SOUTH EAST FORESTRY PARTNERSHIPS PROGRAM

Mr PEGLER (Mount Gambier) (14:57): My question is to the Minister for Manufacturing, Innovation and Trade and the Minister for Small Business. Minister, how much of the $27 million that was allocated to the South East Forestry Investment Fund has been allocated, and what is the process for distributing the balance? Can the minister give assurance to the people of the Mount Gambier electorate that the balance will be used for the forestry industry in the South-East and not go into general revenue?

The Hon. T.R. KENYON (Newland—Minister for Manufacturing, Innovation and Trade, Minister for Small Business) (14:58): The first round of funding under the $27 million package was distributed under a grants round. It was distributed to:

Carter Holt Harvey (Pinepanels), $1.16 million;

McDonnell Industries, $4.3 million;

Roundwood Solutions, $237,000;

H & L Scheidl, $1.1 million;

Whiteheads Timber Sales, $2 million; and

Timberlink Australia, $7.8 million (correct rounding to one decimal place).

I must say, because they were matching funds that totalled $16.5 million, there was over $34 million worth of investment into the region. We saw a substantial investment in some highly sophisticated milling technology, and some really remarkable machines were placed in mills right around the area as well as many other different setups of drying kilns and the like.

We are considering how we will spend the remaining $10 million, what a second grant round would look like, and what would be an eligible project. That will need to go through its processes, and we continue to consult with industry on the future of forestry. I also add that stage two of the VTT study was released, as the member for Mount Gambier will know, on 30 September. It gives a three to five-year horizon on some of the next steps, looking particularly at biorefining, biofuels, bioenergy and how we might attract those and how they might be used in future in the region.