Kangaroo Island Wilderness Trail

The Hon. S.G. WADE (14:26): I seek leave to make a brief explanation before asking the Minister for Sustainability, Environment and Conservation a question about the Kangaroo Island Wilderness Trail.

Leave granted.

The Hon. S.G. WADE: In last year's state budget the government allocated funding towards the cost of completing a 63 kilometre wilderness trail on the south-west coast of Kangaroo Island. Last week on 13 March the minister announced that the new trail would be constructed by a Tasmanian company, Dirt Art. The minister indicated that the construction of the new trail was underway, and that the entire project was due for completion in June 2016. My questions to the minister are:

1. What is the value of the contract awarded to Dirt Art?

2. Was the contract put out to public tender?

3. Given that the government claimed that the establishment of the Kangaroo Island Futures Authority demonstrates its commitment to increasing the island's economic development and increasing employment, is the awarding of this contract to an interstate firm consistent with the government's stated objectives?

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Climate Change) (14:27): I thank the Hon. Stephen Wade for his very pertinent questions. Kangaroo Island is recognised as a landscape of national significance and is an established ecotourism destination. It is estimated that Kangaroo Island parks are responsible for over 20 per cent of the economic activity associated with nature-based tourism in South Australia.

The Kangaroo Island Wilderness Trail project will provide a new internationally competitive multi-day walking experience along the south-west coast of Kangaroo Island, which we hope will increase the tourism attractiveness, particularly for those involved in ecotourism, of the island and therefore the state, contributing to our commitment to continue to grow South Australia as a destination of choice for international and domestic travellers.

The trail also has the potential to bring economic benefits to the state and opportunities for the private sector to invest in accommodation or new tourism products on Kangaroo Island. A recent report estimates that post construction total visitor expenditure relating to the trail will be about $4.4 million by 2020, and the operation of the trail, therefore, with that increased new expenditure from visitors would support in the order of 46 ongoing jobs on KI.

It is expected that the trail will be completed by June 2016, as the honourable member said. The total cost of the project is, I am told, about $5 million and consists of three major components: the walking trail construction, campsite infrastructure design and supervision, and campsite infrastructure and construction.

The Tasmanian company, Dirt Art Pty Ltd, has been engaged to construct the walking trail, and Dirt Art were by far, I am advised, the overwhelmingly preferred tenderer. There was a select tender undertaken for walking trail construction. I am advised that eight contractors tendered for the works, with six submitting bids by the tender closing date.

The tenders were carefully assessed on a range of factors to ensure the trail would be designed for sustainability and sensitivity to the environment, and be of a world-class standard. Dirt Art, I am advised, is highly regarded in the industry for trail design and construction. They have significant specialised engineering experience in this field, particularly in the construction of mountain-biking trails, I am told. I am also advised their tender represented excellent value for money and was able to exceed the pre-tender estimates for the timeline required. On this basis, they were the candidate most suited to deliver the project.

Dirt Art is committed to engaging local South Australians for employment to complete the project and will include the opportunity for ongoing employment with the company after the project is completed. I am advised that four South Australians have already been recruited, with the potential for a further six or so to be employed as the project progresses. They will work with the South Australian company Shannon Architects, who have been engaged to design and project manage the four campsites to be constructed along the trail route. Only South Australian construction companies, I am advised, will be considered for the campsite construction as part of the selective tender process.

The Hon. R.L. Brokenshire: Is this a ministerial statement? Let's get on with some real questions.

The PRESIDENT: Order!

The Hon. I.K. HUNTER: There are some members of the chamber who are actually interested in Kangaroo Island and building up the state's ecotourism prospects. We want this trail to be not just a trail for Australia and a national trail of significance, we want it to be a world-class trail. That is why we had such high expectations for the tender process. That is why we went with the company that offered the best tender on many of the criteria that were set.

In relation to the Hon. Mr Wade's last question, I understand, of course, our desire for South Australian companies to win these sorts of contracts, but let's be very careful about how we project this view, because we want South Australian companies to be successful in tendering for projects all across Australia, not just in South Australia—all across the nation. So, if we are to have that expectation, it would be very negative of us to actually say, 'We are not going to accept the best tenders for projects from companies from interstate as well.' If we expect our companies to compete on the national stage, we must then be open to accept best tender options from companies from interstate to work in South Australia, employ South Australians and give us a world-class outcome. That is what I want for this walking trail and that is my expectation.