Pages tagged "Primary Industries and Regional Development"
Question: Whyalla Steelworks
6 February 2025
The Hon. R.A. SIMMS (15:11): I seek leave to make a brief explanation before addressing a question without notice to the Minister for Regional Development on the topic of the Whyalla Steelworks.
Leave granted.
The Hon. R.A. SIMMS: This morning, it has been reported that the government's proposed $600 million hydrogen project is in doubt due to the ongoing issues with GFG Alliance and the Whyalla Steelworks. Yesterday, the Premier revealed that GFG Alliance owes the state tens of millions of dollars. The hydrogen project was to be one of the key energy suppliers for the production of green steel at the steelworks and the cornerstone of the Labor government's jobs plan for the Whyalla region. Now, thousands of regional jobs hang in the balance.
In 2023, when this place was considering the Hydrogen and Renewable Energy Bill, the Greens pushed for the bill to be referred to a select committee so that the parliament could examine the risks associated with the hydrogen project, including the economic benefits. At that time, Labor did not support any scrutiny of the bill.
My question to the Minister for Regional Development is: given the thousands of jobs that now hang in the balance, does the minister concede it was a mistake to block the Greens' proposal to refer the bill to a select committee so that the risk could have been properly scrutinised; why didn't Labor allow appropriate scrutiny of their hydrogen plan; and what does this mean for the regions?
The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (15:13): I thank the honourable member for his question. I think this chamber has a good track record in scrutinising legislation and this one was no exception.
Members interjecting:
The PRESIDENT: Order! I will listen to your supplementary, the Hon. Mr Simms.
The Hon. R.A. SIMMS (15:13): Does the minister consider passing a bill of this magnitude—that committed the state to spending $600 million—in one sitting day appropriate scrutiny; why was Labor so reluctant to give this bill the scrutiny it deserves; and what does it have to say to the people of Whyalla who have their livelihoods on the line?
Members interjecting:
The PRESIDENT: Order! A supplementary question has to arise from the original answer.
Members interjecting:
The PRESIDENT: Well, actually, I don't think it did, okay? I'm sorry.
Members interjecting:
The PRESIDENT: Order! The Hon. Dennis Hood, a supplementary question arising from the original answer.
The Hon. D.G.E. HOOD (15:14): Supplementary: minister, are you suggesting that an item costing some 3 per cent of the state budget is not worthy of scrutiny by a select committee?
Members interjecting:
The Hon. D.G.E. HOOD: Is not worthy of scrutiny by a select committee?
Members interjecting:
The Hon. D.G.E. HOOD: Well, I disagree, but anyway.
The PRESIDENT: Order! While you are on your feet, the Hon. Dennis Hood, you can ask your next question. Okay?
Members interjecting:
The PRESIDENT: Order!
Question: Regional Housing
13 November 2024
The Hon. R.A. SIMMS (14:33): I seek leave to make a brief explanation before addressing a question without notice to the Minister for Regional Development on the topic of housing in the regions.
Leave granted.
The Hon. R.A. SIMMS: Not sheep tagging today, Mr President. This month, new data released by PropTrack revealed that with a median price of $449,000 the cost of housing in South Australia's regions is as expensive as it has ever been and up more than 75 per cent since the onset of the COVID-19 pandemic. Shelter SA executive director Alice Clark has warned that housing was already unaffordable for low income households, but is becoming unaffordable for middle income families too, stating, and I quote:
There doesn’t seem to be any plan for housing in regional South Australia, with the State Government’s focus on metropolitan suburbs and market housing underlined by an underinvestment in social housing.
My question to the Minister for Regional Development is: when will the government finally invest in the social and public housing desperately needed to address the housing crisis in our regions?
The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (14:35): I thank the honourable member for his question. It is certainly the case that the Malinauskas Labor government has a housing plan, in contrast to those opposite. It is something that is key throughout our state, not just in metropolitan Adelaide but certainly through our regional areas as well. Of course, there has already been the Regional Key Worker Housing Scheme, which has been announced for some time now, and a number of those houses have already started to be constructed and, if I remember correctly, a number have been completed with more on the way.
