GRAIN INDUSTRY

The Hon. CARMEL ZOLLO (14:36): I seek leave to make a brief explanation before asking the Minister for Agriculture, Food and Fisheries a question about agriculture.

Leave granted.

The Hon. CARMEL ZOLLO: Members would be aware of reports which indicate that our grain producers are likely to have a very substantial harvest this coming season. Can the minister advise of a development which looks to assist growers in the future to secure strong harvest results?

Members interjecting:

The PRESIDENT: Order!

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) (14:36): The opposition talk about cuts—25,000 workers they want to cut. They're the cuts they want to make. Secret cuts is what the opposition have in mind. Why don't they show their hand and show us their policies because we know that's what they want to do: cut 25,000 to 35,000 workers. So, they can't talk about cuts.

I thank the honourable member for her most important question. Indeed, it is gratifying to see the forecast of a very solid and above average harvest size for this year. But, like all those interested in agriculture, I know that we can't count our chickens before they hatch—I don't want to put the mozz on this year. Obviously, much can hinge on the final weeks before the harvest. Like many farmers, I am optimistic, but the result will not be known until the grain is safely in our silos, and many factors, including things such as the exchange rates and overseas stocks of grain, can affect the final result.

However, I am very pleased to announce today that I am inviting applications for projects and work which will assist the very substantial grains industry on Eyre Peninsula to grow and develop for years to come. These applications will use the $400,000 balance of the Eyre Peninsula Grains Fund for the benefit of this very important industry.

Members may recall that, in 2006, a joint industry and government suite of works was identified to support infrastructure works on Eyre Peninsula. This approximately $43 million program of works was designed to ensure that important rail and other related grains infrastructure were upgraded to enable grains to be shipped to market. The funds were raised through a 50¢ per tonne voluntary contribution deducted by grain buyers from all grains—

The Hon. D.W. Ridgway: That's farmers' money.

The Hon. G.E. GAGO: It is farmers' money; that is exactly what I am saying. I am very pleased that the opposition have bothered to listen. These are very important voluntary funds that the industry has contributed to the infrastructure development in the region.

The Hon. D.W. Ridgway interjecting:

The Hon. G.E. GAGO: If the opposition wants to listen, there are some outstanding moneys from this fund, and this is outlining where those outstanding funds are going to be—

The Hon. I.K. Hunter: Tell us about it, Gail.

The Hon. G.E. GAGO: Thank you. I'm glad someone in this chamber is actually interested in regions, because there is no-one sitting opposite me who is interested in the regions or what is happening for our Eyre Peninsula growers.

The aim of the scheme was to raise $2 million. Each year, the contribution was reviewed, having regard to the amount raised in the preceding harvest. The rate was reduced to 10¢ per tonne in the 2010-11 harvest, and then zero in 2011-12. Even then, the excellent grain season we had in 2010-11 resulted in the fund exceeding its target by approximately $500,000. While this was not an anticipated result, it is a very happy accident indeed, and to ensure the Eyre Peninsula grain growers could express their views on how best to spend these funds a survey was conducted in March 2013. The survey provided several options, as well as enabling options to be gathered generally and, while it was clear that consideration of a port infrastructure on Eyre Peninsula was wanted, no further preferences could clearly be discerned. There were a range of different views, so there was not a clear direction that growers had indicated for spending the money.

My agency is therefore seeking applications from the Eyre Peninsula grain industry to determine the most appropriate distribution of approximately $400,000. As previously indicated, $100,000 will go towards a feasibility study for the port structure, so that leaves us with $400,000 of grower funding, and we need to ensure contributions are reinvested back into the local community, back to grain growers. I will ask the RDA Whyalla and Eyre Peninsula to help advise on those applications before my agency makes any recommendations to me on how to spend that money, and I believe it is important that the surplus from the fund is allocated in a way that achieves the maximum benefit to Eyre Peninsula grain growers.

It has been contributed by growers through that voluntary fund, and I obviously want to make sure it goes back to the community for growers to help sustain the region and this very important industry, which generally averages around 25 per cent of the state's grain production and around $500 million farm gate value to the state's economy. So we can see that Eyre Peninsula is a very important grain growing area.

South Australia has a very rich agricultural history and a very promising future, and I am confident that opening up the fund to interested parties is the best method to ensure that funds go to help those who contributed them, and I look forward to seeing those worthwhile projects unfold and be rolled out. Applications will be accepted until the close of business on Friday 25 October, and details are available on the website.