ADELAIDE ZOO

Mrs VLAHOS (Taylor) (14:41): My question is to the Treasurer. Can the minister inform the house on what actions the government has taken to secure the future of the Adelaide and Monarto zoos and Warrawong sanctuary?

The Hon. J.J. SNELLING (Playford—Treasurer, Minister for Workers Rehabilitation, Minister for Defence Industries, Minister for Veterans' Affairs) (14:41): I would like to thank the member for Taylor for her question and her interest in the future of these three locations. Adelaide Zoo is an iconic South Australian institution, together with Monarto Zoo and the Warrawong Wildlife Sanctuary. I can speak from personal experience that they have provided entertainment for generations of South Australian families. Earlier this year representatives from Zoos SA came to the state government to make us aware of financial problems that they had. Following the arrival of the pandas, there was a shortfall in corporate support—

Members interjecting:

The SPEAKER: Order!

The Hon. J.J. SNELLING: There was a shortfall in corporate support stemming from the global financial crisis, and the failure to secure a federal government grant meant that Zoos SA found itself in a position where they were unable to make loan repayments on a loan to Westpac of about $25 million.

An honourable member interjecting:

The Hon. J.J. SNELLING: No, it wasn't. From the moment we were made aware of the zoo's financial plight, my colleague the Minister for Sustainability, Environment and Conservation made a statement in this house in June. We made a commitment to do what we could as a government—

The Hon. I.F. Evans interjecting:

The SPEAKER: Order, member for Davenport!

The Hon. J.J. SNELLING: And he made a statement in June—and March, in fact, when we first found out. So what?

Members interjecting:

The SPEAKER: Order!

The Hon. J.J. SNELLING: Come off it!

Members interjecting:

The SPEAKER: Order! If the two members want to get up and do a talk, they can do it later on but not now in question time.

The Hon. J.J. SNELLING: We made a commitment to do what we could do as a government to keep the Zoo open. As part of the process, it was necessary to forward future funds from Zoos SA's annual government grant so that the Zoo could meet its day-to-day operating expenses while we worked with Westpac and Zoos SA to reach a resolution on the financial impasse. From the start of those negotiations, we made it clear that it was not the responsibility of South Australian taxpayers to bail out a financial institution but we would work with Westpac to make sure the Zoo had a future.

I am pleased to say that last week we found that solution—a solution that will ensure the long-term financial viability of Zoos SA. As part of that solution, there has been an increase in the annual grant provided to Zoos SA from $3.126 million per annum to $4.5 million, as well as the grant being indexed. Zoos SA's annual grant has not been indexed or increased since 2003-04. Zoos SA will not have to repay $2.3 million already brought forward from 2012-13. Importantly, Westpac has agreed to reduce its existing debt from $25 million to $7.5 million and will enter into a long-term—

Members interjecting:

The SPEAKER: Order!

The Hon. J.J. SNELLING: Importantly, Westpac has agreed to reduce this existing debt from $25 million to $7.5 million and will enter into—

Ms Chapman interjecting:

The SPEAKER: Member for Bragg, you are warned for the second time.

The Hon. J.J. SNELLING: Importantly, Westpac has agreed to reduce its existing debt from $25 million to $7.5 million and will enter into a long-term sponsorship arrangement with Zoos SA. The state government will provide a loan to Zoos SA of $2.6 million to form part of the settlement arrangement with Westpac. Zoos SA will also receive additional financial assistance to ensure that it is able to service the interest on the Westpac debt and the interest and principal on the state debt. As part of the settlement arrangement, the state government will now work with Zoos SA on arrangements that ensure that it remains financially viable. This will include obtaining the approval of the Treasurer before it takes on any further debt.

I would like to thank Westpac for the good faith our negotiations were held in, and I do note again the significant write-off of its existing debt. I would also like to mention the hard work of the current Zoos SA President, Kevin McGuinness, who, since joining Zoos SA, has worked tirelessly with the government and Westpac on the solution that we have today. The Adelaide Zoo, Monarto Zoo and Warrawong sanctuary hold an important part in South Australian life. We now have a situation where we will see future generations of South Australians being able to enjoy going to the Zoo as generations have done before.