SOUTH EAST FORESTRY PARTNERSHIPS PROGRAM

Mr PEGLER (Mount Gambier) (14:21): My question is to the Minister for Manufacturing, Innovation and Trade.

Mrs Redmond: They're having a bromance, these two.

Mr PEGLER: Of course we are; we are getting a lot of money for Mount Gambier. Can the minister update the house on his visit to my electorate of Mount Gambier last week and the announcement of a grant under the South East Forestry Partnerships Program?

The Hon. T.R. KENYON (Newland—Minister for Manufacturing, Innovation and Trade, Minister for Small Business) (14:21): I am very happy to. I thank the member for Mount Gambier for his question. I am keenly aware of his interest in this matter and, as I have told the house before, he is a very strong representative of his electorate. It was a great pleasure to pay the honourable member a visit last week in his electorate in Mount Gambier to announce the state government's continued support of the South-East through our South East Forestry Partnerships Program.

Mrs Redmond interjecting:

The SPEAKER: The member for Heysen is warned for the first time for forced laughter.

The Hon. T.R. KENYON: As members would be aware, the South East Forestry Partnerships Program is a $27 million merit-based state government grant program which is accessible to eligible applicants in the South-East. The broad objectives of the South East Forestry Partnerships Program are to encourage forest utilisation, promote regional and economic development, and contribute to a sustainable workforce.

Last week in Mount Gambier, I announced a government offer to Timberlink of more than $7.8 million towards a company proposal to significantly upgrade its Tarpeena sawmill. Timberlink is a major employer in the region, and the company estimates that it will need to employ a further 28 staff as a result of this project, which is part of a major upgrade to bring the plant up to world standards. The upgrade is expected to increase the company's sawlog cut to 575,000 cubic metres annually.

This grant, which has been recommended by an assessment panel, brings the Weatherill government's total spend under the South East Forestry Partnerships Program to $16.5 million. This will be matched by at least equal funding from each grant recipient, which means that more than $33 million is being invested directly into the South-East economy.

Let me take this opportunity to again thank the panel, in particular the chair, Mr Trevor Smith, for the important work he and his panel have contributed to under this program. This government is committed to working with businesses in the South-East to identify additional opportunities for funding under the South East Forestry Partnerships Program which are consistent with the criteria for the program. We recognise the significance of the forestry industry to South Australia and the South-East economy and the challenges that it is facing.