Department of Primary Industries and Regions, $104,085,000

Administered Items for the Department of Primary Industries and Regions, $4,099,000

Membership:

Mr Griffiths substituted for Dr McFetridge.

Mr Pederick substituted for Mr Goldsworthy.

Mr Bell substituted for Mr Williams.

Minister:

Hon. G.G. Brock, Minister for Regional Development, Minister for Local Government.

Departmental Advisers:

Mr S. Ashby, Chief Executive, Department of Primary Industries and Regions.

Mr D. Frater, Deputy Chief Executive, Department of Primary Industries and Regions.

Mr T. Mader, Executive Director, Regions SA.

Mr B. Paolo, Director, Regions SA.

Mr S. Johinke, Director, Finance and Prudential Management, Department of Primary Industries and Regions.

The CHAIR: Welcome, minister, and welcome to your advisers. I have a quick proforma to go through as I understand this is the first time you have sat in estimates this year. The estimates committee is a relatively informal procedure and, as such, there is no need to stand to ask or answer questions. I understand that the minister and the lead speaker for the opposition have agreed on a timetable. My understanding is that 3.45 to 5.15 is regional development and then 5.15 to 6.15 is local government. Is that your understanding?

The Hon. G.G. BROCK: Yes, that is correct.

The CHAIR: Changes to committee membership can be notified as they occur. If the minister undertakes to supply information at a later date, it needs to be supplied no later than Friday 30 October, to be published during the 17 November sitting week. I propose to allow both the minister and the lead speaker 10 minutes each for an opening statement. There will be a flexible approach to giving the call for asking questions, based on about three questions per member. Supplementary questions will be the exception rather than the rule. Questions must be based on lines of expenditure in the budget papers and must be identifiable or referenced. There is no formal facility for tabling of documents.

All questions are to be directed to the minister, not to the minister's advisers; however, the minister may refer questions to advisers for a response at any point. We are pretty flexible about that, so we will allow conversations with advisers if the minister is happy with that and, if it gets argumentative, it is directed at the minister again, which I am sure it will not. During the committee's examination television cameras are permitted to film.

I declare the proposed payments open for examination and I refer members to Portfolio Statement, Volume 4. I now call on the minister to make a statement if he wishes and to introduce his advisers.

The Hon. G.G. BROCK: Good afternoon to the Chair and also committee members. It is my pleasure to provide information about the regional development programs and work conducted by Regions SA, which is part of the Department of Primary Industries and Regions (PIRSA). I would like to introduce the members of the department who are with me today. On my immediate left is Scott Ashby, the Chief Executive of the Department of Primary Industries and Regions; next to him is Trent Mader, Executive Director, Regions SA; on my right is Don Frater, Deputy Chief Executive of the Department of Primary Industries and Regions; and behind me are Bengy Paolo, Director, Regions SA, and Stephen Johinke, Director, Finance and Prudential Management.

The 2015-16 state budget highlights the government's continued commitment to regional communities through significant investment in key service areas, programs and infrastructure for regional South Australia that provide opportunities for regional South Australia through the Charter for Stronger Regional Policy. It builds on the good work and collective efforts of government and regional communities during 2014-15.

Our regions continue to face various challenges and they are eager to engage in new opportunities to grow their communities. The success of industries such as agriculture, forestry and fishing, mining and minerals processing, manufacturing, tourism, energy production, aquaculture, and food and wine production is vital to the wellbeing of South Australia's economy.

The South Australian government's targeted investments are expected to drive growth and generate flow-on benefits for regional communities and to provide a range of improvements to regional infrastructure, because this government recognises the need for regional communities to build on their economic foundations, to generate social vitality and to preserve and restore their environmental assets.

Creating the conditions for regional businesses and communities to grow and prosper is fundamentally important for all South Australians. Building stronger regions is an imperative acknowledged by the state government and is a key reason for my decision to support stable and effective government based on the delivery of a series of agreements between the Premier and myself in my capacity as the member for Frome, which were reached in March 2014.

