Estimates Vote

Department of State Development, $674,320,000

Administered Items for the Department of State Development, $7,629,000

Minister:

Hon. G.E. Gago, Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for the Status of Women, Minister for Business Services and Consumers.

Departmental Advisers:

Dr D. Russell, Chief Executive, Department of State Development.

Mr R. Murt, Chief Executive, TAFE SA.

Ms A. Reid, Deputy Chief Executive, Department of State Development.

Mr P. Klar, Executive Director, Skills and Employment, Department of State Development.

Mr J. O'Dea, Chief Financial Officer, TAFE SA.

Ms P. Chau, Director Finance, Department of State Development.

Mr C. Zielinski, Acting Director Skills, Policy and Planning, Department of State Development.

Mrs A. Barclay, Chief of Staff.

Mr D. Foody, Adviser.

Ms G. Lewis, Adviser.

The CHAIR: The estimates committee is a relatively informal procedure. As such, there is no need to stand to ask or to answer questions. We are all friends here, so I am sure it will go very smoothly. I understand that the minister and the lead speaker have agreed to an approximate time. There has been no change to the times agreed, so we will stick to those.

Changes to the committee membership will be notified as they occur. If the minister undertakes to supply information at a later date, it must be submitted to the committee secretary by no later than Friday 30 October 2015. Committee responses will be published during the 17 November sitting week.

I propose to allow both the minister and the lead speaker of the opposition, if they wish, to make an opening statement of about 10 minutes, then there will be a flexible approach to giving the call for asking questions, based on about three questions per member, alternating each side. Supplementary questions will be the exception rather than the rule. A member who is not part of the committee may ask a question at the discretion of the Chair.

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 House of Assembly Notice Paper. There is no formal facility for the tabling of documents; however, documents can be supplied to the Chair for distribution to the committee.

All questions from the opposition and government members are to be directed to the minister, not to the minister's advisers, but the minister may refer questions to advisers for a response. During the committee's examination, television cameras will be permitted to film from both the northern and southern galleries. I declare the proposed payments open for examination, and I refer members to Portfolio Statement Volume 4. Now, I call on the minister to make a statement, if the minister wishes, and to introduce her advisers, please.

The Hon. G.E. GAGO: I will introduce the staff. On my right, I have Dr Don Russell, Chief Executive of DSD; on his left, Ms Alex Reid, the Deputy Chief Executive; and, on my right, Robin Murt, Chief Executive of TAFE. Behind me, we have Peter Klar, Executive Director of Skills and Employment, and on his right, we have Mr John O'Dea, Chief Financial Officer of TAFE. Behind him, we have Ms Phuong Chau, Director of Finance, and on her left we have Mr Chris Zielinski, Acting Director, Skills, Policy and Planning. I think behind them I have my Chief of Staff, Ann Barclay, and two advisers: Genevieve Lewis and Dale Foody.

I will just make a very brief opening statement, if I may. Thank you for the opportunity to introduce this government's work in relation to the employment, higher education and skills portfolio. Activity in this portfolio links the strengths of this state's people with the industries we know will provide economic wealth and jobs today, tomorrow and in years to come. South Australia's capacity to capitalise on our natural and economic assets demands that industry has a workforce with the skills that meet our needs in enabling us to transform our economy.

Just over 12 months ago, the Premier established the Department of State Development with a very clear direction to lead the economic transformation of South Australia and to help create jobs. The department is leading this work in creating and expanding business and employment opportunities for South Australians across the state. The department's achievements in the past year include:

attracting new investment in the innovation district Tonsley;

a successful trade investment mission to China—the largest in the state's history;

continuing to build on our strengths to optimise the benefits of the state's abundant resources;

under the Remote Areas Energy Supplies scheme we continue to supply cost-effective, safe, reliable and sustainable energy to remote business communities.

Given the ongoing need to operate more efficiently, the Department of State Development works hard to ensure its activities are efficient, effective and acutely aligned to the government's economic priorities.

Another significant achievement is the new focus of skills development, WorkReady, which was announced in May, and its implementation began this month (July). It is our investment in vocational education and training (VET) bringing under one umbrella all the publicly-funded initiatives in our skills, employment and training system.

VET helps people develop the skills they need to secure jobs crucial to the industry and society of tomorrow and then to perform better and develop long-term careers within areas of economic priority and their chosen fields of employment. WorkReady changes how VET courses are subsidised and purchased in South Australia to maximise the value the public receives from its investment. WorkReady has developed with industry to ensure our investment now and into the future in skills training is targeted at the industries and jobs that will lead to more jobs; for example, through our partners in the Resources and Engineering Skills Alliance, which will continue to receive support for its work in promoting workforce planning and development of the mineral, resources and heavy engineering sectors.

As a major public institution, TAFE SA will continue to offer an important and strategic presence across South Australia. This means a commitment to social inclusion principles, a commitment to providing opportunities for disadvantaged groups to gain qualifications that would otherwise be unattainable and training for emerging skill needs and partnerships with higher education institutions to provide enhanced pathways to tertiary study.

The government has committed to supporting TAFE SA to transition to a more innovative and flexible training delivery model and to become sustainable in the competitive training market. We know that this year will be particularly difficult for private providers with a limited number of new, subsidised training places available. However, the amount of contestable places will continue to increase as we implement WorkReady, and we expect private providers and TAFE SA to be operating on an equal subsidy rate for commercial courses by 1 July 2019.

In 2015-16 WorkReady will subsidise a significant number of continuing students so they can complete their training. The changes introduced under WorkReady combined with more than $240 million spent on major TAFE infrastructure since 2007-08 will guarantee ongoing quality skills training in the state. Currently, under WorkReady there are 696 publicly-subsidised courses. These courses have been identified as critical to the development and supply of an industry-focused workforce. The subsidised training list was developed after consultation with industry.

Tailored employment projects will continue to help disadvantaged job seekers develop their skills and earn jobs in industries hungry for their participation, and we are boosting our support for mature-age job seekers, including our regions, through WorkReady. Obviously, we will continue our retrenched worker program.

We continue to work across government to increase access and opportunity for Aboriginals in training and workforce development. As minister, I work with our higher education institutions to ensure they reach, maintain and exceed the expectations of them as world-class education providers capable of attracting the best and brightest students from around the world.

Our educational exports, including VET, were valued at more than $900 million in 2014-15. Over the past 12 months, I have led, and participated in, a number of outbound missions including most recently the Premier's mission to Shandong in May as part of the South Australia Shandong Cooperation and Development Forum.

Other highlights include the Premier's Higher Education Committee being established in 2014. It brings together vice-chancellors of the state's three publicly-funded universities and other key players to progress the state's economic priorities and to ensure that the state government has the right policy and strategy settings in place to maximise the potential of its universities for the benefit of the South Australian community. It also established an MOU between the universities' technology transfer companies to advance research commercialisation.

In 2014, more than 30,000 international students were enrolled to study in South Australia, an 8.3 per cent increase over the previous year. In 2014, South Australia's exports of education services rose to over $1 billion for the first time, coming in at $1.05 billion worth to the state.

Inbound and outbound delegations of government officials and representatives from education and training providers helps to build mutually beneficial relationships and to increase understanding of each jurisdiction's education capabilities and each market's education and skills needs. The government's commitment to higher education and training reflects their significance in the development of the sectors critical to our economy and to our becoming a preferred destination for the world's best students, graduates, investors and business leaders.

The CHAIR: Thank you, minister. Does the lead speaker have an opening statement?

Mr PISONI: I will start with asking questions if that is okay, Chair.

The CHAIR: Okay. Member for Unley.

Mr PISONI: Thank you. Just picking up from your ministerial statement, minister, and it refers to the training, employment and skills sub-program on page 65 of Volume 4: when will the government meet its 100,000 jobs in six years promise that it made in 2010?

The Hon. G.E. GAGO: We have well and truly gone on the public record previously and indicated that it is highly unlikely that we will be able to achieve the 100,000 jobs. It was an aspirational target. We obviously put a number of programs and initiatives in place to drive job growth. We have had some job growth but, clearly, the economic climate has overtaken our aspirations, and it is most unlikely that we will achieve that target.

Mr PISONI: Minister, you say that it was an aspirational target, but the consultation paper that was produced in 2010, prior to the launch of Skills for All, clearly says in the executive summary that the government has committed to jobs growth of 100,000 over the next six years, supported by 100,000 additional training places. So, when did the commitment for 100,000 new jobs in six years become an aspiration?

The Hon. G.E. GAGO: Well, when we set the target it was indeed an aspiration. At the time, we believed that it was an aspiration that we had some opportunity to achieve but, as I said, various economic activities in terms of the way our dollar lost ground, the drop in commodity prices, the mineral boom coming to an end—there were a range of events that overtook us. As I have said, we have indicated publicly, both the Premier and myself, on several occasions that we now assess that target as being highly unlikely for us to be able to achieve.

The 100,000 additional training positions, we did achieve. We achieved that ahead of time and we, in fact, exceeded the 100,000 additional training positions in our system. So, we are very pleased that we were able to give that one the tick.

Mr PISONI: So, why have those 100,000 additional training positions only given us a net difference of 2,000 some 5½ years since the commitment was made by your government to deliver 100,000 new jobs?

The Hon. G.E. GAGO: I guess the answer to that is that training outcomes do not create new jobs in industry. Training helps people develop the skill sets and qualifications they need to be able better compete for job outcomes. We have seen with our employment that, although we are growing jobs, we are just not growing them fast enough.

Mr PISONI: Just to clarify for the committee: when the government says that it makes a commitment, what you are saying is that that is only aspirational?

The Hon. G.E. GAGO: I did not say that at all.

The CHAIR: I think that the minister has answered the question.

Mr PISONI: Well, no, she hasn't because she specifically—

The CHAIR: Member for Unley, she has answered the question.

Mr PISONI: I mean, look, this document—

The CHAIR: Let's not argue semantics about—

Mr PISONI: Well, it's not semantics. The difference between a commitment and an aspiration—

The CHAIR: I rule that she has answered the question. Do you have another question or shall I move to the next one?

Mr PISONI: I have another question, yes.

The CHAIR: Excellent, what line?

Mr PISONI: I would like to take you, minister, to Budget Paper 4, Volume 4, ministerial resources, page 58, the minister's office. How many full time equivalents do you actually have working in your office? The document that is presented to members of parliament says that there are 11, the budget paper says there are 11 ministerial staff; however, documents obtained under freedom of information of an unedited staff directory give the number of 21.

The Hon. G.E. GAGO: As outlined in the budget papers, the office has a budget of $1.963 million for 2015-16, comprising $1.26 million for employee expenditure and $703,000 for all supplies and services. The funding provides for 11 FTEs, I am advised, which includes five contract and six staff appointed under the Public Service Act 2009. In addition, the office has 5.5 additional FTEs, comprising three FTEs funded by the Department of Treasury and Finance and 2.5 FTEs by DSD, I am so advised.

Mr PISONI: So, can you explain why members of parliament, who are not ministers, are provided with only 11 staff and why the budget papers say that there are only 11 staff in your office. However, the confidential directory that is provided to ministers and their staff only gives the number of 21.

The Hon. G.E. GAGO: The information is there, it is publicly available, it is open and transparent. I have outlined the staffing complement.

Mr PISONI: So, if the additional 10 are not funded from your office, where are they funded from?

The Hon. G.E. GAGO: I have just answered that: I said that one was from Treasury and Finance and the other from other parts of DSD. It depends what question is asked. There is a difference between FTEs and head count data, obviously.

Mr HUGHES: I refer to Budget Paper 4, Agency Statement, Volume 4, page 71. Under Highlights 2014-15 is a dot point, 'Maintain the value of South Australian educational exports, including vocational education', which was over $900 million in 2014-15. We recently heard from the minister that South Australia's international education exports, as measured by the Australian Bureau of Statistics, have for the first time risen about the $1 billion mark. Could the minister explain how the state government will continue to attract even more international students to our city?

The Hon. G.E. GAGO: I thank the member for his question. This is a very good news story. International education is South Australia's largest service sector export, and in the calendar year 2014 it contributed $1.05 billion to our economy. In terms of jobs, it has been estimated that training and education for international students creates around 8,000 FTE jobs, and in the 2015-16 state budget includes $5.7 million over four years for a new campaign that will market South Australia as the destination of choice for international students.

The Destination Adelaide campaign will boost South Australia's competitiveness in attracting international students from key markets, including China, India and South-East Asia. All states are undertaking similar activities to attract and support international students but, unlike New South Wales, Victoria and Queensland, South Australia has some additional challenges. Our experience has shown that, when potential students considering studying in Australia hear of South Australia, they think of everything in the bottom half of Australia, and they think of Melbourne often and not Adelaide.

Through StudyAdelaide, the state government, the Adelaide City Council and the state's education and training provider partners have put a lot of work into raising the education profile of Adelaide. One emphasis has been on promoting the quality of education that South Australia has to offer. South Australia is the only Australian state in which all its public universities appear on one or more of the major three international ranking systems.

The University of Adelaide is one of our oldest universities, and that is quite an amazing achievement. It is also amazing when considering that the majority of our universities in the world do not even appear on any ranking system, which places South Australia's universities firmly in the top 10 per cent across the globe. Adelaide is home to Australia's only two international universities. It is also home to Torrens University, a private university, and all three provide excellent courses for study.

South Australia was the first state to establish a dedicated organisation to support international students—StudyAdelaide—and it is a model now that other states have copied. The $5.7 million Destination Adelaide campaign I mentioned earlier will focus on, amongst other things, StudyAdelaide's marketing and onshore student support efforts, better aligning StudyAdelaide campaigns with the South Australian Tourism Commission to maximise their impact as well as developing scholarship and other incentive programs.

I am pleased to advise that the state government will continue to engage with the education and training providers directly and through StudyAdelaide to both improve the quality of student onshore experience and our efforts to attract increasing numbers of students.

Mr HUGHES: I refer the committee to Budget Paper 4, Volume 4, Agency Statements, page 67. How will WorkReady assist people to get a job?

The Hon. G.E. GAGO: I thank you for that important question. One of the significant features of WorkReady is integration of training, employment and skills initiatives as a continuum of activity with entry, progress and transition points for people, according to their needs, interests and capabilities. Some people need foundation learning, some need vocational skills for entry level employment, whereas others need higher level skills to progress in their industry or to transition to a new job.

Before people enrol in training or start an employment project they will be asked to participate in an up-front assessment of their needs, and by identifying mismatches between individuals and their training or job choices, and any learning or employment barriers that can be addressed immediately, we expect to achieve increased completions, improved job readiness, and more employment outcomes.

