KANGAROO ISLAND DEVELOPMENT

Mrs GERAGHTY (Torrens) (15:03): My question is to the Premier. Can the Premier update the house on the government's new approach for supporting development on Kangaroo Island?

The Hon. M.D. RANN (Ramsay—Premier, Minister for Economic Development, Minister for Social Inclusion, Minister for the Arts, Minister for Sustainability and Climate Change) (15:03): I went to Kangaroo Island on Friday with many of my colleagues here and I will be returning tomorrow for the 175^th anniversary of European settlement of Kangaroo Island by British settlers. In fact, it was part of the plan really, it could have been the capital of South Australia, and, if you listen to the member for Finniss, it may still well be. So tomorrow is a very important day in our state's history.

This past weekend, the cabinet travelled to the island for the government's 55^th community cabinet meeting, the third time the cabinet has been to the island since we were elected in 2002. Ministers took the opportunity to appreciate the outstanding beauty of its wild landscape, and through meeting many, many hundreds of people and travelling across the length and breadth of the island to see firsthand the challenges that communities on the island face.

Many of these challenges are addressed by the Economic Development Board in its report Paradise Girt by Sea that was released on Sunday. The government is already responding to many of the key recommendations in that report. Over the weekend we announced a new approach on how we support Kangaroo Island, backed by millions of dollars in new infrastructure and legislation.

This new approach includes establishing a single authority, working with federal, state and local government and the private sector, to coordinate development on the island over the next five years. The authority will be supported by a board led by the EDB chairman Raymond Spencer, and will report directly to the Deputy Premier—which is, of course, appropriate to his role in planning, as well as tourism and food marketing. The authority will examine how to encourage appropriate development that addresses:

links to the mainland;

the cost of establishing and doing business on the island;

road and other transport infrastructure, including the airport;

power generation, including examining renewable options;

the protection of native vegetation; and

the skills base available on the island.

The EDB report also called on government to consider what options there were for dealing with the so-called 'water gap', which reflects the additional costs for passenger and freight movement to and from Kangaroo Island. The EDB rejects proposals for a standing subsidy for the island, but suggests considering some form of taxation relief. Therefore, the new authority will examine whether there is a sound business case for time-limited taxation relief for the island.

The government's new approach to supporting the island received a very enthusiastic welcome. Mayor Jayne Bates very generously supported the government's approach and commitment to make things happen on the island. In a presentation to cabinet yesterday, she said that there was nothing more she could ask for.

I also want to pay tribute to the member for Finniss, who has been an effective advocate for his electorate and who has supported many of the initiatives now being pursued by the government. I would like to thank the member for Finniss for his interactions with us; indeed, prior to this, many months ago—

Mr Pengilly: And football!

The Hon. M.D. RANN: Yes, we will get on to that. We have had many meetings, and I think it is terrific to be addressing Kangaroo Island in a bipartisan way. However, that bipartisanship ran out on the football field, on the oval at Parndana, in a spectacular clash between the member for Finniss and myself, with some interesting comments from the crowd.

In truth, as far as the rest of the world is concerned, Kangaroo Island is an Australian tourism icon that sits alongside the Great Barrier Reef and Uluru. Tourists go to the island seeking the opportunity to enjoy our nation's unique flora and fauna, beaches and bush all within one package. Yet many South Australians and visitors from interstate are yet to explore this amazing destination right on our doorstep. That is why the South Australian Tourism Commission will spend $6 million over the next financial year making the island the star of our interstate tourism campaign, with a big focus on television advertising promoting the island.

Alongside tourism the island is also developing a deserved reputation for the quality of its clean and green local produce—particularly in niche markets for honey, dairy, lamb and grains—and that needs to be supported to reach its full potential. We are also backing our commitment to the island with many million of dollars of investment including:

$8 million over four years to improve key roads (which was announced in the budget);

$5 million earmarked to create a world-class multi-day walking trail, a sort of Milford Track approach to a five-day walking/camping trail along the coastal areas;

$1.7 million for stage 2 of the Seal Bay boardwalk upgrade;

$1.2 million towards the construction of a new passenger ferry terminal at Penneshaw;

$620,000 spent on restoring the historic Kingscote jetty, which was officially opened by the transport minister in the last day or so after he returned from fishing—

The Hon. P.F. Conlon: For one hour.

The Hon. M.D. RANN: 'For one hour,' he says. I continue:

$500,000 to be divided between two feasibility studies for a renewable energy solution to the island's power generation challenges, including looking at the possibility of a considerable biomass plant that could be the base load for renewable power on the island;

$500,000 through the Premier's Renewable Energy Fund to provide solar power to a redeveloped airport;

$400,000 for the construction of a new landing point at Penneshaw jetty to enable tender vessels to ferry passengers between large cruise ships anchored offshore and the island; and

$400,000 to upgrade the road to Cape de Couedic on the south-western tip of the island.

It is crucial that development on the island must protect its unique natural heritage and its pristine environment. To ensure this, the Deputy Premier will also, following along from McLaren Vale, Willunga and Arkaroola, introduce new planning legislation to protect Kangaroo Island from inappropriate development. I am prepared to say today that we could call it the Kangaroo Island act.

We have a rare opportunity to ensure that Kangaroo Island is developed in a way that reflects its unique character. It is not an opportunity to be wasted. I know there are honourable members opposite who were born and raised on Kangaroo Island, and I look forward to joining them on the island tomorrow for this very historic day.