Mike Elliott

  Extract from Hansard

Legislative Council
3 May 2001

 

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Mike Elliott
Leader Australian Democrats
Member of the Legislative Council

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QUESTIONS: REPLIES re ELECTRICITY COSTS

The Hon. M.J. ELLIOTT: I seek leave to make a brief explanation before asking the Minister for Administrative Services a question about answers to previously asked questions on the electricity supply.

Leave granted.

The Hon. M.J. ELLIOTT: On Tuesday 10 April I asked the Minister for Administrative Services several questions about the 300 contestable government bodies. The next day, recognising that the minister might not have had answers at his fingertips on the first day, I asked it again, at which point the Hon. Mr Lawson said, `I will take the questions on notice so that I can provide a considered and proper response and one that is entirely accurate, and I will undertake to do so.' The questions, `How many megawatts of power are consumed by the 300 contestable customers, what is the current cost of electricity for those customers and what is the peak demand of those customers?' are questions to which I would expect the minister to have answers in his office. My questions are:

1. Did the minister have answers to those questions in his office? If so, why has he not supplied them to this place?

2. If he does not have those answers, how is he going about the whole process of handling these contract negotiations? Or, indeed, should I just be thankful that he does not take any time to answer the questions rather than 15 minutes not to answer them?

The Hon. R.D. LAWSON (Minister for Disability Services): The process of the South Australian government going to the electricity market to obtain prices is well under way. A briefing was conducted towards the end of April which, I am informed, was very well attended. It is not a simple process, as the honourable member seems to believe. It is not simply a question of taking 300 contestable sites: it is a question of examining how sites—

The Hon. P. Holloway interjecting:

The Hon. R.D. LAWSON: The Hon. Paul Holloway asks whether we were well prepared for this. The government was extremely well prepared for this market and the people in contract services devoted time to working out an appropriate strategy to ensure that, for its own government sites, the government obtains the best electricity prices obtainable. As I say, the process is well under way and I am advised that submissions are expected within the next week. It is expected that all submissions will be in by 11 May, and they will thereupon be evaluated.

The honourable member's question concerning the number of sites contestable, I think, underestimates the complexity of the issue. For example, there is a number of hospitals and schools that are separately metered in respect of separate campuses and the like. Whether they will be aggregated or disaggregated for the purposes of obtaining the very best price is a matter that will be evaluated in the processes currently being undertaken.

As to the detail of the honourable member's questions, I do not have that information to hand but, as I said previously, I will bring back a reply in due course.

The Hon. M.J. ELLIOTT: As a supplementary question: does the minister have answers to these questions in his office, and has he supplied any of this to the Treasurer so that he can start working on the budget?

The Hon. R.D. LAWSON: It is not a question of the minister having in his office details of any contractual arrangements that the government undertakes under the auspices of the State Supply Board. Government procurement is not conducted from ministers' offices: it is conducted in accordance with the due prudential regulations by the responsible departments. A whole-of- government approach is being adopted. I have received reports about the process of the tendering and I am satisfied that it is progressing satisfactorily and will lead to a good result.


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