SOUTH EAST FORESTRY PARTNERSHIPS PROGRAM

Mr PEGLER (Mount Gambier) (14:55): My question is to the Minister for Manufacturing, Innovation and Trade. Can the minister update the house on his visit to my electorate of Mount Gambier last week and the announcements regarding the South East Forestry Partnerships Program?

The Hon. T.R. KENYON (Newland—Minister for Manufacturing, Innovation and Trade, Minister for Small Business) (14:55): Happily, I can. I would like to thank the member for Mount Gambier for his hospitality. He is an admirable advocate for his region and his electorate. It is always a pleasure to spend time down there and get shown around by him.

Mr Venning interjecting:

The Hon. T.R. KENYON: I'm in the Barossa more often than you think.

The SPEAKER: The member for Schubert is warned for the second and final time.

The Hon. T.R. KENYON: It was a pleasure to pay the member a visit last week in his electorate at Mount Gambier to announce the state government's continued support for the South-East through our South East Forestry Partnerships Program. The South East Forestry Partnerships Program is a $27 million merit-based state government grant program, which is accessible by eligible applicants in the South-East. The broad objectives of the South East Forestry Partnerships Program are to encourage forest utilisation, promote regional economic development and contribute to a sustainable workforce.

I am pleased to inform the house that a number of companies have been offered funding under this scheme. Carter Holt Harvey have been offered more than $1 million to purchase a shavings machine to turn sawlog into shavings, which will in turn be used to manufacture particle board. The shavings will then enter the fibre stream and substitute for more expensive chip. NF McDonnell and Sons have been offered more than $4 million to produce an efficient and modern processing facility. It is estimated that the business will need to employ 14 new full-time equivalent staff as a result of undertaking the project.

Roundwood Solutions have been offered $237,000 for a second stage of its long preservation optimiser line and significantly increasing its air-drying storage area. At the completion of the project, it would allow the company to increase its volume capacity from 26,000 cubic metres per annum to 40,000 cubic metres per annum. H&L Scheidl have been offered more than $1 million, which will involve a complete upgrade at the Marte Siding site. At the completion of the project, the business will be able to process different timber sizes as required by the market, which is currently not possible due to its outdated, inefficient milling machinery.

It is estimated that the business will need to employ seven new full-time equivalents as a result of undertaking this project. Whiteheads Timber Sales have been offered close to $2 million for a project that includes replacing the original sawlog line machinery with current technology and processes, including the construction of a timber transfer and waste removal system to integrate into existing sawmill operations.

These grants, which have been recommended by an assessment panel, total more than $8.5 million. This will be matched by at least equal funding from each grant recipient, which means that more than $17 million is being invested directly into the South-East economy. Mr Speaker, let me take this opportunity to thank the panel and in particular the chair, Mr Trevor Smith, for the important work he and the panel have contributed into providing for real outcomes for the South-East.

The SPEAKER: Hear, hear!

The Hon. T.R. KENYON: Thank you, sir. The government has committed to work with business in the South-East to identify additional opportunities for funding under the South East Forestry Partnerships Program consistent with the criteria for the program. This is because the government recognises the significance of the forestry industry in the South-East economy and the challenges that it is facing. That is also why we are funding a comprehensive cellulose fibre study that involves VTT Technical Research Centre of Finland working with the South-East forestry industry to identify a sustainable roadmap and achievable market opportunities for higher value-added activity in the forestry sector.

The stage 2 report is scheduled to be completed later this year and will include the delivery of the draft stage 2 report, which will occur shortly. The report will focus on delivering a strategic roadmap for the Limestone Coast's forestry sector to transition to sustainable, higher value market opportunities. The study is a key initiative of the state government's Manufacturing Works strategy, and it is also one of the key actions identified in the 'Limestone Coast Economic Diversification Report'. This is not the end of the government's work in this area. I am looking forward to implementing the recommendations of stage 2 of the VTT report.