The government's commitment to the Charter for Stronger Regional Policy is aimed at building a stronger regional South Australia that is dynamic and continues to thrive and develop. The Charter for Stronger Regional Policy sets out a number of opportunities for regional communities to interact with the government, including: the reintroduction of three country cabinet meetings each year; the requirement that at least one minister spend a day each week in a regional area; and the holding of at least three senior management council meetings in regions each year. These initiatives have been received very warmly by regional communities.

As an example, country cabinet is proving to be a winner, providing an opportunity for regional South Australians to have direct input and provide feedback on how government can better support communities to grow and flourish, both socially and economically. Issues that emerge from country cabinet that are identified through events held during the visit and from comments made on the YourSAy website are collated by the government. This feedback is used to develop an issues paper, which is published on the YourSAy website, providing the regional communities with a further chance to provide comment. Also, government agencies provide a response to the issues they are responsible for, and a report is released within 90 days of a country cabinet event.

For example, the first country cabinet meeting in 2015 was held in the Mid North, with a country meeting held in Jamestown and other events at Peterborough. Prior to the country cabinet, I met with local community leaders in Peterborough, including the mayor and the Regional Development Australia Yorke and Mid North, and they told me about the urgent need for government services to be better coordinated and the importance of having a physical presence at a central location in the town to support those requirements.

As a result, I announced my funding for a community development officer to be located in Peterborough. The position will be delivered on behalf of the state government by Regional Development Australia Yorke and Mid North, with close support of the Peterborough council. I will provide $120,000 per year over three years, with the expectation that the role will focus on improving the coordination of government services to improve the wellbeing of the local community as well as developing small-scale economic development projects.

The second outcome was my decision to fund $70,000 for the construction of a hard stand for helicopters and fixed wing aircraft, to be located at the local airport. Peterborough's geographical isolation, combined with the demands placed on the Peterborough Memorial Hospital, means that effective emergency service delivery to the town is critical.

To build on the work during 2014-15, the 2015-16 state budget highlights the government's continued commitment to regional communities through significant investment in key service areas, programs and infrastructure for regional South Australia. These investments are outlined in the regional chapter of the state budget which I negotiated to be included in my capacity as the member for Frome, bringing transparency to government expenditure in regional South Australia by, importantly, placing together information about the programs, new initiatives and investing expenditure in the 2015-16 budget that provide opportunities for regional South Australia through the Charter for Stronger Regional Policy.

Targeted investments are driving growth and generating flow-on benefits for regional communities, and are providing a large range of improvements to regional infrastructure. The Charter for Stronger Regional Policy provides for a greater focus on regional South Australia in government decision-making. While issues and opportunities affecting regional South Australia impact every government department and the delivery of the government's commitments to the regions belongs to various agencies, new endeavours and existing activities must be coordinated to build an integrated and effective approach to regional engagement. To this end, the Regional South Australia Cabinet Committee, specifically created to focus on regions, was established and held its inaugural meeting on 26 May 2014.

I chair the cabinet committee, and the other members are: the deputy chair, the Hon. Leon Bignell MP, Minister for Agriculture, Food and Fisheries, Minister for Tourism and Minister for Forests; the Hon. Gail Gago MLC, Minister for Employment, Higher Education and Skills and Minister for Science and Information Technology; the Hon. Tom Koutsantonis MP, Treasurer, Minister for State Development, Minister for Mineral Resources and Energy; and the Hon Stephen Mullighan MP, Minister for Transport and Infrastructure. The cabinet committee continues to oversee growth and improved infrastructure in the regions. This committee's work will continue throughout 2015-16.

Since its commencement, there has been a strong interest in the Regional Development Fund (RDF) grants program for all regional areas. The need for the RDF grants program is demonstrated by the high demand, as the number of applications received and funding sought has far exceeded the amount of grant funding available. I have been delighted with the outcome of the RDF grants program for the 2014-15 financial year. So far the RDF grants will support 40 separate projects which will lead to the creation of 653 new jobs in regional South Australia and generate investment of more than $334 million.

