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Legislative Council - Fifty-Fifth Parliament, First Session (55-1)
2024-02-22 Daily Xml
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Motions

Eyre Peninsula Water Supply

Adjourned debate on motion of Hon. N.J. Centofanti:

1. That a select committee of the Legislative Council be established to inquire into and report on the water supply needs of Eyre Peninsula, including a focus on the potential location of desalination plant/s and with particular reference to:

(a) assessing the current and future water supply and distribution requirements of Eyre Peninsula, including for potential industrial growth needs;

(b) evaluating the feasibility and impact of locating desalination plant/s on Eyre Peninsula, including the selection process for locating a desalination plant in Port Lincoln, with particular emphasis on community engagement and consultation processes with residents and key stakeholders;

(c) examining the environmental, economic, cultural and social implications of desalination plant operations in the proposed locations;

(d) exploring the decision-making responsibility for water supply and distribution on Eyre Peninsula, including community engagement and consultation processes to ensure the active involvement of residents and key stakeholders in decision-making regarding water infrastructure;

(e) any other relevant matters.

2. That this council permits the select committee to authorise the disclosure or publication, as it sees fit, of any evidence or documents presented to the committee prior to such evidence being presented to the council.

(Continued from 7 February 2024.)

The Hon. B.R. HOOD (15:56): I rise to speak briefly in support of this motion to establish a select committee into Eyre Peninsula's future water supply needs. The former Liberal government initiated consultation into EP's water needs and established the desalination plant site selection committee, chaired by the former member for Flinders, Peter Treloar.

The committee was representative of the needs of local government, regional development, industry associations and local businesses. The committee, in their investigations, considered 20 potential site locations using a range of important factors: proximity to existing infrastructure, environmental considerations, and aquaculture and marine park sanctuary zones were factored in. The committee landed on Sleaford West as their preferred site but, as we know, SA Water's preferred location for the desal plant is at Billy Lights Point, a site selected for its convenience and because of its lowest cost option.

Unsurprisingly, the department and the minister received overwhelming opposition to their decision to ignore the advice of the site selection committee. Their chosen site presents unknown and significant risk to the prominent EP aquaculture and seafood industry that is so famous for its abundance of fresh premium seafood. Industry bodies and marine biologists are rightfully outraged by the disregard of the committee's advice and are determined to oppose this project.

Yumba, which has acquired Eyre Peninsula Seafoods and is working towards becoming Australia's national leading shellfish aquaculture company, shared its views that Billy Lights Point was its least preferred site location for the desalination plant. The views of this key industry partner are being discarded and, as a result, Port Lincoln is faced with a high-risk chance of untold damage occurring to the largest mussel farming region in Australia.

While strongly objecting to the proposed site, it is indisputable that EP is in urgent need of a secure water supply for the coming decades. There are clear alternative locations that have the support of industry, but here we have a minister and her department taking the lazy and cheap option for this multimillion dollar project that has the ability to destroy the Eyre Peninsula seafood industry and ruin natural ecosystems in the region.

The concerns of Hands Off Boston Bay—made up of community members who are united in their strong opposition to the Billy Lights Point desal plant—must be taken seriously. Proposing risky and permanent infrastructure in a location that threatens the state's seafood industry and goes against regional communities' wishes has become a trend of these state and federal Labor governments, with Eyre Peninsula and Limestone Coast fishing industries being Labor's latest victims, although I would note that luckily the state Labor government has opposed the wind farms down at Port Mac.

By establishing this crucial committee, voices like that of Mark Andrews and EP communities will be heard, a thorough investigation will occur into the feasibility and best location of the desal plant, and the environmental, economic and cultural implications of the desal plant site selection will be examined. Importantly, a select committee will ensure that the community is properly engaged with and their concerns taken seriously.

I thank the honourable Leader of the Opposition in this place for bringing this motion and, prior to commending it to the chamber, I will move an amendment to the motion. I move:

After paragraph 1 insert new paragraph 1A as follows:

1A That the committee consist of six members and that the quorum of members necessary to be present at all meetings of the committee be fixed at four members.

With that, I commend the motion to the chamber.

The Hon. T.A. FRANKS (16:00): I rise today to speak on behalf of the Greens in support of this select committee, which will look into Eyre Peninsula's water supply. As the driest state in the driest inhabited continent, South Australia has the imperative to lead on water innovation, security and resilience. We must ensure that water resource management in South Australia ensures access to potable drinking water as a fundamental human right.

