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Legislative Council - Fifty-Third Parliament, Second Session (53-2)
2015-11-17 Daily Xml
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Leigh Creek

The Hon. K.J. MAHER (Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Aboriginal Affairs and Reconciliation) (14:26): I seek leave to make a ministerial statement on Leigh Creek.

Leave granted.

The Hon. K.J. MAHER: Today is the final day of operation for the Leigh Creek coal mine. This area has had a very proud history. For thousands of years it has been home to the Adnyamathanha people, but more recently, in 1888, coal mining began and in 1943 coal was mined on a commercial scale. Leigh Creek has had an important role in South Australia's history, and that role should not be forgotten or diminished.

The state government's priority is the 440 workers at Port Augusta and Leigh Creek who will lose their jobs as a result of the closure of Alinta's operations, and particularly the workers at Leigh Creek as mining finishes up today. After Alinta's announcement to cease their operations, the South Australian government announced an initial support package of $1 million in job creation and support initiatives for the Upper Spencer Gulf and Outback region. On 12 November the Minister for Regional Development announced a further $7 million in support for the Upper Spencer Gulf and Outback region. This includes $5 million from round 3 of the Regional Development Fund to specifically support projects in this region.

The Regional Development Fund has a proven track record of creating jobs and generating investment in South Australia's regional economies. The last two rounds of the Regional Development Fund grants have together created over 1,100 jobs and more than half a billion dollars in new investment in our regions. With a third of this round of the fund being set aside for the Upper Spencer Gulf and Outback we will see significant job creation investment in this region.

A further $2 million has been announced to fund small projects exclusively for the region. These projects will be funded on a dollar for dollar basis between $50,000 and $200,000. The grant program, which will be called the Upper Spencer Gulf and Outback Futures Program, will provide a funding source for local companies and businesses, as well as for councils and other bodies, to realise their ideas to create jobs.

Like Holden, Alinta has committed to provide transitional support services to their workers, and also like Holden the state government is providing similar services to the Alinta supply chain. There is also the government's $60 million Our Jobs plan that is supporting South Australians impacted by the changing nature of industry across the whole state.

The government will continue to provide the services in Leigh Creek that we currently provide, such as the school, health services and police, until at least July 2018. Alinta also has an obligation to continue to provide the services they currently do, such as electricity and water, up to that date. The future of the township beyond that date will be determined in close consultation with the Leigh Creek community and the Outback Communities Authority. We are committed to ensuring that Leigh Creek has an optimistic future. Since the announcement by Alinta that they will close, we have received a number of suggestions about new directions that Leigh Creek can take.

Some of these ideas have come from current residents, others from outside the town. However, it is clear that there are many people who can see a strong future for Leigh Creek, and the state government is committed to ensuring that these options are fairly considered. I have been fortunate to spend a great deal of time in Leigh Creek and surrounds over the last few months and have appreciated the generosity of residents in spending time to share their views on the future of Leigh Creek and inviting me into their homes.

The state government has today released a report summarising the feedback from the community regarding Leigh Creek. This report summarises community thoughts and concerns across a whole range of sectors from education and health services to the rehabilitation of the mine, to housing and the future of local business. This community feedback has been important in guiding the government's response so far and it will continue to guide our actions into the future.

To ensure that new ideas for Leigh Creek and surrounding areas are appropriately considered, the government has appointed Dr Lomax-Smith to oversee a Request for Information process, inviting industries and businesses to formally put their ideas forward to government to be considered, and Dr Lomax-Smith will report back to government early next year. Dr Lomax-Smith's experience in the education and tourism portfolios makes her a natural fit for this important role.

Many of the workers who have been made redundant are entitled to return to state government work provisions as a result of the privatisation of the power station and the mine. The state government has fulfilled and will continue to fulfil its obligations to these workers. The South Australian government will continue to strongly support workers in both Leigh Creek and Port Augusta who have or will shortly receive their notices of redundancy from Alinta Energy.

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