DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT, $59,925,000

Witness:

The Hon. K.O. Foley, Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations.

Departmental Advisers:

Mr R. Garrand, Chief Executive, Department of Trade and Economic Development.

Ms. A. Allison, Director, Corporate Services, Department of Trade and Economic Development.

Mr P. Polychronopoulos, Chief Financial Officer, Department of Trade and Economic Development.

Mr L. Piro, Executive Director, Mitsubishi Task Force, Department of Trade and Economic Development.

Mr B Pelham, Executive Director, Commercial Division, Department of Trade and Economic Development.

Mr W. Parham, Director, Office of Trade, Department of Trade and Economic Development.

Mr M. O'Neill, Director, Economic Analysis and Policy, Department of Trade and Economic Development.

Mr M. Arthur-Worsop, Director, Competitive Council, Department of Trade and Economic Development.

Ms B. Wood, Director, Office of Economic Development Board, Department of Trade and Economic Development.

The CHAIR: The estimates committees are a relatively informal procedure and, as such, there is no need to stand to ask or answer questions. The committee will determine an approximate time for consideration of proposed payments to facilitate changeover of departmental advisers. Do we have an agreed timetable?

The Hon. K.O. FOLEY: Yes. I will not take questions from my side and I will not have an opening statement.

Dr McFETRIDGE: Yes.

The CHAIR: Changes to committee membership will be notified as they occur. Members should ensure the chair is provided with a completed request to be discharged form. If the minister undertakes to supply information at a later date it must be submitted to the committee secretary by no later than Friday 18 July. I propose to allow both the minister and the lead speaker for the opposition to make opening statements of about 10 minutes each. There will be a flexible approach to giving the call for asking questions. A member who is not part of the committee may, at the discretion of the chair, ask a question. Questions must be based on lines of expenditure in the budget papers and must be identifiable or referenced. Members unable to complete their questions during the proceedings may submit them as questions on notice for inclusion in the assembly Notice Paper.

There is no formal facility for the tabling of documents before the committee. However, documents can be supplied to the chair for distribution to the committee. The incorporation of material in Hansard is permitted on the same basis as applies in the house, that is, that it is purely statistical and limited to one page in length. All questions are to be directed to the minister, not the minister's advisers. The minister may refer questions to advisers for a response. I also advise that for the purposes of the committee, television coverage will be allowed for filming from both the northern and southern galleries.

I declare the proposed payments open for examination and refer members to the Budget Statement, in particular, pages 2.10 to 2.11 and Appendix C, and the Portfolio Statement, Volume 1, part 2.

The CHAIR: Do you have an opening statement, minister?

The Hon. K.O. FOLEY: No.

The CHAIR: Member for Morphett, do you have an opening statement?

Dr McFETRIDGE: First, I thank the minister's staff for their cooperation over the last 12 months. They have been professional at all times, and certainly loyal to their minister. This particular portfolio, while it does not get a lot of publicity, is probably one of the most important portfolios of this government. There are many opportunities ahead of us, and it is nice to know that we have professional people in the department working very hard to maximise opportunities. I am sure they will be more than willing to provide information through the minister in answer to the questions. At all times the questions are just seeking information: they are not in any way a reflection on the minister's staff.

My first question relates to Budget Paper 4, Volume 1, page 2.18, Program 5: Investment Attraction, and the performance commentary on Olympic Dam. The removal of the overburden is a significant cost for many miners in South Australia. I think it is known as the 'curse of cover' by the mining groups. The size to which Roxby is predicted to expand is 3½ kilometres by 1½ kilometres and the overburden is about 300 metres deep. When I asked about creating a mount Roxby I was told perhaps not that but there would be a low range of hills. The cost of removing that overburden and establishing the mine, which I think you gave information about yesterday, was about $6 million initially but I understand it has gone up significantly. My information is that at this stage the intention is to expand it as an underground mine. The concern I have is this: if that is the case, will the desalination plant go ahead?

The Hon. K.O. FOLEY: My understanding is that BHP has made a decision that, should it proceed with the mine, the desalination plant will be a critical element for providing water.

Dr McFETRIDGE: Is this just an underground mine?

The Hon. K.O. FOLEY: I do not believe, if the expansion goes ahead, it would be an underground mine. It would be an open cut mine.

Dr McFETRIDGE: The information I have been given is that it will go ahead as an underground mine for a start—for how many years, I do not know. It will go ahead and be a huge mine for South Australia, but just as an underground mine, as I understand it. That is the information I am getting, anyway. I do not know whether you have further information.

The Hon. K.O. FOLEY: I have quite a lot of information on the project. The company has already indicated that it is exploring options for underground expansion concurrently (if it goes ahead) with the expansion as an open-cut mine. I do not personally have any doubt that the project will go ahead as an open-cut mine but, clearly, BHP has yet to make that decision completely and sign off on it, as it is going through its due diligence and prefeasibility studies and shortly will move into a full feasibility study with an EIS. One cannot pre-empt the decision, but I cannot imagine that the mine would not go ahead and, if it does go ahead, it can only do so as an open-cut mine. It is not to say that BHP will not expand underground where it can, but the ore body is of such a size that BHP has already determined that the open-cut way is more cost effective than underground.

Dr McFETRIDGE: Regarding the same reference, what planning is the government doing to ensure that BHP has the electricity it needs to expand at Roxby? A media report in The Australian of 27 March stated that BHP will use 42 per cent of South Australia's current power generation if the expansion goes ahead as initially planned.

The Hon. K.O. FOLEY: Again, that is an issue for BHP. To my knowledge, BHP is looking at a number of options and, I think, has taken some market soundings but, clearly, it is very aware of the fact that it needs to have substantial electricity provided to the plant. I am quite relaxed in that whatever its feasibility decides it will be appropriate electricity. We will have to wait and see, but it might give us an opportunity to see whether or not there is any excess capacity from whatever option they choose that can go back into the grid. It is bit premature. Currently, there are about 40 projects that we are working on right across government on the various aspects of this development, and I assume that electricity is one of them.

Ultimately, that one will be driven by BHP's own decision-making as to how it wants to do it. One option is that BHP has a 270 kilometre electricity transmission line from Flinders Power at Port Augusta. Another option is for a gas turbine at Olympic Dam itself—cogeneration. There is some talk about hot rocks, but I do not think that is necessarily at the stage where it could be done, but BHP is looking at a number of options.

Dr McFETRIDGE: With respect to the same reference again, it is interesting that you said you have 40 new projects that you are working on that will require extra electricity. Most gas-fired and coal-fired power stations take about three years to design and build. Has there been any discussion with any potential power generators?

