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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2013-02-07 Daily Xml
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Ministerial Statement

WATER PRICING

The Hon. J.W. WEATHERILL (Cheltenham—Premier, Treasurer, Minister for State Development, Minister for the Public Sector, Minister for the Arts) (14:04): I seek leave to make a ministerial statement.

Leave granted.

The Hon. J.W. WEATHERILL: South Australian Labor governments have a proud history of providing relief against the costs of living. Former premier Don Dunstan introduced the first state concession regime, and Labor governments since have moved to increase concessions when circumstances have allowed.

This government understands the concerns South Australians have about cost-of-living pressures, and this is why we have moved to ease some of the burden. We have moved to ease the burden of electricity prices, deregulating prices and locking in a 9.1 per cent discount from AGL for the next two years. We are moving to reform the compulsory third-party insurance regime to decrease the cost of premiums for motorists, and last year we limited the impact of water price increases through the water rebate.

Over the past five years, there have been substantial increases in water prices. These have been necessary to recoup the cost of significant investment in water infrastructure, principally to pay for the new desalination plant and interconnection pipeline linking our two main reservoirs. These measures have been undertaken to secure our water supplies into the future.

Our water infrastructure not only provides for our drinking water, our public health and our amenity, it is also critical economic infrastructure. We live in the driest state in the driest inhabited continent. Throughout our history, South Australians have been concerned about having enough water. Through these investments, these days are now behind us.

But the cost of this infrastructure and the water price increases necessary to fund them have been significant. This is why last year the former treasurer moved to ensure that our independent regulator, the Essential Services Commission of South Australia (more commonly known as ESCOSA), would set SA Water's revenues. This move is designed to limit future price increases for South Australians, while preserving the role of ESCOSA as an independent regulator.

Today, ESCOSA has released its draft determination on water revenues for SA Water for 2013-14 and the revenue path going forward. The draft determination outlines a real decrease in water revenues of 5.4 per cent for 2013-14 and no revenue increase in real terms for the two years following. It also outlines a real increase in sewerage revenues of 1.7 per cent in 2013-14 and no revenue increases in real terms over the price path.

This government welcomes this draft determination. If ESCOSA maintains a similar revenue path in its final determination, the government will be able to deliver a cut in water prices to South Australians. We will be working through the detail of the draft determination, and I look forward to coming back to the house to advise of the final water prices once the process is completed.

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