UPPER SPENCER GULF

The Hon. R.P. WORTLEY (14:49): I seek leave to ask the Minister for Regional Development a question about the development of the Upper Spencer Gulf.

Leave granted.

The Hon. R.P. WORTLEY: We have seen that the Upper Spencer Gulf is an area of interest for organisations looking to explore South Australia's mineral resources, and lately there has been an interest in exploring unconventional or shale gas resources. Can the minister advise about recent state government support to better prepare for this area of economic activity?

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) (14:49): I thank the honourable member for his important question. It is correct that the Upper Spencer Gulf is an area of great interest. It has significant advantages, both in the physical proximity of this area to ore bodies and in the existing regional centres of Port Augusta, Whyalla and Port Pirie, with strong social infrastructure and manufacturing bases offering attractive places to live.

Members will recall that this potential has been recognised by the three levels of government in the Upper Spencer Gulf MOU signed in September 2012, which aims to help direct investment strategically and to coordinate the efforts of federal, state and local governments in this area. However, not all those who work in the Upper Spencer Gulf area or in the minerals and energy sectors reside in the region.

I was therefore very pleased recently to commit $428,750 from the Enterprise Zone Fund for the Upper Spencer Gulf and Outback towards the major upgrade of the Port Augusta Airport. This is the first project to be funded from the place-based strategy developed by the three levels of government for the Upper Spencer Gulf.

That place-based strategy is framed around five key determinants of long-term regional economic growth, as agreed by the Council of Australian Governments Standing Council on Regional Australia in July 2012:

1. human capital, particularly education and skills;

2. sustainable (economically, environmentally and socially) communities and population growth;

3. access to international, national and regional markets;

4. comparative advantage and business competitiveness; and

5. effective cross-sectorial and intergovernmental relationships (including through place-based approaches) and integrated and regional planning.

The airport is obviously a key piece of infrastructure which helps buttress the area's competitive advantages. The central Port Augusta aerodrome, which is five kilometres west of Port Augusta, is owned and operated by the Port Augusta City Council. While the airstrip attracts both commercial operators (including the twice-daily service to Adelaide by Sharp Airlines) and charter flights to the Prominent Hill mine site and can accommodate a BAe 146 aircraft (with about 70 passengers), larger craft would require further improvements.

The council has seen the opportunity to meet the increasing demands of the mining industry and to encourage interstate and overseas tourists to visit the area by providing better facilities and to upgrade the existing airstrip apron and terminal facilities available to cater for larger aircraft.

This $857,000-odd project would not only see the extension of the terminal building itself (including amenities, air conditioning and a veranda) and the apron, but also improved and secure car parking for the airport. By upgrading the car park, Port Augusta Airport would be able to provide more long-term secure parking for fly-in fly-out workers, furthering the development of the airport as a fly-in fly-out hub.

The extensions are expected to allow the airport to service greater numbers of flights, with a predicted increase of 7,700 passengers within a five-year period. The airport is also a very valued base for the Royal Flying Doctor Service to provide medical help to outback South Australia and also the Northern Territory, which will also benefit from the improvements to the site. The upgrades are also expected to benefit the region by generating up to 45 jobs through project construction activities, increased tourism, mining and city economic growth.

The Enterprise Zone Fund for the Upper Spencer Gulf and Outback is $4 million over four years directed to capturing the benefits of growing industries to further strengthen the Upper Spencer Gulf and outback communities. Applications are accepted and assessed throughout the year and grant funds may be offered for up to a maximum of 50 per cent of eligible project costs. The fund is accessible by organisations (including local government, businesses and industry associations) in the region.

This key project has been identified in the region's action plan as an important driver for the area's development. The project is anticipated to commence by September 2013 and the upgrade is due to be completed in early 2014. As a gateway to the region, the airport provides visitors with a very valuable first impression on arrival and it is obviously an important statement for tourists, whether local, interstate or international visitors. I am certainly very much looking forward to seeing and visiting the new airport.