The Hon. K.O. FOLEY: To correct the record, the provision of electricity is one of the projects under consideration by our working groups, and BHP's prefeasibility study will pick up that issue. It will take five or six years to dig this mine; there will be ample time to build a power station.

Dr McFETRIDGE: The other contentious issue with BHP is the processes currently used to produce the refined ore, copper and gold, and other minerals that it is pulling out of there. What is the plan at this stage? Have you had discussions with BHP about refining and concentrating the ore? If BHP is not going to refine the ore and produce the end-product here, what are the plans to ship out the ore? Is it via Darwin or Port Bonython?

The Hon. K.O. FOLEY: It is too early to tell. BHP will have a couple of shipping options, I guess, in its environment impact statement. I assume that it would have an exit point in South Australia, and it will probably, for the exercise, look at railing it to Darwin in both the EIS and the feasibility process. In terms of the issue of processing, BHP is on the record as saying that it wants to consider its options to semi-process the product as well as the full processing that currently occurs. I have said that we want as much as is economically and financially possible of the processing and further value adding to be done in South Australia. However, we accept that we have to enter into discussions in good faith and with a degree of professionalism that might mean there are some valid arguments put forward by BHP as to how we should go forward with the processing of the ore.

Dr McFETRIDGE: Does the semi-processing of the ore hold any complications for getting federal government approval to export it?

The Hon. K.O. FOLEY: I assume that there would be approval needed for much of what BHP will export. If some of the output is to be in a less-processed form, my guess is that it would require federal government approval. We are not at that stage yet. BHP has not put to us a definitive position on this; it is just discussions, and it is doing ongoing feasibility studies.

Dr McFETRIDGE: I am not a mining engineer, obviously, but I assume that the semi-processed ore will contain uranium as well as huge amounts of copper. Are there any foreseeable issues with exporting that ore to be refined in, say, India or China?

The Hon. K.O. FOLEY: It would not be India because we do not allow the export of uranium there. The federal government policy is that we do not export to countries which do not have their signature on the non-proliferation act. But, as I said, we are not at that point yet. My understanding is that the Leader of the Opposition has been briefed on this matter, but it is the subject of negotiations and discussions. Ultimately, BHP will firm up a lot of these issues as it progresses into its EIS and feasibility stage, and it will be at that point that we will have more detailed discussions. As I said, we have a very firm position: we want as much of the ore as possible, if not all, to be fully processed in Australia. However, we accept that there may be a valid argument as to why we should be prepared to accept a portion of that production not being fully processed due to the quantities involved. We are talking about massive quantities, and it may be unrealistic to expect that all of that can be fully processed here in Australia, just through the sheer volume of the material.

Dr McFETRIDGE: I tried to get in a question on royalties and horizontal fiscal equalisation for you but I am sorry; you answered that yesterday, I think. I refer to Budget Paper 4, Volume 1, page 2.14: Performance commentary regarding Mitsubishi. How many ex-Mitsubishi workers are still to find alternative employment and what assistance is being provided by the state government to assist these workers to find employment in their local areas?

The Hon. K.O. FOLEY: We have put a lot of money into the labour adjustment packages and industry attraction projects. We have provided search, career counselling, case management, employment brokerage, training and up-skilling, wage subsidies, and self-employment assistance. To date, figures supplied by the commonwealth department and the state department of DFEEST show 670 people have exited the Tonsley plant. Of those, 470 workers have registered for support under the assistance package. At this stage, 235 of those workers have gained employment. Some 18 skills-in-demand projects have commenced in industries such as minerals and resources, engineering and manufacturing, transport, community services, and retail in order to up-skill retrenched workers for employment in these sectors. A project officer funded by the commonwealth and state governments will also monitor the progress of retrenched workers over the next two years. There is a lot of assistance in the form of:

a $30 million South Australian innovation and investment fund to support new investment and job creation;

a $10 million labour adjustment package to assist workers obtain employment and retraining;

$5 million for small business development in the South; and

$35 million is available from the repaid Mitsubishi loan for infrastructure development in the South.

Mitsubishi Motors itself has approved a further $5 million infrastructure contribution. So, there is plenty of financial support.

Dr McFETRIDGE: Have any economic impact studies been done on the direct and flow-on effects of the closure of Mitsubishi?

The Hon. K.O. FOLEY: No. Work has been done in previous years, but we did not see much sense in a historical assessment as to what impact economically has occurred.

Dr McFETRIDGE: Looking forward—that is good. What is the current status of negotiations regarding the Mitsubishi site?

The Hon. K.O. FOLEY: We have registered as a potential purchaser. It is a 64 hectare site spread over five titles. Mitsubishi has engaged KPMG to advise it on how it should market this. Colliers has been appointed as their agent and they are seeking bids from the market. We have registered an interest but we are unlikely to be a purchaser in the sense of offering the best price for it. I do not know what the price would be in the marketplace. We are keen to see the site used for its maximum value and the government will not rezone it for housing. It will be required as an industrial site. Whether or not the government at some point partners with a private-sector entity to put a package together could be a possibility. I think we have to wait to see the quality of the bids that come into Mitsubishi, but I have to say that they are handling the sale. The government does not have any direct involvement in the sale process.

Mr VENNING: I refer to Budget Paper 4, Volume 1, page 2.18. This is a pretty general question, Treasurer. I am sure you would have no trouble handling this one. It is important and pertinent to the massive amounts of material that you were just talking about that will come out of the mine. Is the government developing a deep water port at Port Bonython because BHP will be exporting ore concentrate, not the finished product? Either way, there is going to be a huge amount of product.

The Hon. K.O. FOLEY: The government has an expression of interest out now for private sector consortia that may be prepared and willing to invest in the construction of a port at Port Bonython. Our advice is that this can be done without public sector investment and that, while it would be an attractive option for the private sector, it would be correct to say that the investors could not assume at this stage that BHP would necessarily be a user of that port, although it may be. My guess is that the investors who would look at it will be talking to all the mining companies, including BHP. I think from advice I have seen that a port at Port Bonython, with or without BHP, would still be a very attractive investment, a viable option and a necessary port. BHP will obviously look at Port Bonython, Port Adelaide and some other options.

Mr VENNING: Is Port Lincoln one of those options?

The Hon. K.O. FOLEY: I would not have thought so—not for BHP.

