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Legislative Council - Fifty-Third Parliament, Second Session (53-2)
2016-06-07 Daily Xml
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SA Water

The Hon. R.L. BROKENSHIRE (15:11): I seek leave to make a brief explanation before asking the Minister for Water and the River Murray a question about SA water prices.

Leave granted.

The Hon. R.L. BROKENSHIRE: It has been reported this week that South Australian households and businesses will finally get a break, albeit a small one, with the state government taking the advice of the Essential Services Commission and dropping the price of water. The government has been out in the media promoting the many benefits it believes will come from this saving, which the Treasurer has said will average $87 a year or, to put it in layman's terms, the equivalent of about one tank of fuel each year for someone living in a rural area.

I must say to the house that I have never seen so much spin and back twisting as I saw with the minister with responsibility for SA Water on television the other night. Spin, spin—he is a great dancer, it is unbelievable the spin. My questions are:

1. Can the minister explain how saving 12¢ per kilolitre will boost the economy of South Australia, as the Treasurer claims?

2. The minister told 891 ABC that the reduction in water bills would affect the government's budget bottom line. Now, considering the government's record, which usually means that, when they put down the price of one thing, the price of something else inevitably goes up, or a new levy is sprung on the community, can the minister tell this house how the budget shortfall will be handled, how they will manage the shortfall of $60-odd million (or whatever is the figure)?

I ask for your guidance and support on this, Mr President: just for once could I please have three answers to three questions, rather than another chapter from the written notes of the adviser?

3. If the government doesn't need to fix this bottom line, will the minister agree that the higher prices South Australians have been paying for water have been over inflated, and therefore over several years have been nothing but a cash grab on water and sewerage users of South Australia by his government?

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Climate Change) (15:13): Again, I thank the honourable member for his most cogent question, praising the government for what we are doing to drive down pressure on South Australian families in terms of cost of living, driving down the prices of SA Water, unlike the Liberals, who privatise utilities and drive up the costs to the community, but that is a story for another day.

This state government is committed, as I said earlier, to easing the cost-of-living pressures on families and helping to reduce households bills. Our policies have seen another reduction for families and businesses. Starting on 1 July 2016, metropolitan residential customers can expect to save around $87 on average water and sewerage bills in 2016-17. This is on top of the $44 average reduction when this government first appointed the Essential Services Commission of South Australia to independently regulate water services. This government provides a comparatively high level of revenue towards community service obligations when compared with other utilities.

In 2016-17, this government will provide $122.43 million, I'm advised, in community service obligations. These CSOs allow SA Water to provide concessions to approximately 120,000 property owners statewide, and it can be up to about 30 per cent of the annual water bill. As part of the state government's tax reform package, the Save the River Murray levy was abolished on 1 July 2015. This provided annual savings in 2015-16 water bills of $40 to most households and $182, I am advised, for businesses. I thought that was $181, but I will check that. This equates to a total saving of almost $109 million over four years. This government continues to ensure that South Australians have access to reliable and quality water at an affordable price.

Let me put on the record a couple of things whilst I have the opportunity that the Hon. Mr Brokenshire's questions afford me. He asks about business and the impact on business. Let me just read to him a few quotes and then he can guess where they come from. This one will give it away straightaway; I will start at the beginning:

Business SA welcomes the Essential Services Commission of SA’s determination on SA Water as it will lower the costs for both businesses and consumers, Business SA Senior Policy Adviser, Andrew McKenna said today…While Business SA supports ESCOSA’s stance on SA Water’s costs, including keeping wage rises capped at CPI, we recognise the need for SA Water to maintain its focus on mains replacement which ESCOSA has enhanced with an approximate 20 per cent increase in the mains replacement category of SA Water’s capital expenditure allowance.

Water has been a fast rising cost of doing business in South Australia for several years, particularly impacting key export orientated sectors such as food and beverage manufacturing. Today’s decision providing relief on water prices is vital to supporting the State’s economy.

An honourable member: We love your questions, Brokey. You should ask them every question time.

The PRESIDENT: Order!

The Hon. I.K. HUNTER: The Hon. Mr Brokenshire is absolutely at the tip of the commentary today. He, along with Business SA, wants to commend the government for the work that they're doing proactively in driving down cost to businesses but also families. Business SA also says:

It is also good news for business that the average household bill will fall by $87 per annum putting more disposable income in the pockets of South Australians to spend locally.

A great success story for ESCOSA, a great success story for South Australian businesses and families, and a great success story for this government's regulation of SA Water.

The PRESIDENT: Supplementary, the Hon. Mr Brokenshire.

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