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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2011-07-29 Daily Xml
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UPPER SPENCER GULF

The Hon. CARMEL ZOLLO (14:33): I seek leave to make a brief explanation before asking—

Members interjecting:

The PRESIDENT: Order!

The Hon. CARMEL ZOLLO: —the Minister for Regional Development a question about the Upper Spencer Gulf industry hub.

Leave granted.

The Hon. CARMEL ZOLLO: We have heard about the impending expansion of mining and mining exploration in our state and the numbers that are quoted in terms of the size of ore bodies. The value of these products is very large. It looks like it will be of great benefit to our state in the years to come. However, mining on such a large scale will have an impact on communities and requires planning and adjustment. My question to the minister is: how is the government assisting business and communities to plan for this economic development?

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, Minister for Gambling) (14:34): I thank the honourable member for her important and timely question. Indeed, the developments in mining and exploration, which we see reported in the business pages of our papers, are in some cases on a very large scale.

This is indeed a very exciting time for South Australia. Perhaps never before have we had so many opportunities for economic growth, largely generated by the resource opportunities in regional areas. This opportunity also holds some challenges. If we do not take full advantage of developing jobs and investment from the mining industry value chain, South Australia will be poorer for it. We must capture this opportunity, and much of that capture will be in regional areas.

The Upper Spencer Gulf is in a unique geographical position, but it also has many other advantages—for example, a willing and capable workforce, local infrastructure and, above all, a passion for building a better community and economic future. One of the key features of our approach will be to engage with the communities of the Upper Spencer Gulf very early in the process. The government is aware that communities and businesses will need to plan and adjust to take best advantage of this particular bonanza. That is why at the very last election the government committed $500,000 to undertake a heavy industry hub feasibility study for the Upper Spencer Gulf.

The study will identify how South Australian industries can maximise their involvement with the mining and energy sectors. The study will be conducted in two parts. Stage 1, worth $200,000, will identify the benefits of establishing a heavy industries hub or hubs in the Upper Spencer Gulf region. Stage 2 will deliver an investment strategy and business case for the region, to assist in the development of the manufacturing and service sector focused on the mining opportunities in the Upper Spencer Gulf.

The study is a specialised exercise and requires specific expertise, and therefore an open tender process has been used to put the opportunity to the market. I am pleased to be able to announce that the tender for stage 1 of the study has been to a consortium of KPMG and GHD. I am advised that their experience and relationships with mining and services companies, including as a financial and sustainability auditor of the developer of South Australia's largest mine, BHP Billiton, means the consortium is extremely well placed to do this work.

One of the important elements in the study will be to obtain a high level of response and ensure good industry engagement so that high-quality information is gathered to support the study. Once stage 1 is completed—and I understand that work is due to finish in early 2012—the information gathered will be used to create the investment strategy and business case, which will guide investment into the area. The study aims to determine the needs of future mining and major development projects in the Upper Spencer Gulf and the capacity of local industry to meet those needs.

Stage 1 will deliver the following: an Upper Spencer Gulf investment attraction strategy and business case for heavy industry hubs; a gap analysis of future needs of mining and major developments in the Upper Spencer Gulf and the current capacity of industry to meet those needs; capability development and investment opportunities; and identification of opportunities for greater coordination across the three levels of government in relation to infrastructure, planning and, of course, workforce development.

I congratulate the winning consortium and look forward to seeing the results of this study.

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