Among the grant recipients in 2014-15 was Sundrop Farms, which will receive $6 million towards a 20 hectare expansion of its greenhouse business at Port Augusta, involving at least 100 jobs during construction and about 150 jobs in operation. An amount of $500,000 in funding was also granted to South Australia's largest egg producer, Days Eggs, for a new free-range facility in the Yorke and Mid North region.

On 9 April 2015, I announced the opening of the RDF 2015-16 round. Under this round, the RDF comprises two programs requiring expressions of interest or EOIs. There is the Major Projects Program for grants of between $200,000 and $2 million, and this is aimed at supporting major economic projects, strengthening regional industries and assisting regional businesses to take advantage of new opportunities. There is also the Community Infrastructure Program for grants of between $200,000 and $1 million to support investment in regional communities to develop their economic infrastructure and grow their capabilities as a foundation for future jobs and economic growth.

During the last two weeks of April 2015, Regions SA staff held information sessions throughout regional South Australia to promote the second round of the RDF. The purpose of these sessions was to introduce and promote the RDF for 2015-16 and to respond to questions from potential applicants regarding the guidelines and application or assessment process. A total of 127 people attended the information sessions and the feedback from attendees was very positive, and since that time staff from Regions SA have fielded a significant number of inquiries from interested parties regarding the fund.

The regional breakdown for the EOIs shows a spread of interested parties from all regions of South Australia. I am very pleased with the response to this current round of the RDF. The EOIs closed on 22 May 2015, with shortlisting being undertaken. The successful EOI proponents were then asked to submit a full application by early July 2015. There were 88 expressions of interest received in round 2 with the funding sought far exceeding the amount of grant funding available.

Mr GRIFFITHS: Mr Chair, can I just make a point of order, please. I am reluctant to interrupt the minister, but indeed I think the notice that you gave at the start was for a statement of about 10 minutes.

The CHAIR: I think you are right; I uphold that. Minister, I think the 10 minutes is pretty close to expiring if you just want to get to any salient points you need to make before we get started. How many pages have you got?

Mr GRIFFITHS: And that is my concern. I do respect the information flow that the minister is projecting but, indeed, a lot of those things will come out as part of questions.

The CHAIR: That is alright; I do not think you are trying to shut the minister down, member for Goyder. I think you are right.

The Hon. G.G. BROCK: Okay, what I will do—I have visited the regions to hear firsthand the opportunities that members of these communities see as key to their future, and I will continue to visit the regions to hear what people have to say about what is important to them, now and for future generations. It is important to me that the government acknowledges the contribution of our regions and that their economic and social growth opportunities are recognised and promoted. In concluding these introductory remarks, I reiterate that the government understands that the prosperity and wellbeing of regional South Australians and their communities underpin the sustainability and wellbeing of our state. There are many opportunities to grasp but we know the challenges are a constant. The government will continue to work closely with the commonwealth and local governments, industry, business and communities in striving to get the best possible outcomes for regional South Australia.

The CHAIR: Thank you, minister. Member for Goyder, do you have an opening statement?

Mr GRIFFITHS: A very brief one, sir. May I say here about the words, and the words are very important to me because I think they drive the inputs and, therefore, the outcomes that have to exist in regional South Australia. We three who sit on this side of the chamber concur with you on the fact that regional South Australia needs its absolute best from all of us to ensure that the outcomes there are strong ones.

I do not disagree with the words; it may be that we have debates about the actions underneath them many times, but I do commend you on the words and hope that the outcomes from it are strong for all of us because we want our regions to be the best they can. It is for that reason that I do not question the commitment that you have given to Peterborough council for its community development officer for the $120,000 because, as a former employee of that community, I accept that there are challenges there. I am pleased to see there is some direct support happening. I commend you on that. With those brief words, I will ask some questions for the next 58 minutes or so. We are going to swap over, are we not, Chair? Do I get the full run at this or are we going to swap and have some questions from the government on this?

