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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2011-03-23 Daily Xml
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REMOTE AREAS ENERGY SUPPLIES SCHEME

The Hon. D.G.E. HOOD (14:54): I seek leave to make a brief explanation before asking the Minister for Regional Development a question regarding massive hikes to water costs in our most remote communities.

Leave granted.

The Hon. D.G.E. HOOD: It may be that this question is best handled by the Minister for Infrastructure, but nonetheless the Minister for Regional Development is here so I will ask and receive an explanation. Coober Pedy and some 12 other remote communities have recently been informed that their electricity under the Remote Areas Energy Supply Scheme will soon become much more expensive. Indeed, a question was asked by the Hon. Mr Stephens in this place yesterday regarding the effect of those electricity price increases on residents. However, it is also important to note that the electricity price rises will also, by implication, mean an increase in water costs for these communities.

The double whammy (if you like) is due to these locations largely being reliant on desalinated water. The water desalination plant at Coober Pedy, for example, which was installed in 1985, uses a reverse osmosis process that is quite energy intensive. Salty water also needs to be pumped from 60-metre deep artesian bores located 23 kilometres north-east of Coober Pedy and delivered to the town via a 200 millimetre pipeline alongside the Oodnadatta track.

The District Council of Coober Pedy provided figures to me showing that the cost of water for residents will skyrocket due to the higher power prices. The council estimates that the effect of the tariff increases to council will require the budget for running the desalination plant to be more than doubled, from approximately $177,000 to approximately $363,000 annually. The mayor wrote to me today and noted ominously that 'the decision to raise commercial tariffs by, in some cases, 120 per cent will be the end of Coober Pedy and the other 12 towns in the north of South Australia'. My questions to the minister are:

1. What will the government do to ensure that residents living in these remote townships can actually afford to use water and electricity?

2. Will the government reconsider this crippling tariff increase?

The Hon. G.E. GAGO (Minister for Regional Development, Minister for Public Sector Management, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises) (14:56): I thank the honourable member for his most important question. The minister responsible for water really is the lead minister in relation to the particular matters raised today, and I am happy to refer those questions to him and bring back a response. However, residents at Coober Pedy face significant challenges. I have visited there on a number of occasions and I am aware of the significant challenges that that community faces. In the past, they were under pressure of declining growth—they were losing population quite quickly—but now with mining interests that has turned around and things look more positive, but that, in turn, creates a set of new and different challenges on the community, particularly around water, power and such like.

I remind residents there that funding grants are available for which I am responsible: the Regional Development Infrastructure Fund, which is around $3 million a year, involves three different funding rounds a year. So I certainly invite residents there, particularly the council, to consider proposals they might be able to put forward through that particular initiative. Of course, there is also the RDA funding. Coober Pedy is part of a RDA. The RDIF funding in particular is about providing funding for those regional communities which, because of their distance, etc., are disadvantaged.

The RDA federal funding first round grants begin in March and close in May. It is likely that future rounds will be advised at a later date. Significant funding is available there and obviously that is about investing in sustainable communities and regions. I invite them to consider those sorts of proposals. I remind honourable members that this government is very much committed to regional Australia.

There is a range of initiatives; particularly in the last budget, this government committed to new initiatives. There was the $33.8 million over two years to meet requirements of extensions to the exceptional circumstances drought relief program by the commonwealth government; there was the $29.9 million to refurbish the Port Bonython jetty, $20 million over four years for the Riverland Sustainable Futures Fund, $12.8 million to tackle the plague—

The PRESIDENT: The minister should get back to the relevance of the question.

The Hon. G.E. GAGO: I could go on, Mr President.

The Hon. J.S.L. Dawkins interjecting:

The Hon. G.E. GAGO: It has got to do with the commitment of this government to regional South Australia. It has a lot to do with commitment to regional South Australia. I need to remind members that those commitments were made in the aftermath of the global economic crisis and with the backdrop of very severe budget cuts and savings, yet we were still able to find additional money for regional South Australia. So, although there is obviously still a wide range of issues and challenges for us in regional South Australia, this government remains very committed to meeting those challenges.

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