Recent analysis of the state of Eyre Peninsula's underground water sources has confirmed the urgency required to secure the region's future water security. Despite several years of La Niña weather patterns, meaning heavy rainfall and cooler than average weather, there has not been sufficient aquifer recharge to see recovering water levels.

The Uley South Basin, which supplies the majority of water used across Eyre Peninsula—including homes as well as agriculture and mining industries—recorded water levels below or very much below average in almost half of its wells during the past 12 months. This trend has been observed in other groundwater resources across the region, including the Robinson Lens near Streaky Bay, the Polda Lens and the Bramfield Lens near Elliston, and the Lincoln Basin and Uley Wanilla Lens.

Eyre Peninsula Landscape Board general manager, Jonathan Clark, has expressed his concerns with current reports:

An alternative water source is urgently needed for the Eyre Peninsula. Time is fast running out and we cannot continue to spend more years deliberating the merits of a range of solutions. Decisive action is required now, before we lose this critical resource forever.

Amid growing concerns that the region could run out of drinking water, SA Water first identified three sites in the Sleaford Bay area for a desalination plant for Eyre Peninsula back in 2009.

A site selection committee, set up by the previous Liberal government, recommended a Sleaford Bay site 25 kilometres south of Port Lincoln. However, ultimately, when the Billy Lights Point site was announced, it sparked community protest with unanimous opposition from the community, and council defied the recommendation of the 22-member committee. Multiple local government bodies have also rejected Billy Lights Point as a location for a desalination plant. None oppose a desal plant for the Eyre Peninsula region per se. It is recognised as crucial to ensuring its water supply, but the location and SA Water's process do not pass the 'do no harm' principle.

In late 2023, the Greens also received a letter from the Barngarla Determination Aboriginal Corporation regarding opposition to the location of Billy Lights Point. Their concern stems from the 'insurmountable ecological and heritage issues' they identify. In correspondence with the Barngala corporation, they have said that the site at Billy Lights Point was selected without any heritage surveys, and it is concerning to the Greens that SA Water would go against the wishes of traditional owners, failing to engage, and also why they would also refuse to provide adequate answers to ensure the Barngarla people understood why Billy Lights Point was chosen.

There are much better locations to select from, it is argued, that would not destroy a unique and pristine marine environment that is a community asset, that will not destroy jobs in a $200 million per year agriculture and fishing industry, and will not decimate a $400 million per year tourism industry, as well as all the benefits that flow from that. These are contentious issues but they are urgent issues so, with the Greens' support, I urge that this committee not drag on. It is a matter that is pressing, it is urgent, and it demands our full attention.

There are, of course, also significant fish trap complexes at Billy Lights Point, and the SA government heritage report from the 1980s, commissioned by the SA government's Department of Environment and Planning, indicated that the fish trap complex be preserved in its entirety.

It is clear that Billy Lights Point is a controversial site selection, but water security for Eyre Peninsula is vital and it is urgent, so these processes need to be appropriately and urgently scrutinised. We also need to unite to ensure that the future of water on Eyre Peninsula is protected. With that, I commend the motion.

The Hon. S.L. GAME (16:04): SA Water identified in 2008 that Eyre Peninsula would need to complement its South Basin supply through desalination to meet future demand. The decision of Minister Close and SA Water to disregard advice from the site selection committee and build a plant at Billy Lights Point is worthy of examination. The community needs to be heard and we need to know that the site selection is the best option for Eyre Peninsula. If there is a more appropriate option, this committee will assist in reevaluating the selection process and finding that better option. The desalination plant needs to be fit for purpose and the decision on its location needs to be guided by the experts and industry leaders.

I understand there is strong opposition to the desalination plant being located within the highly productive aquaculture zone of Boston Bay and this location requires further scrutiny. I support the motion and want to see the best outcome for the residents and businesses on Eyre Peninsula.

The Hon. J.E. HANSON (16:05): SA Water is preparing to build a 5.3 gigalitre desalination plant at Port Lincoln on Eyre Peninsula to supplement and take pressure off the stressed Uley Basin groundwater supply and provide water security to local communities. This will ensure the supply of reliable, climate-independent drinking water to supplement groundwater sources for around 35,000 customers on Eyre Peninsula by late 2025.

