OLYMPIC DAM EXPANSION

The Hon. M. PARNELL (15:31): I seek leave to make a brief explanation before asking the Minister for Regional Development a question about a plan B for the South Australian economy post-Olympic Dam.

Leave granted.

The Hon. M. PARNELL: Yesterday we had further confirmation that a significant expansion of the Olympic Dam mine is no longer likely in the short to medium term. For years this government has talked up the Olympic Dam project and poured an enormous amount of attention, resources and money into it. This has come at a significant opportunity cost internally, within the Public Service as well as in the wider community.

While the government has been overwhelmingly focused on this one mining expansion project, other job-rich economic opportunities have not received the attention they deserve. A more prudent economic strategy requires a diversified approach, with adaptivity and resilience built in. My questions to the minister are: firstly, with the apparent shelving of this project, what is your plan B, if any, for the South Australian regional economy? Secondly, will the government now stop pouring our precious resources into this project, including the millions it has spent on the cross-government Olympic Dam Task Force and, if not, why not?

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) (15:32): I thank the honourable member for his important question. It is most important that we do not have the opposition and other minor parties and Independents talking down South Australia. I have said in this place that it is really important that we talk up our economy. There are many very positive things happening in South Australia and many positive things on our horizon, and I think it is a real shame to focus just on the Olympic Dam project and to insinuate that basically the state is in crisis because that project is being reconsidered.

Firstly, the Olympic Dam project has not been cancelled: it is being reconsidered, and negotiations are still under way and will continue. Secondly, our mineral resources and other mining advances do not involve just the Olympic Dam proposal. In 2002, there were four mines in South Australia. Today we have 20 major mines operating. They are either approved or under construction. This is a fivefold expansion—

Members interjecting:

The Hon. G.E. GAGO: The opposition scoff, but they basically did nothing for mining development and advancement in this state. It is under the leadership of this Labor government that we have had a fivefold expansion in the space of 10 years. This government has had a fivefold expansion of our mining opportunities, while when the former government was in power I do not believe one new mine opened up under its watch.

There are also 30 mining projects in the pipeline, so the value of our mineral and petroleum exports today totals more than $4 billion in the 12 months to June 2012. They are really important facts to recall: that industry is very active, is still growing and is still generating a great deal of wealth and opportunity for this state.

We have also set a number of major planks for this government, including work to advance our manufacturing sector. This government has identified that as a major priority to focus our attention on, and a great deal of work is being built up around that. We realise that we cannot just have a one-speed economy and that it is most important that, with advanced manufacturing, which is a very high employer, we concentrate and focus our efforts there. That is an area where a great deal of work has been attached.

Our SA agribusiness sector has many success stories, and a great deal of good work continues there. One of our other planks has to do with premium quality food and wine from a clean environment. Again, that advances our agribusiness sector. It is most important that we position ourselves in the marketplace. I have just returned from China, which has a burgeoning economy. It has a burgeoning middle class who are extremely interested in our premium quality primary produce, in particular our food and wine.

They are particularly very focused on our biosecurity and other quality credentialling, and I was involved in a number of important discussions about that. That is an area which, again, holds many opportunities for this state. We are currently doing very well and there is significant opportunity for future growth and development.

Of course, I would not be able to sit down without mentioning tourism and how successful tourism has been as a significant economic driver here in South Australia. Tourism is growing in South Australia. The trends are showing very positive signs of overall growth. In many growth areas we are significantly above national averages. Again, tourism is an area that offers a great deal of economic opportunity. It mainly involves small to medium-sized businesses. We know that there is a significant number of people employed in that area, and we know how important jobs are to our economy.