Calls to shrink SA ministry, cut red tape

South Australia should ditch more than a third of its ministers and give councils more responsibility to cut red tape, a new report says.

The SA Centre for Economic Studies has taken aim at unnecessary regulations it says contradict government rhetoric on efficiency and cost-cutting.

The think-tank says SA could get by with nine and not 14 ministers because of the state's relatively small population.

"I'm not saying who should disappear. It's not a question of individuals, it's a question of per capita figures," SACES executive director Michael O'Neil told AAP on Wednesday.

Prof O'Neil said the government could outsource some lower-level responsibilities to beefed-up local councils and leave ministers to focus on bigger-picture issues.

"People will still have a job, they'll just be employed at a local level rather than centrally," he said.

SACES also accused the government of inflating the price of water to prop up spending in other areas.

Prof O'Neil said this left Adelaide with the highest water supply and usage prices in metropolitan Australia.

"The government is increasing input costs for companies and then on the other hand saying you need to be more competitive," he said.

The Essential Services Commission of South Australia dictates the maximum revenue that can be recovered from water and sewerage customers but, in doing so, must comply with pricing orders set by the treasurer.

It's not the first time the government has been accused of inflating the value of SA Water's asset base, which in turn lifts average revenue caps.

SA households could save about $40 a year on their water bills from July under a draft ruling from ESCOSA.