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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2012-02-14 Daily Xml
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ARKAROOLA WILDERNESS SANCTUARY

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Manufacturing, Innovation and Trade, Minister for Mineral Resources and Energy, Minister for Small Business) (14:37): I seek leave to make a ministerial statement.

Leave granted.

The Hon. A. KOUTSANTONIS: According to Canada's independent Fraser Institute, South Australia is a world leader in the regulation of mining. In the institute's 2010-11 Annual Survey of Mining Companies taken across 79 jurisdictions, South Australia scored four top ten rankings. South Australia scored equal first in the world for our geological databases, security and trade barriers. We also ranked third in the category for legal processes. In the policy index, South Australia ranked highest of all Australian jurisdictions, and was 11th in the world. That prestige is worth protecting.

On 22 July 2011 the former premier Mike Rann announced that Arkaroola will be protected for all time and that we would recommend to the Governor in Executive Council to proclaim the land be reserved from the operation of the Mining Act 1971, pursuant to section 8(1)(c). That proclamation appeared in the Government Gazette on Friday 29 July 2011. The former premier also announced that the state government would enact special purpose legislation to protect the natural, cultural and landscape values of the area in perpetuity.

Mining companies must acquire a vast range of approvals before they can mine in South Australia. One implied approval is that of the community. It is the industry's social licence to operate that underpins our steadfast approach to mining. Community support for mining projects across South Australia is vital for this flourishing sector. In the case of Arkaroola, Marathon Resources failed to obtain a social licence to operate in the minds of many South Australians, including the Liberal Party.

The state government acted in the interests of the state, as Arkaroola is a pristine wilderness in the South Australian outback with unique environmental, heritage and cultural significance. At the time the decision to protect Arkaroola was announced, it was made clear that it was a once-off decision. I said at the time that in the interests of fairness the government would enter into good faith negotiations—

Members interjecting:

The SPEAKER: Order!

The Hon. A. KOUTSANTONIS: Unlike you, I am always honest.

An honourable member interjecting:

The Hon. A. KOUTSANTONIS: What about putting your wife's business in your name? I said at the time that in the interests of fairness the government would enter into good faith negotiations with Marathon in regard to an ex gratia payment for the costs incurred in exploration conducted throughout exploration licence 4355. There is absolutely no legal obligation to make a payment to Marathon or its subsidiaries as a result of the decision to protect Arkaroola.

Officials from the Department of Treasury and Finance, the Department for Manufacturing, Innovation, Trade, Resources and Energy and the Crown Solicitor's Office helped to formulate a figure that struck an appropriate balance between preserving both the interests of the community and the mining industry in this state. The figure of $5 million was presented to Marathon and its board.

On Monday 13 February, I was advised that Marathon Resources announced that it had accepted the government's offer and executed the deed of settlement on an ex gratia payment. The government makes no apologies for protecting Arkaroola. However, we remain committed—

Members interjecting:

The SPEAKER: Order!

The Hon. A. KOUTSANTONIS: —to having one of the best mining jurisdictions in the world, where activity in the resources sector continues to flourish under the stewardship of this new Premier and government. Allowing mining in Arkaroola would have severely dented the public's support for an industry that is at the core of this state's future prosperity. We cannot and will not risk that future for our state.

This ends the debate on mining in Arkaroola forever. This government has preserved this pristine wilderness and landscape for all South Australians to be proud of and enjoy. It is and will continue to be a defining landscape of this state's rare beauty for generations to come.

Ms Chapman: Do it properly next time and not waste—

The SPEAKER: Order! Member for Bragg, you are warned for the second time.

An honourable member interjecting:

The SPEAKER: Order!

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