Bills

AUKUS (Land Acquisition) Bill

Second Reading

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (18:06): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation and explanation of clauses inserted in Hansard without my reading them.

Leave granted.

On 15 March 2023, the Commonwealth of Australia and the State entered into a Cooperation Agreement to support the delivery of SSN-AUKUS, Australia's next-generation, conventionally-armed, nuclear-powered submarines, which will be constructed at Osborne in South Australia.

This is of national interest, with Osborne becoming the home of Australia's submarine construction industry, making it a vital part of Australia's future defence and national security.

This legislation is being introduced to facilitate the delivery of the new Submarine Construction Yard at Osborne by securing an important area of land currently owned by the City of Port Adelaide Enfield, for inclusion in the package of land transfers between the State and Commonwealth Government.

This land transfer, including the land owned by Council, is an important step towards ensuring that our State is ready to start building submarines. The exchange of land will also unlock thousands of high quality, high paying jobs in industries such as shipbuilding and inject billions of spending in infrastructure.

As well as playing our part in this important national undertaking, AUKUS will transform South Australia's economy for generations.

As a result of AUKUS it is estimated that over the forward estimates, $6 billion will be invested in the Australian industry and workforce, with at least $2 billion invested in the South Australian infrastructure alone.

Development of the Submarine Construction Yard, which is almost three times larger than the yard forecast for the previous Attack Class program, will generate employment of up to 4,000 workers at its peak. This is in addition to the 4,000 to 5,500 direct jobs expected to be required to support the building of AUKUS submarines when the program reaches its peak.

The submarine program will also have a range of flow on benefits beyond the defence and construction work—this includes the opportunity to build and enhance our reputation nationally and globally.

Delivery of SSN--AUKUS is the biggest project our State has ever seen and South Australia must play its part in ensuring its success. Given the complexity and scale of this project, we must move quickly to ensure the Submarine Construction Yard is ready to begin construction of our new submarines on schedule. The Bill facilitates the transfer of four allotments currently owned by the Council, to Renewal SA, and ensures the Council is compensated for the current market value of the land to be vested with Renewal SA.

Inclusion of this Council land in the land transfers to the Commonwealth will enable Australian Naval Infrastructure Pty Ltd (ANI) to better secure the perimeter of the new Submarine Construction Yard and provide the opportunity for the development of a new access point into their facilities.

The need for this Bill arises from the Cooperation Agreement between the State and Commonwealth Government, and the Commonwealth's timeframe for establishing the new Submarine Construction Yard at Osborne.

This legislation is being introduced to ensure the development of the new Submarine Construction Yard can go ahead as expeditiously as possible. Alternative pathways for securing the land will not meet the Commonwealth's construction timeframes due to the statutory processes and timeframes associated with the revocation of community land under the Local Government Act 1999 and compulsory acquisition processes under the Land Acquisition Act 1969.

In order to meet the critical program dates targeted by ANI, the land must be available by no later than July 2024. This will ensure site preparation and an early works package for a grade separated road and infrastructure services relocation can commence, subject to any approvals as soon as practicable. These early works are required to support the sustainment of the existing Osborne Naval Shipyard and as an enabler to future construction.

The Bill will not affect the Impact Assessed Development declaration that I recently made pursuant to the Planning Development and Infrastructure Act 2016 which requires ANI to prepare and publicly consult on an Environmental Impact Statement as part of the planning process for the Submarine Construction Yard. State and Federal environmental, social and economic impact assessments will be undertaken with Federal approval under the Commonwealth's Environment Protection and Biodiversity Act 1999 required before the facility can be constructed.

The existing rights of infrastructure authorities with registered easements on the land are unaffected by the Bill, however other dedications and restrictions on the land—such as the community land classification under the Local Government Act—will be lifted to facilitate the transfer and future development of the land as a Submarine Construction Yard.

I commend the Bill to the parliament and seek leave to insert the explanation of clauses inserted in Hansard without reading them.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

These clauses are formal.

3—Interpretation

This clause defines terms used in the measure.

4—Application of Act

This clause sets out the relationship between this new Act and other Acts and laws of the State.

5—Certain requirements not to apply in relation to Act

This clause provides that certain requirements under other laws of the State—for example authorisations—that might otherwise apply in relation to this measure are not required to be satisfied.

Part 2—Acquisition of project land

6—Acquisition of project land

This clause acquires the project land, as defined, from the City of Port Adelaide Enfield and vests it in the Urban Renewal Authority.

7—Revocation of status of project land as community land

This clause revokes the existing classification of the project land as community land under the Local Government Act 1999.

8—Closure of roads

This clause closes any roads that form part of the project land.

Part 3—Compensation

9—Compensation

This clause provides that the City of Port Adelaide Enfield is entitled to compensation in respect of the acquisition of the project land. The amount of compensation is to be equal to the market value of the project land, and the clause sets out the process for determining that market value.

Part 4—Miscellaneous

10—Duties of Registrar-General

This clause allows the Minister to direct the Registrar—General to take certain action related to the acquisition and vesting of the project land under this measure.

11—Stamp duty not payable

This clause provides that stamp duty is not payable in respect of the acquisition and vesting of the project land under this measure.

12—Regulations

This clause is a regulation making power.

Schedule 1—Project land

1—Project land

This clause defines the project land.

Debate adjourned on motion of Hon. L.A. Henderson.