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House of Assembly - Fifty-First Parliament, Second Session (51-2)
2008-02-13 Daily Xml
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WATER INFRASTRUCTURE

Mr GRIFFITHS (Goyder) (15:32): My question is to the Treasurer. Is the public-private partnership model the preferred method of financing the proposed Port Stanvac desalination plant and the now Mount Lofty Ranges works for water storage, and, if so, what financial arrangements is the government considering to construct this infrastructure?

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations) (15:32): We have already made it clear that we are now evaluating and going through the process to work out whether SA Water undertakes it as a PPP or as a build-own-operate project. Those decisions, as I understand it, have not yet been taken. We have had the work—

Mr Griffiths interjecting:

The Hon. K.O. FOLEY: A preferred option? I have to say that, at times, I have a reasonably high opinion of my abilities, but one of them is not to decide what is the best financing model for a desalination plant. I think it would be risky if the state took my preferred option—if I had one—as the one with which we should run. Like all these things, I take advice and financial analysis from experts, and have a good piece of work done to advise government as to the best—

Mr Williams: In the meantime, you jack up water rates.

The SPEAKER: Order!

The Hon. K.O. FOLEY: I am happy to give the member for MacKillop a briefing about where the money is going and why water rates are now increasing to ensure that we have the money available to finance this particular project.

Mr Williams: It's a PPP.

The Hon. K.O. FOLEY: Well, it depends on what the project is. That is why I think that it is important that the member for MacKillop is briefed on this. A PPP is not a cost-less exercise. A PPP will be on SA Water's balance sheet.

Mr Williams interjecting:

The Hon. K.O. FOLEY: Yes; humph! Hello?

Mr Williams: And it will paid for over the next seven years.

The Hon. K.O. FOLEY: Yes, exactly.

Mr Williams interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: Mr Speaker, the member for MacKillop is embarrassing himself. The debt goes on to SA Water's balance sheet. I am happy to extend the offer for Treasury officers to sit down with the member for MacKillop and explain to him—be it a PPP or a build-own-operate process—why water increases must occur now. I am happy to have him briefed on that. As smart as he thinks he is, I put my money on the fact that Treasury officers are a bit smarter than the member for MacKillop and, indeed, what I may be. Okay? We do—

Mr Goldsworthy interjecting:

The Hon. K.O. FOLEY: Oh, don't reflect on a member? Give me a break! Given the scale and complexities of these projects, we are taking advice of the highest quality available to make sure that we get as much of this absolutely correct as possible. These are big and complex projects. The Leader of the Opposition would say, 'Fast track these things. Just build it. Just borrow and build.' Or is he really saying that? You read that he says we should be paying for it out of general revenue or something. This Leader of the Opposition would bankrupt the state if we ever allowed his vision, or The Advertiser's vision, to become reality.

Members interjecting:

The SPEAKER: Order! The Deputy Premier is now debating the question. Again, I say to members on my left, if they have a point of order to rise in their places, not to yell it out at me. We are not at a cricket match.

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