That is an important scheme in terms of making sure that we can also fill the gaps in particular occupations, particularly in areas such as health, education and so on. I appreciate that this is one small step, but it is part of the coordinated steps—
Members interjecting:
The PRESIDENT: Order! Attorney-General!
The Hon. R.A. SIMMS: Point of order: I am actually interested in the response to the question. This is a matter of importance to me, thank you. It is about the housing crisis.
The PRESIDENT: As am I. Please, let's listen to the minister in silence.
The Hon. C.M. SCRIVEN: As I was saying, in terms of the Regional Key Worker Housing Scheme that has already begun its roll-out, it is important not only in terms of housing per se but also in terms of being able to attract and retain key individuals for areas such as the health system, education, police and so on.
Just very recently also, expressions of interest have opened for the development of two parcels of land in Whyalla led by Renewal SA through the Office for Regional Housing. That is intended to deliver up to 70 new homes for Whyalla. Of course, the establishment of the Office for Regional Housing itself was a key part of ensuring that we are developing projects which are suited for purpose in our different regional areas. Something that is always important to bear in mind is that it is not a one-size-fits-all in regions. They are different areas with different characteristics, different histories and, indeed, different futures. The Office for Regional Housing is continuing to do its work in terms of supporting this very important area of policy.
The Hon. R.A. SIMMS (14:37): Supplementary question: how many new public houses have been built in the regions so far, and how many will be completed before the next state election?
The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (14:37): I'm happy to take that on notice and refer it to the minister in the other place and bring back a response.
Question: Paraquat
31 October 2024
The Hon. R.A. SIMMS (15:03): I seek leave to make a brief explanation before directing a question without notice to the Minister for Primary Industries on the topic of paraquat.
Leave granted.
The Hon. R.A. SIMMS: On Monday, the ABC reported that leading neurologists and movement disorder specialists have made submissions to the Australian chemical regulator, calling for a ban on paraquat over its links to Parkinson's disease. The minister has stated that the use of the chemical paraquat sits with the medical regulator, APVMA. Twenty-eight independent studies from the last 15 years have shown that animals injected with paraquat develop signs of Parkinson's disease.
In August, the ABC revealed that the report that the APVMA have relied on for their advice in relation to the connection between Parkinson's and paraquat was based on an unpublished paper by the maker of the chemical, Syngenta. The APVMA had told the ABC that they are due to make their final decision on paraquat in February next year.
My question to the Minister for Primary Industries therefore is: what is the government doing to protect the community from the risks associated with this chemical in the meantime? In particular, is she concerned about the welfare of people living in the regions who may be exposed to this chemical?
The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (15:04): I thank the honourable member for his question. I think the claims that he has made in regard to a single paper certainly are not something that appear in my briefings on this.
Paraquat is a herbicide registered for use in a range of agricultural and horticultural situations for weed control. It's considered a particularly important herbicide for use in field crop situations due to its extensive use in low-tillage farming systems and in managing weeds with chemical resistance.
The APVMA is the independent national regulator of agricultural and veterinary chemicals (agvet chemicals) up to the point of sale. The APVMA makes science-based decisions on the registration of agvet products. Paraquat has been under reconsideration by the APVMA due to concerns relating to the safety of people, including the public and users of the chemical, safety for the environment, and impact on trade.
On 30 August this year, the APVMA published its proposed regulatory decision on paraquat. The proposed regulatory decision was open for public consultation until 29 October, so just this week, with the APVMA inviting submissions of additional data to help inform the final decision. Based on the weight of evidence, the APVMA's regulatory decision proposes removing a number of current paraquat uses at high rates of application that pose an unacceptable risk to the environment. The APVMA also proposes removing the use of paraquat at high rates where the short-term risk of poisoning can't be adequately mitigated.
The APVMA considers that there is no imminent risk to human health or the safety of food. I am advised that the APVMA would have taken immediate action if there was considered to be an imminent risk identified.
This proposed regulatory decision has of course attracted interest and public comment from a range of stakeholders. Grain bodies, such as Grain Producers SA and its relevant state bodies, have been publicly supportive of the need for certain uses of paraquat to be retained, with appropriate label instructions to protect users. Medical bodies, including leading neurologists and movement disorder specialists, have, I am advised, been calling for paraquat to be banned. It's understood that a number of these stakeholders have made submissions to the APVMA on the proposed regulatory outcome.
