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House of Assembly - Fifty-Second Parliament, First Session (52-1)
2011-06-21 Daily Xml
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WATER PRICING

Mr WILLIAMS (MacKillop—Deputy Leader of the Opposition) (15:04): My question, again, is to the Minister for Water. Has the government undertaken any economic modelling on the impact on small business and jobs of South Australia having the highest water price rises in the nation and, if so, what are the results of such modelling?

The Hon. P. CAICA (Colton—Minister for Environment and Conservation, Minister for the River Murray, Minister for Water) (15:04): I think the Deputy Leader of the Opposition might know this but I was approached previously by, amongst others, the Clare irrigators—and I will just put it in context and remind everyone that the Clare irrigators had drawn very heavily on their underground water there to the extent that that water was no longer suitable for, if you like, irrigation purposes. As a consequence of that, augmentation was provided through that area to allow access to potable water supplies that would also be allowed and permitted for irrigation. That ensured the survival of their operations in that particular area. I also might add that they signed a contractual arrangement that they would pay whatever the price was that was set by SA Water then and into the future.

What we did was that we convened a review group. That review group included representatives of PIRSA, representatives of DTED and representatives of SA Water, and it was asked to undertake a particular analysis of the impact of the increase in prices on those particular businesses up there. What it showed was, yes, the increase in water prices was having an impact, but it was just one factor having an impact. The others, of course, were the—

Members interjecting:

The SPEAKER: Order!

The Hon. P. CAICA: —glut in grapes (amongst other things), the then price of the Australian dollar, and they were in turn having an impact. I think that one of the things that needs to be understood—and I will go back to the basis of my answer in the previous two questions—is that the government is not going to subsidise businesses in South Australia with respect to the—

Mr Marshall interjecting:

The SPEAKER: Order!

The Hon. P. CAICA: —cost involved with the—

Mr Marshall interjecting:

The SPEAKER: Order! The member for Norwood, I warn you.

The Hon. P. CAICA: —supply of water, but we are willing to continue and will continue to work with businesses and others to make sure that underpinning the South Australian marketplace as it relates to water will be access to diversified, fit-for-purpose supplies of water that may mitigate against the costs involved with using potable water supplies.

Members interjecting:

The SPEAKER: Order! The member for Light.

Members interjecting:

The SPEAKER: Order! The member for Light.

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