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House of Assembly - Fifty-Third Parliament, First Session (53-1)
2014-11-13 Daily Xml
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Mineral and Energy Resources

Mr HUGHES (Giles) (14:12): My question is to the Minister for Mineral Resources and Energy. Will the minister inform the house of any recent analysis of the importance of the resources sector?

The SPEAKER: Minister, can you help us?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy, Minister for Small Business) (14:13): I will do my very best to inform the house, sir. By now, I am sure, I hope, that most members know of the importance of harnessing our state's rich resource potential. That is why the Premier has made expanding our resources sector the first of our economic priorities for South Australia.

Our state is blessed with an abundance of minerals, oil and gas, and renewable energy resources and for the first time in our history, we are in the right place at the right time. We are no longer cursed by the tyranny of distance, and we are now poised to capitalise on our proximity to growing markets in Asia. For decades, through bipartisan support for this sector, we have established highly-regarded geoscience initiatives, an internationally respected regulatory framework and a highly-skilled workforce to realise the opportunities presented by our resource potential.

However, in the current global economic climate, South Australia faces challenges in expanding its resource sector. The government recognises we can and we must do more. We need to support new technologies, address the difficulties of deep cover and drive down extraction costs through innovation and partnerships—partnerships formed by a strong government working with industry, academia and, of course, the community.

We know we will only unlock our resource potential if we have the right infrastructure and access, and we will only maximise the benefit of these resources if we develop the mining and petroleum services as an industry in South Australia. We need to leverage the employment opportunities for downstream suppliers to the resource industry, our Indigenous communities and our regional communities.

This government's commitment to the state's resources sector could not be stronger. The sector will find no greater ally as we seek to partner with industry and community to maximise the benefits for all South Australians. We are not alone in recognising the importance of this vital sector. It was pleasing to see a new report prepared by PwC that found that one of Australia's highest value-adding industries is the oil and gas sector.

The contribution of the industry to the nation's economic output is expected to double to $67 billion by 2030. PwC has found that for every dollar of production the oil and gas sector adds 70¢ of value-add compared to an average of 49¢ for all other industries. APPEA Chief Executive David Byers has said that the analysis:

…showed why encouraging investment in the oil and gas sector should be a key focus for government.

He went on to say:

It is further evidence that natural gas is one of Australia's great strengths, with a higher relative contribution to the economy than almost every other industry.

He goes on to say:

It is crucial, therefore, that calls for policy interventions that seek to force non-commercial outcomes continue to be resisted.

There are those in our community who claim that they support our economy. They claim to support investment in our state and they claim to support employment: yet, what we get from them is extremist rhetoric from the extreme fringes of the movements which try to engage in the political system. I urge all members to stop putting investment in this state at risk and to follow the government's lead, show some leadership and have their reckless motion withdrawn.

An honourable member interjecting:

The SPEAKER: My congratulations to the ministerial assistant for not violating standing orders.

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