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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2012-07-12 Daily Xml
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DESALINATION PLANT

Mr WILLIAMS (MacKillop—Deputy Leader of the Opposition) (14:57): Thank you, Madam Speaker. My question is again to the Minister for Water and the River Murray. How can South Australian water consumers be assured that this year's 25 per cent water price rise will go to paying for the desalination plant, which is the reason you have given for the price rises over recent years, and not be syphoned off to Treasury like it was last year?

The Hon. J.J. SNELLING (Playford—Treasurer, Minister for Workers Rehabilitation, Minister for Defence Industries, Minister for Veterans' Affairs) (14:58): The simple fact is that SA Water, at the moment, particularly with the desal plant, if you take into account the effect of the horizontal fiscal equalisation impact of the grant to expand the desal plant from the commonwealth, all in all costs us more money. More money comes out of Treasury to SA Water than we get back. There is actually a net loss to Treasury. You have to remember that there are significant CSOs that are paid to SA Water to provide for uniform statewide pricing. So, when you take into account the effect of the grant and the effect that has had on our GST payments, there is a net loss to Treasury from SA Water. The dividends aren't as much as goes out.

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