Mr VENNING: In relation to the recent publicity about the community in Port Lincoln who happen to have one of the finest deep sea ports in our state, is the minister concerned that they have this port which the government and industry put there and now we are trying to see some restrictions put on it?

The Hon. K.O. FOLEY: You could probably better answer that. I, personally, would think that Port Lincoln offers an option at some point for mineral export, but it is pretty obvious that the community in Port Lincoln does not view it that way.

Mr VENNING: They wanted the port years ago, now they want to restrict it.

The Hon. K.O. FOLEY: You might have to talk to your parliamentary colleague.

Mr VENNING: I thought you might help me.

The Hon. K.O. FOLEY: I have learnt in recent years that the Port Lincoln people are very proud and I could probably say they are a tad stubborn occasionally. They are pretty united in their views about iron ore being exported through that port. Again, no decision has been taken whether or not Port Lincoln would be a suitable port. But I think I could comfortably say that uranium from BHP will not be exported from Port Lincoln.

Dr McFETRIDGE: I refer to Budget Paper 4, Volume 1, page 2.13, program 3, Business Growth, Performance Commentary, GMH Holden. Minister, can you provide details of what the funding of $3.4 million given to GMH Holden's has been used for? Was any of this funding used for developing a more fuel efficient, hybrid or electric vehicle? Have there been any discussions with Prime Minister Rudd on funding GMH for hybrid vehicle development?

The Hon. K.O. FOLEY: That $3.4 million was for a safety enhancement project that the Victorian and commonwealth governments signed up to a couple of years ago. It was to be used for the G8 Pontiac for export to the United States, not for any electric hybrid car. I have not discussed Holden's comments about an electric or petrol-electric hybrid car with the federal government at this stage. Apparently there has been some comment made by Holden's that it is looking at a hybrid petrol-electric car in the next two years in Australia. I was not aware of that. I missed that.

Dr McFETRIDGE: I suppose you will be lobbying the federal government for some assistance there.

The Hon. K.O. FOLEY: One thing I know about the automotive industry is that it does not need too much help in lobbying. There is no greater lobbyist for assistance from the government than the automotive industry. Kevin Rudd and Kym Carr have made available half a billion dollars for a green car. If Holden's approached us and asked us to assist in its negotiations with the federal government, we would be pleased to do so.

Dr McFETRIDGE: I refer to Budget Paper 4, Volume 1, page 2.19, Corporate Leadership, Governance and Support, Leadership Development Program. What was the cost of sending 30 senior staff to attend leadership development programs and modules at Carnegie Mellon University?

The Hon. K.O. FOLEY: During 2007-08, the department engaged Locher Human Resources and Carnegie Mellon University to develop a leadership development program for senior to mid-level managers. The program was an extension of the program undertaken by the executive in previous years. Each program has 15 participants, and two groups undertook courses in 2007-08. The total cost, including both Locher and Carnegie Mellon, was $143,000 (excluding GST) as at the end of May 2008.

Dr McFETRIDGE: I refer to Budget Paper 4, Volume 1, page 2.16, Program 4, International Market Development, Business SA. What funding was provided either directly or indirectly to Business SA for targeted export training programs for 2007-08? Why was export training assistance not provided directly by the department to businesses through internal organisations? Was this funding through Business SA only to Business SA members?

The Hon. K.O. FOLEY: The export training program was a program that we funded for Business SA. Having it coordinate and deliver an approved export training program by the Australian Institute of Export, Business SA will deliver a series of sessions on behalf of DTED covering the market access and trade starts program. The contract value was $156,818, and the term is for one year. We also have a contract with Business SA to provide secretarial support services to CITSCA (Council for International Trade and Commerce South Australia). The contract value is $600,000 over a three-year period ending June 2011.

Dr McFETRIDGE: I refer to Budget Paper 4, Volume 1, page 2.14, international marketing and strategic visits. What was the total expenditure for the 18 strategic marketing visits by ministers in 2007-08?

The Hon. K.O. FOLEY: We will get you that information and come back to the house.

Dr McFETRIDGE: Are you able to advise the dollar value of investments and how many jobs were directly generated and attributed to those visits?

The Hon. K.O. FOLEY: That would be an impossible question to answer. Our overseas offices have been responsible for facilitating nearly $170 million in exports during 2007-08. I know where the member is going in trying to link government overseas travel to important markets and dollars and jobs. It depends on the activity of the minister. I do a lot of international trade delegations. I will be doing one next week, in fact. It is always very difficult to ascribe an exact amount of dollar value benefit to it, suffice to say that, in the tradition laid down by former premier and minister, John Olsen, who was a regular traveller, it is good for our state to be continually pitching and making the case for South Australia in international markets around the world. I think I would be on a sure winner if I suggested that, should you be the next minister for industry, you will continue the tradition.

Dr McFETRIDGE: My next question is about an invitation you offered last year. To finish on that point: of the $9.5 million spent on international marketing development, how many jobs and what was the dollar value of exports directly generated from this government expenditure?

The Hon. K.O. FOLEY: I will come back to the house with that.

Dr McFETRIDGE: This is one that popped up last year and the member for Norwood was all excited about this. I refer to Budget Paper 4, Volume 1, page 2.7: Targets/Highlights. It is listed under some subject headings as 'Puglia' or 'Apuglia' in others. I think there was a trade delegation going last year and you said you would take me with you, but you didn't. So I am asking the question again this year: how many jobs and what is the dollar value of investments directly generated by the Premier's visit to Puglia, Italy and subsequent trade missions by DTED with Puglia?

The Hon. K.O. FOLEY: In fact, I will be going back again I think in September this year. An MOU has been signed between the region of Puglia and the South Australian government. The MOU aims to promote the collaboration and development of sustainable long-term relationships in sectors of reciprocal interests such as trade and investment, scientific research and development, education, tourism and culture. Unfortunately, we do not have the member for Norwood here to help us, but I am advised that the Puglia region is one of the regions from which Italians emigrated to Australia and, in fact, to South Australia. The Puglia region was one of the main regions from which those Italians emigrated to Australia. There is a very large community in South Australia from Puglia and it is a sensible province for us to partner with.

The South Australian Film Corporation and the Puglia Film Commission have been exploring potential co-production opportunities. Following the Puglia Film Festival held in August 2007, representatives of the SA Film Corporation will visit Puglia following the 2008 Cannes Film Festival. That happened last week so we should see some information back soon. A draft MOU has been prepared on behalf of the Institute of Sciences of Food Production in Bari (the capital of Puglia), the University of Bologna, the University of Lecce, and the South Australian Centre for Plant Functional Genomics to progress the collaboration for drought resistant wheat.

