Kangaroo Island Plantation Timbers

Mr PENGILLY (Finniss) (15:16): Again, I raise the issue of Kangaroo Island Plantation Timbers. I am pleased to say that yesterday they put out a market update for the Australian Stock Exchange where it would appear that some common sense is finally coming into their analysis of where they are going. They refer to a 35 per cent reduction in operating cash flow until a wharf is approved, or they may have to use barges to get timber out.

They seem to have woken up to the fact that perhaps the port at Smith Bay is not going to get the gig and that they have to look for alternatives. Unfortunately, in their material, they again made no mention whatsoever of the adjacent abalone farm or the potential damage to that. I am afraid that I am terribly disappointed in this company. It is a concern to me that, in the last couple years, spin has been to the fore, particularly recently, and reality has been forgotten.

The forestry issue and where it is all heading is currently a very topical Kangaroo Island subject. Not one person who has spoken to me has said the removal of the blue gum and pine plantation would not be a good thing. I am absolutely totally supportive, and I would be very happy to support KIPT if they got away from Smith Bay as the port site.

However, the manner of spin over the proposed port site at Smith Bay coming from Kangaroo Island Plantation Timbers is alarming and unrealistic. I remain completely mistrustful of the information coming from the company. Even today, there are questions over the material they have given to the Stock Exchange, in my view.

I completely reject the unprofessional manner in which they are approaching this. Twice now, drilling has taken place, both onshore and offshore, without consent or approval. They have acted illegally. Despite what they are circulating in the community, they have acted illegally on two occasions. The major project status is supported by myself, but Smith Bay is absolutely the wrong location. KIPT need to find another most necessary port site, which in reality would only be for tree export and not multi-user, which is indeed much more spin.

The inherent danger to the adjoining abalone farm, valued at $33 million and around 30 jobs, is too extreme, and spin doctors cannot convince me nor, as it appears, many other Kangaroo Island residents otherwise, and it has been very vocally discussed on social media.

The issue of road upgrades is critical. KIPT would need to fund millions of dollars in roadworks through their preferred route of Ropers Road through to the north coast and returning up Springs Road on Kangaroo Island. No ratepayer funds should go into it nor, indeed, government funds. They need to fund it themselves if the Smith Bay site is approved. The local council is in no way, manner or form in any position to borrow money to upgrade that road system that is not much more than a goat track.

If KIPT wish to be good corporate citizens, they need to find another port location close to the plantation, stop the media hype, obtain considerable social licence from the community (of which they have none) and stop acting like corporate cowboys. KI needs this forestry challenge to have a successful outcome for once, instead of hearing seemingly endless good news announcements followed by financial turmoil for many. There are many wounded from previous forestry and milling operations on the island.

My message is loud and clear to KIPT and to others making regular rereleases of spin, whether it be about this or other so-called investments on the island: get realistic, act in the best interests of the island community for the long-term, stop building up hopes and act responsibly. It is too important, and it has to be addressed and done properly. I sincerely hope that the Development Assessment Commission, through their major project status division, looks at all these issues. If the correct information is given by everybody, eventually we may get a suitable port site and the forestry industry on the island, for once, can be successful. No-one would be happier than me if this happened.