UPPER SPENCER GULF

The Hon. CARMEL ZOLLO (14:52): I seek leave to make a brief explanation before asking the Minister for Regional Development a question about regional development in the Upper Spencer Gulf.

Leave granted.

The Hon. CARMEL ZOLLO: Preparation for the increased exploration and mining expected in the state's Far North has been underway for some time and appears set to build over the coming years. Will the minister advise of a recent development to aid this preparation?

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) (14:52): I thank the honourable member for her most important question and her interest in these areas. Members will recall that the South Australian government has committed $4 million over four years towards the Enterprise Zone Fund for the Upper Spencer Gulf and outback. The fund is aimed at capturing the benefits of growing industries to further strengthen the Upper Spencer Gulf and outback communities, including capitalising on opportunities that are focused on, but not limited to, the expansion of the resource and energy sectors and providing access to organisations in the Upper Spencer Gulf and outback for projects that make a major impact in the region by changing competitive advantage in its favour.

Members would be aware that the longstanding and strong agricultural economy, which has been a feature of South Australia, has been supported by a range of industries, including those needed by primary producers to build and repair specialist agricultural machinery used in farming. I am pleased to announce today that I have approved a commitment of $302,500 to Kelly Engineering to expand its manufacturing facilities and workforce at Booleroo Centre in the northern agricultural region of South Australia.

This 25-year old firm, I am advised, has an established reputation and capabilities as a key manufacturer of quality machinery to South Australia's agricultural industry. This experience means that Kelly Engineering is well placed to move into new markets as a supplier and fabricator for many of the region's projects, both in manufacturing and development and in the ongoing provision of fabricated products and services.

Kelly Engineering's business plan has identified opportunities to take advantage of the demand for metal manufacturing and expand into other markets, including mining and rail. This regional company already has established export markets in the US, South Africa, Canada, Denmark and New Zealand but is looking to local opportunities afforded by the increased development in mining in Australia.

The $655,000 project is part of a major expansion which is expected to see the company's export capacity grow by 40 per cent and create up to eight new full-time jobs. As part of this project, a 30 metre by 25 metre by five metre canopy extension will be built onto the assembly area to provide sufficient space to assemble, load and dispatch machine components, parts and crates.

In addition, both the office accommodation and paint shed will be extended to provide more space for drying and storage for painted components and frames. The extensions to the assembly area are designed to cut out bottlenecks and streamline production, creating an all-weather work environment and allow loading to be done undercover. The project builds on improvements already undertaken by the company to its storage facility for the metal plates used in its manufactured machines.

The company is a major employer in the District Council of Mount Remarkable and is also an important supporter of apprentice training. Last year, it had six apprentices undertaking a certificate III in metal fabrication and planning is underway to hire a further four apprentices. In addition, the company aims to use local contractors and suppliers to complete the scheduled works. The project is due to commence in April and be completed by the end of 2012.

The Upper Spencer Gulf Fund applications are assessed by an interdepartmental panel on a range of criteria including whether the project creates sustainable economic benefits that are broadly distributed across communities or industries; its strategic importance to the state, the region and the major industry; and whether it is viable and sustainable in the medium and longer term, leverages alternative sources of funding, and diversifies the economy of the Upper Spencer Gulf and outback regions. I would like to congratulate the company on its foresight and careful business planning and look forward to the completion of this very significant expansion.