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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2011-06-07 Daily Xml
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WATER PRICING

The Hon. J.S. LEE (15:17): I seek leave to make a brief explanation before asking the Minister for Regional Development a question about high water prices in the Mid North.

Leave granted.

The Hon. J.S. LEE: As reported on ABC Radio on Tuesday 17 May 2011, the Clare Region Winegrape Growers Association President, John Bastian, raised concerns about the high price of bulk water in the state's Mid North. Grape growers in the Clare region say that they pay nearly three times as much for water as their counterparts in the Barossa. Clare growers are paying 250 per cent more for their irrigation water than they did five years ago.

The Australian Competition and Consumer Commission is investigating the South Australian government's water pricing in the state's Mid North. The Clare growers' association says increased water prices could force some growers in the region to abandon their vineyards. My questions to the minister are:

1. With the ACCC investigating the water pricing in the Mid North, has the minister consulted with the water minister to advocate for the grape growers in the Mid North?

2. When the story was reported in May the association said that it had written to the government but was still waiting for a response from the government, so can the minister give us an update on that?

3. Also as reported on Efficient Farming, 'These prices are an added blow to growers who have had to grapple with vine disease, heavy rain and low grape prices this season.' With few growers making a profit this season, what consultation has the Minister for Regional Development had with grape growers in the Clare Valley?

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, Minister for Gambling) (15:19): I thank the honourable member for her important question. I believe that she is referring to the price of groundwater that is used mainly for irrigation purposes. Is that so?

The Hon. J.S. LEE: Yes.

The Hon. G.E. GAGO: The prices for groundwater used for irrigation are set by the NRM boards. The NRM boards are made up of local community members.

The Hon. P. Holloway interjecting:

The Hon. G.E. GAGO: I do not think the Hon. Caroline Schaefer is on that particular board.

An honourable member interjecting:

The Hon. G.E. GAGO: She is the chairwoman of the NRM board, I am advised. So, there you go: the Hon. Caroline Schaefer, a former Liberal member in this place, is the chair of that particular NRM board. So, you can see, Mr President, that these boards are made up of local community members. The board is, in fact, responsible for water planning, the prescription of water in those areas and the pricing of water. Local community members are responsible for setting water prices.

Legislation requires that these boards undertake really extensive public consultation in setting their water plans. These plans have to be made publicly available and be consulted on so that all key stakeholders, including irrigators, have an opportunity to input into that water plan and have their say and make sure that their interests are represented in that plan.

The purpose of those plans is multifold, but one of the primary purposes is to ensure the long-term viability of our water supply so that industries such as grape growing, and other industries that rely on irrigated water supplies, are able to have security in terms of their industry and can make long-term business plans and offer security and viability to that industry and to their vested interests. That is what the purpose of those plants are all about—ensuring that the water that is available is fairly distributed amongst water users, that it is done in a fair and open way and that the cost of water reflects the cost of doing that.

Those particular matters are dealt with through the water planning process and the NRM boards that are appointed, and members of the public, members of the local community, such as the Hon. Caroline Schaefer, take responsibility for them. I would suggest to the Hon. Jing Lee that she perhaps writes to or meets with the NRM board and expresses her views to that particular board.

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