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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2013-06-05 Daily Xml
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MINERAL AND PETROLEUM EXPLORATION

Mr ODENWALDER (Little Para) (14:36): My question is to the minister for Mineral Resources and Energy. Can the minister inform the house how mineral and petroleum exploration is tracking in South Australia?

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Transport and Infrastructure, Minister for Mineral Resources and Energy, Minister for Housing and Urban Development) (14:36): I am pleased to inform the house that the state's resources sector continues to provide opportunities for our towns, cities and communities. We have seen this sector transform—a transformation that has been driven through the hard work of industry, a diligent Public Service and supportive policies of this government. The growth in this sector is a perfect example of this government partnering with industry to drive economic growth across the state. As a government we have recognised that to sustain growth we must seek to diversify opportunity.

We recognise the strength of our state's resources sector is not linked to just one commodity but rather it is linked to many. Our diversity of mineral deposits, the emergence of our offshore potential and our place in the centre of Australia's energy revolution holds this state in good stead. Combined minerals and petroleum exploration spending for the 12 months to March 2013 was a record $646.1 million. Much of this record growth has been driven by exploration for oil and gas in South Australia, offsetting weaker investment in the search for mineral resources.

The latest Australian Bureau of Statistics figures show petroleum onshore and offshore exploration expenditure was $119.4 million for the March 2013 quarter, contributing to $370.3 million in spending in the 12 months to the end of March. The March quarter result for petroleum exploration maintained the strong expenditure of $122.3 million reported in the December quarter 2012. This result for petroleum exploration reflects a very positive global outlook provided by South Australia's major unconventional gas discoveries.

However, we must acknowledge that, although maintaining growth across oil and gas, the latest ABS figures showed mineral exploration expenditure fell by 18.4 per cent nationally, reflecting a significant downturn being experienced in Australia and internationally. Although we continue to exceed the SA Strategic Plan target of $200 million a year with mineral exploration expenditure for the 12 months to March 2013 of $275.8 million, these results highlight that as a government we can and must always strive to do more.

We recognise that there is a lack of access to global risk capital, and falling commodity prices are undoubtedly influencing spending by explorers, and South Australia is not immune to that trend. We recognise that to foster development of our state's rich resource wealth we must continue to invest in pre-competitive data, we must continue to provide regulatory certainty, and we must continue to partner with industry. These latest ABS results highlight the need for this government to maintain its role in generating pre-competitive data that can help to attract scarce investment. We remain committed to government programs such as SARIG 2020.

South Australia's unique online tool for unlocking the wealth of geological and geospatial data is recognised as the best in the world and just last week won an Australian Excellence in eGovernment Award. We remain committed to opening up the WPA and are working to fast-track discoveries of one of our most prospective regions through our PACE Gawler Craton initiative. We continue to roll out initiatives from our world-recognised PACE 2020 program.

The work we have done in the past decade has delivered significant growth. We have developed a resilient resources sector, not through small government or arms length reactive policy, but we are developing this sector through a strong government working with industry supported by a very strong community. We will continue to invest in this state to unlock further discoveries for the benefit of all South Australians.

The SPEAKER: The member for Davenport might try the immediate past treasurer, the previous treasurer or the Minister for Health then the Treasurer. Member for Davenport?

Members interjecting:

Mr Marshall: They're mocking you, sir.

The SPEAKER: I'm sorry. I did—

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