Wastewater Allocations

The PRESIDENT: Senator-elect Brokenshire.

The Hon. R.L. BROKENSHIRE (15:05): I am not sure about that, sir, but I thank you for the call. I seek leave to make a brief explanation before asking the Minister for Water and the River Murray a question about wastewater allocations.

Leave granted.

The Hon. R.L. BROKENSHIRE: Family farmers on the Northern Adelaide Plains have been denied access to an additional 20 gigalitres, I am advised, of water from the Bolivar wastewater treatment plant that SA Water plans to release because this government has decided to hand on the water allowance to a consortium. Our northern plains producers are an important part of this state's food belt, contributing approximately 170,000 tonnes of fresh produce (and more if the government built proper levy banks), or one-third of all South Australia's horticultural production, valued at more than $340 million.

More than 400 growers north of Adelaide are highly reliant on the 17 gigalitres of recycled water currently delivered each year via the Virginia pipeline scheme, and this extra 20 gigalitres, I am advised, could not only aid their viability but could actually help them double production and thereby boost home-grown jobs for the region and grow our economy. Therefore, my questions to the minister are:

1. Can the minister confirm the allegation that this 20 gigalitres of wastewater is being put out for use because the minister's agency, the Environment Protection Authority, has threatened SA Water with a $400 million fine per year if they continue to release it into the gulf?

2. Can the minister explain why this government chose to give this water to one corporate body rather than using the release to create a water market?

3. Concerning this consortium, can the minister say how many jobs it will bring to the region, how it will benefit the South Australian economy financially and whether its operations will impact the viability of existing producers?

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Climate Change) (15:07): I thank the Hon. Robert Brokenshire for his incredible, well-researched question. There is no doubt why this man is on a trajectory into higher office in the Senate: he obviously has so much to offer our state at the federal level. I can only say that I will miss him when he is gone.

I am sure that most people in the chamber, if not all, would be aware of the Northern Adelaide Irrigation Scheme—certainly the Hon. David Ridgway, the Leader of the Opposition, is aware of it because he has more positions on this scheme than he has had hot breakfasts. It is a great initiative, expanding the use of recycled water for horticultural irrigation in the Northern Adelaide Plains.

The Hon. D.W. Ridgway interjecting:

The Hon. I.K. HUNTER: Well, yes. The Northern Adelaide Irrigation Scheme project aims to expand the use of recycled water from the Bolivar wastewater treatment plant for horticultural irrigation in the Northern Adelaide Plains.

SA Water is the lead agency, conducting an EOI and being assisted by the knowledge and expertise of the Department of Primary Industries and Regions and the Department of State Development. After an extensive evaluation process of the EOI, a consortium consisting of two South Australian companies—Tonkin Consulting and Leed Engineering and Construction—together with Spanish water infrastructure and horticulture companies—Valoriza and New Growing Systems—has been selected to undertake a NAIS feasibility study.

The feasibility study will be crucial in confirming the viability of the proposal, and whether the preferred proponent can progress in the selection process. The consortium has a proposal that utilises the recycled water exclusively in high-technology greenhouses. As I understand it, their proposal means there will be no need to build over-winter storage facilities for the water, and of all proposals submitted this project is forecast to create the largest number of jobs and greatest economic benefit to our state.

Importantly, it is envisaged that the produce will be distributed primarily to international markets—and that is important. This means that new produce will largely avoid competing with current South Australian markets. Economic modelling suggests that the proposal has the potential to create over 5,000 FTE jobs at a gross value of production to the state of over $1 bill per annum over the 30-year life of the contract.

Due to the relatively constant demand profile of the greenhouses, as I said earlier, only limited storage of the winter water will be required. The NAIS project represents the opportunity to provide an additional 20 gigalitres of recycled water every year for intensive horticulture and primary production on the Northern Adelaide Plains. This will be in addition to the 17 gigalitres of recycled water from Bolivar that is currently provided each year to around 400 customers through the Virginia pipeline scheme. What an exciting time it is for South Australian irrigators.

One of the more peculiar things about this place—I am sure there are many that we could have on our list—is the sense of déjà vu that one gets when the opposition claims to support a policy and then goes out and attacks it. On 19 November last year, almost a year ago, the Hon. Mr Ridgway asked a strange question about the NAIS, where he claimed it was Liberal policy that the government stole.

The Hon. J.M.A. Lensink: Yes, it was; March 2014.

The Hon. I.K. HUNTER: The Hon. Michelle Lensink pipes up. The Hon. Michelle Lensink says, 'Yes, it was. It was Liberal policy.' At the time, I remarked that it was great to finally have the opposition come to the table to support government policy. It has also been great to hear support for the proposal from the opposition during briefings on the scheme this year which have been undertaken by SA Water. It was, until they started attacking it in the media a few weeks ago, a great idea that they were supporting. They claim to support the government, but then go out and try to whip up a frenzy in the media. It would be great for the opposition to clarify whether they support this important project and are willing to be constructive or whether they are going to continue to play politics with South Australia's future.

Irrigators in Adelaide's north recognise that the consultation and evaluation process for a major project that could deliver up to 5,000 jobs will take time, but once again the Hon. David Ridgway decided to play street politics. Rather than back the significant project for our state, the Hon. Mr Ridgway said—and I kid you not—'It would make more sense to direct the extra 20 gigalitres to existing producers so they can all expand and put on a couple of extra employees.'

A couple of extra employees versus the potential of 5,000 FTE equivalents. A couple of extra employees instead of a project that could deliver over 5,000 jobs to South Australians. That is the Liberal Party policy. That is their plan for the future. This is so typical of an opposition led by Mr Steven Marshall, the member for Dunstan in the other place. I have to say, they are always willing to attack good ideas, to background the media and to attack long-term policy, but they are never willing to do the hard yards and actually develop a plan for South Australia's economic future.

I am aware of some legitimate concerns that have been raised by some growers and industry groups about the risk of the NAIS proposal displacing existing growers from their current markets—of course I am. This is why the evaluation criteria for the NAIS EOI were weighted heavily towards export markets. These evaluation criteria have resulted in a feasibility study being conducted with a consortium that is focused on export markets. I am sure the Hon. David Ridgway knows this but has conveniently chosen to ignore it. I cannot think of any other way to explain his ridiculous antics.

I also understand that SA Water has been engaging with the Northern Adelaide Plains community since June 2015 to identify acceptable options and possible locations for recycled water storage in the Northern Adelaide Plains. We are committed to listening to South Australian irrigators and working in partnership to deliver the best outcome for our state. I am advised that discussions from the community engagement process have assisted SA Water in the development of the draft SA Water guidelines for recycled water storage in the Northern Adelaide Plains.

This is an exciting project for South Australia. We are committed to supporting South Australian irrigators as our economy transitions to the future. We are committed to creating new jobs in the north of Adelaide. Where are the Liberals? Nowhere but knocking on radio, knocking all the positive schemes that we have put in place to try to drive economic development and create more job opportunities for South Australians. The Liberals are nowhere.

The PRESIDENT: Supplementary.