Individuals will be supported to make informed choices knowing that the subsidised courses or the employment projects that they participate in are in areas and fields most likely to lead to jobs. Jobseekers can participate in WorkReady in a number of ways by enrolling in a subsidised course from the subsidised training list or through Jobs First activity.

There are two Jobs First projects: one is the Jobs First subsidised training list projects, and these are training projects for specific groups, industries and regions which will involve employers and the selection of participants, delivery approaches and the validation of outcomes; and the second is quality work placements and transition to employment, in addition to accredited training, which are the central features of the approach.

Learner support services will be available to students to assist them with their special needs. Submissions for Jobs First STL projects are now being accepted. The Jobs First employment projects are tailored employment initiatives for specific groups, industries and regions that assist people to either progress towards employment or move directly into a job. Support services are available that address barriers to employment such as individual family case management, structured mentoring, career services and suchlike.

Employers can get involved by working with approved providers or regional managers in relation to Jobs First employment projects who are located across the state, to develop tailored solutions to meet local and regional skill and employment needs. There are South Australians who need additional support, such as young people not in learning or work, Aboriginal people, people with disability, mature age people seeking to re-enter the workforce, and of course, long-term jobless families. The Jobs First employment project guidelines will be available later in July.

Mr PISONI: I would like to take you now to Budget Paper 4, Volume 4, page 57, ministerial responsibilities. Can the minister confirm, because of the recent confusion in question time, when she has claimed that she is not responsible for TAFE, just what her responsibilities for TAFE are? I refer the minister to the TAFE SA Act of 2012, where section 5 states:

TAFE SA is a statutory corporation to which the provisions of the Public Corporations Act…apply.

Note—

Consequently, TAFE SA is subject to control and direction by the Minister as provided for in the Public Corporations Act 1993.

Can you describe what your responsibilities of control and direction are or what they are limited to?

The Hon. G.E. GAGO: There has been no confusion in the chamber in relation to my role and responsibilities around TAFE. I have always made that very clear but I am happy to do so again. TAFE SA is incorporated as a statutory corporation under the TAFE SA Act 2012 to which the provisions of the Public Corporations Act 1993 apply. TAFE SA was incorporated to provide it with a greater commercial autonomy and accountability, enabling it to participate in a competitive vocational education and training market.

The act defines TAFE SA's functions and includes executive management processes. The governing framework for TAFE SA is largely defined in the Public Corporations Act and requires TAFE SA to have a charter, a performance statement and strategic business plans and targets, which all of those the minister approves. As required by the act, the charter and performance statement are to be reviewed at the end of each financial year.

As the minister, my role is obviously to protect the public equity investment in TAFE by ensuring that the board undertakes its legislated duties to my satisfaction. The Treasurer and I determine the nature and scope of the following elements that are incorporated within the charter, which include:

TAFE SA's commercial operations, including investment activities and operations outside the state;

TAFE SA's non-commercial operations;

limitations on functions or powers;

reporting obligations and a form and content of accounts and financial statements, accounting, internal auditing and financial systems or practices and the setting of fees or charges;

acquisition or disposal of equity or assets; and

borrowing or lending of money.

The board is responsible to me for the following:

seeking my approval for the appointment of a chief executive;

proposing an appropriate strategic plan and business plan and targets for my approval;

reporting to me on a monthly basis and when there are material developments that affect performance;

securing continuing improvements of performance and observing a high level of standards and ethics;

protecting the viability and the Crown's financial interests;

ensuring there is an appropriate management structure and practices for the keeping of accurate accounts and management of systems for monitoring and managing performance against plans and targets; and

ensuring TAFE operates within the limits of the charter.

I think there is also a provision that says fundamentally that the government is the funder and TAFE is basically the service provider. There is also a provision in the act that states:

The Minister may not give direction to TAFE SA relating to the employment, transfer, remuneration, discipline or termination of employment of a particular employee of the chief executive.

So there are clear limits in that respect.

Mr PISONI: What about in relation to operational matters? You have just said in your response that you sign off on TAFE SA's business plans and charter. What other operational matters are you involved with?

The Hon. G.E. GAGO: Very few, as I said. The act specifically states that I am not able to give direction in relation to remuneration and other staffing-type issues.

Mr PISONI: Would your office be involved in something like, for example, the preparation of a submission to a House of Representatives inquiry from TAFE?

The Hon. G.E. GAGO: No.

Mr PISONI: Then can you explain this email, obtained under FOI, from Jeff Gunningham to Jo Denley and copied to Alexandra Hall and Ann Blythe. It is dated 16 April of last year, when you were the minister. It says:

Thanks Jo. Yes, there is a bit of funny business going on re our submission to the TAFE inquiry. I've sent the Minister's Chief of Staff an email asking her to clarify matters as what Ray—

and in this instance it is Ray Garrand, the former chief executive of DFEEST—

is saying is quite different to the process agreed (in writing) with the Minister's Office.

Can you explain how you would have an agreed process with TAFE on how to deal with a submission for the House of Representatives' inquiry, when you have just told this committee that it is not your business?

The CHAIR: Minister, you may choose to answer this if you wish. It does not fit any particular budget line. You may choose to answer it as briefly as you wish or in as much detail as you wish.

The Hon. G.E. GAGO: I am happy to answer this. This has also been reported in the public arena, and we made it very clear at the time that my department and TAFE agreed that there would be only one combined response put forward to that particular committee. That was agreed to. In terms of myself or my office influencing the contribution that TAFE made to that report, as I indicated we did not interfere with that. They were able to put forward whatever they liked in their part of the submission.

Mr PISONI: So you deny the claims made in Jeff Gunningham's email that there was an agreed process with the minister's office?

The Hon. G.E. GAGO: I just outlined the agreed process, which was a combined submission.

Mr PISONI: Before that you actually said that you did not have a role, your office did not have a role, in operational matters such as submissions for parliamentary committees.

The Hon. G.E. GAGO: Of the content. We are talking about a process here. As I have indicated, we have not interfered with the content.

Mr PISONI: Are you able then to shed some light—

The CHAIR: Member for Unley, the minister has answered that question. Do you have another question on the appropriations?

Mr PISONI: I do, yes; thank you. This is on the appropriations; it is a supplementary to the last question.

The CHAIR: No; it is a separate question.

Mr PISONI: Okay; it is a separate question, sure.

The CHAIR: And you need to refer to a budget line, please.

Mr PISONI: It is the same budget line; it is the minister's office. I refer to another FOI that was to Peter Vaughan, the Chair of TAFE. It was a reply to an email sent by Mr Jeff Gunningham. It said:

Peter, I assume by now that Jo has bought you up to date with the debacle that took place re our submission to the House of Representatives' Inquiry into TAFE. If she hasn't, I can brief you on this on Tuesday.

According to this email they were planning a dinner meeting on Tuesday. It continued:

As part of the process, I have been asked to present to the HoR's public hearing that is taking place at our Regency campus on 12 June. The board is aware of this. However, we need to decide what line to take at the public hearing. Do I follow the script outlined in the DFEEST written submission (lots of spin) or do I answer the questions truthfully as outlined in our original board-approved submission?

Needless to say, I would not wish to embarrass the board or the minister by publicly criticising the state government on its policy positions but it's going to be very challenging for me to say anything positive about DFEEST and how they have managed Skills for All!

What is your comment on that, minister?

The CHAIR: Member for Unley, you have successfully read that into Hansard, that is excellent. Minister, you can choose to answer that or we can save it for question time, where it would be more appropriate.

The Hon. G.E. GAGO: There is not a question.

The CHAIR: No, there is not a question.

The Hon. G.E. GAGO: That is a person's point of view, and a person is entitled to their point of view.

Mr PISONI: My question is: what is your comment on your former chief executive's view of Skills for All and the interference of the department in TAFE?

The Hon. G.E. GAGO: We have not interfered at all. As I have indicated, we have not interfered. Those officers were free to choose whatever course of action they wanted. They were free to express that in whatever way they liked. I might not share their personal view, but we certainly have not interfered.

Ms COOK: I will ask a question related to a budget line in Budget Paper 4, Volume 4, page 65, with a keen interest in breaking the cycle of poverty within our community. What has the state government done to help long-term jobless families in our community?

The Hon. G.E. GAGO: Thank you for that most important question. Children growing up in jobless families are at higher risk of becoming parents at an early age, engaging in high-risk antisocial activities, leaving school early, receiving income support and becoming welfare reliant themselves when compared to children raised in working households.

Childhood and adolescent development depends on access to economic resources during the first 15 years of their life, and poor access to economic resources is detrimental to future income opportunities, social inclusion and also impacts, as we well know, on economic success. By focusing on increasing the social and economic participation of jobless families, we are investing in the reduction of the intergenerational transmission of disadvantage, social exclusion and often joblessness.

Building Family Opportunities (BFO) is delivered in areas where families experience high levels of economic and social disadvantage. Professional and practical whole-of-life services are provided that enable families to break the cycle of long-term and intergenerational joblessness. To date, BFO has assisted 848 families and 2,450 individuals with 488 employment outcomes and 887 training outcomes. An amount of $2 million has been allocated through the government's Jobs and Skills policy to deliver BFO in the City of Playford from 2013-16, with 86 families engaged, 58 people gaining employment and 104 people commencing training. In addition, the BFO program is being delivered in Southern Flinders, Whyalla, the Far North and Southern Adelaide for 105 jobless families.

BFO also has positive outcomes for primary and secondary students. The BFO program secures employment in a decent job for one or more members of the family; increases the educational attainment of family members through local, tailored training and skills development; and results in families accessing government and non-government services in a seamless, timely and coordinated way.

Building Family Opportunities was extensively evaluated by Flinders University, which concluded that the BFO model is using an intensive case management approach that addresses all of the areas of a family's barriers to employment and results in significant education, training and employment achievements for some of the most economically and socially disadvantaged families in the state. They also found that the program created significant change where other agencies have been unsuccessful.

The cost benefit analysis undertaken by Deloitte Access Economics determined the total benefit to the South Australian economy, after the government's investment, through wage earnings of successful participants was $12.4 million in total over three years of sustained employment; $19.8 million over five years; and $36.3 million over 10 years.

Ms COOK: I have another question on the same page, page 65. What has the state government done to strengthen the linkages between industry labour force needs and investment in employment and skills training in South Australia?

The Hon. G.E. GAGO: Thank you for your question. This state government recognises the significant and unique impact that regional communities have on the state's economy. The government also acknowledges the extensive knowledge and experience that regional stakeholders have of their region and their essential role in developing local solutions to achieve shared industry, government and community objectives.

Industry Leaders Groups (ILGs) are made up of highly skilled, committed and influential employers who have strong links to industry and their local communities. Using their local connections and knowledge, these groups help government understand and respond to the workforce challenges experienced by industry and employers across regions. The ILGs help government understand and respond to the workforce challenges experienced by industry and employers in and across regions. WorkReady has introduced strengthened engagement with Industry Leaders Groups to help guide skills and training investment in regions and link employment programs to jobs.

The Department of State Development has established 15 ILGs to provide leadership and advice that strengthens employment and skills development outcomes across the state. ILGs cover the 12 State Government Regions (SGRs) with three ILGs in Yorke and Mid North SGR, two ILGs in the Murraylands and Riverland SGR and two ILGs in the Eyre and Western region.

ILG members and chairs were selected by the Department of State Development's regional managers in partnership with Regional Development Australia in regions, and Northern Futures, Western Futures, City of Onkaparinga and North East Development Agency in metropolitan Adelaide. They meet four times a year and their membership is voluntary. They are not considered a government board or committee. They are community driven meetings which provide an opportunity for local businesses to inform state government investment in training and skills and link activity to local and potential job opportunities. Taking part in an ILG is voluntary and there is no minimum term required for its members to sit. Local employers and industry members with an interest in skills development and employment are able to join ILGs.

With the introduction of WorkReady on 1 July, the ILGs will continue to play a critical role in providing regional intelligence, consultation with key regional employers and industry, and advice on local labour market supply and demand factors. This will assist in longer term planning and development of tailored employment and training programs.

The CHAIR: Any questions on my left?

Mr PISONI: Minister, I refer you to Budget Paper 4, Volume 4, page 65 and the FTE numbers in the area of training, employment and skills. We have seen a budgeted reduction of 118 from the actual numbers in 2013-14 to 2014-15 but the actual amount is down to 2,639 which is short of the budgeted figure. Can you advise what areas those reductions have come from? I am referring to the 2014-15 budgeted amount compared to the estimated amount.

The Hon. G.E. GAGO: That is in sub-program 2.1?

Mr PISONI: Yes.

The Hon. G.E. GAGO: So you want to know where the jobs have—

Mr PISONI: Yes, where the cuts have been made.

The Hon. G.E. GAGO: Where the cuts have been made. I have been advised that the 79 decrease in FTE numbers primarily relates to the transfer of FTEs from DSD to TAFE SA as part of the ICT realignment of services. That is 49 FTEs and TVSPs taken which are 30 FTEs, I am so advised.

Mr PISONI: Were those IT staff related to the Student Information System that TAFE has been grappling with for the last couple of years?

The Hon. G.E. GAGO: From my advice it is only a subset of it.

Mr PISONI: Is that additional cost then for the Student Information System?

The Hon. G.E. GAGO: No, we do not really understand the question, I am sorry.

Mr PISONI: There was $20 million allocated for a student information system to be installed in TAFE several years ago. I think there were some questions about it last year and a previous year at estimates. There are significant invoices that were produced through the FOI process that showed that tens of thousands of dollars were being paid to foreign workers to establish the student information system. My question is trying to determine what the full cost now of the student information system is, whether it is now fully implemented and whether it was implemented on budget or implemented over budget.

The Hon. G.E. GAGO: What line is the student information system in the budget? Where is the student information system?

Mr PISONI: You have got supplies and services, minister, on page 64. So, it is not a service that you have engaged—the student information system? You do not know you have one; is that what you are saying?

The Hon. G.E. GAGO: Given the sort of operational nature of the question, I might invite Mr Robin Murt to provide that detail.

Mr MURT: Specifically in regard to the transfer of ICT staff that occurred, it would have been staff who were involved in general provision of ICT services, not specifically to the student information system. There would have been an element of the transfer that involved support for the student information system, but that would have been a relatively small component of the staff who transferred.

In terms of the operating costs of the student information system, they are covered within our current resource allocations. The implementation has occurred and is complete, but with all systems, particularly on that sort of scale which is a core business-type system for TAFE SA, there is an ongoing program of identifying opportunities for improvement in the system functionality. Those opportunities are prioritised and costed, and determinations are made thereafter about whether those changes will be made or not.

