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House of Assembly - Fifty-Third Parliament, Second Session (53-2)
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Mining Infrastructure

Mr MARSHALL (Dunstan—Leader of the Opposition) (14:21): My question is to the Premier. Can the Premier update the house on the plans to develop a further regional-based deep-sea port in South Australia?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy, Minister for Small Business) (14:21): The original infrastructure boards that the government set up are working very closely with the Minister for Infrastructure. We are mapping opportunities with the people who will be making the private investment into new mines and new ports.

The reality is that commodity prices are down, and that is a factor of international prices dropping around the globe. Prices for copper have dropped, prices for iron ore have dropped and prices for oil have dropped. Everyone realises this, other than Her Majesty's Loyal Opposition. For whatever reason, I am not sure why the opposition do not understand that we will do no harm to the mining sector. What will do harm is to try to pre-empt what the market wants.

We are working with mining companies to identify the very best opportunities for them to expand their ports. We are working closely with the mining companies to try to understand where the best points are to try to get, as effectively as they can, their products to port. We want to make sure that the third-party access regime—

Mr Marshall interjecting:

The Hon. A. KOUTSANTONIS: Just take your time—we want to make sure that the third-party access regime is in place. We want to make sure that before we invest taxpayers' money into a brand new deep-sea port, that those commodities actually have a market to go to.

We have seen what has happened in Whyalla with Arrium, who have seen a dramatic drop in the iron ore price. Is the opposition really calling on us now to invest in a deep-sea port on Eyre Peninsula for more iron ore? The reality is, Mr Speaker—

Mr Marshall: You have been talking about this for a decade!

The Hon. A. KOUTSANTONIS: The reality is, Mr Speaker, there is a great deal of capacity that is being opened up to third-party access at our existing iron ore exit points. We need to make sure, at Port Pirie and Whyalla, that those ports are making sure that they are at capacity, and that we are using our current infrastructure effectively and properly before we start investing into new infrastructure. We have got to do it properly. The opposition's theory of just building a deep-sea port that could lie idle while those mines are trying to find markets to go to is just silly!

Members interjecting:

The Hon. A. KOUTSANTONIS: What would we be saying to Arrium, who have now got surplus capacity at their port due to a lack of demand for their iron ore, that we are investing in a new deep-sea port somewhere else? What does that tell the people of Whyalla? What does that say to those workers in the iron ore mines in the Middleback Ranges? What does it say to them? Of course, it shows a lack of understanding again from the opposition about working with industry. We have to work with industry, sir—

Mr GARDNER: Point of order, sir. The question was for an update on the deep-sea port and the minister is now clearly debating.

The SPEAKER: I would like the Treasurer to perhaps move away from the opposition and a bit closer to the deep-sea port but, before he does so, I call to order the member for Mitchell, I warn for the first time the members for Stuart, Hammond, Hartley and Flinders, and I warn for the second and final time the member for Heysen. The member for Bright must be very upset with all of you. The Treasurer.

The Hon. A. KOUTSANTONIS: Yes, Mr Speaker. The key to developing a new deep-sea port in this state is to work with industry and we are working very closely with industry.

Mr Marshall: That's not what they say.

The Hon. A. KOUTSANTONIS: The Leader of the Opposition interjects, 'That's not what they say.' I do not know anyone in the resources industry who takes the Leader of the Opposition seriously.

Mr PISONI: Point of order, sir. It is against standing orders to respond to interjections.

The SPEAKER: Yes, it is, but the point of order is essentially bogus because, in fact, the leader did interject and, actually, I should remove the leader from the house if I followed the member for Unley's logic. I will not. I will simply warn the member for Unley for the second and final time. The Treasurer.

The Hon. A. KOUTSANTONIS: We are working very closely with industry, very closely with the proponents on Eyre Peninsula. For the information of the Leader of the Opposition, from discovery through to production often takes a decade. That is how long it takes to develop a mine. Approvals are one aspect: financing is another. I know that perhaps the resources industry is something foreign to the Leader of the Opposition, given his lack of policy on this issue other than perhaps—

Members interjecting:

The SPEAKER: I think the Treasurer has strayed enough. The Leader of the Opposition.

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