Question Time

KANGAROO ISLAND DEVELOPMENT

The Hon. P. HOLLOWAY (15:00): I seek leave to make a brief explanation before asking the Minister for Regional Development a question about Kangaroo Island.

Leave granted.

The Hon. P. HOLLOWAY: South Australia is fortunate to have places that are so remarkable that they are world renowned. One of those, of course, is Kangaroo Island, one of the icons of Australia, and a place that has become a favourite destination for honeymooners and travellers from Europe especially.

Members interjecting:

The PRESIDENT: Order!

The Hon. T.J. Stephens interjecting:

The PRESIDENT: Has the Hon. Mr Stephens finished?

The Hon. T.J. Stephens: Certainly, sir.

The PRESIDENT: The Hon. Mr Holloway.

The Hon. P. HOLLOWAY: Isn't it amazing, Mr President—

The PRESIDENT: You might want to start again.

The Hon. P. HOLLOWAY: —that in the British parliament over 600 members can listen in silence, but here 22 can't. South Australia is fortunate to have places that are so remarkable that they are well renowned, and one of those is, of course, Kangaroo Island, one of the icons of Australia, and a place which has become a favourite destination for honeymooners and travellers from Europe especially.

It also has a long history as the first place that immigrants settled in South Australia. The 175^th anniversary of that first settlement on the island has been celebrated over the past few days. My question to the minister is: will she inform this council how the government has assisted Kangaroo Island recently? Perhaps she could also address some of those rather misleading comments form Mr Stephens while she is at it, too.

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) (15:02): I thank the honourable member for his important question. Indeed, like other members of cabinet, I was very pleased to be able to visit the island to mark the 175^th anniversary of its formal settlement by the South Australia Company. Of course, while its first brush with European explorers was when it was discovered and named in 1802 by Matthew Flinders during his circumnavigation of Australia, its history is much longer than that.

Today, while it is no longer a whaling centre, it has a thriving agricultural industry and has been developing a niche market using its special geography and isolation to advantage and working to develop knowledge of the unique advantages of the island to market the produce of the island. Yesterday, it was a great pleasure to be able to visit the Island Pure Sheep Dairy and to see this business in operation. Milking sheep is not a very common thing in Australia, but I understand it does in fact have a long history in Europe.

This business has certainly carved out a niche in our culinary produce in South Australia. It produces not only sheep's milk cheese but also yoghurt products. It was fascinating to see the machinery used and the production facilities, and it was certainly a very interesting and enjoyable visit.

Of course, another one of the island's great strengths, as we know, is the distinction of the Ligurian bees. I was able to see the purpose-built premises at KI Honey, which is processing honey from its own hives as well as from other beekeepers on the island. I understand that it is also certified as organic, which gives it an additional market advantage.

Members would be aware that I have been visiting various regions throughout the state. This was the first occasion I have visited KI since becoming Minister for Regional Development, although I have visited Kangaroo Island several times in the past. It was a great opportunity to catch up with members of the RDA Committee, that is, the Adelaide Hills, Fleurieu and KI RDA. I was also able to sit down with the Mayor, Jane Bates, to discuss issues of concern to her about how she sees the island developing.

The Mayor and council have worked very positively with the state government, and that engagement has, I believe, resulted in some excellent results. I know that the release of the report by the Economic Development Board, 'Paradise Girt by Sea', and support for its recommendations have also been welcomed.

The board study noted the island's distinct advantages and the challenges arising, particularly from its geography; it is both close to large population centres and yet it is still quite wild. It obviously has an incredibly unique beauty and the potential to become Australia's fourth tourism icon.

The government has committed to assist the island to capitalise on its opportunities to strengthen its tourism market and its economic base in a multifaceted approach. Support has been announced for a series of initiatives which provide for better tourist experiences and infrastructure to support more tourism.

The state government will establish a single authority, supported by a board, led by the EDB Chairman, Raymond Spencer, to coordinate development on the island over the next five years. Additional significant funds have also been committed, including $8 million over four years to improve key roads; $5 million towards the development of a trail for a five-day walk passing through some of the island's beautiful national reserves; $1.7 million for stage 2 of the Seal Bay boardwalk upgrade; $500,000 for two feasibility studies for renewable energy solutions to the power generation challenges; $500,000, through the Premier's Renewable Energy Fund, to provide solar power to a redeveloped airport; and $400,000 for a new landing point at Penneshaw jetty for tender vessels to move passengers between large cruise ships anchored offshore and the island.

I am very pleased that I have been able to announce a grant of $1.2 million, from the Regional Development Infrastructure Fund, to support the development of the ferry terminal at the wharf at Penneshaw, by KI SeaLink Pty Limited. This $3 million development will create a new passenger terminal, with public facilities and a visitor information centre, cafe and passenger lounge, etc. As a new gateway for the island, it will help support the planned increase in visitor numbers and provide a warmer welcome to both visitors and island residents.

I am advised that the development application for the new facilities has already been submitted to the council. The new two-storey building, which will have a covered air bridge, was expected to be completed by June 2011. As members would know, the RDIF supports critical regional infrastructure developments and allows eligible applicants to seek up to 50 per cent of a project's cost. I look forward to seeing the results of the investment in this unique part of South Australia. As I have said, I very much enjoyed the hospitality of the islanders.