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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2011-03-08 Daily Xml
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REGIONAL DEVELOPMENT INFRASTRUCTURE FUND

The Hon. P. HOLLOWAY (15:11): I seek leave to make a brief explanation before asking the Minister for Regional Development a question about the Regional Development Infrastructure Fund.

Leave granted.

The Hon. P. HOLLOWAY: In June last year, the government announced a grant of almost $120,000 to a Riverland fruit juice company, Charlie's Group (Australia). I understand that grant was from the Regional Development Infrastructure Fund—so it does have money in it—to allow the company to expand its electricity supply. Will the minister provide an update to the chamber on how this grant has benefited the company?

The Hon. G.E. GAGO (Minister for Regional Development, Minister for Public Sector Management, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises) (15:11): I know how much it annoys the honourable members opposite to hear about the Labor government's excellent track record in promoting regional economic development. I know how it sticks in their craw, but it is for their own education that they should sit and listen to this answer.

Members interjecting:

The PRESIDENT: Order! The honourable minister should have stuck to exciting the opposition twice but not for the third time.

The Hon. G.E. GAGO: Thank you, Mr President, for your guidance. Charlie's was facing increased demand for its product as it had entered into a long-term fruit supply agreement with the local Riverland orchard, Gaillard Holdings. However, the company was stifled by a limitation with its electricity supply, and I am sorry to have to do this, but it was in fact the previous Liberal government that privatised ETSA, adding substantially to the cost of new connections in regional Australia; but I will not go into that, Mr President, given your guidance. I will move on quickly.

If the expansion went ahead, Charlie's indicated it would employ at least eight more people and expand its production capacity. Through the RDIF—

Members interjecting:

The PRESIDENT: The honourable members of the opposition should not allow their consciences to be so pricked.

The Hon. G.E. GAGO: Through the RDIF, the Labor government provided half the amount necessary to complete the power upgrade required for Charlie's, and I am pleased to inform the chamber that Charlie's has gone from strength to strength since the Labor government helped kickstart its expansion in the Riverland.

In October last year, Charlie's announced a new agreement with Coles to supply 750 stores across Australia. Spearheading the range was Charlie's old-fashioned lemonade—you are quite partial to that, Mr President, if I recall—which required the company to squeeze an extra four million lemons. This was a terrific vote of confidence in the Riverland, holding South Australia up as a place to do business. Extra jobs were created and new opportunities emerged for South Australian citrus producers to grow lemons and supply a high value market. There is currently a shortfall in domestic lemon production which, hopefully, other South Australian growers can potentially capitalise on, so there is a real opportunity there. This government is committed to regional development, and we are a government of action.

Charlie's is listed on the New Zealand stock exchange. While its shareholders are in New Zealand—and our thoughts are obviously with them at the moment, particularly those in Christchurch who have been affected by the recent crisis—the company buys fruit from the Riverland and also employs Riverland people at its factory in the Riverland. On 23 February, Charlie's announced a 56 per cent increase in its net profit for the half year to 31 December.

The company said its move to Coles Supermarkets had enabled it to create an extra nine jobs in the Riverland, and staff are now working regular double shifts to keep up with that demand. Charlie's Old Fashioned Lemonade made it into the top 10 products sold in this category within Coles for January, and now the company has been invited to supply an additional six products. The additional distribution into Coles' 750 stores nationwide enabled Charlie's to more fully utilise its production facility. The number of cartons through the plant has increased threefold, and Australian lemon growers will obviously be pleased.

When the Coles deal was announced, Charlie's anticipated needing four million extra lemons to meet orders. In fact, due to the success of the Quencher lemonade and the Quencher range, it is going to need 6.3 million lemons. This demonstrates the success of the Regional Development Infrastructure Fund in helping kickstart growth in a significant regional business. Although these funds were made available some years ago, you can see how that has value-added over time and that the benefits have amplified with time. This government is obviously getting on with the job, and we support growth in employment across South Australia.

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