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House of Assembly - Fifty-Third Parliament, Second Session (53-2)
2015-10-13 Daily Xml
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Mining Employment

Mr MARSHALL (Dunstan—Leader of the Opposition) (14:21): My question is to the Minister for Mineral Resources and Energy. Does the minister still believe he is on track to create 6,000 jobs from the Gillman redevelopment?

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 proponents have not exercised their option, as far as I am aware, but, obviously, commodity prices made a dramatic impact on mining across the country, if not internationally. I think the idea that somehow we are immune to it here in South Australia simply by hoping—

Mr Marshall interjecting:

The Hon. A. KOUTSANTONIS: I am trying to answer your question. The truth is that mining companies and mining services companies are doing it exceptionally tough right now. The question is: how do we react to a changing commodity price? What do we do to support those companies that are out there doing it very tough in very difficult international conditions? Do we simply bury our heads in the sand? Do we accept that we are living in an economy that is transitioning and an economy that is dealing with a change in commodity outlooks?

We saw the announcement of Santos yesterday, we have seen the announcement of Alinta, we have seen the announcement of BHP, we have seen the announcements of Atlas Iron and Rio Tinto, and we have seen announcements out of Western Australia and Queensland. All the mining jurisdictions and mining companies are doing it tough across Australia.

The truth is that some of the first casualties of a downturn in commodity prices are mining services, and mining services are something that we are attempting to grow in this state because, as the commodity price returns, what we want to take advantage of isn't just extracting the commodities and getting royalties and creating jobs at the mines but we want to value-add to those commodities and value-add to the supply chain, and we do that by doing all we possibly can to develop a mining services hub, whether it is at Gillman, in the Upper Spencer Gulf or in the industrial precincts of Adelaide. We are doing all we can to incentivise and help build this industry.

I will tell you what doesn't help, Mr Speaker: inquiries into unconventional gas, not releasing a mining policy at the last state election, constantly talking down our mining services centre and constantly talking down mining. We aspire to make this state a mining state. We aspire to do all we can to try to get the commodities that we have in the ground out, and for a profit. Also, we are attempting to value-add, as referenced by the royal commission announced by the Premier into the nuclear fuel cycle, something members opposite have opposed. Some of them have embraced it but some have opposed.

We are attempting to value-add. We won't be able to do this immediately, obviously, because commodity prices are down: but, if the Leader of the Opposition actually thinks that we can go out, regardless of what commodity prices are, regardless of what profits mining companies are making and just bury our heads in the sand and somehow click our fingers and make it all go away by clicking our shoes together—

Members interjecting:

The SPEAKER: Point of order, member for Morialta.

Mr GARDNER: I think the minister is now debating.

The SPEAKER: I uphold the point of order. Before the supplementary, I call to order the members for Chaffey and Flinders, the Premier and the Minister for Health, and I warn the member for Chaffey for the first time. The deputy leader has a supplementary.

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