Federal minister backs selling SA Water

Federal Assistant Infrastructure Minister Jamie Briggs has backed selling off South Australia's water assets.

The state government has ruled out privatising SA Water but Mr Briggs says he believes it would be a good idea to provide funds for infrastructure spending.

"Unlocking the cash from mature assets to invest in new infrastructure is a very good way to help boost the economic performance of the state," Mr Briggs told ABC radio on Tuesday.

SA Treasurer Tom Koutsantonis said the federal government had indicated the state could receive up to $14 billion if it sold SA Water.

But Mr Koutsantonis said the SA government had ruled against giving private groups control over the state's water assets.

"We live in the driest state in the driest country in the world and we are prone to drought," he said.

"If we privatise our assets they will control one of the most important commodities that we need in this state.

"Water is not like any other commodity. Without it we cannot survive."

But Mr Briggs said reinvesting asset proceeds into infrastructure would help build the capacity of the state's economy.

He said water would remain a regulated asset under private ownership.

"In the current situation that South Australia finds itself in, I think it would be wise for people to stop running scare campaigns and instead have a genuine assessment," Mr Briggs said.