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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2013-06-05 Daily Xml
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WATER PRICING

The Hon. I.F. EVANS (Davenport) (15:00): My question is to the Premier. Why did the Premier use a 190 gigalitres a year water demand forecast for the regulatory period commencing on 1 July, given that ESCOSA and SA Water had demand forecasts of 180 gigalitres a year, and can there be an impact on future water prices if this demand forecast does not eventuate?

The Hon. J.W. WEATHERILL (Cheltenham—Premier, Treasurer, Minister for State Development, Minister for the Public Sector, Minister for the Arts) (15:00): I thank the honourable member for his question. This year we are on track to use 195 gigalitres of water, so using 190 gigalitres of water is a fairly sensible estimate over the next three years. We have not noticed the effect that we expected to see in relation to water restrictions lessening.

Once the water restrictions were removed, people began to increase their consumption of water; that seems to have flowed through to consumption figures. That is even despite the fact that we have permanent water conservation measures. So, that number of 195 is with permanent water conservation measures, and we think there is no good reason to think that will not continue in the future. The other thing is that if you use a lower estimate—so, if you get it wrong—it would have been higher water prices. That was another reason why we were very keen to get the estimate to be the correct estimate.

In terms of future water prices, in three years' time we will review the situation. There is no necessary reason why this should have this effect. We still have the capacity to review water prices. I have asked for ESCOSA to carry out a review so that when we set the regulated asset base it doesn't have any perverse effects in relation to water prices in the future. We have been very pleased to be able to deliver a water price reduction which, together with the concessions that we have put in place, means that for pensioners there will be little or no increase at all in their water prices, which will be a welcome relief.

We cast our eyes over to Queensland and look at the alternative proposition over there, where in the Queensland budget they are removing concessions for utilities. We are seeing electricity prices go up between $200 and $300 for households and then having electricity concessions that were promised in the order of $100 or $200 (I'm not sure what that number was) ripped out. We are seeing a dramatic difference in the approach of this Labor government and the Liberal government in Queensland, which might be a taste of things to come should those opposite ever have the opportunity of forming a government.

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