Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

I also rise to speak on a matter of public interest—namely, infrastructure investment in the electorate of Grey. I recently had the pleasure of accompanying the Minister for Regional Australia, Regional Development and Local Government, the Hon. Simon Crean, in announcing two of the four successful grant applications in the second round of the Regional Development Australia Fund. The electorate of Grey is one of the largest electorates in Australia and is one of South Australia's most important economic regions. The area is home to South Australia's resources. According to the Department of Foreign Affairs and Trade, South Australia's top five exports include copper, iron ore and concentrates and copper ore and concentrates. In the 2012-13 state budget review, mining exports in the year to March 2012 totalled $4 billion, four times greater than a mere decade ago.

However, mining is not the be-all and end-all within the electorate of Grey. Farming is still a staple of the economy, producing some of Australia's best agricultural exports in often difficult conditions. In fact, according to the Department of Foreign Affairs and Trade, wheat was South Australia's top individual export in 2011 with $1.792 billion worth of wheat. Large towns such as Whyalla, Port Pirie, Port Augusta and Port Lincoln are vitally important to South Australia in respect to energy production, iron ore exporting, steelmaking and, most importantly with Port Lincoln, fishing. The area is also strategically important in respect to our defence training and testing with Cultana and Woomera bases located in this vast area. Port Augusta, as most Australians know, is the connecting point of all transported goods north, west and east of Australia. By the way, Whyalla is still there in a vibrant state. The last Saturday night I spent there was quite an eye-opener.

The area is also one of great significance, especially with the opening of new mines. This will mean that major towns such as Whyalla, Port Pirie, Port Augusta and Port Lincoln will remain the doorstep to the economic boom, even with the delaying of the expansion of Olympic Dam. It is quite likely that skilled workers from these towns will drive in and drive out, will fly in and fly out to the mining centres and importantly, before returning to their homes, put some money back into communities. Olympic Dam, which is still an ongoing commitment from BHP, and the continued exploration in the region will mean the need for an expansion of ports there, greater capacity of transport workers necessary to bring in machinery and products to mines being developed and also the transport of minerals from the mine to new ports.

It should not be forgotten that Olympic Dam produced 192,600 tonnes of copper, 3,885 tonnes of uranium, 117,845 ounces of gold and 907,000 ounces of silver in the year to June 2012, contributing approximately $1.7 billion to the South Australian economy. The Hon. Tom Koutsantonis, state Minister for Mineral Resources and Energy, issued a media release on 3 September highlighting that mineral exploration has hit a post-GFC high, and that spending on mineral exploration in South Australia has risen to $328.4 million in the 12 months to the end of June 2012, an increase of nearly 30 per cent.

In the light of the current success and potential in this region, it is important that federal, state and local governments, as well as private investors, make the necessary improvements in infrastructure for a successful future. With more and more people to be employed in industries directly or in a supportive capacity, investment is vital. While there will be an increase in people living in towns like Roxby close to mines, many will opt to live by the coast. It is no great secret that the majority of Australians live on our great coastline. That is why these regional centres that already have infrastructure capacity, and many of the creature comforts that Australians are familiar with, will be the homes for the bulk of employees working directly or indirectly in the mining industry.

Housing affordability and overall lifestyle opportunity that these regional centres offer will be a great incentive for people to live there. Another advantage is the local skilled workforce. As the demand for skilled workers increases, commuting reasonably by car to these exciting opportunities will be attractive. The development of these areas, as well as the development of existing towns, is crucial for future prosperity. This latest round of funding out of the Regional Development Australia Fund has put money towards fantastic projects that will cater for the future needs of these local communities. The recipients of this round of the Regional Development Australia Fund are Port Augusta for a new sports hub; Coober Pedy for a water for growth project; Lucky Bay for a harbour extension, and new and affordable housing will be constructed in Roxby Downs, Whyalla, Port Augusta, Clare and Port Pirie.

The sports hub in Port Augusta will see the alignment of the central oval; the construction of a new sporting pavilion; improvements to surrounding roads, car parking and landscaping; and the installation of water and energy saving devices. The Australian government through the Regional Development Australia Fund will provide $5 million of the $12.2 million needed for the project. As Minister Crean stated, when it is completed the sports hub will be one of the best one-stop recreational facilities in the state, joining the dots between football, cricket, basketball, netball and other community activities. As I have discussed, these sorts of investments make the community a more attractive location because of the added value of the liveability. At this point I would like to say that the Mayor of Port Augusta, Joy Baluch, attended the function—even though she was not in the best of health—and was over the moon in her praise of Minister Crean and the work of this Labor government in bringing together enough money to get this project over the line.

For many young Australians, sporting culture is extremely important, and having a sports hub like the one at Port Augusta will only make the area more attractive; the benefits of the sea on one side, the Flinders Ranges on the other and all the modern services and infrastructure in a central location. Sport is a significant part of community life for most regional Australian communities, and Port Augusta is no exception. There is a real sense of unity when sporting events are held in Port Augusta, and I am sure that all the residents will be extremely proud of the proposed new facility. Not only will this be a great new sporting facility; it will also accommodate local community events. Port Augusta's vibrant local Indigenous community will benefit from sporting clinics and the use of the pavilion for education, cultural gatherings, training, and art and craft expos.

