Generators

Mr VAN HOLST PELLEKAAN (Stuart) (14:37): My question is again to the Minister for Energy. Has the government secured a gas contract to operate the generators under government ownership, when purchased and relocated?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:37): No, we haven't as yet, but we will be in the market for it. Thankfully, our government has policies that support exploration and extraction of gas, unlike members opposite, who want to ban it in some parts of South Australia. Given what is occurring with Santos today, you would have thought that they would have had more pro-investment policies than policies that would perhaps, I don't know, weaken South Australian companies that are headquartered here in South Australia.

We have not secured that contract yet, but we do have a $48 million PACE gas grant program out in the market. That program is to try to incentivise more gas out of the ground. I note that has been actively explored in the South-East of South Australia. Indeed, in the Cooper Basin we have seen a very good take-up from South Australian companies, and companies that are operating here on that PACE gas.

Part of the requirements of the PACE gas grants, as members would be aware, is that a company takes a PACE gas grant to explore and extract gas. If they are successful and strike gas, that gas is then hypothecated for South Australia; that is, it must be offered to South Australian generators first, which includes our generator. Then, once they are satisfied, if there is surplus gas after that it can go to South Australian industries, industries like Kimberly-Clark, industries like Adelaide Brighton Cement, industries that are gas intensive, that employ South Australians and that do not need moratoriums and bans on gas that will make the cost of running their businesses more expensive—which is what members opposite are proposing. Once they are satisfied, if there is surplus gas then, we will make it available on the domestic market.

This government is committed to the extraction of gas, having our locally headquartered companies like Beach and Santos thrive and do well because they employ South Australians; they are headquartered here. It is good to have those companies headquartered here in South Australia, and what they don't need are reckless policies by the Leader of the Opposition to ban unconventional gas in some parts of this state, which sends all the wrong messages for investors into South Australia.