The Puglia Desk has been established in collaboration with the Italian Chamber of Commerce and Industry in Adelaide. The Puglia Desk will be collocated with the chamber and will help Puglian businesses to find new contacts and market development opportunities in Australia. An agreement was signed on 15 February 2008 between the Puglia regional government and the government of South Australia for scholarships, academic exchanges and collaboration in research and development between respective universities and research institutions.

The South Australian government will provide $1.2 million over three years to match funding of €750,000 from the Puglia regional government, partly funded from European Union funds to assist this initiative. The South Australian government has committed to supporting a trade delegation to Fiera del Levante in 2008 and future years, one of the largest trade and consumer exhibitions in Southern Europe. Approximately one million visitors attend the Fiera del Levante trade fair each year. A number of sectors—including construction, fashion, wine, food and fresh produce—have expressed an interest in the trade delegation.

I was ably assisted by our ambassador to Italy, none other than Her Excellency Amanda Vanstone. She gave a speech in Italian, which was extremely well received. I didn't, I gave a speech in Australian and it was translated for me, but she was able to give an outstanding speech in Italian, and I thoroughly enjoyed the company of the ambassador. We had quite a good trip. We hosted a couple of dinners together, or one dinner in particular, with senior government and business leaders and university leaders. It was a very entertaining night and we went off and had a few drinks afterwards. Because of diplomatic immunity, which both the ambassador and I enjoyed, we had a great night.

Dr McFETRIDGE: I refer to Budget Paper 4, Volume 1, page 2.6, International Market Development: 18 strategic overseas trade visits were facilitated by the department. Whether that included the SABAN trip that the member for Morialta and I and the member for Hammond were going to accompany you earlier this year, I am not so sure whether that is included in that, but what is the future—

The Hon. K.O. FOLEY: No, you are right, it's not.

Dr McFETRIDGE: What is the future of SABAN and can we look forward to further trade delegations?

The Hon. K.O. FOLEY: SABAN is being transferred to SA Great and that is now in transition. The government provides funding of $110,000 a year to support the program. It will be now run by SA Great because SA Great is reconfiguring or re-energising itself. It has a very good board with strong participation from media organisations. The Chief Executive Officer of News Corporation in Adelaide (The Advertiser group), Michael Miller, is on the board; the head of our Tourism Commission is on the board; Nigel McBride from Minter Ellison is the chair. I think there are some other media people on the board as well. So we are engaging SA Great and having them undertake a number of new projects for us, one of which will be SABAN.

Dr McFETRIDGE: I refer to Budget Paper 4, Volume 1, page 2.14: Business Growth, Business Growth Case Management Secretariat. What is the current status of the following case managed projects, how much has been provided to each of these projects to date, and when will each of these projects commence or be completed: Buckland Park Country Township, Langhorne Creek Water Security, Port Lincoln Marina and Housing, Two Wells Glasshouse, Wakefield Waters, Wallaroo Marina, and the last one is wave energy. I think there is a company called Toprun wave energy. Whether they are the same, I am not sure.

The Hon. K.O. FOLEY: We will come back to the house with a detailed response to that question. This is a process which Karlene Maywald (as chair of the whole of government case management group) set up in November 2006. Case management is the provision of a whole of government coordination service and single point of contact facilitating the timely delivery of major private sector projects. Case managers work across agencies to identify and resolve project issues to enable an early 'yes' or an early 'no' for project proponents. This has been a very good process. This type of problem has bedevilled governments for years. Ray and his team are to be commended for probably putting forward the best method for dealing with this that I have seen to date. It is largely getting very good people to manage projects.

I have had extremely good feedback from the private sector. I will not identify the individuals because I may miss out equally deserving people, but I have had feedback from a number of developers and development proponents not only highly praising the quality of the individuals who are involved but equally the success with which they are now able to deal with our government. Again I think this is one of the points of which we as a government should be very proud. We are seen by major investment people, companies and groups interstate as being probably the best government to deal with in Australia. I know that is the view expressed to me and others by people such as Lang Walker and Lindsay Fox just to name two.

Dr McFETRIDGE: The wave energy project (I think it is called Toprun EV) seemed to come up with a burst in the media and die very quickly. Do you have details on that at all?

The Hon. K.O. FOLEY: In October 2007, DTED facilitated a visit from Mr Ye Xuefeng, a Chinese investor seeking to develop a wave energy project in SA. In August 2007, DTED submitted a proposal to Mr Ye outlining the benefits of establishing a project in our state. In November 2007, Mr Ye incorporated his Australian company, Toprun Pty Ltd, to progress a wave energy pilot project. Toprun identified Elliston on the Eyre Peninsula as a suitable location due to its favourable wave characteristics.

The purpose of the project is to prove the wave energy generation technology, with a view to commercial application, as a competitive renewable energy source. The plant will be manufactured in SA. There may also be opportunities to export the technologies to other markets. Toprun also plans to establish an R&D centre in South Australia, possibly on Kangaroo Island, which will focus on wave power and other renewable energy research. Toprun anticipates the pilot plant moored at Elliston by mid-2009. The pilot plant testing will run until the end of 2010. Project facilitation services were provided to Toprun under the auspices of the case management framework.

Dr McFETRIDGE: This is the same budget reference: Budget Paper 4, Volume 1, page 2.14. What activities make up the whole of state marketing strategy to promote South Australia as an investment location?

The Hon. K.O. FOLEY: Are you talking international?

Dr McFETRIDGE: Yes.

The Hon. K.O. FOLEY: To promote our state we have the Agent-General's office in London, which is doing a lot of work. You would be familiar with his very cheeky adverts. We are very lucky to have a gentleman of the quality of Bill Muirhead as our Agent-General in London, the former founding partner of M&C Saatchi, former chief executive officer of Saatchi & Saatchi and the person credited with developing British Airways' advertising campaign. I think he has worked with Qantas, Coca-Cola and the big brand names in the UK. I think he was also responsible for the Tory election win of Major. I am not sure whether he was around the place when they lost to Blair.

We are very fortunate: he is a very clever man. He had that campaign 'Sod London house prices' and 'Bugger it, I'm off to Adelaide'. A few of the earlier drafts probably would not have got through the censor. That has been very clever. It has created much interest in our state. We do a lot of work outside our London office, in Great Britain in particular, but also in mainland Europe, particularly in France and Germany, for our tourism markets. We have a very good trade office in Dubai. I would encourage all members, if they are travelling to Europe, to go via Dubai and to look at our trade office and to meet our trade commissioner. We have a trade office in Shanghai, Singapore, Chennai in India, and Hong Kong. In Hong Kong, at least, our person is collocated with Austrade. In Chennai they were, but we ran out of office space. I think we have had to give our person his own office. We are not the biggest spending state on overseas offices by a long stretch. We are targeted and strategic, and I think highly effective under the management of Wayne Parham, to my right, Ray and the executive of DTED.