The proposed and final regulatory decisions regarding paraquat registration and changes to label directions are for the APVMA to make. South Australia supports the APVMA as the independent science-based national regulator of agvet chemicals that determines what products can be used and how to use them safely.
The Department of Primary Industries and Regions (PIRSA) will closely monitor the final APVMA decision and appropriately enforce registration and label requirements in accordance with our state-based control-of-use legislation. I am advised that the APVMA is due to make its final regulatory decision on paraquat by 28 February 2025, and in the meantime the current registrations and label instructions remain applicable for paraquat.
Question: Regional Business Energy Costs
11 September 2024
The Hon. R.A. SIMMS (15:19): I seek leave to make a brief explanation before addressing a question without notice to Minister for Regional Development on the topic of regional businesses and power.
Leave granted.
The Hon. R.A. SIMMS: As has been noted in this chamber this week, regional businesses such as Nippy's are reporting that their energy prices are crippling their operations. The Dairyfarmers' Association have also claimed that the average rise in electricity costs is 38 per cent, while an Australian Almond Board member, Brendan Sidhu, claimed that his business has seen a 60 per cent increase in energy bills. My question to the Minister for Regional Development, therefore, is:
1. What action is the Malinauskas Labor government taking to support regional businesses with soaring energy prices?
2. Will the government commit to a commission of inquiry to consider bringing our state's energy back into public hands, and, if not, why not?
The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (15:20): I thank the honourable member for his question. I think the topic of a potential commission of inquiry would probably sit, perhaps, with the Treasurer in the other place. I am certainly happy to refer that and bring back a response.
In reply to the Hon. R.A. SIMMS (11 September 2024).
The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries):
1. I am advised that an 8.5 per cent cut in the default market offer for small businesses took effect on 1 July for this financial year.
This was the biggest percentage reduction in any of the areas where the Australian Energy Regulator sets the default market offer which is the ceiling price for retailers' standing offers.
Importantly, South Australian regional business pay the same electricity prices as businesses in Adelaide. The Malinauskas government supports this policy which ensures regional businesses in South Australia get a fair go. In some other states, city businesses get cheaper prices than regional businesses.
In addition, the Malinauskas government is inviting small business to apply for grants which enhance energy efficiency, and which will deliver long-term financial benefits.
Up to 8,000 small businesses will benefit from the Economic Recovery Fund, round 2, which is open now through to 29 November 2024.
Grants of $2,500 to $50,000 are available in matched funding for energy-efficiency investments.
The grants will be available for a range of assets, including:
- Power supply and generation
- Lighting and electrical
- Energy-efficient appliances
- Heating, cooling, and refrigeration
- Water heating
- Motors, pumps, and compressors
- Building upgrades
- Process automation, controls, and automation.
Small businesses are encouraged to go to the website of the Office for Small and Family Business for full details and advice on applications.
2. The Malinauskas government does not plan to hold a commission of inquiry into government ownership of the energy system.
The privatisation of the energy system has been a public policy disaster.
However, if the extremely complex and expensive task of resuming ownership were to be undertaken, there would be a high risk that if the Liberal Party were to be elected to government at some point in the future, they would reprivatise the system again.
When last in office, they privatised the operation of 277MW of generation which had been purchased to ensure reliability by being kept in reserve.
The Malinauskas government is focused on reforms to ensure consumers have clean, affordable, reliable energy.
Question: Farming Chemicals
11 September 2024
The Hon. R.A. SIMMS (14:41): I seek leave to make a brief explanation before addressing a question without notice to the Minister for Primary Industries on the topic of chemicals linked to Parkinson's disease.
Leave granted.
The Hon. R.A. SIMMS: It was recently reported on ABC's Landline program that a cluster of Parkinson's disease cases in a Victorian farming community could be linked to the use of paraquat, a broad-spectrum herbicide that allows farmers to target weeds that are resistant to other pesticides, like glyphosphate.