Mr PISONI: What was the total cost of the student information system, minister—the installation and implementation?

The Hon. G.E. GAGO: I will have to take that on notice.

Mr PISONI: And the operational cost?

The Hon. G.E. GAGO: I will have to take that on notice.

Mr PISONI: Just getting back to page 65 of the same budget paper, the budgeted number of FTEs for 2015-16 is 2,524.5. Can you separate then the training and employment, or just where those staff will be? Does that include staff in TAFE? Does it include staff in the department? Just where are these staff sitting?

The Hon. G.E. GAGO: I am advised that, of the 2,637.9 FTEs budgeted for 2015-16, 2,047.8 are allocated to TAFE and 590.1 are allocated to DSD.

Mr PISONI: You are referring to what year there, minister, sorry?

The Hon. G.E. GAGO: 2015-16.

Mr PISONI: So, of the 2,554.5, you have 2,048 who are with the TAFE system. It appears to be a different figure that was given by Mr Murt to the Economic and Finance Committee on Monday.

The CHAIR: I do not think that was the Economic and Finance Committee, member for Unley.

Mr PISONI: I beg your pardon; no, it was not.

The CHAIR: Let us be clear about it.

The Hon. G.E. GAGO: I have the right table now: it is for sub-program 2.1 and I was looking at the program 2 grand total with the first lot of figures that I gave. So for sub-program 2.1, the grand total for FTEs is 2,524.5. I am advised that of those, 2,300.7 are allocated to TAFE for 2015-16 and 223.8 are allocated to DSD.

Mr PICTON: I refer to Budget Paper 4, page 70. Minister, I was wondering if you can outline how the Qingdao Sister City Student Ambassador campaign has assisted in marketing international education?

The Hon. G.E. GAGO: StudyAdelaide implemented the Amazing Ambassador, Unforgettable Experience initiative—and apparently that translates very well in Chinese but is obviously a bit clunky in English. We implemented this ambassador program with Qingdao Sister City—the student ambassador recruitment campaign—in order to increase the awareness of Adelaide and its education sector. The campaign has a number of significant benefits:

it will raise awareness of Adelaide as an Australian city amongst Qingdao youth and as a study destination for potential international students from Qingdao;

it will also help encourage education agents to continue to promote Adelaide and the South Australian education partners; and

the student ambassador, who will be able to share their experiences with the target audience in China through social media channels.

I launched the program in Qingdao in October 2014 and am pleased to report that it generated a huge amount of media attention. In fact, it surpassed expectations with over 170 million—170 million—online viewers and over 800 students in Qingdao applying to be the student ambassador. It was incredible. The campaign was a month-long promotion using digital channels such as social media and online forums and off-line channels such as university campus flyer distribution and also agent training.

The campaign winner, Ms Wang Dan, is a student of Qingdao Agricultural University, and was selected by a panel which consisted of StudyAdelaide and its key education partners. A media function was held in Qingdao as part of the 2015 Shandong-South Australia cooperation and development forum where the Premier introduced Ms Wang to the media.

Ms Wang will soon be visiting Adelaide where she will undertake a four-week English course, visit Adelaide's education institutions, and participate in a range of community, city and regional tourism experiences. She will have the opportunity to meet with me and other senior government and business leaders and, of course, Adelaide's Lord Mayor.

Her return flights, accommodation, English course, some spending money, student and tourism activities are provided by the campaign sponsors. During her time in Adelaide and upon her return to China, she will be asked to share her experiences with her own network of contacts as well as through StudyAdelaide's Chinese social media platforms.

Mr PICTON: Minister, I refer to page 56, Budget Paper 4. I was wondering if you can outline what the state government has done to ensure that Aboriginal people have opportunities to access sustainable jobs?

The Hon. G.E. GAGO: This government remains committed to halving the gap in employment outcomes between Aboriginal and non-Aboriginal people by 2018 as reflected in South Australia's Strategic Plan. In achieving this target, we are connecting students, employers and work-ready Aboriginal job seekers through a suite of initiatives that make up the Aboriginal engagement to employment strategy. These initiatives ensure that Aboriginal job seekers have the breadth of employability skills needed to be competitive in the labour market across a range of vocations and are able to improve their opportunities for sustainable employment.

This approach includes the Aboriginal employment industry cluster initiative, which is building the capacity of employers to increase and sustain the employment of Aboriginal people, and it is being delivered through seven industry clusters, each led by a senior industry champion. Training is linked to genuine jobs. Since the initiative commenced, over 400 Aboriginal people have gained employment and over 750 Aboriginal people have been supported into training.

The Skills for Jobs in Regions program, now encapsulated under WorkReady Jobs First, will see Aboriginal people engaging in employment and training programs across the state in 2015-16. The Aboriginal apprenticeship program will place 160 apprentices, trainees and school-based apprentices with employers whilst also providing culturally appropriate mentoring and support for these young Aboriginal people.

The Tauondi Aboriginal College, a registered training organisation owned and operated by the Aboriginal community, provides non-accredited short courses and accredited training in a variety of qualifications. The transition to WorkReady on 1 July 2015 will see a continuation of support for Aboriginal people to enter training and workforce participation projects.

WorkReady will fund projects and services for Aboriginal people that contribute to Strategic Plan targets T51 and T53. This will include employer-led projects developed through the Aboriginal employment cluster initiative and projects developed by WorkReady providers. Additional support services will be provided to Aboriginal job seekers, jobless families (using the BFO model I have already spoken about this morning) and apprentices and trainees.

Membership:

Ms Sanderson substituted for Mr Bell.

Mr PISONI: Minister, I would like to take you to page 58 of Agency Statements, Volume 4, the workforce summary. It refers to the actual number of staff in the Department of Further Education, Employment, Science and Technology and TAFE on 1 July 2014 as being 2,893.7. Can you advise the breakdown between TAFE staff and departmental staff at that time?

The Hon. G.E. GAGO: I have been advised that of the 2,893.7 FTEs 2,389 were allocated in 2013-14 to TAFE.

Mr PISONI: Again, this goes back to page 65, training, employment and skills—FTEs. Has there been an audit of the skills set of TAFE staff in order for them to undertake the responsibilities which they have been given under the WorkReady changes which have given them 90 per cent of funded training positions?

The Hon. G.E. GAGO: So, you are asking about the skills set?

Mr PISONI: Has there been an audit of the skills set to ensure that TAFE can undertake the responsibility that has been given to it to deliver skills in South Australia under the new WorkReady program?

The Hon. G.E. GAGO: First, the allocation of the 90 per cent of new subsidised training positions is only for 2015-16, and that will change over the forward estimates. In relation to the discussions we have had with TAFE, it has indicated that it has the full capacity to manage all of the training allocation that has been prescribed to it.

Mr PISONI: We see that further reductions in staff were outlined by Mr Murt at the Budget and Finance committee last Monday. Will those reductions be funded through TVSPs, or will those reductions occur through other means, for example, transfers or, alternatively, people retiring or people having their work performance reviewed and that being the basis of them leaving the TAFE system?

The Hon. G.E. GAGO: Given that this is an operational staffing matter, I will ask Mr Robin Murt to respond.

Mr MURT: There are a variety of means by which we assess the staffing needs of our organisation, and the substantial element of that at the moment is that we are out speaking to communities about their training needs. That is our starting point. We then assess the staffing profile that we require to deliver against those plans. If there is a need for reductions in particular areas, they can be through all the options you mentioned, including things like natural attrition, and offering of TVSP packages obviously is a continuing option. It is an ongoing process of assessing the training needs of an area, the resources needed within a program or business unit to deliver that training, and thereafter we make decisions about, in some cases, potentially positive variations in staffing levels to accommodate additional demand, and reductions in other areas that would be through areas of natural attrition and/or TVSPs.

Mr PISONI: Minister, can you advise how that process will be managed, considering that two bills were required when the TAFE Act went through the parliament? The TAFE Act obviously was successful, but the consequential amendment bill that gave TAFE the ability to manage any disputes that might arise with the Australian Education Union in particular did not pass successfully on two attempts, one in the form of amendments and another in the form of a separate bill that did not allow for amendments. What mechanism is TAFE now using to manage any disputed claims on employment status or employment decisions that might involve either removal of staff or redeployment of staff?

The Hon. G.E. GAGO: It is a management issue, and again I will ask Robin Murt to respond.

Mr MURT: TAFE SA relies on the powers under the common law and the Fair Work Act for discipline of prescribed employees.

Mr PISONI: Will there be any additional staff who will not contribute to the full-time equivalent numbers but will be engaged by TAFE, such as contractors or outsourcing? Is it part of TAFE's plan that they may in fact tender for the delivery of courses funded under WorkReady to TAFE to other bodies such as they do with the first-aid course at the moment, where that goes out to tender periodically; I think that Red Cross has been successful and that St John has been successful on different occasions. Are there plans to expand that outsourcing of the delivery of TAFE courses to other organisations?

The Hon. G.E. GAGO: I will ask Mr Murt to respond.

Mr MURT: I am not aware of any current plans to expand the outsourcing. I am advised that the profile of training activity that we have been asked to deliver, through the publication of the subsidised training list under WorkReady, is able to be accommodated generally within our existing skill set and staffing profile. That will clearly need to be modified, given that WorkReady is only an element of our business, and there are opportunities for growth in revenue and training activity outside the WorkReady bundle, and we will constantly review the staffing needs and look at alternatives for resourcing where we need to.

Mr HUGHES: I refer the committee to Budget Paper 4, Volume 4, page 70. What is the extent of the government's involvement with the universities?

The Hon. G.E. GAGO: The most obvious partnership the state government enjoys with the three universities, including the three private universities, is through a partnership under StudyAdelaide which is charged with developing and expanding South Australia's share of the national education export market by promoting Adelaide as a centre of education excellence. It also highlights the many advantages for international students who choose to live, study and work in Adelaide.

All three universities are funding partners, along with the Adelaide City Council, the state government and TAFE. Through the South Australia Shandong sister state relationship, the South Australian government has been pleased to be able to support and enable our three universities to form productive and worthwhile relationships with prestigious institutions. For example, UniSA signed three MOUs as part of our recent mission:

UniSA and Shandong University—China Australia Joint innovation Centre for Cell Therapy;

UniSA and Shandong University—a collaborative degree program, a joint master's program in pharmaceutical sciences; and

Shandong Tourism Administration, Shandong University School of Management, South Australia Tourism Commission and UniSA signed an academic collaboration in tourism management.

Turning to the future, the South Australian government hopes to continue to build that momentum with the universities through engaging with our alumni networks. We recognise that the alumni are very important future ambassadors for this country.

We are also going to deliver the student accommodation offer guarantee in partnership with the three universities and work is being done in relation to that. We have committed funding to support scholarships for international students, the latest being scholarships for Vietnamese students to study at one of our state's universities.

Domestically, we have a long list of partnerships with the universities, SAHMRI and Tonsley, and also we have substantial partnerships with universities in a range of research facilities, such as the nine NCRIS research infrastructure facilities. We also currently provide funding for six cooperative research centres. More recently, my department, in conjunction with Regions SA, delivered the inaugural Higher Education Regional Summit in Whyalla in partnership with the three universities.

The higher education sector is a major contributor to educating and skilling the state's workforce and its contributions to the state's innovation and research system. For this reason, the Premier established late last year the Higher Education Committee to bring together the vice chancellors and other key players to progress the state's economic priorities and to ensure that the state government has the right policy and strategy settings in place to maximise the potential of its universities for the benefit of the South Australian community.

Mr HUGHES: I refer the committee to Budget Paper 4, Volume 4, page 65. What has the state government done to ensure that people with low levels of educational attainment have an opportunity to participate in learning, training and work to improve their foundation skills?

The Hon. G.E. GAGO: The Adult Community Education (ACE) program is the community learning gateway for people to improve their foundation skills—things like literacy, numeracy, digital literacy and employability skills. This engages people to start a pathway to transition into training, further education and then work. The vision of the ACE program is for South Australians to engage in learning to build their foundation skills and improve pathways to further learning, volunteering or work.

According to the ABS in 2006, 512,000 South Australians between 15 and 74 years of age failed to meet the literacy and numeracy levels required to meet the complex demands of work and life in modern economies. South Australians are also missing out on job opportunities because they lack foundation skills such as language, literacy and numeracy. The benefit to employers of lifting foundation skills is obviously significant. As little as 1 per cent improvement in adult literacy levels can lead to a 2.5 per cent improvement in productivity (the Standing Council on Tertiary Education, Skills and Employment National Foundation Skills Strategy for Adults data).

By the end of 2014-15, 2.4 million Adult Community Education foundation skills grants will be supporting over 1,000 people in accredited training, 13,500 enrolments in non-accredited training and, in addition, 450 community centre staff and volunteers have undertaken skills training to build their professional capacity to deliver foundation skills. Over 115,000 people have participated in ACE courses since the program commenced in 2005-06.

Adults Learners' Week runs from 1 to 8 September 2015, with events held across South Australia promoting the benefits of learning and work in the community. This year's theme is 'Unlocking literacy: making literacy everybody's business', highlighting literacy as the fundamental skill needed for individuals to participate equally in society, community and professional life.

The Department of State Development is working with Community Centres SA to increase the delivery of ACE courses in regional South Australia and build to provide a capacity. In 2014-15 a three-year ACE funding model was implemented in response to the sector's proposal for a multiyear funding model, and this new funding approach for 60 per cent of providers will assist ACE providers to plan for the longer term, support security of tenure, and improve services to the community.

Mr PISONI: On that same budget line, does the department actually record the number of participants in the foundation skills programs who also were students at South Australian primary and secondary schools?

The Hon. G.E. GAGO: We only record the foundation skills that we operate and fund.

Mr PISONI: Is there is a questionnaire or are you aware of how many of those participants attended—

The Hon. G.E. GAGO: Are schoolkids?

Mr PISONI: No, attended schools in South Australia, primary school or high school?

The Hon. G.E. GAGO: I doubt very much that we would have that information.

Mr PISONI: You do not have that information?

The Hon. G.E. GAGO: I doubt that we would. I will check, but I cannot imagine that we would record that data. I am advised that we do not.

Mr PISONI: Minister, I refer you to your targets on page 67, implementing the WorkReady initiatives as part of your target. You told ABC radio yesterday that last year there were only 80,000 funded positions in South Australia, and this year there will be 81,000. However, the NCVER report that was released just this week lists the number of government-funded students in courses in South Australia in VET training, government-funded VET students by states and territories, and it actually gives us the figure of 129,800 students. Could you advise where your 80,000 figure for last year that you quoted on the radio yesterday came from?

