Nyrstar

Mr GEE (Napier) (14:55): My question is to the Minister for State Development. Can the minister provide the house with an update on work being carried out by Nyrstar on its Port Pirie redevelopment plan?

The SPEAKER: Is the Treasurer in a position to do that?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy, Minister for Small Business) (14:55): Happily, yes, sir. I thank the member for this question and for their keen interest in this major investment, not only for Port Pirie but for the people of this state. It is almost a year since I stood with the Premier and the member for Frome at Port Pirie to announce an agreement that had been reached with Nyrstar to allow the redevelopment of its smelter to proceed; in fact, sir, I will be celebrating tonight with a ham and pineapple pizza myself.

I am delighted to inform the house that significant progress has been made on the more than half a billion dollar redevelopment—a project that is expected to create about 1,000 jobs during construction. Nyrstar—

The Hon. J.J. Snelling: You're a fixer.

The Hon. A. KOUTSANTONIS: Yes, I'm a fixer. Nyrstar has informed the government that piling work is well advanced. About 150 piles have been drilled at the site since November to an average depth of 12 to 16 metres. The old workshop, one of the oldest buildings on the project site, is being demolished, with asbestos removed and the creation of more than 1,000 tonnes of scrap metal, which has been earmarked for recycling. An old high-voltage cable has been replaced and other work is being carried out to reroute 60 metres of a gas line.

Our Industry Capability Network is working closely with Nyrstar and businesses to ensure a strong flow of contracts to local employers. I have previously informed the house that Nyrstar has reached an agreement with France's Air Liquide for a €60 million investment in a new oxygen plant, bringing the total investment to almost $600 million. Demolition of buildings and the removal of services are underway in an area that has been identified for that new plant.

Contrast this with the situation 12 months ago, Mr Speaker. A changing government in Canberra led to the situation where, rather than supporting investment in a key regional industry, they could not run away fast enough. An in-principle agreement between the commonwealth, the state and Nyrstar we had worked so hard together to finalise for more than a year was in real danger of unravelling because of the intransigence of the Abbott government, even with their 'fixer' doing all he could to step in.

Members interjecting:

The Hon. A. KOUTSANTONIS: The South Australian government held its ground because we knew that this was a deal that needed to be done to secure the people of Port Pirie. At the urging of the local member and now Minister for Regional Development (member for Frome), we restructured the agreement with Nyrstar and forged ahead without the commonwealth playing a part in the guarantee required to unleash this investment. We did this because, like the member for Frome and unlike the commonwealth government, we understand the importance of this agreement to the future of South Australia.

Let us not forget that the aim of this investment is to improve the health and environmental outcomes of the people of Port Pirie. I look forward to providing further updates on the significant investment in the future of Port Pirie and of South Australia.

The SPEAKER: I call to order the members for Morialta and Hammond, and warn a first time the members for Chaffey, Schubert and Morialta.