Kangaroo Island Plantation Timbers

Mr PENGILLY (Finniss) (15:14): I return, regrettably, to a regular subject in this place from myself, which is the issue of Kangaroo Island Plantation Timbers and, more particularly, the Smith Bay port proposal. In the Business Journal of The Advertiser on 10 October this year, there were some comments made in a quite lengthy article in relation to KI Plantation Timbers, which I think need putting in the Hansard. One comment was:

'The company also looks like it wants to refresh its capacity to raise money, possibly due to delays on the EIS/approvals and perhaps they are preparing to fund activities until that happens'…

I think they are in a bit of strife, I might add. I quote:

Kangaroo Island Plantation Timbers reported a net loss after tax of $19.6 million and a net cash outflow of $4.1 million to the end of June. It had cash and cash equivalents of $6.1 million. Auditor Grant Thornton said these conditions 'indicate the existence of a material uncertainty which may cast significant doubt about the consolidated entity's ability to continue as a going concern'.

This is a major concern of mine. I have spoken in this house before and I will say to the house again today that this outfit is run by spin doctors, namely John Sergeant and Shauna Black, who are the principal ones. They are producing spin like you would not believe. They are making all sorts of claims, which are unsubstantiated. In my view, they have not done the right thing regarding the future of this entity on the island.

I remain adamantly opposed to the development at Smith Bay. We are waiting for the environmental impact statement to come out before comment will be made. I think that is not going to get up fairly soon, so we will just have to wait on that. This whole process relies on the price of timber, wood chips, logs and so on. I put to you, Deputy Speaker, that I reckon corn flakes are worth more than wood chips, quite frankly. This mob do not have any money. I am told, allegedly, that they could not pay for the pontoon they secured from South Korea.

As I recall, the Stock Exchange listed that the Commonwealth Bank refused to advance them any more money for that. They have since secured funds. We are looking at a major, major project if this ever goes ahead. I am also concerned about what I suspect to be shady deals done between the Kangaroo Island Council and probably the CEO of that council, Mr Boardman, and KIPT in relation to roadworks that are required. I say again on the record that I have property along the road that may or may not be used. I put that on the record so that people know.

I am not convinced that this thing is kosher at all, and I never have been. Indeed, my principal concern with the port location is, as I have said before, that it is adjacent to one of the largest abalone farms in the Southern Hemisphere, employing 30-odd people with over $30 million of investment. With a good drop kick, you could kick from the abalone farm to where the ship wants to come in. I do not think it is appropriate.

I will have more to say about this project when the Natural Resources Committee report comes back into the parliament. I do not like it. I do not like the spin that is being put out; I think it is impacting in a way that it should not be. I do not believe that this is the right place for the port. Once again, I have said on the record that if they move the port to a location closer to the trees they will have my utmost support. They have wheeled and dealed and put out spin rather than substance.

I do not know why the Development Assessment Commission is even wasting their time adjudicating on this, spending copious amounts of taxpayers' money to adjudicate on it, when I do not think it should ever get legs in that location. Of course, we will wait and see, and it will go through the process. Even so, I say to the house that some of the advisers that this company has on board will be seriously questioned on their credibility on a number of matters.

I do not believe they have any idea of the marine activities and how things work in the sea around that abalone farm at Smith Bay. I do not think they have ever had any idea. They have tried to spin their way out of it. It is a question of waiting for the next spin announcement from this company. I do not think they are any good; I never have done, and I just wish they would go and find another location, quite frankly.