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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2012-09-04 Daily Xml
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EYRE PENINSULA

The Hon. G.A. KANDELAARS (15:07): I seek leave to make a brief explanation before asking the Minister for Regional Development a question about development on Eyre Peninsula.

Leave granted.

The Hon. G.A. KANDELAARS: The Eyre Peninsula has some remarkable country and is known for its high-quality produce, including as the site of our great grain producing areas. Can the minister advise the chamber about a recent grant to support grain infrastructure for the grain industry?

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) (15:07): I thank the honourable member for his important question. The Eyre Peninsula has a very proud history as one of our bread baskets, with cereal crops being one of the mainstays in the region. It is also an extraordinarily beautiful part of our state, with wonderful agricultural landscapes and fabulous coastlines and some of the best seafood in the world.

Like most commodities, cereals such as wheat are ordinarily shipped in bulk, and the silos and grain storage facilities are a feature of the rural landscape in many places across our state. I am very pleased to advise the chamber that a grant to the cooperative company Free Eyre will be used to strengthen one of those facilities on the Eyre Peninsula. The company which aims to harness business opportunities arising from the Eyre Peninsula's agricultural base and add value to the produce from the area has developed a grain accumulation and storage arm and built a bulk handling facility in the central Eyre Peninsula.

The $21,911.50 grant—it is quite remarkable that we got it down to 50¢—has been made towards the $56,000 project to provide mains electricity connection to the main machinery shed on the site and is set to include two electricity poles, wiring, connectors and associated fittings. The project will reduce reliance of the business on costly diesel fuel and reduce carbon emissions, noise pollution and occ health and safety issues for employees, supporting improved operating expenses.

This lower cost structure is expected to help EPS to maintain its competitive position and continue to deliver Eyre Peninsula farmers higher grain prices and lower grain storage and handling charges. The business was established as a joint venture between Free Eyre and 19 local farmer investors to address the lack of competition or service provision within the Eyre Peninsula agribusiness sector.

Free Eyre is the Eyre Peninsula's farmer-owned and controlled rural investment company, and I understand the company has established businesses in a range of areas relevant to the Eyre Peninsula, including FE Energy, FE Fibre, a wool broking and supply chain arm, and FE Fertiliser. In addition I am advised that the EP Storage contains strong connections with Australia's grain marketing company, Emerald Group Australia, through EP Grain, which is a joint trading venture between Free Eyre and Emerald Group Australia.

This storage site currently has a fixed bunker storage capacity of 100,000 tonnes, with space for future expansion if required, and features a weighbridge, testing laboratory for grains and silo bag management systems for flexible storage of bulk and segregated grain varieties. As it is certified as a Grain Trade Australia (GTA) registered bulk handling facility, grain stored at the site by farmers can be shipped through the remainder of the supply chain to port, providing an alternative storage option. I understand that this project was completed in August 2012. I certainly congratulate this organisation on achieving that outcome.

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