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House of Assembly - Fifty-Third Parliament, Second Session (53-2)
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Northern Power Station

Mr MARSHALL (Dunstan—Leader of the Opposition) (14:42): My question is to the Minister for Mineral Resources and Energy. Given the minister has said that he would not even consider doing a cost-benefit analysis on the restarting of the Northern Power Station, what evidence does he have to justify his statement that it would be too expensive to do so?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:42): A couple of reasons. If you look at the second reading speeches from the privatisation of ETSA, the thought process—

Members interjecting:

The Hon. A. KOUTSANTONIS: Yes, just—

The SPEAKER: Would the Treasurer be seated. I have given the leader every scope to be the locomotive of the opposition, but really I think the house has come to the point where it has had enough of the constant interjections, and I shall have to treat him henceforth as any other member.

The Hon. P. Caica: More like the little engine that roared.

The SPEAKER: The member for Colton is warned. Alas, that will ensure the interjection is inscribed on Hansard. The Treasurer.

The Hon. A. KOUTSANTONIS: The reason we were told that the Northern Power Station was sold, along with the associated coalmine, was the risk exposed to the taxpayer from being a part of the National Electricity Market. The private sector paid a price, purchased that plant and operated it. They were unsuccessful and the plant was closed—limited life of the mine, expensive to run and very few customers. Indeed, the capacity of the Northern Power Station was up to nearly 750 megawatts and they were only operating near the end at 250 megawatts over a summer period.

If the state government was to intervene into the National Electricity Market and pay to have Northern operate—

Members interjecting:

The Hon. A. KOUTSANTONIS: If I can just finish my answer.

The SPEAKER: The leader is called to order and so is the member for Stuart.

The Hon. A. KOUTSANTONIS: If we were to engage in the government using taxpayers' money to invest in one power station, at times of high demand, when the state was reaching its peak load, the very next day the phone calls that the government would receive would be from every other energy operator in the state saying, 'Well, you're paying one generator for energy security. Where's our payment?'

Then I would be negotiating with the Torrens Island power station, with Osborne, with Pelican Point, with every other gas-fired generator in the state to pay them a capacity payment as well to operate, and then we would have cascading blackouts across the system all the time. That is how short-sighted and peak stupid this idea is. If the private sector want to turn Northern on, if the Northern Power Station was to be turned on by the private sector, then they can. The government will not stand in their way, but to use taxpayers' money to do it would put—

Mr Marshall interjecting:

The SPEAKER: The leader is warned.

The Hon. A. KOUTSANTONIS: Those interjections, Mr Speaker, show he fundamentally misunderstands the nature of the National Electricity Market. Imagine we pay to have 250 megawatts on in peak supply and then we have 1,000 megawatts come out of Torrens Island because we want to pay them to operate as well; but they can't think a move ahead—they can't think a move ahead. That is why you don't intervene in a market that is privatised, because if you did, if you intervened in this market, then there would be rolling blackouts across the state. The opposition is addicted to coal. They are addicted to coal—

Mr Marshall interjecting:

The SPEAKER: The leader is warned for the second and final time.

The Hon. A. KOUTSANTONIS: And have you noticed, Mr Speaker—

Mr GARDNER: Point of order.

The SPEAKER: Is the Treasurer finished?

The Hon. A. KOUTSANTONIS: No, sir, I haven't.

The SPEAKER: Member for Morialta.

Mr GARDNER: Standing order 98 doesn't allow the Treasurer to debate in this way.

The SPEAKER: I will ensure that the Treasurer doesn't debate the matter. Treasurer.

The Hon. A. KOUTSANTONIS: The Northern Power Station is not the only base load power station in the state, but why is it that it's the only one they are calling to be repowered? Why? Because it's coal. They don't want efficient gas, which is low carbon emitting, they want coal. They are addicted to coal; they are dinosaurs. They are dinosaurs from a past era. I have to say that it is as ridiculous as hunting whales for blubber.

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