One of the other promotions we do each year, of course, is the G'Day USA promotion. We put over $100,000 a year into that. I have attended two of those events and my intention would be to attend again early next year. John Olsen does an outstanding job in pulling that together. It was initially G'Day LA: it is now G'Day USA, encompassing the east and west coast. We put a lot of money and effort into that. We get a lot of companies to attend that promotion. The whole premise is to look at a significant presentation of Australia, brand Australia—funded jointly by all the states and the commonwealth—but then we have breakout sessions and opportunities for individual states to have investment functions, meet and spend time.

This year, the Premier and I have committed to sending the Adelaide Symphony Orchestra to the United States—and more will be said about that in the coming months. As a result of a request from former premier John Olsen, we have agreed. That will give us a chance to showcase our orchestra in the United States. It will also give us a huge opportunity to piggyback on the back of that in terms of promoting our state. It will known as the Adelaide Symphony Orchestra.

I am advised that the concept of a G'day Europe has been talked about by the Premier's food and wine councils. We might look at it to see whether we can get something happening in the UK and Europe, perhaps targeting Italy, Germany and Russia. We are looking at formulating a proposal to roll out that program in 2009, and we might be able to use the experience of former premier John Olsen in that.

Dr McFETRIDGE: I assume you will be supporting the extension of his contract in that case.

The Hon. K.O. FOLEY: That is not for me. Former premier Olsen has been very fortunate to have had two postings to the United States from the federal government. It is not whether or not we support it. I think he would admit that, too.

Dr McFETRIDGE: I refer to Budget Paper 4, Volume 1: the Venture Capital Board. The South Australian Government Gazette of 5 June states that the Venture Capital Board will be abolished and its employees transferred to DTED. Will these transferred employees be performing Venture Capital Board functions within DTED? If not, what will their new roles be?

The Hon. K.O. FOLEY: They will be undertaking the same functions. As a government we took the view that the Venture Capital Board has been extremely successful. It was able to place some $7.7 million into the private equity program after a long process and due diligence to select Paragon.

The board reports that for the three years to June 2007 a three-year average of $123 million has been invested in South Australian companies, comfortably exceeding the initial target of $70 million. The need for the board became redundant and the board itself agreed to dissolve itself when the government decided it would not put a further placement into the market. Our job was to address market failure in this area. I took the view—and the cabinet agreed—that we would want to see whether this process was successful before we embarked on another round, if we were to do it. That could be an option for us or a future government.

The functions that the officers were doing on the board will be done from within DTED. A number of programs are ongoing, including the Equity Ready Program, private equity workshops and forums, Venture Capital scholarships for up and coming South Australian private equity specialists, Business Angels support activities, the TechMentor program and a range of other services in the Venture Capital space.

Mr VENNING: I refer to Budget Paper 4, Volume 1, page 2.22. What amount of funding is contained for expenditure requirements within the following funds: the Regional Development Infrastructure Fund, the Rural Town Development Fund, the Upper Spencer Gulf and Outback Enterprise Zone Fund—

The Hon. K.O. FOLEY: I'm sorry to interrupt but that would be a question best asked of minister Maywald as minister assisting and Minister for Regional Development.

Mr VENNING: Should a question in relation to drought be directed to her, as well?

The Hon. K.O. FOLEY: Yes.

Dr McFETRIDGE: I refer to Budget Paper 4, Volume 1, page 2.10: economic strategy and policy development of industrial land. What income was generated to the department as a result of supplying land?

The Hon. K.O. FOLEY: That is a matter for the Land Management Corporation.

Dr McFETRIDGE: How are valuations undertaken?

The Hon. K.O. FOLEY: Again, that is a question you would have to put to LMC. DTED does not handle direct land management issues.

Dr McFETRIDGE: I refer to Budget Paper 4, Volume 1, page 2.16: the Market Access Program. What was the state government's funding contribution (as a percentage of total funding provided) towards the Market Access and TradeStart programs?

The Hon. K.O. FOLEY: For the financial year 2007-08 a total of $1,256,794 in Market Access Program grants had been approved up to 31 May 2008 to small and medium exporters. A total of $859,682 has been acquitted and paid in 2007-08 up to 31 May 2008. These grants have, and will, assist 279 South Australian companies to undertake 397 separate export projects. One-third of the companies approved for MAP grants are located in regional South Australia. Some 88 per cent of the companies which will benefit from this program are businesses with fewer than 20 employees. Clearly, it shows that we are a government for regional South Australia and a government for small business.

Dr McFETRIDGE: I refer to Budget Paper 4, Volume 1, page 2.6: targets and highlights. The regional development special projects fund—I am not sure whether you want to answer this—

The Hon. K.O. FOLEY: That would be minister Maywald.

Dr McFETRIDGE: I refer to Budget Paper 4, Volume 1, page 2.7. The net cost of services in 2007-08 was $62.425 million. What was the number and dollar value of investments directly generated by DTED in 2007-08 and how many jobs were created?

The Hon. K.O. FOLEY: What was the value and employment of investments?

Dr McFETRIDGE: Yes.

The Hon. K.O. FOLEY: It is always difficult to put a number on these things, but I am sure we have found a way. Can I take that question on notice and come back to the member?

Dr McFETRIDGE: Certainly. I refer to Budget Paper 4, Volume 1, page 2.6: targets and highlights, climate change. How will the minister's department assist South Australian businesses to respond to the threats and opportunities of climate change? I particularly have in mind the current issue of the carbon trading scheme, where we are talking up to $200 a tonne, which seems incredible as a carbon tax. If petrol is included, it could have significant impacts on industry in South Australia.

The Hon. K.O. FOLEY: The Premier's Climate Change Council, I am advised, is consulting with business on developing a greenhouse strategy for our state and what the impact of carbon trading will mean. Clearly, there are both threats and opportunities. However, one thing we know for sure is that, as a government, we have no choice.

Dr McFETRIDGE: I refer to Budget Paper 4, Volume 1, page 2.10: industry red tape reviews. This is a little different: it is red tape but with a new hue, shall we say. What is the department doing to assist industry in complying with the growth in environmental legislation known as green tape?

