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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2009-04-08 Daily Xml
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Question Time

BULK COMMODITY PORTS

The Hon. D.W. RIDGWAY (Leader of the Opposition) (14:23): I seek leave to make a brief explanation before asking the Minister for Mineral Resources Development a question about bulk commodity ports.

Leave granted.

The Hon. D.W. RIDGWAY: Last year—in October, I think—the Minister for Infrastructure advised that the Spencer Gulf Port Link Consortium, led by Flinders Ports, had been selected to undertake a feasibility study for the development and operation of an export facility at Port Bonython. The minister announced that the feasibility report would be completed earlier this year and that the port would be operational within three years.

In the interim, a company by the name of Centrex wanted to export iron ore through Port Lincoln, and the government has undertaken a number of actions, including an application to the Development Assessment Commission, which will receive submissions on this particular development. However, an article in the Port Lincoln Times earlier this week quotes from a letter written by Mr Phil Tyler, as follows:

In relation to Centrex, the SA Government is supporting the company in its efforts to export its minerals...The first Centrex mineral exports will be via Port Lincoln.

I have been contacted by some distressed residents, who feel their ability to lodge a submission has been significantly damaged, and they have also brought into question the open and transparent way in which this whole process is being conducted. Their email states:

Today in our local newspaper, the headline of 'Fait accompli?' explains that 'according to a senior official (Phil Tyler) in the State Department of Trade and Economic Development...CENTREX Metals will get approval from the State Government to export minerals from Port Lincoln.'

This information was contained in a letter to the Eyre Regional Development Board. If this is so, the whole process with which we have conformed is a farce. We expect to meet with the DAC in the near future, but now we feel this would serve no purpose.

My questions to the minister are:

1. Are Mr Tyler's comments correct?

2. Have Mr Tyler's comments undermined the government's consultation process?

3. Has a decision already been made by the state government?

4. When will the feasibility study on Port Bonython be released?

5. Will the minister confirm that Port Bonython will be open for business within three years?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business) (14:26): When the media raised questions about this, I had a look at the letter that Mr Tyler wrote. It is a distortion, I believe, and a misinterpretation of that letter to suggest that it is saying that a decision has already been made.

The point that Mr Tyler was making (in his role in relation to the regional development board) is that the government supported the consideration of that proposal under section 49 of the Development Act—that is, as a crown development—however, that is going through the procedure, which will include public consultation, as required under the act in relation to such projects. The point that I believe Mr Tyler was making is that, yes, the government supported the application to be considered, but to suggest that that means approval would be given automatically is not correct, because it obviously has to be considered by the independent—

The Hon. D.W. Ridgway interjecting:

The Hon. P. HOLLOWAY: Yes, they have applied, under section 49. It is supported; they are looking at it, but it has to be approved by DAC. The DAC approval process is not yet complete.

The Hon. D.W. Ridgway: It's not the same.

The Hon. P. HOLLOWAY: Well, I do not believe he did say that DAC had approved it. I do not think that is said anywhere in the letter.

The Hon. D.W. Ridgway: He said he has obviously made up his mind.

The Hon. P. HOLLOWAY: He said the government was supporting it in the sense that it is being considered as a crown development, sponsored by the department of infrastructure, but, that any proposal they put forward has to go out to public consultation and has to be approved under the terms of the act by the independent Development Assessment Commission. That is where it is at.

There has been a lengthy process of consultation in relation to how Centrex proposed to export the ore from its Wilgerup proposal. For some time, it was looking at the option of barging it out through Proper Bay, and there were a number of other options. Centrex has had extensive consultation with the local community in relation to that.

However, what is being investigated now (under section 49, Crown Development) would be modification of the wharf. As I said, the proposal is more through the infrastructure department than through mine. As I understand it, it is about using rail facilities, because the Wilgerup proposal is quite close to the existing rail facility. It would certainly make sense if that ore is to be exported that rail would be preferable to road traffic, particularly in relation to avoiding the need for many trucks to go through the heart of Port Lincoln.

My understanding is that Centrex is looking at a proposal to build a port at, I think, Sheep Hill, south of Tumby Bay. I believe there is a site there where the water is over 20 metres deep within 450 metres of the shore, which could make a very suitable port in the longer term. The company is clearly looking to get its project under way at some interim facilities. That will all go through the proper process of consideration.

In relation to Port Bonython, Flinders Ports was charged with preparing a report. I understand that that report was given to my colleague the Minister for Infrastructure several weeks ago, and the government will be looking at that. I have had a briefing on that report but, as I said, it comes under the jurisdiction of my colleague the Minister for Infrastructure.

Port Bonython will be an important facility for the future of the mining and other industries within this state and, obviously, it is important that it should go ahead. When Flinders Ports was selected, a number of consortia were making offers to look at the Port Bonython proposal. Of course, the situation occurring at the time when that was done has changed somewhat over the past six months, in terms of the global financial situation and the prospects, but obviously the government would be keen to see that go ahead.

The Hon. D.W. Ridgway interjecting:

The Hon. P. HOLLOWAY: That is really a question that is better referred to my colleague the Minister for Infrastructure, whose department will be analysing that report in more detail and making a statement. So, I will refer any specific questions on that to him. However, I can at least confirm that the report has been received by government.

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