APY Lands Road Upgrade Project

Mr HUGHES (Giles) (14:40): My question is to the Minister for Transport and Infrastructure. Can the minister update the house on works due to be conducted as part of the main access road upgrade project in South Australia's APY lands?

The Hon. S.C. MULLIGHAN (Lee—Minister for Transport and Infrastructure, Minister for Housing and Urban Development) (14:40): I thank the member for Giles for his question about this project—

Mr Pengilly interjecting:

The Hon. S.C. MULLIGHAN: As the member for Finniss interjects, it is a project that we are delivering in partnership with the commonwealth government.

Mr Pengilly: They're putting most of the money in.

The Hon. S.C. MULLIGHAN: They are, indeed as they should, on an 80:20 basis. It is a good precedent for them to set. It's a shame they don't do it across the whole of the state, but they have done it with the APY lands access road project, and that's a good thing. It is a 210-kilometre road project between the Sturt Highway and Pukatja in the APY lands.

Today, I am pleased to inform the house that, as part of this project, a South Australian business has won a $3½ million contract to undertake preconstruction works on the main access road upgrade project between Double Tanks and Iwantja. Ceduna Bulk Hauliers and Earthmovers (I think in the member for Flinders' electorate) will complete the raising, crushing and stacking of about 450,000 tonnes of pavement material to be used in the Mimili area. Ceduna Bulk Hauliers and Earthmovers has extensive experience undertaking projects in the APY lands and are familiar with the logistics associated with undertaking works in such remote areas. These works are expected to commence in June and be completed by the end of the 2016 calendar year—that's of course weather permitting.

This project aims to improve the living standards of the local Anangu by providing better access to the essential services and facilities, along with reduced travel times and vehicle operating costs. While it is always pleasing when a South Australian company wins a project such as this by demonstrating their skills and expertise, what was especially pleasing was Ceduna Bulk Hauliers and Earthmovers' approach to the training and employment of Aboriginal people involved in this project. The company had indicated that a third of its on-site personnel, throughout the duration of the project, will comprise local Anangu.

The company also plans to use Anangu employees who have been engaged in previous contracts on the APY lands and continue to upskill them in order to increase their future employment prospects. Attitudes to local participation shown by companies are not only due to the goodwill and enthusiasm for South Australians by these companies but also due to the policies of this government. As the house may be aware, the state government, in consultation with the APY Executive Board, is committed to ensure that a minimum of 30 per cent of the total on-site labour hours are to be undertaken on this project by local Anangu.

Local participation is important to this government in relation to procurement, whether it be, for example, steel on the O-Bahn project, locals working on the north-south corridor, the Convention Centre redevelopment project, or other similar major upgrade projects. The implementation of the Industry Participation Policy, the establishment of the Office of the Industry Advocate and the employment of Mr Ian Nightingale have all contributed to ensuring that South Australian companies like Ceduna Bulk Hauliers and Earthmovers are given the best chance to successfully tender for government projects.

We do this because we know of the economic benefits that infrastructure projects can bring, particularly when South Australian workers and South Australian companies and subcontractors are given the best possible chance to win these projects. That has been a priority of this government; contrast that with the cloud that the Leader of the Opposition placed over the future of the Office of the Industry Advocate and Mr Ian Nightingale in the lead-up to the last election and it is clear that, on this side of politics, we think that an economic benefit from these infrastructure projects is important.