17 August 2017

Business SA is welcoming the Federal Government’s decision to commit $46 million to the Northern Adelaide Irrigation Scheme, which has the potential to create up to 3,700 jobs and attract $1.1 billion in private investment from export-orientated horticultural and agricultural industries.

The job creation will come at a critical time with the state facing a spike in unemployment as the automotive industry winds down, particularly in Adelaide’s northern suburbs.

Business SA Senior Policy Advisor Andrew McKenna said the scheme is a game-changing infrastructure project on the northern flank of Adelaide where the Northern Connector is under construction and recent changes to planning laws embed environment and food production areas.

“Business SA has long advocated for the scheme because of its ability to leverage South Australia’s competitive advantage in horticulture, and to create much-needed jobs in Adelaide’s north, where they are going to be most in need following Holden’s exit,” Mr McKenna said.

“It will now be important that potential users of the extra water can optimise the benefits it presents through the use of leading water-efficient irrigation practices, including in high-tech greenhouses.”

Mr McKenna said now that both the State and Federal governments supported the project, the tender process for the water must ensure the economic value-add from the scheme is maximised.

“We want to ensure the value of the project is optimised, which should also help to create downward pressure on water bills for SA Water customers,” he said.

Mr McKenna said growers would have access to more affordable and secure water rights in Adelaide’s northern food bowl from early 2019, with the project expected to generate $578 million in economic activity per annum.

Over the past 12 months, South Australia’s vegetable and fruit exports increased by 45 per cent, to $810 million, and this project has the potential to further transform our economy to deliver more opportunities for all businesses, including SMEs.

The project to date has been based on a proposal to leverage off international export opportunities which would create sustainable job growth in a state with the highest unemployment rate and challenging economic conditions.

Today’s announcement comes as the seasonally-adjusted unemployment rate fell for South Australia to 6.2 per cent, but unfortunately our trend rate of unemployment remains the highest in the nation at 6.6 per cent.

Business SA hopes the Northern Adelaide Irrigation Scheme will take one further step towards reducing the state’s high unemployment figures.