CHOWILLA FLOODPLAIN

The Hon. J.S. LEE (15:14): I seek leave to make a brief explanation before asking the Minister for Water and the River Murray a question about the drought-proofing regulator at Chowilla Station.

Leave granted.

The Hon. J.S. LEE: On Monday 18 March The Advertiser published an article on the state government's drought-proofing regulator at Chowilla Station. The article states that the state government's drought-proofing regulator at Chowilla Station could become a $60 million white elephant because of a dispute with the station's leaseholders. The Robertson family is threatening legal action to stop the regulator being switched on and flooding 10,000 hectares of their land. They believe the environment department never licensed SA Water and contractors York Civil to begin construction of the project, which is now more than half finished. The project costs have already blown out from an initial construction cost estimate of $40.13 million to a total project cost of $54.43 million. My questions are:

1. Were rights to the land obtained before work began on the regulator?

2. Can the minister confirm whether the environment department licensed SA Water and contractors York Civil to begin construction on the project?

3. Does the minister expect the cost to further increase from the now expected budget of $54.43 million?

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Aboriginal Affairs and Reconciliation) (15:15): I thank the honourable member for her most important question. The Chowilla Floodplain is a national parks and wildlife game reserve located, I am told, about 30 kilometres north-east of Renmark. Its significance is recognised by its status as a Living Murray icon site and the fact that it is part of the Riverland Ramsar wetland of international importance.

The reserve is also the subject of a lease agreement with Robertson-Chowilla Pty Ltd which allows the company to graze selected areas of the game reserve and the adjoining regional reserve, I am advised. To address the long-term decline in the health of the flood plain and wetlands, a large environmental regulator and associated infrastructure have been constructed on the Chowilla Floodplain. The project forms part of the Living Murray initiative.

The positive environmental outcomes of the regulator are consistent with the management plan for the reserve. The Department for Environment, Water and Natural Resources approved the construction of the Chowilla regulator on the basis that it is consistent with the reserve's management plan. I understand that construction of the regulator commenced in early 2010. The return of high flows to the River Murray during that year resulted in significant delays which resulted in increased costs for the project.

I am advised that Robertson-Chowilla Pty Ltd has been consulted throughout the development of the Chowilla regulator concept and investment proposal and that the company has been supportive of the proposal and other related activities on Chowilla. The department is in negotiation, as I understand it, with Robertson-Chowilla Pty Ltd and their legal representatives, Iles Selley Lawyers, on matters relating to the lease and the operation of the regulator. As the matter is the subject of ongoing negotiation, I do not propose to add anything more to my answer at this point in time.