UPPER SPENCER GULF

The Hon. R.P. WORTLEY (15:00): I seek leave to make a brief explanation before asking the Minister for Regional Development a question regarding the Upper Spencer Gulf.

Leave granted.

The Hon. R.P. WORTLEY: Much attention has been focused on the area around the Upper Spencer Gulf in the past several years as discussions have occurred on its potential economic growth. My question to the minister is: what role has the South Australian government played recently in this work?

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 most important question, and I know he has a keen personal interest in the Upper Spencer Gulf. Indeed, the Upper Spencer Gulf involves the cities of Whyalla, Port Pirie and Port Augusta, cities which are no strangers to development nor to speculation about their futures.

The area has a history of extractive and mining industry over many years. The wealth coming from these has been quite remarkable and the number of mining and energy prospects continue to generate interest in the area. While the area's link to mining and, I should say, to the mining priorities of this government is strong, the area is also one that has much to contribute to another of the Jay Weatherill government's priorities, and that is advanced manufacturing.

The potential of the three population centres in the Upper Spencer Gulf, with their access to road, rail and sea transport, have been recognised by the South Australian, federal and local governments. On 25 September 2012, the governments entered into a tripartite memorandum of understanding. The Upper Spencer Gulf MOU, which was signed by the South Australian government, recognised the mutual interests of the three levels of government in reflecting the priorities and aspirations of stakeholders and communities while:

ensuring appropriate sequencing of investments and better coordination of the existing and future effort;

maximising the benefit of investment in improving infrastructure, liveability and economic resilience, particularly in high-growth regional economies and economies in transition; and

aligning economic, environmental and social development actions.

The governance framework was established to deliver the MOU and it involves an Upper Spencer Gulf Alliance and an Upper Spencer Gulf working group underpinning that with a South Australian reference group which involves senior officers from federal and state agencies, the LGASA and the three RDAs. There is also a commonwealth reference group.

On Thursday 28 February, I was very pleased to attend the first meeting of the Upper Spencer Gulf Alliance, and the federal regional development minister, Simon Crean, Local Government Association president, Kym McHugh, and also the mayors from the Upper Spencer Gulf, and the deputy mayor of Port Augusta, supported, obviously, by officers, met on that occasion and they agreed to a strategy. That strategy is expected to help the region unlock billions of potential private sector investment in the area and help to diversify the region and the regional economy.

The strategy is framed around five key determinants of long-term regional economic growth, as agreed in July by the Council of Australian Governments Standing Council, and that involves human capital, particularly education and skills; sustainability in terms of economic, environment and social; access to international, national and regional markets; comparative advantage and business competitiveness; and the effective cross-sectoral and intergovernmental partnerships, including place-based approaches.

The five key determinants of long-term regional economic growth form the basis of the five action plans that underpin the strategy. Further work will then be undertaken by the Upper Spencer Gulf Working Group on refining the action plans for each strategy area, articulating the timing, responsibilities and required support.

The Upper Spencer Gulf Working Group will now review the place-based strategy and prioritise over 70 initiatives within the five draft action plans. Whilst endorsement of strategies arising from the place-based approach does not mean a commitment to fund all of those projects identified, this approach will provide a more targeted and compelling case for federal government funding, such as the RDA Fund, worth $1 billion, and the Regional Infrastructure Fund, which is about $4.5 billion.