The Hon. G.E. GAGO: The figures that you quote are not comparable. The NCVER figures that you quote are not comparable to the 81,000 estimated training places because they referenced different measures and include different things, such as funding sources. The NCVER data includes more funding than the training fund associated with the 81,000 figure—I think that is from DSD data; so that is our data—for different periods, calendar versus financial year, and different counts, student versus places. So they are not comparable. The NCVER figures cited include all government (state and commonwealth) funded VET activity as well as TAFE fee-for-service activity, while the 80,000 and the 81,000 that I have referred to include only the South Australian government training positions.

In order to provide a clear indication of training under Skills for All, now WorkReady, the number of training places that the South Australian government subsidises through the training fund alone was estimated by the department. This figure consists of training places rather than students, subsidised through funding streams previously associated with TAFE and user-choice training for apprentices and trainees. I am advised that it does not include other training activity or employment programs beyond those sources.

In 2015-16 the South Australian government will continue to fund around the same number or, as I have indicated, slightly more—80,000-odd last year compared to 81,000 anticipated for this year—and we continue that commitment.

Mr PISONI: Minister, would you provide the figures based on the information you used to give that 80,000 figure yesterday, over the last five years back to 2010?

The Hon. G.E. GAGO: We do have some data going back. I can advise that preschools Skills for All was 65,000 in 2011-12. Then I would imagine that under Skills for All, where we had the significant, additional once-off funds, record funding over the 2012-13 and 2013-14 years, I would anticipate that those numbers would have gone up considerably, resulting in an increase in participation rate, increase in enrolments and increase in completions. I imagine those figures would be quite high.

Mr PISONI: Can we actually have those figures?

The Hon. G.E. GAGO: We are looking for them.

The CHAIR: They are looking for them.

The Hon. G.E. GAGO: We do not have them here, so I will have to take that on notice.

The CHAIR: You will take that on notice, excellent.

Ms COOK: In reference to the same area, page 65, what services and assistance are available to workers who have been or are facing retrenchment in South Australia?

The Hon. G.E. GAGO: Yes, it is most unfortunate. The South Australian government obviously supports retrenched workers, particularly from our South Australian manufacturing companies or regionally significant companies undergoing structural adjustment, to transition to alternative employment. The term 'retrenched worker' refers to a person who, as a result of a company closure, downturn or restructuring, receives formal notification of exit from the company.

Services include WorkReady career services along with a range of WorkReady Jobs First initiatives, including local employment projects and support for workers to access accredited training opportunities and funding for their tickets or licences, whatever the case may be.

The Australian government, through the Department of Human Services (Centrelink) and the Department of Employment (jobactive), determined the eligibility of retrenched workers to access income support and employment assistance services provided through the Australian government. Eligibility is determined on an individual basis, with the exception of automotive, clothing, textiles and footwear industry retrenchments. The Australian government will deem workers as eligible for stream A assistance through jobactive employment services. Stream A assistance means that they are job ready and can easily transition into alternative employment.

Over the 2014-15 financial year, $1 million in funding has provided support to 1,725 workers retrenched from a number of different companies, such as Arnott's biscuits. There are a number, as we are well aware. The program is demand driven, with activity tailored and funded on an as needs basis, depending on the individual's chosen career pathway.

Ms COOK: In reference to a statement on page 66, what were the outcomes of the Red Tape Reduction Review of VET and how is it being used to inform the development of the WorkReady program?

The Hon. G.E. GAGO: I thank the member for her question. A listed consultant was commissioned to undertake the Red Tape Reduction Review of the VET system, including apprenticeships and trainees. The review commenced in early May 2014 and the final report was completed on 26 June 2014. Consultation was undertaken with a range of stakeholders, including the Training and Skills Commission, industry associations, peak training bodies, unions, employers and a regional development board.

The government made a decision to conduct a review in response to concerns raised by businesses and training providers about red tape and the cost of regulation in the VET sector. The review was prefaced on the basis that a level of regulation and administrative process is required for the purposes of probity, quality and consumer protection, but sought to identify that which was seen as not: adding value, having a clear purpose or working effectively. It found that frequent changes to Skills for All and the need to subsidise the Skills for All system was a concern shared by all the consulted stakeholders. A total of 19 recommendations were made relating to both vocational education and training and apprenticeships and trainees.

The Red Tape Reduction Review, along with findings from the independent evaluation of Skills for All, provided significant insights into the development of WorkReady, including: targeted public investment to support economic priorities; simplifying the range of training, employment and skills programs implemented by the department by consolidating the funding pool for purchased training; increasing the flexibility to respond to emerging industry or regional employment needs and opportunities; and making it simpler for clients and service providers to access, navigate and understand the range of training, skills and employment initiatives available. The cost of the review was just over $61,000.

Mr PISONI: Again, this goes back to your FTE numbers in your training, employment and skills area. There were media reports earlier in the year about Jillian Pyle, who works in Skills and Workforce Development, in the higher education strategic policy planning and economics business intelligence information services area in your department. She is a senior VET classification assurance officer. There was substantial evidence presented in a media report—

The CHAIR: Member for Unley, it seems that you are introducing a whole lot of extraneous information. Are you asking about the appropriations for the coming financial year?

Mr PISONI: Exactly. This is about staff, Mr Chair, specifically about staff.

The CHAIR: Is it about staff in the financial year that we are examining?

Mr PISONI: Yes, absolutely.

The CHAIR: Well, I will listen with interest. I hope this is not just another reintroduction of a whole lot of extraneous information.

Mr PISONI: This is a staff member who, as far as I know, is still on staff at DSD.

The CHAIR: What is the question?

Mr PISONI: Well, I was getting there.

The CHAIR: Let's hear it. I have been pretty patient with extraneous information.

Mr PISONI: Well, questions are allowed to have some explanation.

The CHAIR: Yes, that is right. I agree.

Mr PISONI: So the evidence—

The CHAIR: That was an issue of relevance.

Mr PISONI: The evidence presented was that an enormous amount of work was done by Ms Pyle from her office equipment in the department and also during office time. Has there been an investigation into the allegations that were made and, if so, what was the outcome of that investigation?

The CHAIR: Again, to my mind, this is a question more appropriate to question time, but if the minister chooses to answer she can.

The Hon. G.E. GAGO: I am happy to answer it. Obviously following notification about a DSD employee allegedly operating without approval using government resources, the department has commenced an investigation into those allegations, that investigation is underway and is ongoing. It has not been completed yet.

Mr PISONI: Is that employee on leave or is that employee still working in the department? If they are on leave, is it leave with or without pay?

The Hon. G.E. GAGO: I am advised that the person is on leave with pay while under investigation.

Mr PISONI: Is the department aware of any other employees who may be conducting themselves in a similar manner? Has there been an audit or an investigation or even a memo that has gone out to employees advising them of the allegations and advising them of what employees' obligations are under the code of ethics of the South Australian Public Service?

The Hon. G.E. GAGO: There are clear guidelines for standards of behaviour for our public sector employees and each employee is well aware of those responsibilities. I am not aware that any other breaches have been identified.

Mr PICTON: I was wondering if the minister could, in reference to Budget Paper 4, Volume 4, page 67, outline how the state government is assisted with the resources and energy sector in areas that have been identified as future skills needs of that sector?

The Hon. G.E. GAGO: The resources sector obviously plays a vital role in this state's economy. The government has established the Resources and Engineering Skills Alliance (RESA) in 2006 to address a number of key workforce issues facing the minerals, resources and heavy engineering sector, including to develop and deliver projects to increase the availability and productivity of the workforce including learning, development and training projects; identifying skills gaps and issues in the resources industry workforce and developing solutions; working with business and government to translate policy and government programs by facilitating access to and coordinating support for solutions to problems; and brokering funding and support for organisational development programs for the industry.

The government has a funding agreement with RESA to continue its support of minerals resources and heavy engineering sectors until 2018. We are also making investments in resources training infrastructure including the $38.3 million Mining, Engineering and Transport Centre at Regency Park completed in July 2014—a state-of-the-art facility—and the $120 million Sustainable Industries Education Centre (SIEC) which houses Tonsley TAFE, also a state-of-the-art facility. The Tonsley precinct has already attracted universities, education institutions and a number of innovative firms, targeting industry sectors in which South Australia has an economic strength including in our mining and resources sector.

I take this opportunity to acknowledge the work of Mr Paul Dowd who resigned from the position of chairperson of the RESA Board, effective from April 2015. Mr Dowd was the inaugural chair, appointed in 2007, and he served diligently for eight years. He maintains a position on the board until the end of his term in 2016. I wish him all the very best for the future and I am very grateful for his leadership.

I would also like to congratulate Ms Christine Charles, who takes up the role of chairperson of the RESA board. Ms Charles has a solid history in the minerals and resources sector and is an eminently suitable person to take up this position. I certainly wish her all the very best in her new role. Finally, I acknowledge the departure of Mr John Roberts, a board member who received an AM for his significant 56 years of service to the mining and resources sector. We will certainly miss his expertise, and I wish him well for the future as well.

Mr PICTON: I refer to the same portfolio paper but page 66. I note that South Australia was due to receive $27.4 million from the commonwealth for meeting milestones under the NPA on Skills Reform. I am wondering if we have received that $27 million and what the implications of WorkReady are for future payments.

The Hon. G.E. GAGO: I thank you for that important question. South Australia received the $27.4 million after it fulfilled the requirement milestones under the agreement for the 2014-15 payment. There is $1.7 billion in funding available to states and territories for the achievement of VET structured reform milestones and training outcomes as established in agreed implementation plans developed bilaterally with the commonwealth, of which $127 million is available to South Australia.

The agreement seeks to achieve a range of reforms, including improving training accessibility, participation, completions, quality and industry engagement. It is the government's view that WorkReady is fully compliant with the national partnership agreement. I have written to the commonwealth government indicating that the South Australian government considers that any action taken by the commonwealth to withhold or to renege on its funding under the NPA for 2015-16 and 2016-17 will be a breach of that agreement.

WorkReady recognises that, in moving to the next phase of VET system reform, it is necessary to implement significant changes in TAFE SA as the public provider, so that it is able to compete in commercial areas on the same subsidy basis as other providers and respond innovatively and flexibly to training needs. As I have indicated, they are required to be on dollar for dollar parity with the private providers for commercial activities by 2018-19. The national partnership agreement enables states to determine how skills reforms are implemented and recognises that transitioning will occur.

WorkReady will be implemented in a phased approach from 1 July. We know that this year will be a particularly difficult year for private providers with a very limited number of new subsidised training places available. However, the amount of contestable places will continue to increase as we implement WorkReady, and we expect private providers and TAFE to be operating at an equal subsidy rate as indicated. Within the system, just under 40 per cent of current enrolments continue to receive subsidised funding as well and, of course, they were contestable positions.

South Australia has always been at the forefront of vocational education training reform, including contestability. I am confident WorkReady will not only be fully compliant with the NPA but will build on our achievements and enable us to continue to meet and surpass the implementation milestones. WorkReady is the next stage of reform in South Australia that provides a clear strategy to further open up the training market and target investments to areas of economic priority and strategic industry growth.

The majority of the $65 million in commonwealth funding allocated to South Australia under the NPA over the next two financial years is related to the achievement of agreed training outcomes. South Australia is already substantially exceeding those targets—so we are already substantially exceeding those future targets—and the focus of WorkReady on improving completion and employment outcomes will obviously add to that success.

We have been clear that, as I said, the reform is in the context of changing fiscal conditions. We also acknowledge that the commonwealth government has ceased funding the Joint Group Training Program and has ceased the Tools for Your Trade funding for apprenticeships, replacing it with a loan scheme estimated to fund and support less than 50 per cent of the previous expenditure levels. These things are also having a significant impact on our training system here in South Australia.

The total impact of the commonwealth government cuts to South Australia's training budget is estimated to be $45 million, so I reiterate that the government is firmly of the belief that WorkReady does conform to the national agreement and that it should not affect the amount of funding under the NPA. As I said, I have written to the commonwealth government. Officers have met with federal agency officers and, as I said, the commonwealth Liberal government would be in breach of the NPA if they withhold funding to South Australia in the future.

Mr PISONI: This next question refers to Agency Statements, Volume 4, page 64, supplies and services. Specifically, with reference to the ACIL Allen Consulting contract that was signed on 2 October last year, on what date did the department issue either a tender for that contract or, alternatively, a request for a proposal for the evaluation of Skills for All? And while we are waiting for your advisers, minister, if it was a request for a proposal, which companies were asked to quote?

The Hon. G.E. GAGO: I am advised that ACIL Allen were engaged by DSD in October 2014.

Mr PISONI: That wasn't the question, minister, with all due respect. The question was—

The Hon. G.E. GAGO: I have not finished yet.

The CHAIR: The minister has not finished yet.

The Hon. G.E. GAGO: That was when they were engaged; we do not have the date that the contract was signed, but they were engaged in October. We put out a request for a proposal and we put that request out to approximately seven suitable organisations who were asked to submit a proposal, and ACIL Allen obviously submitted the best proposal.

Mr PISONI: How many of those organisations were South Australian based?

The Hon. G.E. GAGO: I am advised there were both interstate and local firms included in that. Obviously, for this project to be done we were very mindful that we wanted an organisation that could be as open as possible to the program and to look at it in the most objective way.

Mr PISONI: Who, specifically, was on the selection panel for selecting the company that was successful in being given the evaluation contract?

The Hon. G.E. GAGO: I think it was a number of senior DSD personnel.

Mr PISONI: Was Ray Garrand on that panel?

The Hon. G.E. GAGO: No, he was not. It was chaired by Craig Fowler, and I am advised Ray was not on the panel.

Mr HUGHES: I refer to Budget Paper 4, Volume 4, page 65. Each year the National Centre for Vocational Education and Research produces a national report on VET students and courses. How many students and courses did the government fund in 2014?

The Hon. G.E. GAGO: I thank the honourable member for his important question. The National Centre for Vocational Education and Research recently released their student and courses 2014 report. The data is representative of all vocational education and training delivered by TAFE and other government providers and the government-funded VET delivered by community education and other registered providers.

Mr KNOLL: Point of order, Chair.

The CHAIR: I am anticipating your point of order, and I believe that it is that this information is publicly available—is that right? This is not question time.

Mr KNOLL: Having said that, the standing orders still apply and if—

The CHAIR: I will seek some advice on that, because I do not believe they do. I think that a lot of the information, apart from the information the member for Unley chooses to introduce into Hansard, is already on the public record, so that sessional order does not apply.

