UPPER SPENCER GULF

The Hon. R.P. WORTLEY (15:33): I seek leave to make a brief explanation before asking the Minister for Regional Development a question about the Upper Spencer Gulf.

Leave granted.

The Hon. R.P. WORTLEY: The Upper Spencer Gulf has been lauded as an area with enormous potential. The combination of an existing workforce and established population centres with amenities and their proximity to some of the exploration and mining activities all augur well for the future. Can the minister update the chamber on a recent development for the area to help raise its potential?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for the Status of Women, Minister for State/Local Government Relations) (15:34): I thank the honourable member for his most important question. He certainly is correct that the Upper Spencer Gulf has enormous potential, a great deal of opportunities before it, which this Jay Weatherill government recognises. That is why the government dedicated funds to the Upper Spencer Gulf Outback Enterprise Zone Fund, a $4 million over four years commitment to help communities in this region grasp the opportunities which mineral and energy exploration and development present. So it is pleasing to be able to tell the chamber about a $2 million grant recently made to E&A Contractors Pty Ltd, a Whyalla manufacturing and fabrication company, from the Enterprise Zone Fund—Upper Spencer Gulf and Outback.

E&A Contractors (EAC) is a subsidiary of E&A Limited, an engineering company that specialises in design, project management, procurement, manufacturing and fabrication and on-site services to the defence, energy, heavy engineering, mining and water industries. EAC originated in 2010 through the merger of E&A's subsidiary Louminco Pty Ltd and Whyalla Fabrications Pty Ltd, and already has an established presence in the Upper Spencer Gulf.

EAC's principal manufacturing and fabrication operation is located at Port Augusta Road in Whyalla, and this will be upgraded through the planned project which is set to see a minimum of $6.13 million dedicated to improving the company's ability to provide engineering and maintenance services to businesses in the region and increase the company's capability to diversify and undertake large mining, renewable energy and defence sector work.

The project includes upgrading the existing buildings and the acquisition of heavy engineering equipment, including specialist wind tower fabrication plant, and to refurbish blast and paint facilities. The project is set to include an $880,000 upgrade of the main fabrication hall, $1 million to improve the western shed, and improvements to the blast and paint facility upgrade at a cost of around about $700,000, as well as nearly $2 million on the wind tower fabrication equipment. It is expected that the expanded facilities will create around about 100 full-time jobs over four years and boost skilled staff, with $700,000 slated to be spent on training and development.

This is just one way the government is supporting jobs and economic diversity in the state. The development of both the technical capability combined with manufacturing capacity to service this industry within Whyalla will position both E&A and the Upper Spencer Gulf region to become a major supplier of towers and other components for these systems. The Whyalla workshop facility is also strategically positioned to service mining, processing and infrastructure developments in the Upper Spencer Gulf and Eyre Peninsula, and also at Roxby Downs as well.

The expansion is expected to give the region a competitive edge and build local capacity to service mining, processing and infrastructure developments in the Upper Spencer Gulf, Eyre Peninsula and Roxby Downs. The project is consistent with the state government's Growing Advanced Manufacturing priority, while positioning Whyalla as a manufacturing hub and service centre for the renewable energy industry. The capital works and training of wind tower staff are expected to be completed by mid-2013. I commend the company on its project and look forward to seeing the completed works.