The chemical is banned in countries around the world, including the United Kingdom and China, but is still widely used here in Australia. Farmers in the US and Canada are suing the company who owns the patent to paraquat, claiming that they have developed Parkinson's disease as a result of exposure.
My question to the minister therefore is: is the minister concerned about the potential risk of Parkinson's disease from exposure to the chemical paraquat, and what action is the government taking to protect South Australians from exposure to this potentially dangerous herbicide?
The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (14:42): I thank the honourable member for his question. The chemical use is governed by the APVMA, a federal body, which makes decisions on these matters based on the most up-to-date research and science that might be around it. I am aware of some of the controversies around paraquat. I have had a very high-level briefing which also referred, if I remember correctly, to the way that different chemicals will behave in different environments and climates. However, the APVMA is the body that has control over the licensing of chemicals.
The Hon. R.A. SIMMS (14:43): Supplementary: is the minister satisfied that South Australian farmers are safe in terms of their potential exposure to this chemical? Is the minister aware of any clusters of Parkinson's disease associated with exposure to the chemical in South Australia?
The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (14:43): In regard to the second question, no, I am not. In regard to the first, we need to defer to those bodies that have the expertise and, in this case, the APVMA is that body.
The Hon. R.A. SIMMS (14:43): Further supplementary arising from the original answer: has the minister sought advice form the relevant federal authority in relation to this?
The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (14:44): I can't recall whether the briefing that I alluded to included discussion at a departmental level or there being correspondence, but I am happy to check that and take it on notice and bring back an answer.
9 October 2024
In reply to the Hon. R.A. SIMMS (11 September 2024).
The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries): I am advised:
The APVMA's analysis of possible links between Parkinson's disease and paraquat herbicides is clearly summarised in their publicly available Paraquat Review Technical Report.
The APVMA has subsequently made a public response to the ABC Landline story, reaffirming their position.
Conclusions of the review conducted by APVMA, as well as the review undertaken by the US EPA, do not support the claim that there is a growing body of evidence indicating a causal link between exposure to paraquat and the development of Parkinson's disease.
Question: Regional Bank Closures
5 June 2024
The Hon. R.A. SIMMS (15:10): I seek leave to make a brief explanation before addressing a question without notice to the Minister for Regional Development on the topic of regional banks.
Leave granted.
The Hon. R.A. SIMMS: Last week, the federal inquiry into the impact of bank closures in regional communities delivered its final report. The report contained eight recommendations, including a feasibility study into publicly owned banks and adding a supplement to the federal major bank levy to fund a program to support community bank branches in regional areas.
In 2017, the then Labor government proposed a state-based major bank levy, which at the time would have raised $370 million of revenue over four years. Bank closures have impacted a number of regional towns in South Australia and also suburban areas such as Golden Grove, with Rhiannon Pearce MP organising a petition to reverse the closure of that local branch.
My question to the Minister for Regional Development therefore is: is the minister advocating for the federal government to implement the recommendations of the Senate inquiry into bank closures in regional Australia, and has the minister or her department considered which, if any, of the recommendations could be implemented at a local state level?
The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (15:11): I thank the honourable member for his question. He is correct that in May 2024, the Senate Rural and Regional Affairs and Transport references committee delivered its report on an inquiry into bank closures in regional Australia. I am advised the inquiry received 609 public submissions, and a total of 13 public hearings were held across a number of regional centres, including in Kingston South-East, that one being on 21 February.
The report provided a list of eight recommendations made by the committee. A chapter was included on possible solutions to the regional banking crisis, listing the following, which have been extracted from the report: alternatives to bank branches, such as better remote service options; co-location of banks; community hubs; local council banks; mobile banking; more community and customer owned banks; increasing the role of bank at post; a national public bank; options for regulatory reforms, such as imposing a universal service obligation on banks; increasing regulation and oversight in relation to branch closures; and options to address issues around loyalty of bank customers.