The Hon. G.E. GAGO: Thank you, sir. I am—

The CHAIR: I am happy to deliberate for the next 15 minutes about it.

Mr Knoll interjecting:

The CHAIR: I rule it in order, minister. Carry on.

The Hon. G.E. GAGO: I am advised that the 2014 government funded 107,000-odd students, 29.1 million training hours and 120,000 course enrolments. These numbers show South Australia's activity was higher than in 2011, prior to Skills for All being introduced. Comparisons with 2011 show that in 2014 there were 6,300 more students, 2.8 million more training hours and 10,900 more course enrolments. The results did show that there was a decline in 2014 outcomes compared with 2013, which indicates a return to more sustainable levels of training following large increases in vocational training activity in both 2012 and 2013, after the introduction of Skills for All.

The Skills for All reforms were accompanied by a one-off additional investment in training to boost the skill levels of South Australians. South Australia's 2014 outcomes follow large increases in student numbers of around 21 per cent in both 2012 and 2013. The number of hours delivered and course enrolments experienced similar increases in those years. In addition, completions rose by 45.6 per cent, which was the highest number on record. When compared with 2011, there were 28,200 more completions in 2013. The success of Skills for All enabled the early achievement of the state government's commitment to an additional 100,000 training places. Now that the government's commitment has been achieved, investment will return to a more substantial level.

On 1 April 2015, we announced our new policy for training, employment and skills activity and investment in WorkReady. The focus will be on training completions and job outcomes rather than participation in training. WorkReady is about investment in targeted training leading to sustainable jobs.

The CHAIR: Thank you, minister. The member for Giles has another question.

Mr HUGHES: I refer to Budget Paper 4, Volume 4, page 69. The Department of State Development has conducted activities to ensure the quality of the application of skills training against industry standards. What were the findings from these activities?

The Hon. G.E. GAGO: The government is committed to ensuring that publicly-funded training leads to positive outcomes for clients. These client outcomes include:

students receiving high-quality training services;

graduates either making a successful transition into employment or gaining higher level skills and knowledge relevant to their work;

employers confident that graduates they employ will, in fact, hold the skills and knowledge required for work and certified by their qualification.

To assess the extent to which these outcomes were achieved, the department surveyed students and graduates to determine their satisfaction with training, they surveyed graduates to gather data on employment outcomes, and they surveyed employers to determine whether graduates they employed gained the required skills and knowledge.

Eighty-five per cent of the students and 90 per cent of the graduates who responded agreed that they were satisfied with the quality of their Skills for All under training; 84 per cent of respondents were either employed or in further training after graduation; 42 per cent of respondents who were unemployed before commencing their course were employed after graduation; and, almost two-thirds (65 per cent) of these respondents were working in a job related to their course. Over two-thirds (67 per cent) of respondents who gained employment during or after their course agreed that the course was important or very important to gaining their current job; 82 per cent of respondents agreed that the skills and knowledge they gained in the course were highly relevant or of some relevance.

The proportion of employed respondents working in a job related to their course rose from 61 per cent prior to course commencement to 71 per cent after graduation, and 802 employers and graduates from 14 different Skills for All funded courses reported that most graduates were able to do most duties of their occupation to an adequate or excellent standard.

Some areas were identified as being inconsistent in quality of the graduates, and these areas were identified and improvements were put in place to address that in the future. The department will obviously continue to gather feedback from students, graduates and employers to ensure we build on the quality outcomes we achieved under our training programs.

Ms SANDERSON: I refer to Budget Paper 4, Volume 4, page 70, international and higher education. Last year the minister advised that, since 2006, 322 students had graduated from Carnegie Mellon, and 143 students at the time were enrolled. Could the minimum please advise the latest figures a year later?

The Hon. G.E. GAGO: I do not have their figures with us, but I am sure they are available in their annual report.

Ms SANDERSON: Last year I also asked the minister a question that was taken on notice to bring back to the house. I am hoping the answers will be ready for today, namely, can the minister please break down the number of enrolments into fee-paying Australians, fee-paying international students, students on scholarships and students paid for by government departments?

The Hon. G.E. GAGO: I have some figures for Carnegie Mellon. It began its operation in 2006 and since then 374 students have graduated, and 203 students in global track programs have commenced and enrolled at the CMU Australian campus and moved to the CMU Pittsburgh main campus to complete their programs. None of the other data is here.

Ms SANDERSON: So 374 have graduated, a further 52 from last year, and last year there were 143 students—

The Hon. G.E. GAGO: No, that is since 2006.

Ms SANDERSON: That's right.

The Hon. G.E. GAGO: So I am not too sure what the figures were that I gave—

Ms SANDERSON: So, that is 52 more than last year. Of the 203 global track enrolments, how many are at the Adelaide campus?

The Hon. G.E. GAGO: I do not have that figure.

Ms SANDERSON: Last year it was 143—so, you do not know?

The Hon. G.E. GAGO: No.

Ms SANDERSON: You will get back to the house with that?

The Hon. G.E. GAGO: Yes, if you would like me to.

Ms SANDERSON: Yes, please.

The Hon. G.E. GAGO: I am sure its in its annual report.

Ms SANDERSON: I am not aware of it being in there. Last year you were going to get back with the breakdown of the student enrolments for Australians, international scholarships and government department paid enrolments: are you able to advise the house?

The Hon. G.E. GAGO: Have we been remiss?

Ms SANDERSON: I have not seen the answers being submitted.

The Hon. G.E. GAGO: I was informed that we had submitted all responses that were taken on notice, but I will double-check.

Ms SANDERSON: Great, thank you.

Mr PISONI: You would have signed it.

The Hon. G.E. GAGO: I sign a lot of things Mr Pisoni, a lot of things, let me tell you.

The CHAIR: Was there an answer to that previous question or not? I saw some advisers seeking—

The Hon. G.E. GAGO: No, we do not have that level of detail. I am sure it is available in their annual report. I am not too sure why these questions are being directed in this forum, but anyway.

Ms SANDERSON: How many more years is Carnegie Mellon committed to staying in Adelaide?

The Hon. G.E. GAGO: I am happy to take that on notice as well.

Ms SANDERSON: Given the government's plan to sell the Torrens Building, what arrangements have been made for Carnegie Mellon? Do they have a registered lease? When does that lease expire? Is it at commercial rates? Will this have any financial impact on the government's planned sale of the building and surrounding area?

The Hon. G.E. GAGO: I understand that that is a matter for Department of Planning, Transport and Infrastructure, so that is outside my purview.

Mr HUGHES: I refer you to the statement, page 64. Can the minister please describe how Program 2 (Employment and Skills Formation) is delivering South Australia's Strategic Plan targets?

The Hon. G.E. GAGO: Whilst it can be easy to look at the State's Strategic Plan and its targets as just cold numbers on a document, and judge progress purely based on that information, we must remind ourselves that within each target lies a story; a story of achievement, hard work, planning and policy implementation that impacts individuals, families, business and industry. I would like to illustrate that by talking about T53, Aboriginal employment, and T55, apprenticeships. I would like to firstly share a letter of thanks from Jyrah Miller, a young Aboriginal apprentice from Port Lincoln:

I am 19 years of age and I live and work in Port Lincoln, South Australia. I am currently employed as an Apprentice Chef with Del Giornos Restaurant, Tasman Tce in Port Lincoln. I am in my 3^rd year with another 12 months left before I am a qualified Chef. I am currently completing my Certificate 3 in Commercial Cookery.

Jyrah also received tremendous support from an Aboriginal apprenticeship program via the state government in assisting him with his tools of trade which included a knife set, appropriate chef clothing, transport and, finally, ongoing mentoring support. Without this assistance, he would not have been able to afford these items and would probably have been left behind.

In relation to working towards T49, the unemployment target, I have another example of Essy and his family arriving in Australia from Iran as refugees three years ago, and although Essy always maintained two jobs in Iran, he struggled to find work in Australia due to lack of local work experience. Essy lacked confidence in his ability to communicate in English during job interviews, had limited networks and was unsure how to job-hunt in Australia.

Essy was a keen volunteer and was keeping busy as a community bus driver, but wanted to work to provide for his family and send his children to a good school. It was through the BFO program, that I talked about earlier this morning, that Essy's case manager, Beth, helped him to build self-confidence, encouraged him to keep practising his English with his mentor, and assisted him to improve his job search skills—how to look for work, how to apply, and how to prepare for interviews. He was assisted to update his résumé and job applications, to use a computer and to respond to emails. He was assisted to gain a police clearance and Essy completed his training as a bus driver for Transfield through Randstad Jobs and has since been connected to a mentor bus driver.

These stories tell how people gained their first job: striving to do well at high school and getting a better acceptance into university; overcoming disability barriers; and, finally, to get sustainable work or learn new skills. These make up the numbers in relation to our State's Strategic Plan, and our government will continue to work hard in supporting people to ensure these good stories continue as we look to achieve our long-term economic and policy objectives in South Australia.

The CHAIR: Thank you, minister. Before we go on, does the opposition want to go to some omnibus questions before 12.00?

Mr PISONI: We will deal with it later.

The CHAIR: You are happy to do it later, certainly.

Mr PISONI: This is Budget Paper 4, Volume 4, page 70. Did the Premier initiate a meeting of chancellors and vice-chancellors of the main three major universities in South Australia in March this year, specifically to talk about amalgamations?

The Hon. G.E. GAGO: We have the VC's forum but I do not know what those meeting dates were. I do not know whether we met in March or not so I would have to check.

Mr PISONI: So you will bring that back, will you?

The Hon. G.E. GAGO: It is really a matter you should be asking the Premier.

The CHAIR: Yes, the minister is not responsible for the Premier.

Mr PISONI: The universities are your portfolio.

The Hon. G.E. GAGO: Yes, but I have no idea what—I do not know when the meeting was. He meets with lots of people.

Mr PISONI: I would have thought that the minister responsible would have been advised of what the government's plans for university mergers were here in South Australia.

The Hon. G.E. GAGO: If you want to ask a question about university mergers, then why do you not ask it rather than some nebulous thing about a meeting in March?

Mr PISONI: You told The Australian it was dead and buried last year.

The Hon. G.E. GAGO: What I said to the media was that it was an engagement that we commenced with the universities last year. That engagement has taken place for some time, but it was clear: as I said to the journalist, clearly the government thought there were some potential benefits in a merger. The Premier was keen to have the universities engage in a dialogue around the possibility of a merger and, as I said, this dialogue commenced last year. It was obvious, though, from that process that the universities did not support mergers, and it is very clear that mergers could not occur without the support of the universities, and so the dialogue is over.

Mr PISONI: Was your department involved in the memo that was prepared for the Premier that detailed how mergers would happen—if mergers were to happen—and that was prepared in March of this year?

The Hon. G.E. GAGO: I am not aware. Which memo?

Mr PISONI: The memo that was referred to in the two media reports on this issue, and that was a freedom of information document that advised the Premier on what the process would be to start the mergers here in South Australia.

The Hon. G.E. GAGO: To the best of my knowledge, no, but I can double-check that. We are not aware that we were involved in that particular memo. I am advised that there was a meeting of the VCs in February—that was our VC forum meeting.

Mr PISONI: Was that the one that was initiated by the Premier?

The Hon. G.E. GAGO: They are regular forum meetings that we have throughout the year. The dates are set.

Mr PISONI: Did the Premier attend that meeting?

The Hon. G.E. GAGO: Yes. It meets four times a year and, yes, the Premier attends those meetings.

Ms COOK: I have a question pertaining to page 71. The highlights for 2014-15 state that opportunities have been identified to increase the state's education exports. Can the minister please advise what international partnerships have been established by TAFE within the 2014-15 financial year?

The Hon. G.E. GAGO: I am advised that TAFE SA is increasing engagement with educational institutions and employers in India, China and South-East Asia to position TAFE to export educational products to expected high demand markets. TAFE SA has worked to define their export products more precisely to enhance customer understanding and saleability. These export products include learning materials and curriculum for licensing tailor-made curriculum, learning materials, online courses, consulting advice for setup of vocational training schools, educational practice reviews and short-term study tours to upskill students and staff. I am advised that the transnational activity provides a range of efforts for TAFE SA, including revenue diversification and revenue growth.

During 2014-15 TAFE SA provided learning materials under licence to overseas education providers in the program areas of tourism, hospitality, building and construction, automotive and retail. TAFE SA also informed me that they hosted international delegations from many countries on fact-finding missions and paid study tours, including delegations from Indonesia, China, Malaysia and Japan. MOUs and agreements with institutions and organisations have been put in place in a number of countries, and I can advise that activity to date includes the completion of a two-week accredited bakery study tour to TAFE SA in 2014. A subsequent tour has been scheduled for September 2015. There are hair and beauty licensing options that are being considered as well.

We have a tripartite MOU with the National Skill Development Corporation and Heraud Training and Education in India, and that memorandum is to foster greater collaboration and engagement between parties and to look at future training opportunities. TAFE has signed an MOU with Kalyani, which is an NSDC partner. TAFE has also entered into an MOU with the Shanghai Institute of Health Sciences in China, which allows for exploration and facilitation of things like study tours. They have also signed an MOU with Win-Stone College of Culinary Art in Sri Lanka. The purpose of this MOU is to explore opportunities for Win-Stone to license TAFE SA course materials and delivery resources, and consider study tours and other opportunities.

The CHAIR: With that, I declare the examination of the Minister for Employment, Higher Education and Skills closed. I thank you, minister, and your advisers. In accordance with the agreed timetable the committee stands suspended until 12:15.

Sitting suspended from 12:02 to 12:15.

Membership:

Mr Goldsworthy substituted for Mr Pisoni.

Departmental Advisers:

Dr D. Russell, Chief Executive, Department of State Development.

Ms A. Reid, Deputy Chief Executive, Department of State Development.

Mr L. Piro, Executive Director, Industry and Innovation, Department of State Development.

Ms P. Chau, Director Finance, Department of State Development.

Dr J. Michaelis, Chief Executive, BioSA.

Mr A. Dunbar, Director, Office of Science, Technology and Research.

Mrs A. Barclay, Chief of Staff.

Ms G. Lewis, Adviser.

The CHAIR: I now call on the minister, in her role as the Minister for Science and Information Economy, to introduce her advisers and, if she desires, make an opening statement.

The Hon. G.E. GAGO: I will introduce the delegates here. We have Dr Don Russell, Chief Executive, and Ms Phuong Chau, Director of Finance. On my right, we have Mr Andrew Dunbar, Director of OSTAR. Behind me is Mr Jurgen Michaelis, Chief Executive, BioSA, and beside him is Mr Len Piro, Executive Director, Industry and Innovation. Behind them is the Deputy Chief Executive of DSD, Mrs Alex Reid, and two advisers: my chief of staff Ann Barclay and ministerial adviser Ms Genevieve Lewis.

