Livestock producers hope for SA Water price drop

But any relief is not expected to flow until July next year.

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The report's author, former regulator Lew Owens, found the former Labor government had deliberately inflated the starting asset base of SA Water by $520 million in 2012 to protect its revenue, driving up water bills.

Treasurer Rob Lucas said SA Water prices would not be known until next year and would depend on the independent regulator, the Essential Services Commission of SA, but expected prices will come down in light of the report and present "low interest rate environment".

"In the recent state budget, we announced we've made provision for reduced revenues as a result of the expected reduction in water bills," he said.

Livestock SA and the Coorong Water Security Advisory Group remain concerned there will not be a significant drop from the present $3.37 a kilolitre price. This is seeing livestock producers pay up to $100 a head a year to run cattle and about $10 for sheep.

Livestock SA vice-president Penny Schulz said the inquiry's findings were a "good first step", but producers still faced another 12 months of the "most expensive water in the country".

The Field producer personally believes between $2/kL and $2.50/kL is a "fair and reasonable" price for mains water and would like to see that remain unchanged for some time, rather than a 150 per cent jump seen across a five-year period.

"There are not many industries that have to absorb that sort of increased cost to their business," she said.

"We are just lucky that after starting campaigning the government, we have seen some really good increases in red meat and wool prices, but these things are out of producers' control, they could lose these returns over time."

Livestock SA put in several submissions to the inquiry and has lobbied hard for a price drop as well as government assistance for producers to improve their water security, and reduce their reliance on mains water.

"Some producers have already taken this up themselves but there is always more to be done," she said.

Ms Schulz also hopes Water Minister David Speirs and Primary Industries Minister Tim Whetstone will use the PIRSA-Livestock SA report - which was commissioned by the previous Labor government but seems to have fallen by the wayside - as a guide.

"The current government is very pro-agriculture and rural communities, which is very pleasing, but this is the next area where it can make a big difference," she said.

"They want SA to be a great place to do business but for that to happen it needs to be low cost, reducing the water costs and increasing water security is a smart move."

CWSAG chair Henry Angas is sceptical the drop will be no more than 5pc to 10pc and is disappointed that the government, which in opposition promised to look at the situation, has been "no better than their predecessor".

He says if the drops are not "significant", producers should be financially supported to install their own water infrastructure such as desalination plants, lined catchments or pumping from known aquifers or lakes

"Most of the SA Water (water) is coming out of the River Murray system and in a time when there are concerns about the environmental issues facing the Murray, it makes sense to help producers get off the system," Mr Angas said.

"Irrigators are getting state and federal government support to become more efficient, I can't see why livestock producers should be treated any differently."