The Hon. K.O. FOLEY: I have never heard of green tape before. We are doing a piece of work, about which I will be making some announcements in the near future, where the department has been responsible for overseeing a program of red tape reduction across government. How that specifically relates to the environment portfolio area I am not absolutely certain.

Dr McFETRIDGE: How is the $150 million target for red tape reduction by July 2008 progressing?

The Hon. K.O. FOLEY: It is going very well, and we will have something to say on it in the very near future.

Dr McFETRIDGE: How was the figure calculated?

The Hon. K.O. FOLEY: We will have something to say on that in the very near future.

Dr McFETRIDGE: Can you tell me now? Your secret is safe with me and those I tell!

The Hon. K.O. FOLEY: No.

Dr McFETRIDGE: I refer to Budget Paper 4, Volume 1, page 2.12: migration impacts. Has the department undertaken economic impact studies regarding the effect of increased migration upon areas such as South Australia's housing rental market and increased demand for our limited water supply?

The Hon. K.O. FOLEY: We are strongly implementing a population policy. I was advised yesterday, I think, that fertility is up in South Australia, and there are a lot of migrants coming into our state. In fact, the University of Adelaide's geography professor, Graeme Hugo, said South Australia had 'done an incredible job in attracting migrants from overseas'. There was a net gain of 13,061 international migrants, continuing the upward trend from about 3,000 a year earlier this decade. So, there were 3,000 coming into the state before we came to office and we now have 13,000. That is having a very positive impact on our housing market and the level of economic activity in the state. That is a good thing.

Dr McFETRIDGE: What about water supply?

The Hon. K.O. FOLEY: Obviously, we need to have water, and it is caught up in the whole water issue. That is why we are building a desalination plant and spending a lot of money on water reuse and a whole lot of initiatives with respect to the Murray to make sure that our water future is sustainable and delivered.

Dr McFETRIDGE: I refer to Budget Paper 4, Volume 1, page 2.19: Performance Commentary, corporate practices. What were the improvements to corporate systems and practices in response to the recommendations made by the Auditor-General, and have the recommendations all been met?

The Hon. K.O. FOLEY: My advice is that we have only just received that letter from the Auditor-General and the department is working through a response to it as we speak.

Dr McFETRIDGE: I refer to the industry statement in Budget Paper 4, Volume 1, page 2.25: commonwealth revenue. Some $390,000 is expected for the 2008-09 financial year in commonwealth revenue. This is the same amount as the 2007-08 estimated result. Is funding expected to increase in the future or remain the same?

The Hon. K.O. FOLEY: That is TradeStart funding from the commonwealth.

Dr McFETRIDGE: I refer to the same volume, page 2.18: Investment Attraction. How much funding is expected to be retained within the South Australia Innovation and Investment program fund on an annual basis to support strategic investment projects?

The Hon. K.O. FOLEY: It will be a $30 million fund over three years, and we intend to run it down and spend it all. The full details of that fund will be launched around the end of June.

Dr McFETRIDGE: I again refer to the same volume, page 2.13: Business Growth, performance commentary grants. How much was specifically provided in innovation commercialisation and development grants for the 2007-08 and 2008-09 years?

The Hon. K.O. FOLEY: We have innovation commercialisation grants targeted to highly innovative early stage technology companies to assist in commercialising their products and services—$50,000 per company—and a $25,000 innovation development grant to assist South Australian companies to attract commercial investment or leverage commonwealth funds to innovate and develop new products, processes and services. Recommendations for 20 applications totalling some $750,000 have been approved up until 31 May 2008.

Mr VENNING: In relation to Budget Paper 4, Volume 1, page 2.24, can the minister advise what support and assistance workers from the Nuriootpa Clipsal factory, who will lose their jobs next year as a result of the factory's closing, will receive from the 2008-09 budget for regional development? Clipsal recently announced that after 25 years of operation at Nuriootpa they will close the site and relocate to Gepps Cross.

The Hon. K.O. FOLEY: My advice is that some discussions have occurred with the Clipsal company and those workers will have available to them access to the labour adjustment fund that has been used for Mitsubishi workers.

Mr VENNING: I refer to Budget Paper 4, Volume 1, pages 2.15 and 2.16. Can the minister advise what support has been given to the South Australian wine industry in order to combat the recent slump in export sales? The South Australian wine industry contributes enormously to the state's economy, as well as contributing to the national economy, and South Australia's wine industry provides 50 per cent of the Australian industry by volume, 60 per cent by value and 70 per cent by exports. Those are pretty impressive statistics.

The Hon. K.O. FOLEY: We do not do anything specifically in our department—other than increase the consumption, I am told. With all due respect, the wine industry is a dynamic international export industry that I do not think really needs support or help from government up and beyond what it would get from PIRSA in technical support and assistance.

Of course, through the Premier's Wine Council we have put some serious money into R&D. We funded the Wine Innovation Centre at the Waite Institute. I remember seeing the plans for it, and it will be an outstanding facility. So, beyond the research and development area, I do not think we do anything in the export field.

Mr VENNING: Through the Premier's Food Council and Wine Council that you mentioned earlier, can that work be expanded?

The Hon. K.O. FOLEY: We have a Premier's Wine Council. We are doing some work in the Riverland. Obviously, there are some serious issues in the Riverland relating to grape and wine production, but it is very difficult for the government to offer wholesale support for an industry that really is a very large and mature industry.

Mr VENNING: In relation to Budget Paper 4, Volume 1, page 2.24, can the minister advise what proportion of the 2008-09 budget of $7,844,000 will be used in the Riverland to support and assist citrus growers with permanent plantings to continue with their business or move to other employment? As the minister knows, the continuing drought is having a severe impact on those with permanent plantings.

The Hon. K.O. FOLEY: DTED does not have a specific project but it works with companies, obviously, in the area. But you would be best placed putting that question to the Minister for Regional Development.

Dr McFETRIDGE: I refer to Budget Paper 4, Volume 1, page 2.22, relating to small business growth, the performance commentary on Business Enterprise Centres and Office of Small Business. What amount of funding is directly provided to assist business enterprise centres for the 2007-08 and 2008-09 years?

The Hon. K.O. FOLEY: I do not mean to be too difficult, but that is a question for the Minister for Small Business, Karlene Maywald.

Dr McFETRIDGE: I refer to page 2.13 of the same budget volume, the performance commentary regarding expos. What was the cost of facilitating the national ICT CeBIT exhibition, participating in the ANZAtech Gateway program and participating in the Hong Kong ICT expo?

