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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2012-05-30 Daily Xml
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PUBLIC WORKS COMMITTEE: TONSLEY PARK MASTER PLAN DEVELOPMENT

Mr ODENWALDER (Little Para) (11:23): I move:

That the 447th report of the committee, entitled Tonsley Park Master Plan Development, be noted.

In March 2008, the South Australian government received payment of $35 million from Mitsubishi Motors as a result of its decision to close its 64-hectare Tonsley Park vehicle assembly site. The $35 million was transferred to the Urban Renewal Authority as an equity injection, pending a decision on the government's involvement in the future development of the site.

In August 2011, cabinet approved construction of the Sustainable Industries Education Centre on this site to be located in the southern portion. A Woods Bagot-led design consortium was selected to prepare the master plan for the site. The government intends to develop 61 hectares of the former Mitsubishi Motors manufacturing site at Tonsley Park to create a hub for advanced manufacturing that integrates industry, education, research and commercialisation activities along with residential and community facilities. The total budget for this project is $252.9 million.

The master plan will deliver, as a percentage of total site area, 60 per cent commercial light industrial, delivering 6,300 jobs; 28 per cent medium-high density residential for 1,000 dwellings and 1,500 residents; 10 per cent tertiary education, with up to 12,000 students per year; and 2 per cent supporting retail surrounding a new town square. More than $1 billion in private investment will be attracted through land sales and the physical construction on the site over the life of the project. It is estimated that site construction will deliver $492 million in net economic benefits over the life of the project. The economic development framework for Tonsley Park is designed to:

attract investment into high-value manufacturing and services that build the value chain, support value creation and value add in the South Australian economy;

create new high-value employment opportunities in southern Adelaide;

develop industry clusters, such as mining and environmental industries;

underpin the diversification of existing industries and the development of emerging clean tech and environmental industries; and

it also aims to support skills and workforce development and provide links between education, training, research and industry.

Target industries for the Tonsley Park redevelopment include, but are not limited to:

clean tech, including renewable energy, water, environment and building technologies;

health and medical services, including medical devices;

mining and resources—things like remote mining technologies; and

functional food and instrumentation, including rapid prototyping and integrated management systems.

The total project cost is expected to be offset in part through land sales and rental income, and this is estimated to be about $172.1 million. Sales are projected to occur over a 16-year period, commencing in 2012-13, and rental income is forecast at $27.5 million over the life of the project.

I think this is an exciting project. I want to thank the members of the committee and also the staff—Paul Lobban and Amanda Sheeky—for their help. Given this and pursuant to section 12C of the act, I and the committee recommend that parliament supports the proposed works.

Mr PENGILLY (Finniss) (11:26): This was yet another project that opposition members had a multitude of questions about. We are still doing some work on it. We are not 100 per cent sure that the figures all add up. There could be a bit of good old government spin put into some of these suggested outcomes. We hope that is not right, but that will be borne out in time.

I am sure that the City of Marion will be hoping for a successful outcome and be watching it closely, because it is in their best interests and in the best interests of South Australia to have this area working again. Yes, the opposition does support the project—we have not got much choice but to support it—but, as I say, it is with a degree of guarded support in relation to some of the figures that were presented to the committee.

Mr SIBBONS (Mitchell) (11:27): I certainly would like to endorse the Tonsley Park master plan. This is certainly great news for the southern suburbs. We have seen over many years the decline in employment opportunities and growth in the southern suburbs due to the closures of the Mitsubishi plant and the Mobil refinery. We have also seen a reduction in job opportunities for the people who live in those areas.

I see this as a great opportunity for the people of the south to seek employment in advanced manufacturing and also in some innovative areas. There are also opportunities that can be presented through the relationships with the other stakeholders within the southern suburbs, such as the Flinders Medical Centre, the university and the other companies that are there as well.

I would also like to congratulate Marion council for having a very active role in wanting to make sure that the precinct delivers great opportunities for the southern suburbs. I would certainly ask the parliament to support this project and I look forward to the wonderful outcomes for the people of the southern suburbs.

Motion carried.

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