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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2012-10-16 Daily Xml
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DESALINATION PLANT

Mr WILLIAMS (MacKillop—Deputy Leader of the Opposition) (15:07): My question is again to the Premier. Does the Premier agree with his government's former commissioner for water security, Robyn McLeod, that the $853 million between the cost of a 50 gigalitre desalination plant and a 100 gigalitre desalination plant is miniscule? Robyn McLeod said last week:

...when we put the 50 gigalitre plant out to tender, we asked the tenderers to also put up the price on a 100 gigalitre plant....when the prices came in, the difference between building a 50 and 100 gigalitre plant was miniscule.

The WorleyParsons report dated June 2009, released by the government last week, lists on page 10 of appendix 1 the additional costs of the expansion of the desal plant at a total of $853 million.

Members interjecting:

The SPEAKER: Order!

The Hon. J.W. WEATHERILL (Cheltenham—Premier, Minister for State Development) (15:08): Unsurprisingly, we disagree with the analysis of the Deputy Leader of the Opposition, and the option—

Mr Williams interjecting:

The Hon. J.W. WEATHERILL: The option to—

Mr Williams interjecting:

The SPEAKER: Order!

The Hon. J.W. WEATHERILL: Sorry, I have accused him of analysis—that's something we could never accuse the Deputy Leader of the Opposition of. The option—

Mr Williams interjecting:

The Hon. J.W. WEATHERILL: If you could just be quiet for a moment and allow me to develop my answer. The option to double the capacity of the plant to 100 gigalitres increased the capital it costs—

Members interjecting:

The SPEAKER: Order!

The Hon. J.W. WEATHERILL: —by $450 million, so that is the actual increase: $450 million. And, in relation to that extra amount, $228 million of it was picked up by the commonwealth, leaving us with a balance—

Members interjecting:

The SPEAKER: Order!

The Hon. J.W. WEATHERILL: —leaving us with a balance of $222 million. So—

Members interjecting:

The SPEAKER: Order!

The Hon. J.W. WEATHERILL: This was not a difficult equation. About an extra 10 per cent on the total cost of that desalination plant will take you from 50 to 100 gigalitres in circumstances where we are getting the best advice to say that we are not going to be able to project ourselves as a secure investment location because we cannot guarantee the water security of this state over the long term.

That is what allows people like Nigel McBride, who is not known as some left-leaning socialist, to say to the opposition, 'Grow up.' It leads him to say that he supports the 100 gigalitre plant and he believes that this is important in the long-term economic security of the state. Perhaps you could advance your arguments to Business SA because they are not on board. They do not understand what you are talking about. They do not understand why you are coming in here advancing economic propositions which are to say the least lightweight, which demonstrate a lack of experience and competence of those who are seeking to advance themselves as an alternative government.

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