EYRE PENINSULA GRAIN GROWERS RAIL FUND

The Hon. G.A. KANDELAARS (15:01): I seek leave to make a brief explanation before asking the Minister for Agriculture a question about grain growers on Eyre Peninsula.

Leave granted.

The Hon. G.A. KANDELAARS: Eyre Peninsula has a strong reputation as a producer of high-quality grain and the development of the grain industry there has, in turn, shaped the population and infrastructure on the peninsula. Minister, how can Eyre Peninsula grain growers help guide the future development of their region?

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) (15:01): I thank the honourable member for his excellent question.

Members interjecting:

The Hon. G.E. GAGO: In fact, grain growers on Eyre Peninsula—

Members interjecting:

The PRESIDENT: They would think that it was comedy hour instead of question time. Let's come to order. Minister for Agriculture, Food and Fisheries.

The Hon. G.E. GAGO: They are all very excited about the prospect of keeping their shadow portfolios, Mr President. You can see they are all very nervous—

The PRESIDENT: They are nervous.

The Hon. G.E. GAGO: They are all very nervous, Mr President—

The PRESIDENT: Minister!

The Hon. G.E. GAGO: —and they should be nervous, too, considering today's performance in this place.

The PRESIDENT: Minister—Eyre Peninsula and grain.

The Hon. G.E. GAGO: Yes, thank you for your assistance, Mr President; I was distracted. Eyre Peninsula grain growers have a history of directing funds to improve their economic infrastructure. Members may not recall but in 2006 the Primary Industry Funding Scheme Regulation was gazetted at the request of Eyre Peninsula growers to raise $2 million (net of costs and refunds) to contribute to a joint industry and government logistics upgrade program at a total cost of around $43 million. The work included rail upgrades, road improvements and updating of various grain loading facilities.

Once the goal of the fund and the target sum were reached, the contribution rate was set at zero, and that was in August 2011, I am advised. During the first two years the fund operated, drought conditions meant that the amount raised was much lower than expected and then, due to a better than average crop in the last of year of operation of the fund, more moneys were received than anticipated. As a result of that good season there is now a small surplus. While the final amount has not been determined, I am advised that the surplus is currently around $230,000 which is going to be made available.

Honourable members can rest assured that these funds will not be wasted. I now want grain growers who contributed to the fund to help decide how best to use the balance remaining to further improve their economic infrastructure. Using a quick online survey, which sets out some options, growers can ensure that their contributions help to make it safer and easier to move grain on Eyre Peninsula.

In addition to the $2 million contribution from grain growers, funding for the original $43 million grain infrastructure upgrade included an investment of $15 million from the Australian government towards upgrading the rail; $10 million from the state government comprising road ($8 million) and rail ($2 million) improvements; $11 million from the rail operator, ASR, for the rail upgrade; $3.5 million from ABB Grain (now Glencore) on rail outloading facilities; and $2 million from local government to upgrade strategic roads. We can see it was a joint effort.

The South Australian grains industry generates up to $3.9 billion in revenue from commodity and processed products, with around 80 per cent of our grain exported around the world. South Australia's grain exemplifies one of the Weatherill government's key priorities, that is, premium food and wine from our clean environment. It is in demand overseas and our grain is well renowned for its premium qualities.

We would like all Eyre Peninsula grain growers to complete the survey (I am told it takes less than two minutes to complete). In addition to providing some options, the survey enables growers to put forward their own suggestions. EP grain growers have until 1 March this year to participate in the survey and I certainly encourage all those growing grain on Eyre Peninsula to get online and make known their views.