BIO SA, INCUBATOR

In reply to Mr MARSHALL (Norwood—Deputy Leader of the Opposition) (26 June 2012).

The Hon. T.R. KENYON (Newland—Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for Recreation and Sport): The operating costs of the Incubator are paid for by direct revenue generated by the Incubator itself. The Incubator charges rents to its tenants and receives hiring fees for its conference centre facilities.

The direct costs of operating the Incubator, such as maintenance, security, costs of common areas (power, cleaning, etc.) and the direct salaries (at cost) of the staff operating the facility are charged against this income.

Tenants are also charged their share of outgoings such as power, telephones, cleaning, waste disposal, etc. The outgoings for each tenancy are measured and recharged on a usage basis.

The net result of Incubator operations is break even.

Because the net cost of operating the Incubator is zero there is no budget allocation for the Incubator, neither does it make a contribution to consolidated revenue.