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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2011-11-24 Daily Xml
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Question Time

REMOTE AREAS ENERGY SUPPLY SCHEME

The Hon. D.W. RIDGWAY (Leader of the Opposition) (14:24): I seek leave to make a brief explanation before asking the Minister for Regional Development questions regarding remote electricity supplies.

Leave granted.

The Hon. D.W. RIDGWAY: The Labor government has failed to protect metropolitan South Australians from the rapidly rising electricity prices, but the situation in rural and regional parts of the state is even more dramatic. Over several years, there has been pressure on the Remote Areas Energy Supply Scheme, particularly through increasing diesel fuel costs, which comprise over half of its operating budget.

A KPMG report, in July this year, reviewed the Remote Areas Energy Supply Scheme for the Department for Transport, Energy and Infrastructure. The report found, as I am sure the minister is aware, that there was a long-term financial case to connect Coober Pedy with the grid and an immediate case to connect Andamooka. As members would know, Andamooka's mini-grid is just 30 kilometres from the current Roxby Downs grid.

The report identified three possible ways in which to get funding for the grid to connect Andamooka, one of which was the state government to pay for the connection. In the case of Coober Pedy, the report found that, although the state government cannot itself apply for funding under the Regional Development Australia Fund, the government could support the council to make an application by assisting in negotiations with commercial parties, thus increasing the chance of a successful application. My questions are:

1. Has the minister read the KPMG report?

2. Will the government fund the grid connection to Andamooka and, if so, when and, if not, why not?

3. Has the government assisted the Coober Pedy council to make an application under the Regional Development Australia Fund?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for Tourism, Minister for the Status of Women) (14:25): I thank the honourable member for his most important questions. I am happy to refer these matters to do with energy—and which, therefore, come under the purview of the minister for energy—to the minister for energy and for him to bring back a response. However, as Minister for Regional Development I am aware of concerns around access to reasonably priced power in a sustainable way for a number of communities, particularly Coober Pedy and Andamooka.

I have met with the mayor and other councillors at Coober Pedy on a number of occasions to discuss this with them. I think they indicated it would be something like $50 million to hook up from the closest point (which is near Prominent Hill) to Coober Pedy, and $50 million is certainly a very expensive outlay. We discussed with them different means at their disposal. I also visited Prominent Hill and raised the issue with them. I have to say that no-one at Prominent Hill embraced the idea of entering into any partnership or providing any assistance in that respect; nevertheless, I did raise it with them when I visited there.

In terms of the RDAF funding, to the best of my knowledge Coober Pedy has not considered an application or put an application forward, nor has it requested any assistance in relation to that. The RDAs create the Roadmap, which is the vision and direction for opportunity, and it is their responsibility to provide assistance to councils and other eligible bodies to put together proposals. I am not aware if Coober Pedy has approached the RDA for any assistance, either.

The Hon. D.W. Ridgway: And you haven't offered any assistance?

The Hon. G.E. GAGO: They have not asked for any assistance. The process is that a council would consider putting a proposal together and the proper body to assist them in an application is the RDA. To the best of my knowledge I am not aware if they have even approached the RDA to assist them to put together a proposal. I also have doubts whether an application of this nature would, in fact, be eligible under the RDAF guidelines—it may be, but there is some doubt about that. Nevertheless, that is a matter that is always worthwhile testing. I certainly would encourage them to do that.

I have visited there several times, and my officers have been available. No assistance has ever been requested in respect of putting a grant proposal together. They know that our door is always open, and if they do require any assistance they are welcome to contact us and we will provide whatever assistance we can.

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