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House of Assembly - Fifty-Second Parliament, First Session (52-1)
2010-07-22 Daily Xml
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WATER PRICING

Mrs REDMOND (Heysen—Leader of the Opposition) (14:11): My question is again to the Treasurer. How much extra will South Australians have to pay for water now that the desalination plant will cost at least $2.2 billion and the government has failed to secure the $228 million in federal funding for the project? The Treasurer told radio on 11 March 2008 that because of the—at that stage, $1.4 billion—desalination plant, water prices would double within five years. We now know, however, that the cost has blown out to $2.2 billion (an increase of over $800 million) since the government announced that water prices would double within five years.

Members interjecting:

The Hon. P. CAICA (Colton—Minister for Environment and Conservation, Minister for the River Murray, Minister for Water) (14:12): What is it with you people?

Members interjecting:

The SPEAKER: Order!

The Hon. P. CAICA: Madam Speaker, what I would like to start with is comments in respect of the first question asked by the Leader of the Opposition—

Mrs Redmond interjecting:

The Hon. P. CAICA: I will get there, Isobel, all right? Calm down—and, in particular, some of the rubbish that has gone on with respect to, amongst other things, the government attempting to be secretive and attempting to hide stuff and other issues that are related to the interconnector. Of course, what we have had over the last couple of months or so is several meetings that have included local councils. I could go through all these, but it would take me a significant period of time. Of course, we also heard on the radio the other day the member for Norwood in an interview with—well, it doesn't matter what radio station it was—

Mr WILLIAMS: Point of order, Madam Speaker.

The SPEAKER: There is a point of order. The deputy leader.

Mr WILLIAMS: There is no relevance in the answer the minister is giving to the question, which is about the price of water due to blowouts in the project.

The SPEAKER: I will see. It is very early in the answer to the question. I am sure that the minister will stick to the question.

The Hon. P. CAICA: There is far more relevance in what I am saying than the relevance of the question, Madam Speaker. What we have announced on numerous occasions, of course, is the government's intention to ensure that there is connectivity between north and south with respect to the water system—the distribution system that we have in place. It has been clear over a period of time that there was not sufficient connectivity between north and south. The desalination plant, of course, is to ensure that we are able to secure Adelaide's water supplies, and that we would be able to distribute that water across the entire system makes a lot of sense.

At the briefings that were held with the former deputy leader and the deputy leader, we put that very clearly to them. In addition to that, only last Tuesday we had a briefing of local members of parliament with respect to this particular program, and that included many from the opposition. So we are not, in fact, trying to hide anything. At that meeting it was not disclosed, but made very clear to them that there was $403 million that was going to be—

Mrs Redmond interjecting:

The Hon. P. CAICA: I will get to that, Isobel. You want a proper answer; you will get a proper answer.

An honourable member interjecting:

The Hon. P. CAICA: No; they don't want a proper answer. Madam Speaker, it was made clear to them at that particular meeting, notwithstanding that the member for Norwood was on the radio that very same day saying that we were trying to hide something. I notice he has not come back to this matter yet, Madam Speaker. I know that his nickname here is 'the peacock', and with deference to others I would say, 'All feathers and no meat.'

Mr PISONI: I have a point of order, Madam Speaker. It is not parliamentary to refer to members of parliament as animals. I ask the minister to withdraw.

The SPEAKER: I thought you would have had a different point of order, actually. I was going to get you to direct the minister back to the question.

The Hon. P. CAICA: If the term 'peacock' offends, Madam Speaker; if the member for Unley is offended by that, I am happy to—

Mr PENGILLY: I have a point of order.

The SPEAKER: Member for Finniss, we haven't finished that point of order. You were explaining yourself, minister; I am sure you were going to withdraw the remark.

The Hon. P. CAICA: Yes, Madam Speaker. What I will say, referring back to the question, and given the knowledge that they have on that side—

The SPEAKER: I suggest you get on with your answer.

The Hon. P. CAICA: Certainly, Madam Speaker. The sum of $403 million is the cost of the—

Members interjecting:

The SPEAKER: Order! We have asked him to answer the question, so you will listen in silence.

The Hon. P. CAICA: The sum of $403 million is the cost to ensure the connection between north and south. The simple fact is that that is in addition to the $1.8 billion that has been allocated to the desal plant. I am further advised that that has been incorporated into the prices, about which we have been transparent over a significant period.

Mrs Redmond interjecting:

The SPEAKER: Order, the leader!

An honourable member interjecting:

The Hon. P. CAICA: I don't need protection—

An honourable member interjecting:

The Hon. P. CAICA: A bit of courtesy, that's right. Madam Speaker, that has been incorporated into the prices. In addition, the opposition leader made some comment about the commitment of the federal government with respect to the $228 million. That commitment still exists, and that has been built into the prices as well.

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