Another really important initiative is the Unity Housing company. They were a successful recipient, receiving another $5 million from the Regional Development Australia Fund for the Northern Region Affordable Housing Initiative. The project is worth $26.8 million in total and will supply 100 affordable rental houses at less than 75 per cent of market rent and half the electricity cost to tenants. The houses will be strategically built by targeting areas in growth industries such as mining, tourism, agriculture and infrastructure innovation, but with workers of low to moderate incomes. This will see houses built in Port Augusta, Roxby Downs, Whyalla, Port Pirie and Clare. The project is the culmination of Unity Housing, which is South Australia's largest not-for-profit housing provider, affiliated regional councils, state and federal governments and the private industry all coming together in support of this project.

It is expected that the project will benefit the local communities in the construction phase. This means tradesmen, contractors, suppliers and labourers from the communities will also benefit. The affordable housing initiative will create 57 positions in the first year and 55 in the second year. Not only will these communities benefit from the economic stimulation of construction; they will also benefit from their newest residents who will do much to stimulate the local economies. Those targeted to live in these houses are young people who are starting in their careers in expanding areas. The Unity Housing website states:

Unity Housing Company Limited (Unity) was pleased to receive support from the Federal Government’s Regional Development Australia Fund (RDAF) towards its proposed $26.8 million affordable rental housing project. This project has National Rental Affordability Scheme (NRAS) support and aims to also harness both State Government and Local Government alongside private finance to develop rental housing for people on low to moderate incomes.

This project demonstrates Unity’s innovative approach to increasing the supply of affordable housing through the use of a Public Private Partnership model.

The project will aim to provide a platform to support the northern region of South Australia and to cover a wide area including Port August, Whyalla, Port Pirie and Roxby Downs.

The Coober Pedy Council was another organisation that received funding in their 'Water for growth project'. This saw $910,000 granted towards the project, which will cost $1.8 million, for a new 12-kilometre section of water pipeline from a subartesian bore field, a new water irrigation system at the town oval and the extension of the community orchard. Once again, this is an example of long-term foresight for the future sustainability and capability of a regional centre. It will most definitely support key industries such as mining and tourism in Coober Pedy. It is extremely important to deliver a project that enhances long-term reliability and healthy water supply to regional centres surrounded by arid lands.

I have great hope that this project will allow Coober Pedy to contribute to the growth of the area. Coober Pedy District Council Mayor, Steve Baines expressed via email that he was extremely pleased to receive this Commonwealth funding:

The funding for this project has been sourced from the three tiers of government and will ensure that Coober Pedy will have a continued and viable supply of water for the next 30 years. This is testament to what can be achieved with perseverance and a collaborative approach.

There is another beneficial outcome of this project, and that is the project will provide a training program to three long-term unemployed residents from the Umoona Indigenous community, assisting them to gain ongoing work.

Finally, for the electorate of Grey, out of the second round of the Regional Development Australia Fund was a $2.2 million grant which will establish a common-user facility as part of the Lucky Bay Harbour extension totalling $12.1 million. This will allow for the export of iron ore through an innovative transhipment system. The transhipment system allows for iron from the Wilcherry Hill mine near Kimba to be taken by train to Lucky Bay in sealed containers. The next process is the iron ore barge to a mooring point, where Panamax sized vessels will load the iron ore for export. This extension will also mean better facilities for the ferry service from Wallaroo, separating the export barge movement from the movements of the ferry. This allows for a safer passage for the ferry to the port.

There are also clear benefits to the region and the local economy. Access to a port for exports will allow regional companies in Eyre Peninsula to grow and have confidence that the facility will save time and transport costs. There will also be a direct benefit to the local area, with employment opportunities not only in industries benefiting from the extension but in the functioning of the port.

The other direct benefit is in the tourists that the ferry system will deliver. According to the statistics, approximately 230 new jobs will be created in the region. District of Franklin Mayor Eddie Elleway said, 'Any assistance to get this project up and running is extremely beneficial.' He went on to say, 'The end result will provide employment in the local community and also in the broader community. Mayor Elleway discussed the fact that this project will do much for the future export capacity of the harbour. This is about improving the ability of industries to maximise their capabilities throughout the area. It is a win-win situation.

These investments, together with investments the Labor government has made in regional Australia and in particular in the upper north and west of South Australia, have been outstanding

These investments will stand the test of time and will make regional South Australia a real option for families looking to take advantage of the opportunities that are on offer. Investments in the Building the Education Revolution, economic development, regional sustainability and liveability mean the regions have been left on a much better footing as a result. The success of South Australia in the regions will be not just a win for the towns directly but a win for the state and the nation as well. I would like to congratulate the successful applicants, especially those individuals who put their time and effort into preparing the successful applications.