In terms of the recommendations, we are expecting, as I am sure many are, some further communication from the federal government in terms of their intentions. Members may recall that the state government made a submission to the inquiry. I think we were alone in that in the chamber. I do not think the asker of the question, nor the opposition, made a submission, but I guess that is up to them of whether they just want to come in here and make statements or whether they actually want to take some action. However, our submission emphasised the scale of the 71 per cent reduction in South Australian bank branches from a peak of 228 in 1975 to only 67 in 2021, and the impact this reduction has had on services available to regional banking customers. Those impacts include:
- reduced customer access to detailed face-to-face advice on banking products which suit their particular circumstances. That, of course, includes businesses operating in agriculture, fishing and forestry, among others;
- increased inconvenience and security risks in customers transporting large sums of cash and, in some cases, several hundred kilometres to the nearest deposit-taking institution;
- reduced financial inclusion of remote First Nations people, as well as older people, people with cognitive impairment, and those with lower levels of English language or financial literacy;
- reduced local economic activity, which results from banks reducing local sponsorships; and
- bank employees leaving regional towns.
Our government submission concluded that, while decisions around bank branch closures are commercial decisions taken by the banks, the impact of these decisions could be alleviated in a number of ways. Our government submission also recommended that the Australian Prudential Regulation Authority be asked to investigate ways in which more tailored information about banking products and services could be provided to people in regions, including through the use, for example, of virtual meetings with bank staff, which could be facilitated by using technology hosted in Australia Post offices or other government offices located in regional towns.
We look forward to seeing what the federal government's plan is in terms of implementation of recommendations that are within their scope, and that will inform any future actions that we might be able to take.
The Hon. R.A. SIMMS (15:15): Supplementary: has the minister conducted any preliminary work on recommendations that could be implemented at a state level, or is she simply passing the buck?
The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (15:15): I thank the honourable member for his question. However, to start looking at what the state could potentially do when we don't yet know what the federal government is doing would seem to be unwise.
Members interjecting:
The PRESIDENT: Order!
The Hon. T.A. FRANKS (15:16): Supplementary: how many submissions have been made to the minister in her portfolio that she hasn't acted on?
The PRESIDENT: You can answer it, but I would think it was a bit naughty.
The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (15:16): I don't think it arises from the original answer, but I am happy to answer. Submissions that come to me are always considered appropriately, and where action is appropriate action is taken.
Question: Regional Rail Funding
16 May 2024
The Hon. R.A. SIMMS (15:04): I seek leave to make a brief explanation before addressing a question without notice to the Minister for Regional Development on the topic of regional rail.
Leave granted.
The Hon. R.A. SIMMS: The federal budget this week included an announcement of $16 billion for road and rail infrastructure across the country. Western Australia received $1.7 billion for their rail projects and Queensland received $1.7 billion for a rail line to the Sunshine Coast, but South Australia received funding for road interchanges and the South Eastern Freeway, but nothing for rail.
Recommendation 3 from the Select Committee on Public and Active Transport, which I chaired, is that state government 'considers reactivation of regional rail for freight (particularly grain) and passenger services'. Recommendation 4 is that the state government 'incentivises passenger rail between Adelaide and Melbourne stopping at regional towns in South Australia'.
My question to the Minister for Regional Development therefore is: is the minister concerned about the lack of funding for regional rail in the federal budget, and what action has the minister taken to advocate for regional rail for South Australia?
The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (15:05): I thank the honourable member for his question. I think it's fair to say that there is a lot of connection, I guess, or desire to be able to utilise rail in ways that will suit both passengers and freight. In terms of that discussion, there are multiple factors that are involved, including, for example, on Eyre Peninsula. This was a discussion that came up at country cabinet in regard to freight, not in regard to passenger rail, last week.
There were discussions around the impacts on ports if regional rail was reinstated for freight, and whether a monopoly which could ensue would necessarily be in the interests of our farmers and in the interests of the region more broadly. It's certainly fair to say that all aspects of rail have multiple factors to be taken into account. In terms of what the minister in the other place may have advocated for to the federal government, that is something I can certainly ask him and bring back a response.
The Hon. R.A. SIMMS (15:07): Supplementary: has the minister herself raised this matter with the Minister for Transport or with her federal counterparts, given the importance of regional rail for development in the regions?
The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (15:07): I thank the honourable member for his supplementary question. Certainly, I have frequent conversations on many matters to do with regional areas, including transport and rail transport, with my colleague in the other place. It is obviously within his portfolio area in a direct sense.