The Hon. K.O. FOLEY: We will have to come back to the house with an answer to that. We do not have that information with us.

Dr McFETRIDGE: I refer to Budget Paper 4, Volume 1, page 2.7: Targets/Highlights: India, international trade and investment conference. What was the number and dollar value of investment deals generated by the South Australian government at this conference? What was the expenditure on the conference by the state government?

The Hon. K.O. FOLEY: It was originally proposed to host an Australia-India international trade and investment conference to align with the scheduled international test match between India and Australia to be played at Adelaide Oval in November 2007. Subsequent to the release of the final cricketing schedule, the test match was moved to January 2008. This resulted in a review of the program, and it was decided that January was not a suitable time to host an international conference, although the opportunity provided by the test match was important for business development.

As a consequence, an Australia-India business program, hosted by the Premier, was held during the test match on 24 to 26 January 2008. Nineteen high-level Indian business people attended the program. Approximately 300 local people were involved in the program, attending functions, meetings and seminars, all designed to promote two-way business relations between South Australia and India. The program consisted of: hosting key Indian and South Australian business delegates in corporate facilities on the opening day of the test match; a state dinner in honour of the test match and visiting Indians, hosted by the Premier at the Adelaide Festival Centre; an international business seminar hosted by KPMG and BRW; a number of key business matching programs for visiting Indians; a welcome function at the Adelaide Town Hall, hosted by the Lord Mayor; a tour of Adelaide Oval prior to the opening day, hosted by Darren Lehmann; and attendance at the South Australian Cricket Association test match gala dinner, hosted by minister Jane Lomax-Smith. We will come back to the house with the cost of that.

The Premier himself has been spearheading this drive into India. We are probably a bit of a late arrival into India as a state and should have been looking at it much earlier than we have. The Premier leads regular business delegations, and in March this year he led a 27-member business mission to India, including representatives of the agribusiness, wine, education, migration, environment, and management and services sectors. It is obviously very difficult to put a dollar figure on that, and this is about building a relationship and making the country of India in general and, more specifically, some targeted provinces or states aware of South Australia. I am told that Champagne Indage, which has an MoU at the University of Adelaide to jointly develop an Indian Institute of Vine and Wine and a winery in the Riverland, has finalised an additional investment of $60 million in Loxton.

Reliance Industries, India's largest corporate group, set up an Australian subsidiary based out of Adelaide, and invested an initial $20 million to explore for uranium in partnership with a South Australian company. Rising Sun Pictures won a contract worth about $1 million to export its services to Love Story 2050. Bharat Box Factory is finalising investment plans worth $10 million to invest in a greenfield paper packaging industry near Adelaide. Trident Tooling has invested nearly $10 million in its joint venture with MGM India to set up a new facility near Chennai. Flinders Premium Grain, an agribusiness company from regional South Australia, increased the export of frozen dough to Subway of India.

India is our second largest source of migrants at present and our second largest source of students. The relationship is growing very strongly on the back of a dedicated drive by the Premier and the Department of Trade and Economic Development.

Dr McFETRIDGE: I refer to Budget Paper 4, Volume 1, page 2.16, program 4: International Market Development. Certainly, the India picture looks pretty good. What export development promotion services were provided under this program for business and industry, and what was the cost of providing these services?

The Hon. K.O. FOLEY: We will come back to the house with an answer on that.

Dr McFETRIDGE: I refer to Budget Paper 4, Volume 1, page 2.7: Targets/Highlights, Industry Capability Network. The Industry Capability Network has facilitated $84 million in contracts for South Australian companies. Is this considered to be a significant result for this network when the capital expenditure by companies such as Oxiana and BHP is considered?

The Hon. K.O. FOLEY: My advice is that they are ahead of target. ICNSA facilitates links, knowledge transfer and process capability in the supply chain to maximise local content and replace imports on major projects. It is linked to a national network of offices in Australia and New Zealand.

ICNSA has built strategic relationships within the resources, defence, infrastructure and manufacturing sectors to increase local industry participation in major projects such as the air warfare destroyer, Olympic Dam expansion, and the South Australian government's desalination project. ICNSA is formally engaged with the following major projects:

The tramline extension;

South Road/Anzac Highway tunnel;

Oxiana, Prominent Hill;

Iluka Resources, Eucla Basin Mineral Sand Project;

Techport/Common User Facility/Shiplift;

AWD Alliance, Air Warfare Destroyer Program;

Bus Acquisition Program;

Penola Pulp Mill (no MOU at this stage);

Mobilong Prison;

BHP Billiton, Olympic Dam Expansion and Supplier Capability Review;

Desalination Project;

Rail Car Relocation Project;

APDS (the conference);

Hillgrove Resources, Kanmantoo Project;

Northern Expressway Project;

Team Australia Automotive.

In 2007-08 ICNSA was directly involved in facilitating contracts with a value of $84.5 million.

Dr McFETRIDGE: What is happening with the Penola pulp mill?

The Hon. K.O. FOLEY: My advice is that the company is negotiating for water access and funding for the project. That is all I can say at this stage.

Dr McFETRIDGE: Is it still optimistic?

The Hon. K.O. FOLEY: I think so. I guess it has been caught by the credit crunch. Raising capital for these projects is not particularly easy right now. I do not have any more specific knowledge of the project.

Mr PENGILLY: In relation to the same reference, on the Penola pulp mill, given reports coming out about the alarming drops in the watertable in the South-East drainage, and everything else down there, is that putting at risk Protavia's pulp mill?

The Hon. K.O. FOLEY: I do not know. I think you would be better placed asking Rory McEwen, who has carriage of that project.

Dr McFETRIDGE: I refer to Budget Paper 4, Volume 1, page 2.12: Population and Migration Advertising. What was the expenditure on the interstate advertising campaign, including both migration and business investment messages, that ran in Melbourne, Sydney and Perth? I saw one in Melbourne not long ago.

The Hon. K.O. FOLEY: $650,000.

Dr McFETRIDGE: How many people have migrated to South Australia as a direct result of this campaign?

The Hon. K.O. FOLEY: We cannot put a number on how many people have visited; that is just not possible. I can say that advertising is generating an average of 96 inquiries a month—a 33 per cent increase over the number of inquiries received without advertising. The number is expected to increase due to advertising in June, and a final tally will be available at the end of June.

