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House of Assembly - Fifty-Fourth Parliament, First Session (54-1)
2018-11-28 Daily Xml
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Matter of Privilege

Matter of Privilege

The Hon. V.A. CHAPMAN (Bragg—Deputy Premier, Attorney-General) (10:31): I rise on a matter of privilege. On 14 November 2017, in response to a question from the then opposition leader, the member for West Torrens stated:

It's important to note that every single part of Our Energy Plan—every single part—whether it's our procurement of the world's largest lithium ion battery, whether it's our renewable technology fund, whether it's our procurement, every single part has been on time and on budget. There are no additional costs to those previously announced.

The only cost stated by the then Labor government was $550 million. The Auditor-General's Report tabled yesterday confirms, 'The cost to deliver the Energy Plan was disclosed as $550 million.' The special investigator, Mr Mark Livesey QC, appointed to look into the former government's procurement of emergency diesel generators, identified that the likely overall cost for the stand-by generators would be $610 million by itself, exceeding the total cost of the former government's energy plan, put consistently at $550 million by minister Koutsantonis and premier Weatherill.

The Auditor-General's Report tabled yesterday now exposes once and for all that the full cost of the 100-megawatt battery at Hornsdale is not included in the overall energy plan budget of $550 million. Mr Speaker, in considering this matter, I urge your attention in particular to chapter 6 of the Auditor-General's Report, which commences on page 34, as to his findings but most specifically, under 6.3.2, commencing at page 38 and covered onto 39. It finds, 'The full cost of delivering initiatives in the Energy Plan was not reported.' May I draw your attention in particular to point 5 on page 38:

We observe from analysis of the 2017‐18 budget figures that:

only four years of payments (totalling $15 million) for the 100 MW battery storage were included in the overall Energy Plan budget of $550 million. These four years of payments are recognised in the Renewable Technology Fund’s grants of $75 million. The contract for 100 MW battery storage services is for 10 years. The remaining six years of contract payments, which are about $27 million, are not included in the $550 million budget because they fall outside the estimate years in the 2017-18 State Budget

He goes on to make commentary in relation to the uncertainty as to whether the long-term gas generators could be delivered within the $300 million budget. Again, more particularly at page 39, another finding states:

the $550 million budget did not include the estimated whole‐of‐life costs for delivering the gas turbine generators (ie long‐term emergency generation capacity). Again, this was because the expected cost falls outside the four‐year time frame covered by the State Budget. The Special Investigator identified that the likely overall cost for the generators would be $610 million, comprising at least $494.5 million to procure, relocate, operate and maintain them, and initial lease costs for the first 13 months of around $115 million.

Other commentary is made, but I draw your attention to about point 5 of the Department for Energy and Mining (DEM) response where they claim to provide a different view. I think it is a worthy read to identify the parameters. The report goes on to make the most damning—

Members interjecting:

The SPEAKER: Order!

The Hon. V.A. CHAPMAN: —of the statements of the Auditor-General, notwithstanding the—

Members interjecting:

The SPEAKER: Order!

The Hon. V.A. CHAPMAN: —protests of the Department for Energy and Mining on this. He says—

The Hon. A. Koutsantonis interjecting:

The SPEAKER: It is a privileges motion.

The Hon. V.A. CHAPMAN: —and I draw your attention to this, and the member for West Torrens might also like to have a good read of this:

Cabinet, DTF and DPC were all aware of the costs and the Energy Implementation Unit continues to closely monitor and report on them each month.

I ask you, Mr Speaker, to carefully consider this report and the damning report in respect of what has been claimed by the member for West Torrens on 14 November 2017.

Mr Malinauskas interjecting:

The SPEAKER: Leader, please!

The Hon. V.A. CHAPMAN: I further seek that, giving consideration to this matter of privilege, you rule on a motion to establish a privileges committee and that it should be given precedence over other business of the House of Assembly.

Mr Malinauskas interjecting:

The Hon. V.A. CHAPMAN: A QC and Auditor-General.

The SPEAKER: Deputy Premier, please! The Leader of the Opposition is not assisting here. I do understand the matter of privilege raised by the honourable member. I respectfully ask her to provide me with all relevant information. I will defer my decision and report back to the house at the first opportunity as to whether I consider the matter to be, prima facie, a matter of privilege.

Mr Malinauskas: So you are interested in QCs' opinions now?

The SPEAKER: Leader of the Opposition, please! I will have a copy of the materials, please, Deputy Premier.

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