27 August 2024
In reply to the Hon. R.A. SIMMS (16 May 2024).
The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries): The Minister for Infrastructure and Transport advises that any request for project funding to the Australian government must be supported by evidence of the project benefits.
The state frequently works with the rail industry through rail infrastructure managers such as the Australian Rail Track Corporation, Aurizon and Bowmans Rail.
Aurizon and Viterra have submitted a business case to the Australian government for the reactivation of the rail-based export grain supply chain on Eyre Peninsula.
On 25 October 2023, the Hon. Tom Koutsantonis MP, Minister for Infrastructure and Transport provided a letter of support for the project to the Hon. Catherine King MP, federal Minister for Infrastructure, Transport, Regional Development and Local Government following country cabinet and discussion with local councils. The Department for Infrastructure and Transport (the department) will now deliver a business case for the Eyre Peninsula export grain supply chain for $200 000 which will be 25 per cent funded by local government, to inform advice to the Australian government on investment priorities.
As part of its election commitments, the South Australian government committed a total of $1.4 million to Great Southern Rail from 1 July 2022 to 30 June 2026, to support the operation of the Overland passenger train between Adelaide and Melbourne. A condition of the funding is that services stop at Bordertown and Murray Bridge.
The department is investigating the feasibility of providing a rail passenger service to Mount Barker using the existing rail corridor and will be considering rail options in a business case for mass transit between the CBD and Mount Barker.
In addition, the 2024-2025 state budget included $10 million in partnership with the Australian government to plan for outer metro and regional passenger rail service extensions.
This will inform potential future rail bids as part of the future budget process.
Question: Regional Bank Closures
7 March 2024
The Hon. R.A. SIMMS (14:34): I seek leave to make a brief explanation before addressing a question without notice to the Minister for Regional Development on the topic of regional banks.
Leave granted.
The Hon. R.A. SIMMS: Last month, the Senate inquiry examining bank closures in rural areas visited Kingston here in South Australia to hear evidence about how the bank closures have impacted on local communities. BankSA, which is part of the Westpac Group, has paused the closure of its Kingston branch while the Senate inquiry is underway, but the future of that branch remains unclear.
This time last year, on 8 March 2023—in fact almost a year to the day—this chamber passed a Greens motion calling on the government to formally raise the closure of the Coober Pedy bank with Westpac and to advocate for the retention of bank branches in the regions. My question to the Minister for Regional Development therefore is: what action has the minister taken in relation to regional bank closures following the passage of that motion here in this place, and what is the Malinauskas government doing to prevent the closure of any more regional banks?
The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (14:36): I think the issue of regional banks is something certainly not only that we have discussed on a number of occasions here but is of great concern to regional communities. The Senate's Rural and Regional Affairs and Transport References Committee's inquiry into bank closures in regional Australia I understand did have reopened submissions.
I am not sure whether the member who asked the question did put in a submission for this inquiry with it being reopened. I would have thought that if he had felt strongly, as I would have thought he would—I know he doesn't get out to the regions very often, but I know he still cares about them—
Members interjecting:
The Hon. C.M. SCRIVEN: —I know he still cares about them. Look, I am being fair to the honourable member.
Members interjecting:
The PRESIDENT: Order!
The Hon. C.M. SCRIVEN: I would have thought he would have put in a submission. I hear a lot of squealing from those opposite as well, and yet I am not sure that they put in a submission either.
Members interjecting:
The PRESIDENT: Interjections are out of order.
The Hon. C.M. SCRIVEN: Did they put in a submission to the inquiry?
Members interjecting:
The PRESIDENT: Order!
The Hon. C.M. SCRIVEN: If they didn't, it really does beggar belief that they are now making such comments, as they are attempting to do, contrary to standing orders, by these interjections. I have previously written to the big four banks' CEOs: Mr Peter King from the Westpac Group, Mr Matt Comyn from the Commonwealth Bank of Australia, Mr Ross McEwan from National Australia Bank, and Mr Shayne Elliott from Australia and New Zealand Banking Group.
In that correspondence I outlined the state government's disappointment and concern at their continuing and alarming trend of regional bank closures, and I forwarded with those letters to the CEOs the government of South Australia's submission to the Senate Rural and Regional Affairs and Transport References Committee inquiry into bank closures in regional South Australia.
