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House of Assembly - Fifty-First Parliament, Second Session (51-2)
2008-07-22 Daily Xml
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WATER BILLING

Mr WILLIAMS (MacKillop) (15:22): My question is to the Treasurer. On what basis did the Treasurer or his department accept SA Water's estimated 2008-09 revenue increase of $47 million, and were officers in Treasury aware that it included revenue based on retrospective billing of SA Water for charges applying from 1 July onwards? Through the budget bilateral process, ministers are required to justify their revenue and expenses plans to the Treasury. The Treasurer's transparency statement released in February 2008 projects the increased revenues from $496 million in 2007-08 to $543 million in 2008-09, an increase of some $47 million.

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations) (15:23): First, SA Water is not part of the budget process in terms of formal bilaterals, because it is a commercial organisation working outside the budget sector. It provides a dividend and tax equivalents to government. That increase in revenue in 2008-09 was factored into the budget. I assumed, incorrectly, that—well, I will not say 'incorrectly', because the revenue is actually coming in in 2008-09. I assumed it was all billed from 1 July onwards, but, obviously, it was not. When we met with Treasury, a couple of my Treasury officers were present, and one of my Treasury officers (one of my senior people) fully understood the system. He has been around a long time, but, I tell you what, the Under Treasurer said, 'This is a confusing system.' Even he was not aware of the actual structure of the billing system.

Ms Chapman interjecting:

The Hon. K.O. FOLEY: Sorry?

The SPEAKER: Order!

The Hon. K.O. FOLEY: I will ignore it, sir. For the sake of harmony and because I am in an apologising mood, I will apologise on behalf of the deputy leader. Like me, the Under Treasurer did not fully appreciate the actual structure of the billing cycle. That is not unremarkable, because we have a public enterprise—

The Hon. I.F. Evans interjecting:

The Hon. K.O. FOLEY: Has the member for Davenport some renewed vigour in this place? I hope so; I hope his talents are not wasted. Good bloke, Iain. I would have backed you in preselection, mate. I would have been there with you. I would not be like these fair weather friends. I would not be a fair weather friend like the member for—

An honourable member: Finniss?

The Hon. K.O. FOLEY: No, the member for Bragg.

Ms Chapman interjecting:

The Hon. K.O. FOLEY: I don't live in your electorate.

Ms Chapman interjecting:

The Hon. K.O. FOLEY: Now, be careful, Vickie. I'm trying to get you through two more minutes without your making a fool of yourself and getting chucked out. It is confusing; trust me. I think I have made that very, very clear. But the revenue, I assumed, would be from 1 July.

An honourable member interjecting:

The Hon. K.O. FOLEY: Well, a budget is full of assumptions—that's why it is called a budget—and at the end of the year it's called an actual budget outcome. So, it is a budget estimate—that's why we call them estimates committees: they are estimates.

An honourable member interjecting:

The Hon. K.O. FOLEY: He's a genius, isn't he? I apologise, error made and—

An honourable member: Mea culpa.

The Hon. K.O. FOLEY: Mea culpa. I can't do much more, short of your whipping me.

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