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House of Assembly - Fifty-Third Parliament, Second Session (53-2)
2015-06-16 Daily Xml
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Upper Spencer Gulf Employment

Mr HUGHES (Giles) (15:42): When I rose to speak in this chamber on 4 June it was to outline the job losses in the north of our state and especially the job losses in Whyalla and Roxby Downs and the significant impact those losses had and will have on individuals, families and communities. Alinta's announced closure of its Port Augusta power stations and the Leigh Creek mine will lead to the loss of an additional 455 jobs, not counting contractor positions during shutdowns and not counting multiplier effects.

The factors that work in our northern communities, when it comes to job losses, both overlap and differ. In Whyalla, it is cost cutting at the steel works and commodity price impacts on iron ore mining. At Olympic Dam there have been operational difficulties, commodity price impacts and the need to reduce costs to more effectively compete for capital internally. Alinta has been running at a loss for a number of years and it has found it difficult to compete. The increase in energy efficiency, the growth of renewables and a decline in industrial consumers have all had an impact.

I would not want to underestimate the current difficulties and the impact those difficulties will have on individuals and families, but our northern communities will get through this challenging period. We will build on the strengths that we have, and we will innovate and develop new strengths. The cities of Whyalla, Port Augusta and Port Pirie work together through the common purpose group to explore and map future opportunities—and there are opportunities. The smelter at Pirie is undergoing a major revamp. Whyalla and Port Augusta both look to sun, sea and land to innovate, with Sundrop Farms in Port Augusta and Muradel in Whyalla. We know that we have only scratched the surface when it comes to using our massive solar resources for energy production, renewable-based manufacturing of primary energy sources and as an input into a range of thermochemical processes.

The recently announced state copper strategy and the opening up of the Woomera Prohibited Area are both solid initiatives. Exploration and mining are going through a hard period, but that will change and we need to be ready when it does and especially ready when it comes to a thought through infrastructure response.

I have maintained publicly for the last decade that one of the most important pieces of infrastructure in the north of the state is the harbour at Whyalla. While on the Whyalla City Council eight years or so ago, I moved the policy position that backed the opening up and expansion of the harbour and that it be done in a way that would permit third-party use. This is still my position.

The harbour has the potential to be reconfigured so that it can handle far greater tonnages and operate both as an export and import facility. The harbour is surrounded by an abundance of vacant and underused land that is appropriately zoned and served by industrial grade infrastructure. There are rail corridors to the north and west, grid infrastructure with two major new substations, roads, gas and water. Given the nature of the area as a major industrial site, there are no significant environmental impediments or conflicts over land use. There is a wide buffer between the harbour and surrounding land and the Whyalla community. The development of the harbour would help secure Whyalla's long-term future and would have positive spin-offs for the whole of the region and for the state.

Our communities have the capacity to innovate and flourish, but we do need help to transition through this difficult period. We do want the state and federal governments to work with the private sector to create employment opportunities. I welcome the initial—and I say initial—$1 million from the state government to assist the Upper Spencer Gulf. We all note in regional South Australia what has been spent in Adelaide to develop infrastructure and to underpin future economic growth. The list is long. We all acknowledge the importance of having a vibrant capital. We acknowledge the needs that are generated as a result of having a population of over 1.3 million living within the urban boundary. We, in the north of our state, also need support and support commensurate with the challenges that we now face in the Upper Spencer Gulf. I look forward to that support being delivered.

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