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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2012-05-29 Daily Xml
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MINERAL RESOURCES

Ms THOMPSON (Reynell) (14:32): My question is to the Minister for Mineral Resources and Energy. Can the minister inform the house about what other jurisdictions and commentators are saying about South Australia's resources sector?

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Manufacturing, Innovation and Trade, Minister for Mineral Resources and Energy, Minister for Small Business) (14:32): This government recognises the benefits created for this state and the people of South Australia through an expanding resources industry. We are committed to ensuring this vital industry contributes to growing sustainability, ensuring the benefits of the mining boom are realised—

Members interjecting:

The SPEAKER: Order!

The Hon. A. KOUTSANTONIS: —for all South Australians. These efforts have not gone unnoticed. Recently, a Victorian parliamentary 'Inquiry into greenfields mineral exploration and project development in Victoria' found:

The main drivers of South Australian growth include the SA Government's strong support for minerals exploration and mining since 2004 through its PACE...[program] and the targeted marketing of PACE and SA more generally at a national and global level.

The report also stated that the South Australian model was a 'model jurisdiction in Australia for effective government facilitation of mineral exploration and mining projects'. The efforts of both this government and the hardworking members—

Members interjecting:

The SPEAKER: Order! I can't hear the minister.

The Hon. A. KOUTSANTONIS: The efforts of both this government and the hardworking members of my department have developed a world-class industry around a world-class legislative framework. The government shares the concerns of the business editorial in today's Advertiser about the Liberal Party's approach to the mining sector, and I quote:

Playing party politics is one thing; getting your facts wrong in talking down a growing industry to score cheap political points is another.

Chris Russell explains how the Leader of the Opposition went on to dismiss the resources sector and its role in the state economy. I quote the Leader of the Opposition:

'The Government has been talking about the mining boom for 10 years but the reality is that we are...still in a mining exploration boom and even that has tailed off in the last few years,' she said.

Mr Russell then writes—

Members interjecting:

The SPEAKER: Order! Point of order.

Mr MARSHALL: Point of order: 128, relevance. The question was about what interstate commentators were saying about the mining sector in South Australia, not what Chris Russell was saying.

The SPEAKER: Thank you. Member for Norwood, sit down. There is no point of order. The minister was quoting from something.

The Hon. A. KOUTSANTONIS:The Advertiser then goes on to say this about the Leader of the Opposition's statement:

That statement is simply wrong, according to Australian Bureau of Statistics data. The most recent ABS report on mineral—

Mr MARSHALL: Point of order. Again, relevance, 128. This has nothing to do with the substance of the question.

The SPEAKER: Thank you. There is no point of order. The minister can answer the question as he chooses.

The Hon. A. KOUTSANTONIS: The most recent ABS report on mineral exploration—

Members interjecting:

The SPEAKER: Order! Point of order, member for MacKillop.

Mr WILLIAMS: A point of clarification: is it not the ruling of the house that it is out of order to ask a minister to comment on statements in the press?

The SPEAKER: The question was: 'Can the minister inform the house about what other jurisdictions and commentators are saying about South Australia's resources sector?' He was reading from an article in The Advertiser, and he can answer the question as he chooses. No point of order.

Mr WILLIAMS: I did not ask a point of order, Madam Speaker, I asked a point of clarification. It is my understanding that it has been out of order to ask a minister to comment on commentary in the press, and it seems that the minister is using commentary in the press to make an answer. I am just wondering whether the rules of the house are changing here and the convention will now be that the opposition can ask ministers about commentary in the press.

The SPEAKER: In the question there was no reference to newspapers, etc. The minister is responding to the question. He can respond as he chooses. If we were not ever allowed to refer to newspapers then I think some of the opposition's questions would disappear also. In the past, well and truly, there were many questions asked about articles, etc., in the newspapers. But, minister, I would ask you to be careful in your response.

The Hon. A. KOUTSANTONIS: Yes, I will. I go on to quote:

The most recent ABS report on mineral exploration shows exploration has bounced back after slumping in the global financial crisis in line with a worldwide pull-back.

The data, for the December 2011 quarter, was published in mid-March and should have reached the Leader's office by now.

Mr Russell says:

In original terms—that is, the real amount spent—the figure was $90.3 million, the third-highest quarterly expenditure after the state record $95.2 million in the June 2008 quarter and $93.5 million in December 2007.

Moreover, to imply that we have only had an exploration boom is a glib assessment that does no justice to the sector.

He continues:

In fact, there would be very few jurisdictions anywhere in the world where the resources sector has advanced as rapidly.

Consider these:

Prominent Hill copper mine—opened in 2009 at a cost of $1.2 billion.

Jacinth-Ambrosia mineral sands—opened 2010, cost of $390 million.

Kanmantoo copper—opened in February this year, cost $173 million.

Honeymoon uranium—commenced production 2011, cost $146 million.

He goes on to say, 'Add to that the iron mines of Cairn Hill, Peculiar Knob—'

Members interjecting:

The SPEAKER: Order!

The Hon. A. KOUTSANTONIS: '—Iron Chieftain, lead and zinc at Angas—'

The Hon. I.F. Evans interjecting:

The SPEAKER: Order, member for Davenport!

The Hon. A. KOUTSANTONIS: '—gold at White Dam, and the Ankata copper mine. All in the space of a few years.' He says:

And it's not just the mines themselves. It's the service industries providing fabrication of mine plant, the civil construction workers, transport, logistics, stevedoring, accommodation, catering, legal and accounting.

The likes of Caterpillar agent CavPower and global mine equipment provider Boart Longyear expanding their SA operations.

He goes on:

Consider how the sector has already reinvigorated Whyalla, Port Augusta, Coober Pedy and Ceduna...But to claim that not much is going on demonstrates an ignorance that must surely embarrass industry players.

The SPEAKER: Thank you, minister. Your time has actually expired. The member for Norwood.

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