The South Australian government accepted the advice of the SA Water board that Billy Lights Point is the preferred location for the plant. SA Water is required to adhere to strict environmental protection legislation and SA Water has a proven history of designing and building desalination plants that protect the surrounding environment. SA Water is committed to providing the Eyre Peninsula community with transparent information about such an important project as this.

My understanding is that SA Water plans to lodge a development application for the plant at Billy Lights Point with the State Commission Assessment Panel for assessment in early to mid-2024.This provides an open, accountable and responsible decision-making process that includes community consultation.

The government is not opposing this motion, but it makes its intentions clear that it is acting now so residents of Port Lincoln, along with the broader Eyre Peninsula communities, can have access to a climate-independent drinking water source.

It is well known that SA Water needs an additional water source to supplement the Uley South groundwater basin to ensure availability of drinking water for its customers across Eyre Peninsula. It is also well known that there is a serious threat to water security on the peninsula and SA Water needs to act now to ensure fresh drinking water for Eyre Peninsula communities and to safeguard business confidence for industry.

The Uley South Basin is the last remaining major productive groundwater source on Eyre Peninsula, and it provides about 75 per cent of the drinking water for more than 35,000 people. In 2008, SA Water released its long-term plan for the water security of Eyre Peninsula, which identified that the Uley South Basin suppliers will need eventual augmentation to meet ongoing community need.

Extended low levels of recharge from rainfall to the Uley South Basin led to the former government announcing the construction of a desalination plant near Port Lincoln to provide water security and prevent permanent damage to the basin.

In June 2020, the former Minister for Environment and Water and now Leader of the Opposition stated that the former government was 'getting on with it', spending $90 million on a desalination plant at Sleaford Bay, proclaiming that they were looking forward to returning to the site in a couple of months to turn the first sod and see the project get underway.

In April 2021, SA Water instead announced that it was investigating potential alternative sites for its planned Eyre Peninsula seawater desalination plant so that it would determine if a new location would enable a more cost-effective delivery than the preferred position at the time near Sleaford Bay.

In October 2021, it was then announced that, following a comprehensive analysis of 20 sites around Port Lincoln and Lower Eyre Peninsula, the ex-BHP site at Billy Lights Point was the preferred site for the desalination plant. Around 17 months after the former minister and now Leader of the Opposition told us how this government was 'getting on with it', in November 2021, the former minister then opted for a further 12-month pause to the project to explore further site options along with further marine science monitoring and research.

At the time, the 2022 state election was just three months away and it might have made some sense for the former minister and now Leader of the Opposition to pause the project to the detriment of the broader Eyre Peninsula residents so that notionally his party might stave off any pressure from candidates in that election. To enable this, around 20 months after the former minister and now Leader of the Opposition told us all how his government was 'getting on with it', in February 2022 the Eyre Peninsula site selection committee was established with the remit to make its recommendation to SA Water and the South Australian government regarding a preferred site for the construction of the desalination plant.

At its first meeting, in February 2022, the former minister highlighted the need for the site selection committee to give close consideration to the financial implications of any recommendation, noting that the available budget was somewhere between $100 million and $150 million. Tellingly, the former minister advised that to do nothing was an option if the site selection committee could not align on an affordable site for desalination.

Fast-forward to March 2023. For some 33 months after we were told that the former government was getting on with it, this government did in fact get on with it by accepting the advice of the SA Water board that Billy Lights Point is the preferred location for a desalination plant at Port Lincoln.

While appreciative of the efforts of the site selection committee, the simple fact is that the committee's preferred site at Sleaford West poses a number of geological and transport challenges that would be difficult to overcome. Based on SA Water's latest estimates, the site selection committee's proposed Sleaford West site would cost around $200 million more than the estimated $313 million Billy Lights Point proposal, which would be worn by SA Water customers right across South Australia.

In introducing this motion, the honourable member has proposed that the committee will investigate what the consultation process was for the current desalination proposal from initial discussions to the present day. The honourable member also noted that, in its recent draft determination of SA Water's regulatory business proposal, ESCOSA raised concerns with SA Water's proposed operating cost for the EP desalination plant for the 2024 to 2028 period.

However, the honourable member failed to mention that in the exact same report ESCOSA said that the capital expenditure on the Eyre Peninsula desalination plant is in fact prudent, and the amount of capital expenditure is efficient. Despite SA Water's recommendation that the Billy Lights Point site provides a suitable site from an environmental, logistical, operational and financial perspective, it appears that the opposition want to add further impost to SA Water customers by advocating for a different site at an increased cost.

