F. PANGALLO (14:57): Supplementary: I reject the notion I was being xenophobic. Would the government be concerned if the sale resulted in an increase in the already high gas prices that would impact on industry in South Australia?

The Hon. R.I. LUCAS (Treasurer) (14:57): Yes, obviously I would be, but they weren't the sorts of issues that were solely raised by the honourable member in his initial question. Can I indicate, and I think the Hansard record will show, that I said quite explicitly that I did not suggest the honourable member was being xenophobic in terms of the question he raised. His response was he wasn't. I wasn't making that accusation of him, but there are many in the community who have adopted a particular position on this issue, and I make the accusation in relation to them.

As a member of the government, we are obviously concerned about any particular decision which might lead to increased energy prices, whether that be gas or electricity, to South Australian businesses. That's why we have a comprehensive energy plan, which has been outlined in terms of trying to drive down, in particular, the unsustainably high electricity prices generated by the policies of the former Labor government over the last 16 years. In relation to gas prices, there are obviously issues the government, this new state government, is implementing to help try to drive down prices in that particular area as well.

I have to say, in relation to gas pricing, I think one of the proudest unsung moments of the former Liberal government many years ago, 16 years ago, was the courageous decision that it took to diversify gas competition delivery into South Australia. We were solely reliant on a big pipe coming from the north of the state into Adelaide. The former government was the government that initiated all of the discussions in relation to a new big pipe from Victoria through the South-East of South Australia to broaden the opportunity for gas provision to Adelaide because, in our view, the previous Labor government—this was the Bannon government and Dunstan government—had not looked at, in essence, the monopoly of supply of the gas producers in the north of the state to Adelaide, the metropolitan area and businesses here.

We needed to take some decisions in relation to encouraging competition to help drive down gas prices. It was through a process initiated by the former government, which attracted little or no publicity at the time, to encourage and to fast track to the extent that that was possible that particular investment in a big new pipe from Victoria, through the South-East to Adelaide. That was one of the many important policy decisions that the former Liberal government took in the period between 1993 and 2002.