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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2013-04-10 Daily Xml
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SA WATER

The Hon. K.J. MAHER (14:50): My question is to the Minister for Water and the River Murray. Will the minister outline how SA Water is working with industry to assist economic development in this state?

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Aboriginal Affairs and Reconciliation) (14:51): I thank the honourable member for this very important question. Everyone in this chamber no doubt knows how important water is to our state. We have discussed it at some length recently. Water is essential to sustain our growing population and economy and, without a secure supply, confidence in our state is undermined and our economy is put at risk. This is a reality that was central to this government's decision to construct the Adelaide desal plant, a key component of our commitment to guarantee Adelaide's water security to 2050. It is also in response to this reality that SA Water is working with industry to ensure that our water is delivered to areas of demand, particularly those that provide for future economic development.

The upgrade of the Port Wakefield water supply is a key example of this government's collaboration with industry, as well as local and federal governments, to safeguard economic development in our state. The upgrade of the Port Wakefield water supply is a $17.1 million investment to upgrade, expand and secure the sustainability of drinking water supply across the region.

SA Water will construct a 43 kilometre pipeline from the existing upper Wakefield storage tank near Auburn to the Port Wakefield township via Balaklava and Bowmans. This upgrade will guarantee the long-term security of water supply to the region, ensuring future residential development is provided for, and allow the continued expansion of industry in the Balaklava and Port Wakefield area.

Right now, intensive animal industries that require substantial amounts of water are already expanding in South Australia. The Department for Primary Industries and Regions South Australia, in collaboration with industry and regional development boards, has identified the Port Wakefield region as a suitable location for future industry development. Providing a sustainable water supply will ensure that this development is not constrained. These sorts of developments have the potential to significantly increase economic activity and increase the number of people working and living in the region, or staying in the region.

SA Water's upgrade of the Port Wakefield water supply will also provide a reliable supply of water, I am advised, to Rex Minerals' proposed mining operations at the Hillside mine south of Ardrossan on Yorke Peninsula. An agreement between Rex Minerals and SA Water means that the capacity of the pipeline will be increased to provide up to an additional two gigalitres per annum of water for Rex's mining operations. Increased capacity will be delivered by using a larger diameter pipe than otherwise would have been required, and the increased cost of doing so is being met, I understand, by Rex Minerals. Construction of a further 53 kilometre pipeline from Port Wakefield to the mine site is in the planning stages, with the full cost of this further expansion also being met by Rex Minerals.

I am pleased to advise that the total funding of $17.1 million for this important project is being met by the state and federal governments and industry. The Wakefield Regional Council partnered with SA Water to secure a grant for the Regional Development Australia Fund, which will contribute approximately $5.7 million to the project. In addition, Rex Minerals will contribute approximately $7.2 million to fully fund the upsizing of the pipeline in order to meet the annual demand at their Hillside mine on Yorke Peninsula, with SA Water to provide the balance of the required funding.

This project is an illustration of this government's ability to collaborate with industry and local communities to ensure continued economic development in our state. SA Water will continue to work with businesses to identify further opportunities to work together in this way into the future.

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