RIVERLAND REGIONAL PROSPECTUS

The Hon. G.A. KANDELAARS (14:34): I seek leave to make a brief explanation before asking the Minister for Regional Development a question about the Riverland.

Leave granted.

The Hon. G.A. KANDELAARS: The Riverland Regional Prospectus showcases investment opportunities and supporting socio-economic infrastructure to assist regional investment decisions by new businesses or by businesses considering expansion opportunities. The prospectus highlights a number of regional attributes, including the area's highly productive soils and climate conducive to irrigated horticulture and dryland farming. Could the minister outline to the council how the government is assisting business in the region to maximise the opportunities presented by irrigated horticulture?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for Tourism, Minister for the Status of Women) (14:35): I thank the honourable member for his question. I would like to say that members might recall the body of work the state government undertook with the local Riverland community through the Riverland Futures Taskforce to identify broad areas of opportunity for economic and also population growth.

As a result of this work, and the vision for the future that was put forward by the task force, the Riverland Sustainable Futures Fund was announced by the state government back in February 2010. The primary role of this fund was to facilitate the region's recovery by encouraging further investment in existing businesses, and also trying to attract new businesses, new industry and new investment into the region to help diversify its economic base.

On a number of occasions, I have outlined to the chamber how the government through this fund has and will continue to assist Riverland business and the broader Riverland community to capitalise on the numerous opportunities presented to the region. To date, the grant funds approved from the futures fund are just over $8.4 million for projects with a total value of about $17.5 million. These projects are also expected to enable businesses to generate up to around 110 new jobs in the area.

I am pleased today to announce that I have approved grant funding of just over $153,000 to Mulga Organics for their Riverland organic vegetable and herb project. The project will allow Mulga Organics to market and produce, in climatically controlled greenhouse arrangements, a range of organic vegetables and herbs, which I am advised are not currently grown in the Riverland, and certainly not in this way.

Although Mulga Organics is a recently established business, it is an enterprise consisting of the organic producer and marketer, Mallyons on the Murray, and the Rohde fruit growing partnership. Both of these enterprises have a very long history in the Riverland fruit and vegetable industry. Once again, this project is taking advantage of the opportunities presented by the Riverland region, specifically through irrigated horticulture. I understand that this project, which is supported by Murraylands Riverland Regional Development Australia, aims to be carbon neutral and will optimise the use of green energy wherever possible.

Importantly, it is expected that this work will generate around three positions. The choice of products that will be grown is a result of research and development, and is market driven. I am advised that the demand for organic herbs is growing strongly and is coming from a very small production base. In addition, I am advised that it is expected that consumers are willing to pay a premium for organically grown products.

The current project proposes to grow in a climatically controlled greenhouse arrangement produce such as organic basil, cucumber, capsicum and eggplant. The total project investment is over $300,000 and with the assistance from the futures fund will see construction of 16 greenhouses and associated supporting infrastructure such as water and fertilisation systems, solar energy, climate control system, cool room extension, as well as employee amenities. One of the features of this project is that it aims to be carbon neutral by optimising the use of green energy wherever possible.

It is very pleasing to see that the projects being put forward are generating economic diversity by growing and marketing products new to the region, as well as replacing imported products and addressing market failure through supply inconsistencies. We hope that a project such as this will help spearhead the Riverland into a new market niche area that currently the Riverland is not involved in. We believe that it offers a real opportunity to expand and develop markets for the Riverland.