‘More questions than answers’ on Mali’s SA Water move
The Premier will bring SA Water back under government control and create a new body to keep the state’s gas in South Australia if re-elected in March. The state opposition claims there’s little detail in the proposal.
SA Labor this morning announced it would create a new body called the SA Gas & Water Trust, which would be in charge of the government-owned corporation SA Water and the state’s Strategic Gas Reserve, if re-elected in March.
Premier Peter Malinauskas said the new Trust would ensure South Australian gas currently being exported would instead be used by local industry.
And SA Water would be de-corporatised and brought under the Trust, alongside industrial water projects, including the $5 billion desalination project, Northern Water.
SA Water – in charge of the state’s water and sewerage network – has operated as a statutory corporation owned by the state government and governed by a board of directors appointed by the government since 1995. It currently reports to Housing Minister Nick Champion.
Labor positioned the policy announcement as yet another lever to alleviate housing stock pressure, noting the Trust would be charged with driving coordinated planning and supporting housing growth. The party recently set itself a target to build 13,500 homes per year and the necessary water infrastructure.
The Trust would take responsibility for the South Australian Gas Reserve – the government’s long-term gas contract with SA’s top company, Santos. The two parties recently signed a deal securing 20 petajoules of gas per year from Santos that would otherwise be exported overseas.
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A re-elected Labor government would convene a task force to provide technical advice on the legislative and regulatory framework to create the SA Gas & Water Trust. Legislation would be introduced in the 2026-27 financial year, the party said.
Energy and Mining Minister Tom Koutsantonis said the gas supply agreement was “a nation-leading game-changer that will fundamentally change the Australian energy market”.
“This is a generational opportunity to underpin the energy needs of South Australian industry and safeguard capacity, and the establishment of the SA Gas & Water Trust will ensure the benefits of this historic deal are maximised for all South Australians,” Koutsantonis said.
Urban Development Institute of South Australia chief executive Liam Golding said the announcement reflected long-standing industry calls for coordinated and accountable delivery of essential services.
“Water infrastructure is currently the primary impediment to housing supply,” Golding said.
“A dedicated body with a clear focus on planning and delivering water infrastructure in step with growth has the potential to remove bottlenecks and provide the certainty our industry needs to invest and build.”
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While Property Council of Australia SA executive director Bruce Djite said he was “cautiously optimistic”.
“Execution is what matters. Industry must have a seat at the table to get more homes and industrial land built faster and with certainty,” he said.
But Shadow Treasurer Ben Hood said the announcement raised “more questions than answers”.
“The core question for us at this present time is: can the Premier guarantee that water pricing, capital allocation and infrastructure sequencing will not become subject to political direction once SA Water is de-corporatised and folded into the new trust?” he said on ABC Radio this morning.
“In the Premier’s media release right here, it is simply saying that it’s going to convene a task force to provide technical advice on the legislative and regulatory framework.
“But there is absolutely no detail around it.”
Greens pitch Hills rail return
Meanwhile, SA Greens leader Robert Simms today announced his party’s plan to return passenger rail to the Adelaide Hills via an extension of the Belair Line to Mount Barker.
The party said the plan would cost $700 million, with trains to run every half hour.
“It’s disappointing that during this election campaign we haven’t seen any significant public transport announcements from Labor and the Liberals,” Simms said.
“The Greens have an exciting plan to get rail to Mount Barker on track and link the hills to the city, easing congestion and reducing carbon emissions.”
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