Question Time

FORESTRYSA

The Hon. D.W. RIDGWAY (Leader of the Opposition) (14:35): I seek leave to make a brief explanation before asking the Leader of the Government a question about government policy.

Leave granted.

The Hon. D.W. RIDGWAY: Before starting my explanation, I would like to offer my congratulations to the new Leader of the Government. It is good to see a country boy rise to the office of Leader of the Government. He will also remember from his dairy farming days that the thickest cream rises to the top first.

After the election, the Premier committed to listening to the South Australian people, and he committed to renewal. Today, we see part of that renewal, with the Hon. Bernard Finnigan being elevated to the position of Leader of the Government. As I said in my brief little preamble, he has often bragged about being the only rural member in the Legislative Council—the only one who lives in the country. In fact, he lives in the South-East, in Mount Gambier.

I am reminded of some of the comments he made in his maiden speech. The one I think that is very pertinent today is that he said:

I certainly hope to be mindful of the members of those unions and their interests in my representation in this place.

He went on to say:

We must remain vigilant to ensure that we do not fall into the trap of constant privatisation and contracting out, which is so often code for cutting labour costs.

Given the size of today's demonstration out at the front, probably the biggest we have seen since the state budget, and the fact that the vast majority of people are from the member's own home town—I did see some members of his extended family and I am sure some former friends of his—and the fact that we have people in the gallery who have travelled nearly 500 kilometres today, as part of the renewal and the fact that the government is listening, will the new Leader of the Government rule out the forward sale of the forests?

An honourable member: Hear, hear!

The PRESIDENT: Order!

The Hon. B.V. FINNIGAN (Minister for Industrial Relations, Minister for State/Local Government Relations, Minister for Gambling) (14:37): I thank the honourable member for his question, my inaugural question as a minister. I will begin by echoing the sentiments you expressed, Mr President, about the sadness I am sure we all share at the passing of Claire Seret, and I offer my own condolences to her family.

The question the honourable member asks is in relation to the sale of ForestrySA forward harvests. As he would well know, the decision to investigate the sale of the forward rotations was announced as part of the 2008-09 Mid-Year Budget Review measures to reduce government debt in the wake of the unfolding global financial crisis.

An initial broad exercise in economic modelling of the potential sale was undertaken on behalf of Treasury, and it examined a broad range of options, including for a potential sale through to maintaining the current business model. Treasury has now engaged economics consulting firm ACIL Tasman to conduct a thorough consulting process and produce a regional impact statement. That consultation will be with key people involved, including the local MPs, councils, timber industry representatives, key unions, chambers of commerce and others.

The regional impact statement will identify any potential impacts on the region and its economy and possible conditions that would be needed to be placed on the potential sale to mitigate those impacts. If, as a result, the potential sale is no longer economically viable, the government will not proceed with the sale. It is expected that the government will receive the regional impact statement by the end of March 2011, and the Treasurer, as the minister involved in this, will be having discussions, of course, with relevant people, including local government representatives in the area.

ForestrySA is a very important part of the South-East's economy and, indeed, the state economy, and the government is committed to making sure that that is what happens into the future, that is, that it remains a viable, important industry into the future. I am not going to accept the crocodile tears coming from the honourable members opposite. We know what their party's policy on this sort of matter is. We saw what the Victorian Liberal government did and, indeed, it is because—

The Hon. D.W. Ridgway interjecting:

The PRESIDENT: Order! There will be no carrying on just because you have an audience today. Sit back and be quiet and listen to the minister's answer. It is a very good answer so far, and you might learn something. The honourable minister.

The Hon. B.V. FINNIGAN: Thank you, Mr President. People have seen the way the Victorian Liberal government approached this issue, they have seen what the former Liberal government did in relation to privatisation and they saw the commitment that the former Liberal government showed to our forestry assets in the South-East and across the state. The fact is that members now see a political opportunity here and suddenly they are against privatisation and against any form of looking at this issue.

The government is looking at the sale of forward rotations and, as I have indicated, has engaged consultants to conduct a thorough consultation process and produce a regional impact statement That is an opportunity for everyone in the community who wants to have their voice heard, and they have exercised their democratic right and opportunity to have their voice heard today as well. The regional impact statement consultation will be a good opportunity for people to put forward what they have to say and for local community representatives, unions, chambers of commerce and members of parliament to put forward their point of view. The government will carefully examine what the regional impact statement has to say and make a decision in the future.