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House of Assembly - Fifty-Third Parliament, First Session (53-1)
2014-05-20 Daily Xml
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Member for Frome, Government Agreement

Mr MARSHALL (Dunstan—Leader of the Opposition) (14:20): My supplementary is to the Premier. For clarity, can you explain to the house whether that assurance and that advice that you received was either before or after you re-formed government?

The SPEAKER: After the Premier formed government, thank you.

The Hon. J.W. WEATHERILL (Cheltenham—Premier) (14:20): I don't quite follow the question, but let me take you through it again. The member for Frome wanted assurances about our level of commitment to the Nyrstar project. We said that we would put ourselves in a position, should we form government, to back this project. At that time, we were all labouring under the sad, I think, misconception that the federal Liberal government would keep its promises, and I think many of us are now realising that such a thing is a dangerous thing to rely upon—although I did contemplate the risk and I said I would put the South Australian government in a position, should we form a government, to ensure the project went ahead.

Of course, that did not bind the government. The government had to make its own decision once it was formed. We took all of that advice. As it happened, the judgement that I made at the time was the right one, because all of the advice, as we have set out in the ministerial statement, vindicated the judgement that I made that we could ultimately make that commitment.

The advice, just to remind you, and the ministerial statement sets it out, is that, but for the South Australian government commitment, Nyrstar would not be in a position to actually proceed with this project. That is the first step. Second advice: it was a strong business case, so that the guarantee, such that it is, is unlikely to be called upon. Third advice: this is technically and practically feasible. It is using proven technology; it is not a blue sky technology.

This is a technology which is known and which is going to likely deliver the results which are contended for on its behalf. Of course, finally, the environmental and health care risks associated with this investment are dramatically reduced. What needs to be remembered in all of these discussions is that before the election the federal government gave a commitment that they would back this project.

Mr Marshall interjecting:

The Hon. J.W. WEATHERILL: Before the election, November 2012. The federal government, through its agency EFIC, gave its commitment, and this raises very substantial questions of sovereign risk about a federal government that commits itself to a proposition and then backs out. It is something that we have come to know and experience from this federal government. I was happy, Mr Speaker, to apprise myself of the importance of this project for Port Pirie. I have actually travelled to Port Pirie three times in the last six months.

Mr Marshall interjecting:

The Hon. J.W. WEATHERILL: How many times have you been to Port Pirie? Mr Speaker, I know a nice pizza shop where he can get a nice Hawaiian pizza next time he goes there. This project was on a positive trajectory. The federal government, opportunistically, decided to withdraw from the project. We made a commitment that we would do all things necessary to secure the future of this project.

Another very important point, Mr Speaker, in the time that I have available, is that time was of the essence in relation to this project. We could not wait until the federal government had completed what seemed to be quite lengthy processes. It was always going to be necessary for the state government to at least take an initial step—

The SPEAKER: The Premier's time—

The Hon. J.W. WEATHERILL: I don't think so, sir.

The SPEAKER: —has expired.

The Hon. J.W. WEATHERILL: I was watching the clock.

The SPEAKER: No; the big clock would give you 49 minutes to speak, but that's, alas, the total of question time.

Members interjecting:

Mr MARSHALL: Supplementary—

The SPEAKER: Leader, before we have a third supplementary, I have some sentencing to do. The member for Chaffey is warned for the first time and the member for Hammond is warned for the second and final time, as is the leader, and the Treasurer. The deputy leader is warned for the first time, the member for Mitchell is called to order, and the member for Morialta is warned for the second and final time. Third supplementary.

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