I haven't had an update in the last week or two, but I think it is most unfortunate when we see private entities not living up to what should be their community responsibilities to provide essential services such as banking in regional areas.
The Hon. R.A. SIMMS (14:38): Supplementary: I understand the power of a persuasive letter. I have written a few in my time; they are very powerful. But what else has the minister done? Has she actually requested a face-to-face meeting, given this motion was passed 12 months ago? What more has she done other than being pen pals with the CEOs?
The PRESIDENT: I will allow the supplementary question, but gratuitous self-praise, the Hon. Mr Simms, is out of order.
The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (14:39): I suggest it is a bit gratuitous, given the honourable member didn't bother to make a submission to the inquiry. Writing a letter is good and useful, but I suggest that when there is a Senate inquiry open that a submission to that Senate inquiry might be a good action to take, as indeed the state government did.
Question: Public and Active Transport Committee Report
7 February 2024
The Hon. R.A. SIMMS (14:46): I seek leave to make a brief explanation before addressing a question without notice to the Minister for Regional Development on the topic of regional transport.
Leave granted.
The Hon. R.A. SIMMS: Today is one year to the day since the Public and Active Transport Committee tabled its report containing a series of recommendations relating to the regions. These include:
better bus connectivity between regional centres, ensuring regional communities have access to health services;
a trial of passenger services from Mount Barker to Adelaide, with a view to adopting similar trials at Roseworthy to Gawler, Aldinga to Seaford, and Adelaide to Port Augusta; and
incentivising passenger rail between Adelaide and Melbourne stopping at regional townships.
Since the report was released one year ago, there has been no formal response from the Minister for Transport and, indeed, my efforts to contact his office have gone unanswered. The Minister for Regional Development has also not directly responded to the recommendations. My question to the Minister for Regional Development therefore is: has the minister now read the report, one year on, and has she understood the needs of the regions with respect to public transport infrastructure? What action has she taken in relation to those recommendations?
The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (14:47): I thank the honourable member for his question. At least he is not attributing to me responsibility for the weather, as some others might, but he does want me to be responsible for the portfolio of transport, which I think the Minister for Transport is doing a fine job on.
Whilst I think I have said in this place previously—some months ago and well before other questions on this topic from the honourable member—that, yes, I had read the report, in terms of responding to the recommendations, that is the role of the Minister for Transport. I will refer the question to him and bring back a response.
The Hon. R.A. SIMMS (14:48): Supplementary: given the Minister for Regional Development hasn't responded to the report, and the Minister for Transport hasn't responded to the report, whose job is it? When will I get a response?
Question: Power Outages
28 November 2023
The Hon. R.A. SIMMS (15:29): I seek leave to make a brief explanation before addressing a question without notice to the Minister for Regional Development on the topic of power outages.
Leave granted.
The Hon. R.A. SIMMS: At the height of the storm that hit South Australia last night, 14,000 people were left without power and over 5,000 South Australians were still without power at 10am this morning, mostly in regional areas. Some of the worst hit regions were the Barossa, the Lower Murraylands, the Mid North and the Flinders. Last year, the secretary of SA Unions, Dale Beasley, wrote an open letter to the Premier, the Hon. Peter Malinauskas, calling for a reversal of the privatisation of our energy network. In the letter he stated that, 'This model has seen under investment in maintenance and replacement of electricity distribution infrastructure.'
I asked the Minister for Regional Development about this matter back in September, and in the response to my question without notice that she has tabled today she stated:
The government believes that privatising the network by the then Liberal administration was a foolish decision which has resulted in sub-optimal outcomes for consumers. However, restoring the electricity network to public ownership would be a complex and expensive undertaking.
She goes on to state:
Any consideration of such a change would require thorough analysis rather than superficial thinking.
My question to the minister therefore is:
1. In light of her remarks, would she consider the Greens' push for a commission of inquiry into bringing electricity back into public hands?
