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House of Assembly - Fifty-Second Parliament, First Session (52-1)
2010-11-24 Daily Xml
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FORESTRYSA

Mr PEGLER (Mount Gambier) (14:13): My question is also to the Premier.

Mrs Redmond interjecting:

The SPEAKER: Order! Leader of the Opposition, be quiet!

Mr PEGLER: Premier, will the decision to sell the forward rotations of the state’s forests go ahead if the regional impact statement reveals that the forestry sale will have an adverse impact on the state’s South-East?

The Hon. M.D. RANN (Ramsay—Premier, Minister for Economic Development, Minister for Social Inclusion, Minister for the Arts, Minister for Sustainability and Climate Change) (14:13): I want to commend the honourable member, who came to see me, sat down with me, talked about the issue, sought a number of guarantees, actually did work, rather than made noise, which is why, of course, the last time the Liberals held the seat of Mount Gambier was at the 1993 state election. That is why every election since they have elected Independents there because they actually work for their—

Mrs REDMOND: Point of order, Madam Speaker.

The SPEAKER: Order! Premier, there is a point of order.

Mrs REDMOND: On a point of order, what is the relevance of the Premier’s statement? It has nothing to do with the question that was asked.

The SPEAKER: Premier, I think if you could get back to the substance of the question.

The Hon. M.D. RANN: I am very pleased to answer a question from the honourable member. If the regional impact statement on the proposed sale of the forward rotations of the forests’ harvests—that's not selling the assets, it is about the harvest—

Members interjecting:

The SPEAKER: Order! The Deputy Leader of the Opposition will not shout across the chamber.

The Hon. M.D. RANN: Apparently, the deputy leader does not want the timber sold at all, as it has been for the past 100 years. If the regional impact statement on the proposed sale of the forward rotations of the forest harvest shows an adverse impact on the region, will the government proceed with the sale? That was the question he asked. A decision to investigate the sale of the forward rotations was announced as part of the 2008-09 Mid-Year Budget Review measures to reduce government debt in the wake of the unfolding global financial crisis. So, it is about the selling of the timber. An initial broad exercise in economic modelling of the potential sale was undertaken—

Members interjecting:

The SPEAKER: Order! This is an important question from the member for Mount Gambier and I am sure he is very interested in the answer so could you please give him the courtesy of listening to the Premier's response.

The Hon. M.D. RANN: An initial broad exercise in economic modelling of the potential sale was undertaken on behalf of Treasury. That study examined a broad range of options, including for a potential sale through to maintaining the current business model. Treasury is now in the process of engaging an appropriate—

Mr PISONI: Point of order.

The SPEAKER: Point of order, member for Unley.

Mr PISONI: On Thursday, 11 November, around about 3.20 in the afternoon, when the member for Waite was speaking he was addressing television cameras, and the member for Croydon—

An honourable member interjecting:

Mr PISONI: This is 104. The member for Croydon asked you to direct the member for Waite to address the chair and not the cameras and—

The SPEAKER: Yes, all right, I get your point of order, member for Unley. You can sit down.

Mr PISONI: —I ask now that you uphold that point of order for the Premier.

The SPEAKER: You can sit down. The Premier is very aware that he needs to address answers through the chair, but I think he is also talking to the member for Mount Gambler.

The Hon. M.D. RANN: I am determined to give the member for Mount Gambier an answer to his question because he deserves one. I will go back: a decision to investigate the sale of the forward rotations was announced as part of the 2008-09 Mid-Year Budget Review measures to reduce government debt in the wake of the unfolding global financial crisis. An initial broad exercise in economic modelling of the potential sale was undertaken on behalf of Treasury. That study examined a broad range of options, including for a potential sale through to maintaining the current business model. Treasury is now in the process of engaging an appropriately qualified external economic consultancy to conduct a thorough consultation process and produce a regional impact statement.

Members interjecting:

The SPEAKER: Order!

The Hon. M.D. RANN: That consultation will be with key stakeholders, including the local members of parliament, local councils, timber industry representatives, key unions, chambers of commerce and others. The regional impact statement, which will be made public, will advise cabinet on: first, the issues and the views expressed in the consultation undertaken in relation to regional issues; secondly, the impact of proposals—

Members interjecting:

The SPEAKER: Order!

The Hon. M.D. RANN: —on regions and regional interests; thirdly, the full range of costs and benefits of the proposal on the region and its community and, in particular, on employment; fourthly, strategies for managing the identified risk, impacts and issues, including the impact on downstream industries; and finally, the impact of the proposals on social inclusion and economic development within regions.

The regional impact statement will, therefore, identify any potential impacts on the region and its economy and possibly conditions needed to be placed on the potential sale to mitigate those impacts. If, as a result, the potential sale is no longer economically viable, then the government will not proceed with the sale. If it is not good for the economy, not good for finances, not good for the state, not good for the region then we will not proceed with the sale. It is expected that the government —

Members interjecting:

The SPEAKER: Order!

The Hon. M.D. RANN: —will receive the regional impact statement by the end of the first quarter of next year. Ahead of the appointment of the external consultant to undertake the consultation and regional impact statement, the Treasurer today met with the Chairman and Chief Executive of Forestry SA to assure them of the government's position. This afternoon the Treasurer has also invited the mayors of the South-East councils to a meeting to provide similar assurances.

So, there it is: the regional impact statement recommended by the member for Mount Gambier—a whole series of initiatives recommended by the member for Mount Gambier. What we want to do is to do this properly. Obviously, the future of the forestry industry is critically important to this state, as is the future of the South-East of this state. That is why we are doing this. We are going to make sure it is good for the industry, good for the region and good for the state.

Mr Williams interjecting:

The SPEAKER: Order, the deputy leader!

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