By way of a very brief statement, thank you for the opportunity to say a few words to provide an overview of this government's work in building a science-based economy ready and able to seek and capitalise on industry opportunities around the world. In this work we reflect the understanding that science underpins progress, providing the knowledge platform from which South Australian businesses and individuals design and create goods and services that transform lives.

This government is committed to science-backed progress. This work is led by DSD, which was formed 12 months ago, with a very clear direction: to be a leader in the economic transformation of South Australia and to help provide an environment where jobs can be created now and into the future. The department's achievements in the past include:

attracting new investment at the innovation district, Tonsley;

introducing WorkReady;

a successful trade and investment mission to China;

continuing to build on our strengths to optimise the benefits of the state's abundant resources;

under the Remote Areas Energy Supplies Scheme, we continue to supply cost effective, safe, reliable and sustainable energy to remote businesses and communities; and

the State Library is supporting Shandong to explore the role our library plays in delivering the University of South Australia's Masters of Library and Information Management Degree, which was one of the very successful outcomes from our recent trip to China.

Our investment in science reflects our recognition of the value of a knowledge economy. We maintain a commitment to research linked to industry innovation through the Premier's Research and Industry Fund, which continues to invest in projects with clear benefits in creating knowledge-based solutions for industry.

South Australia's lead in chasing opportunities for technological collaboration has been recognised by international digital networking company Cisco, which announced in September that, in partnership with the state government and also the Adelaide City Council, it would establish Australia's first Internet of Things innovation hub. Adelaide will become a breeding ground for innovative approaches to how people live, work and play with minimal impacts on the planet. It will be Australia's first smart and connected communities Lighthouse City, joining cities such as Barcelona, Dallas and Dubai. Adelaide is seen as the ideal city for the project as the first capital city in Australia with a free, fast Wi-Fi service in outdoor public spaces across the CBD.

Our Investing in Science Action Plan provides focus for public investment in building knowledge and applying it within the sectors that are most important to our growth and the economic security of future generations. It targets our thinking and our investment in infrastructure and in research and industry activity and partnerships locally and around the world which will create opportunity and wealth.

The importance of this sector to our knowledge economy is reflected in our ongoing investment in the national Medical Research Commercialisation Fund which provides financial support for the commercialisation of research from its 50 member medical research institutions, research hospitals and health departments. We continue to invest in the fund, with $150,000 in 2015-16.

In nearby Thebarton, BioSA is now exploring the feasibility of a third business incubator in the Thebarton Technology Precinct less than a year after the Premier opened the second incubator, Tech Hub, in October 2014. The businesses line up to capitalise on the spirit of collaboration and innovation within the precinct. Science is clearly an area in which the government's key roles are to support and facilitate relationships with and between research and education institutions, industry, business and organisations committed to driving the application of scientific knowledge to other areas of our lives.

We have significant working partners such as RiAus, Flinders University, the Australian Research Council, the Grains Research and Development Council and numerous other bodies. South Australia wants and needs a workforce rich in science, technology, engineering and mathematics (STEM) skills. As a government we are working to create a sustainable workforce equipped with the STEM skills vital to 21^st century economic growth.

Along with creativity and entrepreneurship, these skills provide the information and impetus for innovation and growth in the industries that we have identified as the basis of South Australia's continued economic development. They are fundamental to progress in sectors ranging from minerals and energy development to medical research and commercialisation. Our STEM Skills Strategy, together with actions in the Investing in Science Action Plan, promotes the value of STEM skills and the opportunities they offer for employment in challenging and successful careers. I now welcome examination of the budget papers.

The CHAIR: Are there any questions of the minister?

Ms SANDERSON: I refer to Budget Paper 4, Volume 4, page 73 and full-time equivalents. Can the minister explain the changes in FTEs from 2011-12 through to 2015-16 and the breakdown of their department prior to the merging of the three areas? To give an overview, for 11-12 the actual was 35.2, 12-13 was 29.4, 13-14 was 29.6, and then for 14-15 the estimated result has reduced down 17.3 with a budgeted result of 20 for next year.

The Hon. G.E. GAGO: We do not have the details in terms of being able to prescribe those to specific areas. However, I can talk about the variance between 13-14 and 14-15. There was a fairly large drop there. That was a decrease of 12.3 FTEs, mainly relating to a decrease in six FTEs for digital economy program not budgeted for in 14-15, a decrease of four FTEs transferred to the International and Higher Education sub-program 2.3, a decrease of one FTE transferred to PIRSA as part of the High Value Food Manufacturing Centre and a decrease of one FTE due to TVSPs taken.

Ms SANDERSON: Then it jumps again by another three for 2015-16, so what area are they being employed in?

The Hon. G.E. GAGO: That is very microscopic. A difference of three FTEs, and you want to know—

Ms SANDERSON: There are only 17, so three from 17 is a large percentage of your staff.

The Hon. G.E. GAGO: It is 2.7, I am advised. These are very, very small numbers.

Ms SANDERSON: If you are issuing separation payments to people and you are paying out money from a department and then re-employing people the year after, it is important to know why you are doing that.

The Hon. G.E. GAGO: We are not doing that. If that was the question, why not ask it?

The CHAIR: That was not a question, it was an impromptu speech, and I ask you to stick to the questions, thank you.

Ms SANDERSON: It was not the question that I was planning—

The Hon. G.E. GAGO: Well, we do not do that.

Ms SANDERSON: —but I heard you mention targeted voluntary separation payments as one of the reasons for the drop.

The Hon. G.E. GAGO: We will have to find out where those 2.7 FTEs went to.

Ms SANDERSON: Thank you.

The Hon. G.E. GAGO: We will go looking for them.

Ms SANDERSON: Also on page 73: the estimated results for 2013-14 compared to actual. Point 1 mentions the Education Investment Fund. Can the minister please advise what the Education Investment Fund was used for, why this program has ceased and whether it has been replaced by another program?

The Hon. G.E. GAGO: I have been advised that, in relation to the Education Investment Fund (formerly called the higher education endowment fund), the South Australian government contributed $10 million over five years commencing in 2009-10. The Australian government, through the Minister for Science and Information Economy, has provided in principle support to provide both the University of South Australia and University of Adelaide with $5 million each year over five years commencing in 2009-10.

The Materials and Minerals Science Learning Research Hub at Mawson Lakes was established to further develop skills and research in advanced manufacturing, sustainable industries, defence, mining and a range of other specialist research areas. The commonwealth committed $40 million to that project, and that is project 1.

Project 2 is to establish a new institute and expanded accommodation for photonics and advanced sensing (IPAS) at the University of Adelaide, and this will benefit national security, commercial and defence industries by conducting research and working with end users and industry. The commonwealth committed $28.9 million for that project. Both of those projects directly support defence and mining industries as well as international education. The program has not been replaced with any other program.

Mr PICTON: I am very interested to ask a question about a subject very close to my heart in terms of venture capital. I refer to Budget Paper 4, Volume 4, page 72. I note the state government's Investing in Science action plan as well as the economic priorities, both referents attracting more venture capital into South Australia. I was wondering, minister, if you will be able to outline what steps the government is taking towards that end.

The Hon. G.E. GAGO: Thank you for your ongoing interest in this particular area. For many early-stage, potentially high-value technology start-up companies seeking to commercialise new ideas, gaining access to private sector seed and early expansion investment capital is often obviously extremely important but can be very challenging. In most cases, their major asset is intellectual property (IP) and it is often disruptive IP which challenges established industry paradigms. It is a high risk for the private sector to invest in technology start-ups as success depends on proving and developing the technology, building scale and gaining market recognition and acceptance.

For these reasons, venture capitalists, who typically have a greater appetite for risk and are highly experienced in working with innovative small to medium enterprises and the research sector to identify disruptive IP that can be commercialised, are seen as filling a critical funding gap for start-up companies.

Whilst venture capital investment is high risk, the OECD and others have found a positive link between venture capital and economic growth and restructuring, and in strengthening the link between private investors, industry and the research sector. That is why a key objective of this government is to attract more venture capital investment into the state. One example of how we have achieved this is by attracting the operations of the Medical Research Commercialisation Fund to South Australia. The MRCF, managed by Brandon Capital Partners, is a national venture capital fund providing financial support for commercialisation of research emanating from its medical research institutions.

In April this year, MRCF announced that it had secured $200 million in funding from four superannuation funds—HESTA, Hostplus, Statewide Super and AustralianSuper—creating the largest life-science fund ever in Australia. Whilst South Australia is now participating in the MRCF, our medical research institutions and universities will have access to this capital on a competitive basis to commercialise their innovative biomedical discoveries.

In addition to the MRCF, we have also launched the venture capitalist program in partnership with UniSA and the South Australian Micro Finance Fund. Both of these government-supported grant programs provide seed capital to start-up companies to progress their ideas, making them more attractive to receive investment from established venture capital funds and other sources of risk capital.

Ms SANDERSON: I refer to Volume 4, page 73 regarding the Adelaide Wi-Fi project. Does the minister plan to fund similar wi-fi projects in other council areas and, if so, which ones?

The Hon. G.E. GAGO: At this point in time we have no specific plans to broaden that outside of the CBD. I think there is still some work going on within the CBD, however; so we are continuing to refine the network there in the first instance.

Ms SANDERSON: Continuing with the same page reference, the following point refers to changes in overheads. Can the minister explain the difference in overhead allocations that resulted in a $0.8 million decrease? This question was also taken on notice last year and I am not aware that we received an answer, so I am hoping we can have an explanation.

The Hon. G.E. GAGO: I am advised that, in accordance with the Department of Treasury and Finance guidelines, costs of functions which service the agency as a whole are required to be allocated across operational programs. Whilst the functions are essential for the effective delivery of external services, these areas have traditionally been called overhead areas.

The total net cost of services for these areas in 2015-16 is approximately $60 million, which primarily relates to salaries and supplies and services and departmental savings which have yet to be allocated to divisional operations. This amount has been allocated to programs based on the percentage of direct expenditure. Variations in overhead allocations between financial years occurs due to changes in the overall expenditure for programs. For example, a program may have a reduced expenditure in one year and, therefore, receive a lower allocation of overheads. Functions considered as overhead areas for the purposes of the agent statement presentation include:

the Office of the Coordination and Executive Services;

the Office of the Executive Director, Strategy and Business Services;

Corporate Services, including:

human resources, finance, assurance, and governance and redeployee costs;

accommodation and other property-related costs;

administrative costs, such as stationery, postage, archiving, insurance and staff amenities;

information technology costs such as telephones, computers, internet and software licensing and development;

strategic, policy and economic functions;

marketing; communications and stakeholder engagement (excluding specific campaigns that have been allocated directly to programs); and

ministerial offices.

Ms SANDERSON: Can I ask then: if that was noted as a change last year, and then it is noted again this year, should it now be correct from now on because you have already made your changes, so you should not have to keep changing your accounts every year?

The Hon. G.E. GAGO: We have answered that question. No is the short answer, and is that because the variations in overhead allocations between financial years occur due to changes in the overall expenditure for programs. They can vary from year to year, so it is likely that it would change.

Ms SANDERSON: So, you do not estimate it and try to get it right? If it was 0.8 last year and it was 0.8 this year, would you not just adjust your figures for 0.8 and take a chance that you are closer?

The Hon. G.E. GAGO: We do not take chances.

Ms SANDERSON: Well, you are wrong every year.

The CHAIR: It does not sound like a very good way to run a government, member for Adelaide.

Mr HUGHES: I refer to Budget Paper 4, Volume 4, page 74. Can the minister elaborate on the impact of the BioSA program through some examples of companies that have benefited?

The Hon. G.E. GAGO: There are some fantastic examples: Ziltek, for instance, is BioSA's grant recipient and business incubator tenant. Waste remediation technology company Ziltek Pty Ltd has enjoyed numerous successes, including taking its unique RemScan device into lucrative US markets. RemScan is a hand-held infrared device that allows instantaneous cost-effective measurement of petroleum hydrocarbon contamination in soil. Multiple early sales have already been made to a multinational oil company based in Western Australia and an environmental protection agency. The positive feedback has paved the way for the company's entry into the US market.

Ziltek recently joined the trade and investment mission to Shandong to explore opportunities for collaboration and entry into the China market. There was considerable interest for collaboration, especially from the Chinese environmental protection authorities, based on the development of new guidelines for the treatment of contaminated land within the next 12 months.

Another example is CPR Pharma Services, which is a BioSA grant recipient and business incubator tenant. They have transitioned from a university service provider to a commercial start-up entity through BioSA mentoring and assistance and have leveraged significant additional private capital on the back of a BioSA grant. They established in the business incubator in 2008 with 14 FTEs. Rapid growth of the company has led CPR to consolidate its operations into BioSA's second business incubator in 2014. They now employ over 80 FTEs and have tripled their revenue in the last four years.

Jackson Care Technologies (JCT) also received BioSA grant funding and assistance. They improve lives by allowing people in the aged-care and independent-living sectors to safely engage in day-to-day activities. They recently fitted the Minda housing development in Brighton with assistive technology, and they expect sales to increase significantly in 2015-16 and will be seeking a strategic partner to further growth. These are just a few of the many success stories of companies we see BioSA has assisted over the years.

Ms SANDERSON: Supplementary?

The CHAIR: We do not generally allow supplementaries, but you can ask a question if you like.

Ms SANDERSON: The minister mentioned the company Ziltek, which has the RemScan device which tests for hydrocarbon and TCE. I am wondering why they were not employed to test the TCE at Clovelly Park rather than an interstate company, given that we should be looking after our state-based companies.

The CHAIR: I do not think that is within the minister's purview; it is a question for someone else, I imagine—but they are your questions, member for Adelaide.

The Hon. G.E. GAGO: They are outside the purview of my responsibilities.

Ms SANDERSON: Okay, I will ask another question then. Page 75, the number of Australian provisional patent applications filed by SA unis: given that the number of provisional patents filed was 42 in the 2012-13 year, 39 in 2013-14 and an estimated 37 in 2014-15, why are only 30 expected in 2015-16?

The Hon. G.E. GAGO: There are fluctuations from year to year, and these are normal levels of variance. I am advised that there is no specific reason or explanation for that, other than that it is a regular variance.

Ms SANDERSON: It seems quite a dramatic drop, so I do not know if there has been less activity.