2. What action has the minister taken to ensure that people in the regions have access to power during this storm?
The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (15:31): I thank the honourable member for his question. In terms of one part of that question, it is certainly the case that in the answer I provided to the honourable member, where I alluded to the advice received from the Minister for Energy in the other place, I stated there would indeed need to be a thorough analysis of any proposal to bring electricity back into government hands. We all remember of course how many problems have eventuated due to ill-conceived privatisation by a former Liberal government in this state. In terms of those sorts of steps, I am happy to refer that to the Minister for Energy in the other place.
In terms of the storm power outages, I am advised that, as the honourable member referred to, the storms did cause widespread power outages in addition to localised flooding. I am advised that approximately 155,000 lightning strikes were recorded, some 26,000 of those hitting the ground. Some of the lightning strikes hit electrical infrastructure, which caused damage. There was also damage from trees and vegetation falling on powerlines, and I am advised that this led to about 30,000 SA Power Networks customers being affected by an outage.
I am advised that SAPN mobilised additional crews and have been restoring power to most customers, and as of 10am today there remained approximately 5,000 out of those 14,000 customers who were still without power. SAPN prioritises work to protect public safety first, and then targets outages from the biggest through to single affected customers. I am further advised that the storm also affected some ElectraNet assets, but the transmission provider expected all lines to be in service by mid-morning, which is the most up-to-date information I have in that regard. Further, there was no loss of load from the transmission network.
The Hon. R.A. SIMMS (15:33): Supplementary: does the minister accept the analysis of SA Unions that privatisation has seen underinvestment in maintenance and replacement of electricity distribution infrastructure that has contributed to the power failure we have seen overnight?
The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (15:33): I think the privatisation of the state's electricity assets by a former Liberal government was a disaster.
In reply to the Hon. R.A. SIMMS (28 November 2023).
1. In light of her remarks, would she consider the Greens' push for a commission of inquiry into bringing electricity back into public hands?
2. What action has the minister taken to ensure that people in the regions have access to power during this storm?
The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries): Response by Hon. A. Koutsantonis:
The record shows that the minister provided a detailed answer to the second of the Hon. Robert Simms' questions at the time it was asked.
In answer to the first question, as previously advised, the Malinauskas Labor government believes that the privatisation of the electricity system by the then Liberal government in 1999 was a mistake which has not delivered optimal outcomes for consumers. However, also as previously advised, to reverse the privatisation would be complex and costly. It would raise issues of sovereign risk which could deter investors from funding projects in South Australia. Reversing privatisation would require compensation to be paid by taxpayers to the companies which now operate the electricity system.
The Australian Energy Regulator (AER) assesses the regulated asset bases of the network businesses in South Australia—distributor SA Power Networks (SAPN) and transmission provider ElectraNet. In the current determination period, the AER estimated SAPN's regulated asset base would be $4.9 billion as at June 2025. For ElectraNet, the AER determined the asset base at $3.9 billion on 1 July 2023, rising to $4.4 billion by June 2028. As well as their asset bases, the network providers might have a claim to other value elements of their businesses in the eventuality of a privatisation reversal.
In generation, any proposed compulsory acquisition would be even more complex. There are more than 40 major generation plants in the state and a significant number more of commercial scale while not being market participants in their own right. These vary in technology, scale, plant age and condition, ownership structure and other factors.
With South Australia already linked to Victoria for transmission and soon to be linked to New South Wales, there would be further complexity as some companies operate portfolio generation across multiple plants, influencing the value of an individual asset.
Generation assets would amount to billions of dollars of invested capital. These identified costs would be the minimum burden on taxpayers from a privatisation reversal.
At this point in time, the Malinauskas government does not agree that a commission of inquiry into returning the electricity system to public hands would be a prudent use of taxpayer funds and government resources. Therefore, we will not be supporting the Greens' proposal.
Rather the Malinauskas government is focused on delivering a state-owned enterprise to run the Hydrogen Jobs Plan assets and business.
We are also developing a comprehensive suite of policies on the energy transition to ensure initiatives act in concert across sectors. The Department for Energy and Mining published a green paper to stimulate discussion, held discussions with stakeholders and invited comment and submissions. That work is well advanced.
The government is focused on regulatory and structural reforms to deliver cleaner, affordable, and reliable energy to all South Australians, including the most financially vulnerable.