Wine Industry

Dr HARVEY (Newland) (14:59): My question is to the Minister for Primary Industries and Regional Development. Can the minister advise how plans for the water to the Barossa pipeline are contributing to the government's COVID-19 recovery plan and what that means for local industry?

The Hon. D.K.B. BASHAM (Finniss—Minister for Primary Industries and Regional Development) (14:59): I thank the member for Newland for his question. It is really important. In the last federal budget, we have seen the budget deliver for South Australia in this space. There was an announcement of $22.3 million by the federal government to develop business cases for eight significant water infrastructure projects across Australia. One of those is here in South Australia in a very important place—the Barossa Valley.

There is $3½ million being allocated towards a business case development in the Barossa Valley for new water infrastructure. That business case is one of those items that sits on the Infrastructure Australia priority list, and it is a really important project for the region. We know how important water is to grow things. In a particular area like the Barossa Valley and Eden Valley, we see the importance of the viticulture that occurs there. It is currently very reliant on the natural rainfall that exists in the area.

To give certainty going forward, we are investigating in this space, with the support of the federal government, to have a look at delivering infrastructure that will secure that region's long-term future and give it that assurance of being able to perform year in, year out without the reliance on regular rainfall as required. The Barossa is such an important asset to South Australia's economic prosperity. In the wine sector, in the grape crushing sector, it's 9 per cent of the grapes crushed in Australia but 23 per cent of its value. It is a really important sector to the state's economy.

This initiative is very much about creating jobs and securing a long-term future for the Barossa Valley, and Eden Valley in particular as well. Both those regions are so important to South Australia. Initial estimates show that it could generate nearly $3 million extra to the state economy by delivering this infrastructure. That will also create around 1,000 jobs, and this is really important to that particular region and South Australia as a whole.

We have already seen investment of about $1½ million by the private sector to undertake technical investigations as part of this project, so it very much has people on the ground involved as well. It's very important that the state and the commonwealth continue to work together in this space to make sure that we look after this community and this asset. The wine industry to South Australia is key. Again, as we see on the carpet here in this house, grapes have always been a part of the prosperity of South Australia.

We continue to work with the member for Schubert and the new Liberal candidate, Ashton Hurn, to communicate with the community. This is very much part of the delivery of the Growth State plan, looking at $23 billion by 2030, the target we are aiming at. This is a key to actually achieving that. It also aligns with the Regional Development Strategy. This is very much us listening to the community and working with the community to deliver the projects out in those regions that need the support. This is one of those supports that will hopefully deliver big outcomes for the state of South Australia.

This is a great investigation project to see whether we can actually achieve this for that community, to give it that security going forward. It is a great way that the feds and the state can work together to deliver jobs for South Australia and the regions.