REGIONAL DEVELOPMENT

The Hon. CARMEL ZOLLO (14:38): I seek leave to make a brief explanation before asking the Minister for Regional Development a question about regional development.

Leave granted.

The Hon. CARMEL ZOLLO: The minister has spoken previously about the importance of premium food from our clean environment. Can she advise the chamber about assistance to support one type of premium product?

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) (14:39): I thank the honourable member for her important question and am obviously pleased to be able to talk about one of the ways we have focused our efforts to support this priority. The $3 million per annum regional development fund is a merit-based grant program to deliver on PIRSA's regional development objectives and the government's seven priority areas. It consists of two streams: the first is dedicated to supporting Regional Development Australia committees; and, the second stream, which leverages funds to deliver projects that develop and support the premium food and wine from our clean environment, growing advanced manufacturing or realising the benefits of the mining boom for all priorities of government.

In this context, I am pleased to announce that I have approved a grant of $167,500 to Gemlake from stream 2 of the regional development fund to assist them in establishing a composting business utilising 15,000 tonnes per annum of manure waste generated by the Wanderribby feedlot. This 5,000 head beef feedlot located on a 6,072 hectare property, which hosts both cattle and lambs, was established in the 1990s. It operates to add value and finish this livestock for supply into the premium end of the market, including to Feast! Fine Foods.

The business, which houses stock from a range of beef producer suppliers in the area, has built up the business in branded products. The $580,000 project is set to use proven technology to deal with the waste product while also developing a business to provide composted manure for use by other producers such as vignerons and horticulturalists in the Riverland and Sunraysia regions, and also to farmers in the Upper Limestone Coast region.

The project includes the construction of a one hectare concrete pad ($200,000), as well as installing a compost turner ($90,000) and a screen ( $25,000), and will use machinery such as a front-end loader ($155,000) and a dump truck ($90,000) to manoeuvre the waste. Making a business out of a waste product is obviously a great way to turn a business cost into a benefit and an obvious win-win solution for this enterprise and the regional community, creating an additional three FTE direct jobs, in addition to indirect employment gains.

I understand that the proposal to compost this waste while adding green waste will significantly reduce odour produced by the feedlot as well as help to improve nutrient and moisture levels in cropping soils where the compost is used.

Another benefit of the project proposed by Gemlake is that it aids the ability to expand its enterprise from the current 5,000 to 8,000 single cow units. I understand that Gemlake has begun trials of composting, but the new infrastructure to be installed means that it will be able to use a massive 15,000 tonnes of manure waste a year.

This venture aligns with the government's strategic priority of premium food and wine from our clean environment, as Gemlake not only produces premium beef for Feast! Fine Foods stores, but will now also be re-using its waste in an efficient and environmentally friendly way.

The regional development fund is open to applications from non-metropolitan private sector businesses, industry associations, community organisations, regional local government, and the South Australian non-metropolitan Regional Development Australia (RDA) associations. Applicants may access funding—from $50,000 to a maximum of $200,000—for eligible projects. Proponents are required to complete an expression-of-interest form and successful applicants are then invited to lodge a full application and are required to provide a detailed project proposal for assessment by PIRSA, with input from relevant agencies, before recommendations are provided to me for consideration. I commend Gemlake for the project and obviously look forward to seeing the completion of the operation, which is due around mid-2014.