The opposition constantly remark that this government must do all it can to keep water prices as low as possible, yet fail to mention that the former minister and now Leader of the Opposition's inaction has meant that SA Water customers are going to be saddled with the increased project cost of at least $213 million since he first boasted that he was 'getting on with it' when the original project cost was $90 million. It appears that the opposition now want the 1.7 million customers of SA Water to put at least another $200 million towards the project on top of the $313 million, taking the project from $90 million to in excess of half a billion dollars.

This government agrees that water security is an important issue on Eyre Peninsula. In closing, Eyre Peninsula's water security is seriously under threat and this government and SA Water are acting now to ensure fresh drinking water for Eyre Peninsula. While the government will not be opposing the motion, it makes its intentions clear that, unlike some in the Liberal Party, it is now 'getting on with it' so that the residents of Port Lincoln, along with the broader Eyre Peninsula communities, can have access to a climate-independent drinking water source.

The Hon. N.J. CENTOFANTI (Leader of the Opposition) (16:14): I would like to thank honourable members for their contributions this afternoon, namely, the Hon. Ms Franks, the Hon. Mr Hood, the Hon. Ms Game and the Hon. Mr Hanson. It has been clearly articulated that this select committee is not to determine whether Lower Eyre Peninsula requires an urgent water security solution, nor is it about whether or not a desalination plant is built in that region. We know that a water security solution is essential and that a desalination plant has been earmarked since the previous Liberal government was responsible for investigating solutions for this issue.

I want to place on the record that it certainly is our intention to ensure that this select committee is done in as timely a fashion as possible. We know and respect the scientific advice that a desalination plant is the most suitable solution for this region. That is not what is under debate and that is not what is to be investigated. What is to be scrutinised is general water security on Eyre Peninsula and, in particular, the decision-making process in determining the current site selection, by this Labor government, of that EP desalination plant.

Multiple times I have called on the Minister for Climate, Environment and Water to reconsider her decision to build the desalination plant at Billy Lights Point. No-one wants it there. The community does not want it there, the aquaculture industry does not want it there, the Barngarla Determination Aboriginal Corporation does not want it there, and the local tourism industry does not want it there. The only people who seem to want it there are SA Water and the Labor government.

It appears that the minister is not motivated to listen to the community and to advocate to her own government to find funds to build the desalination plant in the appropriate place at Sleaford West. I have asked Minister Close, on a number of occasions, to not only reconsider her decision but to seek from her federal colleagues—not from SA Water customers, as the Hon. Mr Hanson stated—the additional funding required to allow the site of Sleaford West. That of course was the recommendation of the independent Eyre Peninsula desalination site selection committee.

This is the same government that will be content to blow the budget when it comes to the north-south corridor in metropolitan Adelaide, or to throw tens of millions of dollars at again sponsoring a LIV golf tournament here in Adelaide, or to spend hundreds of millions of dollars on a university merger without doing its own due diligence and reading the business case. My point is that this is critical infrastructure for our state and for the communities of Lower Eyre Peninsula, and it should be given effort and respect. The site selection committee put forward a different location for the proposed desalination plant. The site of Sleaford West ticked many more boxes than Billy Lights Point.

There is no need for me to repeat everything that has been said previously in this chamber. There is no need to repeat everything that I have said on many radio programs and in regional papers about this issue. Suffice to say that I am proud to stand with my colleague in the other place, the member for Flinders, and I am proud to stand up with colleagues here in this place. I am proud to stand up and hold this vote as shadow minister for water resources and regional South Australia.

It is my hope that the motion for this select committee passes today and that we are able to understand how we can find a better outcome for the people of Port Lincoln and for the people of Lower Eyre Peninsula. I commend the motion to the chamber.

Amendment carried; motion as amended carried.

The Hon. N.J. CENTOFANTI (Leader of the Opposition) (16:19): I move:

That the select committee consist of the Hon. C. Bonaros, the Hon. T.A. Franks, the Hon. J.E. Hanson, the Hon. B.R. Hood, the Hon. R.P. Wortley and the mover.

Motion carried.

The Hon. N.J. CENTOFANTI: I move:

That the select committee have powers to send for persons, papers and records, to adjourn from place to place and to report on 1 May 2024.

Motion carried.

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