UPPER SPENCER GULF

The Hon. R.L. BROKENSHIRE (15:16): I seek leave to make a brief explanation before asking the Minister for Regional Development a question about economic stimulus in the Upper Spencer Gulf.

Leave granted.

The Hon. R.L. BROKENSHIRE: In his answer to my question on Tuesday, the minister admitted that the Riverland Sustainable Futures Fund had been underspent this financial year and was being carried over to next year. I note that yesterday on ABC North and West radio the minister admitted the same was true for the funds available for the Upper Spencer Gulf, and she sought to blame the underspend on a lack of applications.

Further to the point, on 27 May, the minister in her letter to the editor of The Advertiser attacked the Port Pirie Regional Council for complaining about the Regional Development Infrastructure Fund (RDIF) criteria being too restrictive. A gentleman who I have a lot of time for, the Port Pirie mayor, Brenton Vanstone, had said that his region wanted to develop a $19 million camel abattoir. Mayor Vanstone had said in The Advertiser on 26 May that, in his view, the conditions for eligibility to access the RDIF were too restrictive, and councils were increasingly looking to the federal government for assistance. One wonders whether his view had anything to do with not having submitted an application. My questions to the minister are:

1. Are the conditions in the minister's opinion for accessing the RDIF too restrictive in contrast with the funding processes for grants from the Gillard government?

2. Is the government sitting on its hands with regional development funding given the admissions of underspending and carryover for the Riverland and Upper Spencer Gulf?

3. Will the minister work harder to partner with local councils in the Riverland and Upper Spencer Gulf to identify and develop the best local infrastructure and community opportunities so that the funds are not embarrassingly carried over again in 2011-12?

The Hon. G.E. GAGO (Minister for Regional Development, Minister for Public Sector Management, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister for Gambling) (15:18): I thank the honourable member for his question and, indeed, I spoke at length about the Riverland Sustainable Futures Fund yesterday. In relation to the Upper Spencer Gulf and the Outback Enterprise Zone Fund (just to ensure that members are aware), the South Australian government has committed $4 million over four years towards that enterprise zone fund.

Obviously, the Upper Spencer Gulf and outback regions are often well placed to capture business from the expansion of the resource energy sectors. The fund is aimed at capturing the benefits of growing industries to further strengthen those communities, such as capitalising on opportunities that are focused on but, not limited to, the expansion of resources and energy sectors, and also providing access to organisations for projects that make a major impact in the region by changing the competitive advantages in its favour.

The fund is accessible via organisations, including local government businesses and industry associations in the region for projects that make a major impact by capitalising on existing competitive advantages or changing competitive advantages in its favour. I am advised that applications are accepted and assessed throughout the year and the grant funds may be offered for up to a maximum of 50 per cent of the eligible project costs. The applications are assessed on a number of criteria, including:

whether the project creates sustainable economic benefits that are broadly distributed across communities or industries, beyond that of just the organisation receiving the grant;

that it is strategically important to the state, the region or a major industry;

that it is viable and sustainable in the medium to long term;

that it leverages alternative sources of funding; and

that it diversifies the economy.

The applicants are encouraged to contact either DTED or the RDA office to receive information about that.

Indeed, I have been disappointed that there has been a lack of funding applications in relation to funds from this particular grant. I announced one yesterday. I am not surprised. It does take time for the information to get out there and for people to start to get their heads around the potentials. However, the funds are available and, really, the only thing that is stopping us spending those funds is the lack of viable proposals that meet the criteria of the funding guidelines.

In fact, to the best of my knowledge, we have not received an application for the camel abattoir. Again, this is really disappointing. I am sure there are lots of good ideas out there but, if members want to access the funds, they have got to put their applications in; it is that simple. The government is very genuine about ensuring that these funds are available. It is part of our commitment to the regions. The funds are there, and I encourage industries to look at opportunities to form partnerships with the state government to access those funds.