The Hon. G.E. GAGO: There is no specific reason that can be identified; it is just the level of variance that occurs from year to year.

Ms SANDERSON: How many of the provisional patents have been registered during that time for each of the years from 2012-13 to 2015-16?

The Hon. G.E. GAGO: I do not have the actual number registered, but I have the number of provisional patents and patent cooperation treaty filings, which I am advised would require registration. This would be indicative at least: for 2011 (the first is the provisional patents) 19, and there are 11 patent treaty filings; in 2012 it was 37 and 21; in 2013, 32, 34; in 2014, 44, 25; and, in 2015 to date it is 16, 11.

Ms SANDERSON: So that is in calendar years, yet the budget has it in financial years—is that right?

The Hon. G.E. GAGO: These are calendar year figures, yes.

Ms SANDERSON: So, I can't actually compare those?

The Hon. G.E. GAGO: We do not have these for financial years, only for calendar years.

Ms SANDERSON: Is there a policy around who owns the intellectual property, and does the government receive any share from all of these patents or treaties that become registered?

The Hon. G.E. GAGO: I have been advised there is a policy, but we do not get a share.

Ms SANDERSON: And how many patents have been registered by government in that case? If you are investing in this technology, surely at some point there should be some benefit to the state.

The Hon. G.E. GAGO: I do not have that data available today, but I am happy to take that on notice.

Ms COOK: I refer to page 74. Could the minister elaborate on how Adelaide is benefiting from the recent announcement by Cisco that we are part of its global Lighthouse Cities Program?

The Hon. G.E. GAGO: On 29 January 2015 I met with Dr Anil Menon, President of Cisco's Smart+Connected Communities and Deputy Chief Globalisation Officer in Bangalore, India. At that meeting Dr Menon announced that Adelaide will be part of Cisco's Smart+Connected Communities Lighthouse Cities Program, through which key partner cities around the world are used as places to help showcase Internet of Things innovations.

This announcement follows the implementation of the Adelaide Wi-Fi project and the signing of an MOU by the state government and the Adelaide City Council and Cisco to create a smarter and more connected city through The Internet of Things initiative. This announcement means that Adelaide will now join other cities like Barcelona, Dallas, Dubai, Chicago, Hamburg, Kansas, etc.

Adelaide leads the nation in the deployment of public wi-fi technology, and the aim is to gain momentum as a leader in the Internet of Things phenomenon and to provide opportunities for the state's established ICT sector and growing pool of technology entrepreneurs.

There are a number of areas where Adelaide will benefit from being part of the Lighthouse Cities program, including through Cisco bringing strategic business and technology partners to Adelaide and Adelaide becoming one of a handful of cities for the rapid prototyping and piloting of new urban solution devices.

Our major focus will be on projects that contribute to the delivery of the government's carbon neutral commitment to Adelaide. Cisco is currently leading a consortium with iiNet, a US company, Sensity, and local app developer, eSmart21 to conduct two smart city pilot projects in the central business district. These projects involve smart lighting and smart parking.

The relationship with Cisco is being pursued in the context of Economic Priority 4, a 12-month objective to partner with global digital technology companies, leveraging their network infrastructure, product testing and production expertise to benefit local start-ups and entrepreneurs and further build Adelaide as a smart digital city.

Ms SANDERSON: Page 75, performance indicators of STEM, what is the number of STEM enrolments in year 12, and the enrolments and continuing enrolments for STEM in higher education for 2014?

The Hon. G.E. GAGO: You will need to get the STEM in secondary schools from DECS, so I will refer you to them; and for 2015-16, the higher ed numbers have not been released yet, I am advised.

Ms SANDERSON: Last year you were able to give me those and they apparently are released mid-year, so SACE for last year was 9,007 (and that was answered in these estimates), and higher education commencing was 5,776, and continuing 10,548, so I am simply asking the same question as last year just for an update.

The Hon. G.E. GAGO: I should have referred you to DECS last year. I am advised that we do not have the higher ed figures. I am advised that they are released in August.

Ms SANDERSON: Right, okay, thank you. What is included exactly then in higher education? Is it private colleges, TAFE, unis, and could you list them?

The Hon. G.E. GAGO: I beg your pardon?

Ms SANDERSON: For the definition of higher education, then—those STEM subjects in higher education—what does that completely encompass?

The Hon. G.E. GAGO: Science, technology, engineering and maths at university.

Ms SANDERSON: That is right but is that private colleges, TAFE, unis?

The Hon. G.E. GAGO: No, not TAFE; it would only be private and public universities.

Ms SANDERSON: TAFE and public universities?

The Hon. G.E. GAGO: No, not TAFE.

Ms SANDERSON: Not TAFE, and no private colleges?

The Hon. G.E. GAGO: Yes, private universities and public universities.

Ms SANDERSON: Okay.

The Hon. G.E. GAGO: The definition of STEM, and the things that are incorporated in STEM are the natural and physical sciences—maths, physics, chem, earth sciences, biology and other natural and physical sciences; information technology—computer science, information systems and other information technology; engineering and related technologies, such as manufacturing engineering and technology, process and resources engineering, automotive engineering and technology, civil engineering, geomatic engineering, electrical and electronic engineering, aerospace engineering, maritime engineering, and there are others.

The other area is agriculture, environmental and related studies—and that includes agriculture, horticulture and viticulture, forestry, fisheries, environmental studies and other related studies. Architecture and building includes architecture and urban environment, and building; and health includes dental, medical, nursing, pharmacy, veterinary studies, public health, radiography, rehab, optical, complementary therapies and other health-related studies.

Ms SANDERSON: For the years that STEM has been one of the performance indicators, has that definition ever changed, or has that always been all of the courses, so they are actually comparable?

The Hon. G.E. GAGO: I am advised that there has been some change as it relates to the agency statement. The Chief Scientist for Australia recommended the addition of agricultural and environmental studies and we acceded to that recommendation and included it.

Ms SANDERSON: Is it possible then to get the equivalent figures for the last four years, including the agricultural studies so that there are actually comparable figures?

The Hon. G.E. GAGO: I am advised, yes, we can but we would need to put it on notice.

Ms SANDERSON: That would be great, thank you. The budget paper at page 75 again. Can the minister please list the companies that received grants and the amounts and if any of those have been repaid? That is to do with the Bioscience Industry Development grants. You listed them all for me last year.

The Hon. G.E. GAGO: I might ask Mr Jurgen Michaelis to read them out for us.

Ms SANDERSON: Is it possible to get the amounts for each of them, as well?

Mr MICHAELIS: The grant recipients and the amounts in the last financial year are as follows:

The Australian Centre for Plant Functional Genomics Pty Ltd, $125,000;

Skin Pty Ltd, $275,000;

LBT Innovations Pty Ltd, $190,000;

ATI Implants Pty Ltd, $120,000;

ITEK Ventures Pty Ltd, $370,000 (four separate grants);

AusBiotech, $39,436;

CPR Pharma Services Pty Ltd, $125,000;

Coolsan Australia Pty Ltd, $18,165;

Bio Angels Incorporated, $10,000;

Australian Agave Pty Ltd, $95,000;

Muradel Pty Ltd, $60,000;

AbRegen Pty Ltd, $50,000;

AIB Labs, $94,959;

Terra Rossa Capital Pty Ltd, $217,979; and

Adelaide Research & Innovation Pty Ltd, $165,000.

From memory, we received two partial repayments. The total is $1,915,538.

The CHAIR: Thank you.

Mr PICTON: I have a question on the same portfolio statement, but page 73. What is the government doing to encourage university students to work more closely with industry, gaining that needed real-world experience and improving their employability prospects in science, engineering, maths and technology in South Australia?

The Hon. G.E. GAGO: Recently I was very pleased to announce the latest recipients of the South Australian government's Defence Honours Scholarship Program. This program is helping South Australian university students forge careers in the state's defence sector by providing opportunities to work directly with defence and science, technology, engineering and maths-based industries to enhance their skills and improve their career and employability prospects. The program invites employers to nominate an industry-related project that will enhance student learning through practical applications in the work place. Host companies see the benefit of supporting this program by having access to bright, young students, many of whom have grown up as digital natives and are completely savvy with smart device and online environments.

I was pleased to see that the 2015 Defence Honours Scholarship Program round awarded nine scholarships to projects involving honours students from across the University of Adelaide, UniSA and Flinders. The total cost of this program was $90,000. These students have been fortunate enough to be selected with local companies such as Mincham Aviation, ASC, PMB Defence, J & H Williams and other successful organisations.

An example of the projects that students are involved with is the Launchbox Australia CubeSats space mission to send two nano satellites into orbit by November 2015. It involves a team of students working on tasks such as designing a satellite, structure and components integration, design of a telecommunications payload to perform the mission goal, flight software design and qualification testing for flight approval. The employability skills that students would receive as a result of working on this program include teamwork capability in a high-pressure innovation environment and a high degree of self-management.

The honours students and recently launched Defence and STEM Internship Program complements the actions of the 2014-2020 Defence Industry South Australia Workforce Strategy, which I was pleased to release in April this year. The strategy contains six high-level calls to action, including implementing workforce development solutions for current and future critical job roles. Like the honours scholarships, the new internship program will support students in the third or fourth year of their studies to work closely with employers. They undertake a structured work program that will enrich their learning through practical experience in the workplace.

Up to 11 defence and STEM internships will be awarded in 2015 with up to $165,000 allocated for this particular program. Supporting our students into careers that will boost the economy is obviously a clear priority this state government, as well as developing South Australia as the knowledge state.

Ms SANDERSON: I refer to page 74, Highlights, point 5 and the accelerator hub. Given that the two incubators in Thebarton are both full with rent-paying businesses creating new jobs, can the minister please explain why the government has not prioritised the $40 million required to build the accelerator building at the Thebarton BioSA hub, given that this would lead to private investment in local jobs, more money moving into our economy and more room in the incubators for new start-up businesses?

The Hon. G.E. GAGO: I am advised that through the government's investment in the Thebarton technology precinct it has evolved into an incredibly valuable asset for the state, and now represents one of the largest collections of bioscience and technology companies in Australia. Approximately $60 million has been invested in the past 12 years to support and establish five specialist research and manufacturing facilities in the BioSA business incubator. The precinct is home to two BioSA business incubator buildings and 60 advanced technology companies, a third of which are life science related, and, of course, the University of Adelaide ThincLab Business Incubator.

To ensure that this cluster of advanced industry activity will expand, BioSA is actively marketing 2.4 hectares of commercial real estate surrounding the BioSA business incubator for the establishment of future R&D and manufacturing facilities.

In order to grow the international reputation of the precinct, BioSA has completed the development of a master plan for the entire precinct together with the City of West Torrens and JPE Design. The master plan is a vision that will transform Thebarton into a hub for high-tech business, greater collaboration and community engagement. The council has now invested in the reopening of the Holland Street footbridge and commenced beautification of the surrounding streetscape. With respect to the development of another facility, the business accelerator and election commitment of $200,000 was brought forward from 2015-16 to 2014-15 to develop a business plan that undertakes a cost benefit analysis for a further facility.

A business case is currently being summarised that analyses financial modelling around government and/or privately funded delivery options, a review of business incubation in South Australia, a review of the concept designs for a facility, a quantity survey report, and construction costs for a facility. The outcomes will be summarised and constructed into a proposal that BioSA will present.

I also want to note that that is not the only incubator space that we have. We have a number of other spaces, including our Tonsley site, which has now moved into the next phase. There is a great opportunity there for start-up and businesses to move in there. We have our three universities all doing some activity and engagement around early start ups, so there is a great deal of activity going on in that space here in South Australia.

Ms SANDERSON: For Tonsley, is that advanced manufacturing, or will that also be science and bioscience?

The Hon. G.E. GAGO: It includes both.

Ms SANDERSON: When will the results of the business plan that you mentioned, and that you said was being compiled, be ready? When do you expect that that will be presented?

The Hon. G.E. GAGO: Soon.

Ms SANDERSON: Do you have a better definition of 'soon'? Is it weeks, months, this year?

The Hon. G.E. GAGO: We do not have a specific time. We are dealing with it as expeditiously as we possibly can and it will be made available as soon as possible.

Ms SANDERSON: Given the state's 8.2 per cent unemployment rate, once you get the results from that plan, will the minister commit to fast tracking the funding required to try to stem the unemployment rate from increasing?

The Hon. G.E. GAGO: Obviously we will look at the business case and consider it carefully. As I said, there is a great deal of activity that we already support in this state in terms of incubators, cluster space, early start ups and supporting business to grow. I think one of the things that would significantly assist our 8.2 per cent unemployment—which is clearly a significant challenge for us—would be for the federal government to nominate the submarine contracts to South Australia, as promised previously. If you would like to contribute something to that, you could lobby your federal mates—

Ms SANDERSON: We are.

The Hon. G.E. GAGO: —to assist us in that, as well as to support our Holden workers. That would also very much assist with that unacceptably high figure of 8.2 per cent unemployment. There is a great deal that the federal Liberal government could do to assist us in addressing that, and you, as state Liberal members of parliament, could also lobby your mates in Canberra.

Mr HUGHES: I refer to page 72. Can the minister please describe the steps the government is taking to further develop our science and research excellence, build our STEM capabilities and drive better engagement between industry and the research sector?

The Hon. G.E. GAGO: The Investing in Science action plan coordinates this government's science, research and innovation investment in South Australia. It was developed in partnership with the Chief Scientist and the SA Science Council. Investing in science informs the government's investment in science, research and innovation and enables our research institutions and universities to better leverage our commonwealth and industry partnerships to maximise the economic impact of our high quality research.

The action plan is intended to be dynamic and responsive. If individual actions require review or retirement because they are no longer the most appropriate response in changing economic times, we will do that. Likewise, if actions have already been achieved, we will look at how to push on even further and build on our successes.

Since the launch of the plan, the government has been funding the kinds of projects which lead to real world impacts and outcomes. We have supported the further development of research excellence in this state and driven industry engagement with the research sector. The Premier's Research and Industry Fund encourages investment in strategic areas of research that have potential to generate significant economic, social and/or environmental benefits for our state. It focuses on investment of our people, linking research and industry, improving our international linkages and maximising our federal funding opportunities.

Since 2012-13 it has committed $20 million and leveraged a further $33 million from universities and industry; that is nearly $50 million cash of industry focused research and development investment, without counting approximately $28 million to $30 million of in-kind provided by our investment partners. We continue to support those cooperative research centres (CRCs) with a significant presence in the state and drive critical industry and research collaboration.

