PUBLIC WORKS COMMITTEE: PORT WAKEFIELD WATER SUPPLY UPGRADE

Mr SIBBONS (Mitchell) (11:50): I move:

That the 474^th report of the committee on the Port Wakefield Water Supply Upgrade be noted.

The estimated cost of the water supply upgrade works is $17.089 million. SA Water proposed upgrading the current limited potable water supply to the Wakefield region in support of a state initiative to facilitate the expansion of the existing poultry industry in the Balaklava/Port Wakefield area and increase potential residential development in Port Wakefield and Balaklava.

The upgrade in the water supply will also provide capacity for the supply of water to Rex Minerals' proposed mining operations at the Hillside mine, south of Ardrossan, on Yorke Peninsula. The additional pipeline connection from Port Wakefield to Rex Minerals is not part of this proposal. This proposal comprises the construction of an estimated 43-kilometre-long potable water pipeline (including all ancillary related infrastructure) from the existing Upper Wakefield storage (near Auburn) to Port Wakefield township via Balaklava and Bowmans.

The expected outcomes and benefits of the project are to facilitate the sustainability of the region's towns by providing a reliable water supply and to support the growth of the regional economy via potential job creation during the construction of new houses and poultry farms, the operations of those farms and the mining activities; expected cash flow through the region; and financial turnover generated from the poultry farms.

The Regional Development Australia Fund (RDAF) supports this investment in infrastructure needs for the economic and community growth of the Wakefield regions. Rex Minerals (for their proposed mining operations at Yorke Peninsula) support and will also fund a total of $13.007 million towards the construction cost of the water supply upgrade infrastructure.

A funding agreement between SA Water and Rex Minerals has been entered into, and a funding agreement for the RDAF via the Wakefield Regional Council has also been agreed. The project is expected to be completed by May 2014. Given this, and pursuant to section 12C of the Parliamentary Committees Act 1991, the Public Works Committee reports to parliament that it recommends the proposed public works.

Mr GRIFFITHS (Goyder) (11:53): I wish to speak in support of this motion and commend the Public Works Committee on supporting this investment that is occurring predominantly within the Goyder electorate. It has been an issue that the community has been pursuing for some time. I know it was probably about 6½ years ago that the Hon. Rory McEwen, as the then minister for regional development, approached me about the fact that it was being considered and got very close to a level of support then, with him trying to find the finances for it.

I know that the Wakefield Regional Council has fought long and hard for this. The support of the Regional Development Board and now the RDA in its place has been outstanding on this but, importantly, industry and community benefit is going to be pronounced. While I was unable to attend the Public Works meeting to speak in support of it and, potentially, to ask some questions about it, I was very pleased to put in a submission to express my absolute total support for the project.

I am very pleased that it is happening and I, like everyone in the chamber, look forward to the benefits that flow from it (no pun intended) for residential, light industrial, intensive animal keeping; and with the comment from the member for Mitchell about the memorandum of understanding that exists between Rex Minerals and the contribution they are making towards a further augmentation of the pipe if that development occurs. I confirm to the house that they lodged an application yesterday for a mining lease, not just an exploration permission. If that occurs, and with the water augmentation that is going to occur, it will be very beneficial for the region at large and I look forward to its swift construction and benefit for all people.

Mr PENGILLY (Finniss) (11:55): I am pleased that the member for Goyder has made that contribution. It was most unfortunate that he could not be there that day when we discussed this matter. The opposition members of the committee were most supportive of the proposal, and it is something that will stand the area and the region in good stead for the future. Regional water supplies are a matter of great importance to us, those who come from the country. As indeed city members are concerned about the water supply to Adelaide, so are we where we are. So, I look forward to it coming to fruition and I am pleased to support the project.

Motion carried.