RIVERLAND SUSTAINABLE FUTURES FUND

The Hon. I.K. HUNTER (14:34): I seek leave to make a brief explanation before asking the Minister for Regional Development a question about regional produce.

Leave granted.

The Hon. I.K. HUNTER: The minister has spoken on a number of occasions about the Riverland and the efforts this government has made to assist that region. Indeed, I would go as far as to say that the minister is a champion for the region and takes every opportunity to extol its virtues, particularly in relation to its high-quality food produce. Will the minister advise of a recent development in the Riverland that is bound to be of interest to all members of this chamber?

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) (14:34): I thank the honourable member for his important question. It has been a great pleasure to be able to visit the Riverland, which I have been able to do around three times since February this year, to see firsthand and to be able to talk to people on the ground around their response to, and particularly the way they have been able to rebound from, the incredible challenges they have been confronted with. On my last visit in September this year, the river looked fantastic and everything was still fairly green at that time.

I am sure all members appreciate what a beautiful place the Riverland is. Members will also recall that this government committed $20 million over four years to help revitalise the Riverland, specifically to help build a sustainable economy into the future. I am pleased to announce today that I have approved a grant of just under $500,000 to support a horticulture enterprise to produce, sell and market the red Armada melons from the Riverland. I understand that Red Earth Farms is a company owned by the Pfeiler family, who have a 40-year history of involvement in the fruit and vegetable industry.

The total project is just over $1 million and will involve the construction of a 20-megalitre dam and water feed system to irrigate 80 hectares to produce these specific seedless watermelons. I understand that these melons are a new product to the region, and Red Earth Farms are seeking to replace products imported into the market from northern Australia, as well as to export melons to national retail and wholesale outlets. This project aims to bring approximately 5,000 tonnes of melons to the market, and it is set to create around 23 new FTEs to support this production. I understand that Red Earth is already a significant employer, with around 75 FTEs, and they plan to upskill and advance some existing employees, as well as creating new positions.

The project aims to generate 60 per cent production growth and to export to national retail and wholesale markets through this new variety of seedless melon. I understand that the project also looks to use solar energy to assist existing supply at peak times within the factory and coolroom areas. This grant is only the most recent from the Riverland Sustainable Futures Fund. The aim of our $20-million four-year investment through the futures fund is to help leverage investment in the region, facilitate projects and improve infrastructure, support industry attraction and help grow existing businesses.

The fund's focus is on ensuring that the key enablers of the economy are in place to build on the existing strengths of the region and improve its competitive advantages. This project, which is expected to be through the construction phase and operational in the third quarter of 2012, builds on those local strengths in horticulture and agriculture, while providing a new export from the region and jobs for the Riverland.

The proponents seeking funding from the RSFF rolling fund have the benefit of assistance in the Riverland from the Murraylands Riverland RDA to help develop and refine their proposals. In addition to completing an application form, proponents must provide detailed financials, company business plans, as well as project-specific information. These applications are lodged directly with my agency, DTED, for assessment against local strategic priorities for their economic impact and business and financial viability.

DTED also undertakes comprehensive financial due diligence and assesses projects against prescribed guidelines and assessment criteria. Other government agencies are consulted as part of the assessment process to ensure alignment with government priorities before an interdepartmental panel assesses applications and then provides recommendations for consideration.

Approval of the Red Earth Farms project brings around $2.5 million to the amount committed for projects to a total value of just over $5 million—$5.3 million—which is expected to generate up to 65 new jobs in the area. I congratulate the applicant and look forward to seeing more proposals to build a sustainable future in this region.