In 2014-15, we supported seven CRCs with $1 million in funding and this leverages much greater funding from the commonwealth, universities and industry. We have attracted world leading researchers to South Australia as a way of further developing our capability and reputation for delivering research excellence. For example, Andre Luiten heads the Institute for Photonics and Advanced Sensing (IPAS) based at the University of Adelaide. The cutting edge experimental physics conducted there, amongst other things, will underpin a new generation of nanoscale medical devices and create powerful new sensing technology. IPAS recently secured $38 million from the commonwealth to establish an ARC Centre of Excellence for Nanoscale BioPhotonics.

Ms SANDERSON: I refer to page 74 Highlights, bioscience precinct. What is the minister doing to promote the bioscience precinct to other departments within government so that they can utilise the businesses that are in the hub?

The Hon. G.E. GAGO: I certainly am a strong supporter in espousing the virtues of our BioSA and reminding our departments of their success and drawing their attention to considering opportunities as well.

Ms SANDERSON: Has there been any government business so far that has utilised any of the start-up businesses at the bioscience hub? Has there been any actual work that has been commissioned by any government department?

The Hon. G.E. GAGO: We will take that on notice.

Ms SANDERSON: We will go to the omnibus questions.

The CHAIR: Yes, let's go to omnibus questions. It is your time to shine, member for Schubert.

Mr KNOLL: The omnibus questions are:

1. Will the minister provide a detailed breakdown of expenditure on consultants and contractors above $10,000 in 2014-15 for all departments and agencies reporting to the minister listing the name of the consultant, contractor or service supplier, cost, work undertaken and method of appointment?

2. For each department or agency reporting to the minister in 2014-15, please provide the number of public servants broken down into heads and FTEs that are (1) tenured and (2) on contract and, for each category, provide a breakdown of the number of (1) executives and (2) non-executives.

3. In the financial year 2014-15, for all departments and agencies reporting to the minister, what underspending on projects and programs (1) was and (2) was not approved by cabinet for carryover expenditure in 2015-16?

4. Between 30 June 2014 and 30 June 2015, will the minister list the job title and total employment cost of each position with a total estimated cost of $100,000 or more—(1) which has been abolished and (2) which has been created?

5. For each department or agency reporting to the minister, please provide a breakdown of attraction, retention and performance allowances as well as non-salary benefits paid to public servants and contractors in the years 2013-14 and 2014-15.

6. For each year of the forward estimates, provide the name and budget of all grant programs administered by all departments and agencies reporting to the minister and, for 2014-15, 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 grant and whether the grant was subject to a grant agreement as required by Treasurer's Instruction 15.

7. For each year of the forward estimates, provide the name and budget for each individual program administered by or on behalf of departments and agencies reporting to the minister.

8. For each year of the forward estimates, provide the name and budget for each individual investing expenditure project administered by or on behalf of all departments and agencies reporting to the minister.

9. For each department or agency reporting to the minister, what is the budget for targeted voluntary separation packages for the financial years included in the forward estimates by year and how are these packages to be funded?

10. What is the title and total employment cost of each individual staff member in the minister's office as at 30 June 2015, including all departmental employees seconded to ministerial offices and ministerial liaison officers?

The Hon. G.E. GAGO: We do have some of the answers for that.

The CHAIR: If you would like to provide some now, that would be immensely helpful.

The Hon. G.E. GAGO: It is just less work for officers who have to go away and do this extraordinary amount of minute detail. First, carryover: the Department of State Development had 11 carryovers in expenditure from 2014-15 to subsequent years approved in the 2015-16 budget process. All carryovers submitted by the department were approved by the Department of Treasury and Finance. Any further carryovers from 2014-15 will be determined as part of the year end process. The table following provides a list of the carryovers approved during the state budget process. Do you want the amounts of money as well?

Mr KNOLL: Yes.

The Hon. G.E. GAGO: Australian Energy Storage Knowledge Bank and Testing Facility, $50,000; automotive transformation—Our Jobs Plan, $2 million; airstrip at Innamincka, $3.2 million; and Aboriginal Heritage Act legislative review, $1 million. Under investing, spatial efficiency, $1.691 million; timetabling system, $0.35 million; enhancing online learning, $300,000; State Drill Core Reference Library, $160,000; Brukunga rock dumps strategy, $303,000; and Adelaide Festival Centre remedial works, $2.75 million. In terms of pull forward, the Thebarton business case is a minus of $200,000.

In relation to investing, the 2015-16 state budget provides additional capital investment funding of $5.1 million in 2015-16 for key upgrade works at regional arts theatres and the addition of a set of construction workshops at the Adelaide Studios site at Glenside. In 2015-16, the investment program budget for the Department of State Development including TAFE SA and Arts South Australia, but excluding the arts institutions, is $66.3 million. This represents a significant investment to support the state's present and future critical industries.

In addition, $8.4 million in capital investment expenditure will be incurred by the arts institutions in 2015-16, predominantly associated with regional arts theatre upgrades, $4.1 million, and the Adelaide Festival Centre precinct, $2.1 million. The $8.9 million increase in investing expenditure from the 2014-15 budget to the 2014-15 estimated result is predominantly due to the cabinet approval of the Adelaide Festival Centre precinct works, $5.2 million, during 2014-15, and changes to other projects, including carryovers between financial years and reclassifications between operating and investing, $3.7 million.

These are grants and subsidies. Based on preliminary 2014-15 actual data, grants and subsidies expenditure for the Department of State Development is $98.2 million comprising:

$41.1 million on employment, higher education and skills, science, technology and information economy portfolios;

$23.9 million on the arts portfolio;

$14.3 million on the mineral resources and energy portfolio;

$5.6 million on the globally integrating the SA economy portfolio;

$7.9 million on the industry and innovation portfolio; and

$5.3 million on the Aboriginal Affairs and Reconciliation portfolio.

The preliminary 2014-15 actual expenditure of $98.2 million is $5.6 million lower than the 2014-15 estimated result of $103.8 million due primarily to underspends to be carried over for the Premier's Research and Industry Fund, $1.4 million; auto supplier diversification, $1.1 million; airstrip at Innamincka, $0.6 million; and legislative reviews programs, $0.4 million. Underspends in the Critical Skills Investment Fund of $1.5 million are being redirected to training and Remote Areas Energy Supplies, $0.4 million.

Payments to arts organisations within the government sector of $111.5 million in 2015-16, Bioinnovation SA, $5.9 million in 2015-16, and StudyAdelaide, $1.6 million in 2015-16 are usually captured under grants and subsidies but are classified as intragovernment expenses for the purposes of agency statements. The 2015-16 budget is around $108 million with the main changes compared to 2014-15 estimated result of $103.8 million consisting of an increase in:

$12.8 million, Our Jobs Plan program;

$5 million industry attraction fund program;

$4 million OZ Minerals increased investment in South Australia program; and

$2.4 million airstrip at Innamincka program.

There are a number of offsets, which I will not list because there are too many. Referring to attraction and retention allowances, the payment of attraction and retention allowances is consistent with the Commissioner for Public Sector Employment, Determination 1: Merit, Engagement, Assignment of Duties and Transfer of Non-Executive Employees, the Chief Executive (or delegate) for the purposes of attracting or retaining the services of a suitable person. This is especially relevant where employees with specific skills are in great demand in the private sector. It is therefore considered appropriate, in certain circumstances, to offer allowances to attract and retain high-quality staff with skills that are highly sought in both the public and private sectors.

Within the Department of State Development, over the financial year to date, 42 employees are in receipt of an annual attraction or retention allowance payments. We are in the process of reviewing the current attraction and retention allowance procedure and assessing mechanisms to review these allowances in accordance with the Commissioner for Public Sector Employment, Determination 1, which outlines the government's policy with regard to the attraction and retention allowances.

In relation to workforce profile, tenured versus contract and executive versus non-executive, DSD active head count and full-time equivalent data was taken from the CHRIS Human Resource Management System at 29 May 2015. The department's staffing committee assesses every term and ongoing vacancy to ascertain whether excess employees are able to be placed in funded and potentially ongoing positions and whether a vacancy is required to be filled on an ongoing or term basis to meet agency needs.

Engagement of executives is dependent upon the need of the department and is at the discretion of the chief executive. Term appointments are used for the employment of graduates and trainees to support projects, backfill positions and for short-term and/or project roles. Total active staff, ongoing: head count, 803; FTEs, 764.2. Contract: head count, 263; FTEs, 253.7; total head count 1,066; FTEs, 1,017.9. These figures do not include Arts SA cultural institutions because they are not part of the department's salary budget. Do you want Arts SA cultural institutions head count and FTEs?

Mr KNOLL: Well, arts does not come under your portfolio.

The Hon. G.E. GAGO: No; I have it, though. Executive breakdown: there are 80 executives employed by the department, all contract employees. This is a significant number due to the complex structure of the department and the attached statutory corporations and commissioners, including the Small Business Commissioner and Deputy Commissioner, Commissioner for Aboriginal Engagement, and the Training Advocate.

The executive breakdown included in the department's total active head count: executive type. South Australian Executive Service (SAES): head count 66, FTEs 65. Non-SAES, appointed by the Premier: two head count, two FTEs; total 68, head count, 67 FTEs. Not included in the department's total active head count: non-SAES, eight head count, eight FTEs. Statutory appointments appointed by the Governor, four head count, three FTEs, which is a total of 12 head count, 11 FTEs.

Abolished positions: positions across the department are abolished when a position is declared excess to the requirements of the agency. The role of former chief executives of the Department of Further Education, Employment, Science and Technology and the Department of Manufacturing, Innovation, Trade, Resources and Energy were terminated and one of those roles abolished.

As at 30 June 2015, 31 positions have been abolished across the department as a result of the positions being excess to requirements. The abolished positions are related to a combination of excess employees separating as a consequence of accepted targeted voluntary separation packages and vacant positions that were no longer required. A total of 36 people separated through the TVSP process during the period 1 July 2014 to 30 June 2015. Expressions of interest were sought for TVSPs during May 2015. A total of 13 employees separated during that particular process, and it is anticipated that further roles will be abolished due to realignments and restructures, I am advised.

Consultancy expenditure: 2014-15 consultancy expenditure for DSD as at 30 May 2015 was $3.8 million, based on preliminary 2014-15 actual data. Final results will be available in September 2015. The budget for 2015-16 consultancy expenditure for the Department of State Development is around $4 million and will be adjusted for the needs of the department. There were 40 consultancies below $10,000, amounting to a total spend of $0.2 million and 52 consultancies greater than $10,000 amounting to a total spend of $3 million. These are above $10,000. Do you only want the ones above $10,000?

Mr KNOLL: Okay.

The Hon. G.E. GAGO: Cato Brand Partners, $20,000; Deloittes, $73,000. Do you want the project purpose?

Mr KNOLL: Yes.

The Hon. G.E. GAGO: Cato was a company engaged to create a new name and logo for Health Industries SA. Deloitte was engaged to conduct sector capability and capacity analysis and provide a strategic analytic report, identifying/outlining various sector opportunities. We have ACIL Allen (the Skills for All that I talked about earlier this morning), an evaluation of Skills for All—that was $190,000; the SA Centre for Economic Studies, SA's skills survey, including the provision of a help desk to analyse and survey data by region, an industry report of the survey results including the preparation of infographics, $71,000; UXC Consulting, Adelaide gig city feasibility review, $10,000; Gould Thorpe Planning Pty Ltd, WorkReady planning and coordination workshops 1 and 2, $32,000; and PhillipsKPA national foundation skills strategy for adults framework review, $52,000. That was for my portfolio, and the first lot were for the Hon. Jack Snelling. For the Hon. Jay Weatherill, the Adelaide Research and Innovation, innovation, economics awareness and capability project, economic literature review, $20,000. Is there anything obvious we have missed out?

Mr KNOLL: If we ask a question, I will tick them off as I am looking through.

The CHAIR: That has been very helpful; thank you, minister.

The Hon. G.E. GAGO: It is my pleasure; we are here to serve.

The CHAIR: I am sure Hansard will record what is left on notice and you can follow that up later.

The Hon. G.E. GAGO: Yes, and we will provide those answers.

Ms COOK: I refer to page 72. Could the minister tell me how we are building research strength through people, partnerships and strategic infrastructure?

The Hon. G.E. GAGO: The South Australian government, through its Cooperative Research Centre (CRC) assistance program, supported seven CRCs in 2014-15, with funding of $1 million funded over three years. The DSD offers up to $200,000 for CRC nodes operating in South Australia, and up to $200,000 for CRCs that are headquartered here in South Australia. We are home to 19 national CRCs, six headquarters and 13 nodes.

The CRC program was established in 1990 to build a critical mass between researchers and end users of research to tackle major challenges facing our nation. The most recent review of the program, Growth Through Innovation and Collaboration, highlights and confirms the important and valuable contribution that CRCs provide to the economy and the community and encourages and facilitates industry-led collaboration between researchers and industry. This was further confirmed by the commonwealth's recent announcement of $40 million over seven years for the innovative manufacturing CRC headquartered in Victoria.

Through the Our Jobs Plan the South Australian government will commit $2 million over four years and $980,000 in kind over seven years to contribute to activities based at the South Australian node of this particular CRC. It is anticipated that this CRC will benefit the local manufacturing industry and applied research participants and in turn support high-tech jobs. The CRC program not only lets South Australia solve big and intractable problems but also provides an opportunity to improve government agency participation in research and evidence-based policy.

For example, the Data to Decisions CRC, championed by the Defence Systems Innovation Centre, was awarded $25 million to develop robust tools to maximise the benefits that Australia's defence and national security sector can extract from big data to reduce national security threats. There are 24 participants in this CRC, including the Australian Federal Police, BAE Systems, the University of Adelaide and the University of South Australia. These partners are currently providing $67 million, in both cash and in-kind contributions, to the CRC, which is headquartered in the north of Adelaide at the University of Adelaide, Mawson Lakes campus.

The Data to Decisions CRC strengthens South Australia's position as a national hub for intelligence, surveillance and recognisance and establishes our state as a significant international player in the growing field of big data analysis. Through the CRC assistance program the South Australian government is providing $600,000 over three years to ensure that the CRC is located here in our state. While only in its early stages, this CRC already employs 30 full-time equivalent highly skilled staff, of which 20 are based in South Australia, and is set to employ a further 50 PhD students and train over 100 data scientists over its lifetime.

The CHAIR: Thank you, minister. I declare the examination of the Minister for Science and Information Economy closed. There being no further questions, I also declare the examination of the proposed payments for the Department of State Department in part and Administered Items for the Department of State Development in part be adjourned to Estimates Committee A. Thank you, minister and advisers.

Sitting suspended from 13:32 to 14:30.