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House of Assembly - Fifty-Third Parliament, First Session (53-1)
2014-10-29 Daily Xml
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Water Industry Reform

Mr MARSHALL (Dunstan—Leader of the Opposition) (16:58): I have a supplementary question. Given that when the former CEO, Dr Paul Kerin, was employed here, he came here on an understanding that the water industry would undergo considerable economic reform, and given that the resources have been provided to ESCOSA, and given that ESCOSA has provided 28 recommendations to the government earlier this year on water reform in South Australia, can the Treasurer advise the house how many of these 28 recommendations are going to be taken up by this government?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy, Minister for Small Business) (16:59): The state government is committed to reform. We are a reformist—

Mr Marshall: How's it going?

The Hon. A. KOUTSANTONIS: Very well. The longer you're leader, the longer we'll have to reform. The longer you're leader, the more time we'll have to reform. We have amended the Water Industry Act to create a level playing field for water retailers in South Australia. The following reforms have been pursued by the government:

We have an independent economic regulation of SA Water by ESCOSA, resulting in price decreases of 6.4 per cent in 2013-14 and price increases being limited to CPI in 2014-15 and 2015-16.

Progression of a scheme to allow for third-party access to water infrastructure, with a draft bill tabled on third-party access to infrastructure and our water industry third-party access amendment bill 2014, with the expansion of the Ombudsman to energy and water ombudsman of South Australia to independently assess SA Water's customers complaints.

Formalisation of SA Water's customer service standards through the SA Water customer charter and the standard customer contract.

Requirement for external reporting and monitoring of SA Water's performance and compliance.

Introduction of formal customer consultation requirements for SA Water's future regulatory determinations resulting in SA Water undertaking YourSAy, its biggest ever customer engagement process.

Requiring audited regulatory accounts for SA Water, in addition to the corporate accounts.

SA Water has introduced a new hardship policy, has increased transparency on non-commercial activities through a direction from the minister to SA Water and through the regulatory approach set a long-term path (three to four-year regulatory periods) ensuring customers can plan for any changes of price. Of course that would ensure the independent technical regulation of the water industry through the transfer of responsibility for technical regulation from SA Water to the Office of the Technical Regulator.

It is important to note the reforms the Leader of the Opposition is talking about, and it is very interesting that he has come out and said, 'Which one of those recommendations will we accept?' Those recommendations, and I think we are talking about the same report that was released in draft form earlier this year, which the government by and large ruled out adopting—

Mr Marshall interjecting:

The Hon. A. KOUTSANTONIS: While he giggles—because the recommendation was asking for us to increase the burden on households.

Mr Marshall: What's your plan for reform?

The Hon. A. KOUTSANTONIS: While he giggles at reform, he says, 'Why aren't you accepting that report?' For the benefit of a $30 million impact on gross state product, to increase water prices on average by $50 is the recommendation the Leader of the Opposition wants us to adopt. It seems to me that the Leader of the Opposition would see us adopt a report that would see 74 per cent of residential water customers see their annual bills increase by $50.

Mr GARDNER: Point of order, sir. The Treasurer is verballing the Leader of the Opposition and debating the matter.

The SPEAKER: The second would be out of order; the first, there is no objection.

Mr Gardner: Perhaps I was grafting another speech, sir.

The SPEAKER: You were, and so I call you to order. Treasurer.

The Hon. A. KOUTSANTONIS: The Leader of the Opposition says why haven't we accepted the recommendations of the draft report, because 74 per cent of residential water users would be worse off, and 88 per cent of concession residential water customers would see their annual water bill would be up more than $50. I held a press conference where I said we wouldn't be accepting the recommendations.

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