Website performance has increased—this is a fair old number—with this promotion interstate. May 2008 proved to be the peak month for site visits of some 17,799 unique visitors and 24,402 total visits—that is an increase of 133 per cent in unique visits from the previous month due to the advertising; so, clearly, it has worked. There has been a significant uptake in both serious hits on our website and the number of inquiries coming into the office.

South Australia offers links into recruitment firms as a point of difference from other states. For 2007-08 there was a total of 1,126 requests from people interstate who wished to be linked into recruiters and employers in South Australia. The program was relaunched in March 2008, and processes have been refined to report an outcome.

Dr McFETRIDGE: As to the website you mentioned then, minister, I am referring to the one on page 2.19: southaustralia.biz. Is that getting a lot of hits?

The Hon. K.O. FOLEY: That is the one I just mentioned.

Dr McFETRIDGE: It is the same one, is it? That is good to hear. I refer to Budget Paper 4, Volume 1, page 2.10: Economic Strategy and Policy Development regarding performance commentary on the KPMG study. What is the cost to the department for commissioning the 2008 KPMG Competitive Alternatives study and do we have any results?

The Hon. K.O. FOLEY: I am advised that $64,000 is the cost.

Dr McFETRIDGE: When are the results of that study coming out? I do not know much about it.

The Hon. K.O. FOLEY: They have already come out.

Dr McFETRIDGE: And the results are?

The Hon. K.O. FOLEY: I think we have used this in the parliament a number of times. We are rated No. 1 in terms of competitiveness in Australia and, of the 102 cities featured in the Competitive Alternatives Report 2008, Adelaide was found to have the 33^rd lowest business cost of overall and the third lowest business costs in a population bracket of 500 to 1.5 million people. Our performance is weaker compared to the 2006 result due to the exchange rate appreciation against the US dollar.

Dr McFETRIDGE: Following on from that, at page 2.10, regarding the Economic Strategy and Policy Development competitive business climate target: what is the competitive business climate target that is required to be met by industry and business in South Australia?

The Hon. K.O. FOLEY: Clearly, to maintain and improve where we can our rating on the KPMG table.

Dr McFETRIDGE: I refer to Budget Paper 4, Volume 1, page 2.9: Economic Strategy and Policy Development under payments to consultants. Payment to consultants is budgeted to increase by $175,000 between the 2007-08 budget and the 2008-09 budget. Can you provide—perhaps not today—a list of all consultancies for the 2007-08 program and indicate whether tenders or expressions of interest were called for each consultancy, the reasons for each consultancy, and which consultancies submitted reports during the 2007-08 period?

The Hon. K.O. FOLEY: We will get a consolidated answer for you. We will come back to the house with a full answer on that.

Dr McFETRIDGE: I place the following omnibus questions on the record:

1. Will the minister provide a detailed breakdown of the baseline data that was provided to the Shared Services Reform Office by each department or agency reporting to the minister: including the current total cost of the provision of payroll, finance, human resources, procurement, records management and information technology services in each department or agency reporting to the minister, as well as the full-time equivalent staffing numbers involved.

2. Will the minister provide a detailed breakdown of expenditure on consultants and contractors in 2007-08 for all departments and agencies reporting to the minister, listing the name of the consultant and contractor, cost, work undertaken and method of appointment?

3. For each department or agency reporting to the minister how many surplus employees there will be at 30 June 2008, and for each surplus employee what is the title or classification of the employee and the Total Employment Cost (TEC) of the employee?

4. In the financial year 2006-07 for all departments and agencies reporting to the minister what underspending on projects and programs was not approved by cabinet for carryover expenditure in 2007-08?

5. For all departments and agencies reporting to the minister what is the estimated level of under expenditure for 2007-08 and has cabinet already approved any carryover expenditure into 2008-09? If so, how much?

6. (i) What was the total number of employees with a total employment cost of $100,000 or more per employee, and also as a sub-category the total number of employees with a total employment cost of $200,000 or more per employee, for all departments and agencies reporting to the minister as at 30 June 2008; and

(ii) Between 30 June 2007 and 30 June 2008, will the minister list job title and total employment cost of each position (with a total estimated cost of $100,000 or more):

(a) which has been abolished; and

(b) which has been created?

7. For the years 2006-07 and 2007-08 will the minister provide a breakdown of expenditure on all grants administered by all departments and agencies reporting to the minister, listing the name of the grant recipient, the amount of the grant and the purpose of the grants and whether the grant was subject to a grant agreement as required by Treasurer's Instruction No. 15?

8. For all capital works projects listed in Budget Paper 5 that are the responsibility of the minister list the total amounts spent to date on each project?

I refer to Budget Paper 4, Volume 1, page 2.63: Performance Commentary. Is any management or consulting fee paid by the Office of the Venture Capital Board to the eight full-time investment managers working with private sector funds based in Adelaide and, if so, what is the amount?

The Hon. K.O. FOLEY: I am not aware of that, but I will check and come back to the house.

Dr McFETRIDGE: How much is provided through the Venture Capital Board's scholarship program?

The Hon. K.O. FOLEY: I am sorry; we will take that on notice as well.

Dr McFETRIDGE: How much has the state government invested through the Paragon Private Equity Fund 1 in NuKork, Levett Engineering and Cowell Electric?

The Hon. K.O. FOLEY: I do not think we are at liberty to say that. We give the $7.7 million to Paragon for it to make decisions on who they then invest in, and it has invested in key technologies such as Bresagen, NuKork, Levett Engineering and the Cowell Electric Group. I am advised that we have the numbers, but I need to take advice on whether commercially we are in a position to provide that. If we are, I will provide that information.

Dr McFETRIDGE: I refer to the same reference. Which investment was revalued downward and resulted in a loss of $1.204 million to the Paragon Private Equity Fund 1?

The Hon. K.O. FOLEY: My advice is that that is the valuation of the fund overall. We do not have a break-up of it here but, if we can get it, we will.

Dr McFETRIDGE: Referring to the same reference, what was the cost to the Office of the Venture Capital Board of facilitating and establishing the business angels network, SA Angels?

The Hon. K.O. FOLEY: I will come back to the house with an answer on that. I have a detailed answer here, but it does not include a figure. So, we will get that consolidated for you.

Dr McFETRIDGE: The last question on venture capital is: what was the cost to the Office of the Venture Capital Board for running the 36 educational networking activities?

The Hon. K.O. FOLEY: We will provide that to the house as soon as we can.

[Sitting suspended from 12:54 to 14:15]

Membership:

Mr Griffiths substituted for Mr Venning.

Mr Goldsworthy substituted for Mr Pengilly.

Hon. L. Stevens substituted for Ms Simmons.