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House of Assembly - Fifty-First Parliament, Third Session (51-3)
2008-11-13 Daily Xml
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DESALINATION PLANT

Mr WILLIAMS (MacKillop) (14:48): I am delighted to direct my next question to the Treasurer. Why is the government proposing to pay more than twice the price for its desalination plant than is paid in other jurisdictions? Yesterday, the Treasurer told the house that the desalination plant will cost what it costs. On 10 October 2008, international infrastructure analysts, Global Water Intelligence, released information which shows—

The Hon. R.J. McEwen interjecting:

The SPEAKER: Order! The Minister for Agriculture.

Mr WILLIAMS: On 10 October 2008, international infrastructure analysts, Global Water Intelligence, released information which shows that the average capital cost of desalination capacity in Australia is some $3,500 per cubic metre per day of capacity compared with $1,600 per cubic metre per day capacity in the rest of the world. Its report on the water market in Australia states that the high price is because Australian governments are 'desperate for water'. The SingSpring desalination plant in Singapore—which I visited earlier this year, as did the Minister for Water Security at another time earlier this year, I believe—which is the same size as the plant proposed for Adelaide, was completed in 2005, only three years ago, at a total capital cost of $S200 million.

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations) (14:50): Does anyone understand that question? Look at the face on it. It's like a guppy. Why are we paying double? Does the deputy leader honestly believe we would pay twice the price for a desalination plant than we otherwise would have to? Are you honestly suggesting that? Are you honestly suggesting that we are going to go to the market and say, 'This is how you should tender for this desalination plant. Charge us double. Charge us double, and we will be dumb enough to accept it.'? What a silly and inane question. What was the other bit? That apparently Australian governments are desperate for water. You better believe it. It has barely rained for the past three years. We are—

Mr Williams interjecting:

The Hon. K.O. FOLEY: We have been mismanaging the rain. Hallelujah! We have been mismanaging the rain. Give me a break.

Mr Williams: You have been mismanaging your response.

The Hon. K.O. FOLEY: The member opposite is just a—

The Hon. M.D. Rann: Curmudgeon.

The Hon. K.O. FOLEY: —curmudgeon. I do not know what this plant is in Singapore. I have seen a couple of desal plants overseas. A plant built three years ago would be cheaper than a plant built today. That would make sense, given what has happened to the cost of steel and construction, the scarcity of the equipment and the demand for these plants around the world—that is obvious. What I know is this: what we will pay for our plant here will be the cheapest price possible in the market today. It really shows the lack of sincerity in the opposition's questioning when they can ask such a dumb question.

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