The CHAIR: I think there are some important questions flagged from the other side, yes.

An honourable member interjecting:

Mr GRIFFITHS: As do I, that is just it—as do I. Pleased to hear that.

The CHAIR: We will see what sort of roll you get on.

Mr GRIFFITHS: I just wanted to clarify what was going on. Minister, for me this is a numbers-based question but the numbers drive the outcomes, too. I refer to Budget Paper 4, Volume 4, under the program summary on expenditures between the 2014-15 budget and the 2014-15 estimated result: you did not spend all the money.

The CHAIR: Member for Goyder, can you just give us a line, please.

Mr GRIFFITHS: I do not need to give you a line, surely.

The Hon. P. CAICA: Page 34.

The CHAIR: Alright, yes.

Mr GRIFFITHS: I have given the reference; I am not going to point to it on the page for you, Chair.

The CHAIR: I beg your pardon; what did you say?

Mr GRIFFITHS: I am not going to point to it on the page for you, Chair.

The CHAIR: No, I asked what page. I did not ask where on the page.

Mr GRIFFITHS: Sorry, I thought that everyone could hear that. It is page 34. The budget was $32.92 million for grants and the actual expenditure was $9.264 million. Why is there such a discrepancy?

The Hon. G.G. BROCK: There is an explanation between the funds committed and the funds expended. I will ask Stephen Johinke to explain the issue and how it works out, because it is to do with the expenditure committed and actual expended funds.

Mr GRIFFITHS: It does give some commentary as to why the differences exist so I can appreciate that but the question that I pose is more to your responsibility to ensure that the programs that are in the budget adopted last year were actually expended in the 2014-15 budget. It is more of the policy driver question that I asked you as to why such a significant decrease in what was there to be spent was actually spent.

The Hon. G.G. BROCK: If you will bear with us for a couple of minutes, the issue is that we commit funds to a project, the funds may not be expended in that particular year because of the construction period, until such time as it goes through the contract details. I will get the finance people to explain that in more detail and if there are any other questions I am happy to answer them.

Mr GRIFFITHS: I am not sure if I need to explain the detail because the budget papers actually detail the discrepancies and why it is.

The Hon. G.G. BROCK: Do you want to know why they are—

Mr GRIFFITHS: Absolutely, minister.

The Hon. G.G. BROCK: That is what we are trying to do, Mr Chair. We are trying to explain to the member why the—

The CHAIR: Take your time; you do not have to explain that you are explaining.

Mr JOHINKE: As the minister has noted, the regional development grant programs are paid in arrears, in that the work has to be undertaken before the funding is reimbursed to the entities involved. PIRSA has a significant ongoing grants allocation for all the ongoing regional grant programs. Where the actual expenditure associated with those allocations spans financial years, we seek carryover approval. To date that has been approved. Carryover will not just be into 2015-16, given the breadth of grants and grant recipients we are talking about. We have already received approval to carry over expenditure beyond 2015-16, based on our anticipated expenditure profile.

Mr GRIFFITHS: To clarify, I understand that the timing is critical when it comes to cash flows. My point of view, though, and I should have made this clearer at the start, is the timing of the announcement of the programs, for example, with the Job Accelerator Fund, minister. I commend you on getting $10 million committed towards that. I understand that it includes a $2 million carryover in the 2015-16 year that is relevant to that, but my understanding is that the Job Accelerator Fund guidelines were not determined until late in November 2014.

Given the challenges that regional South Australia faces, and for Yorke, the Mid North and our own area the budget papers highlight that the average unemployment during 2014 was about 8.8 per cent, surely there is the imperative to get these things out quickly. So, when asking the question about the delays in the dollar spend, it comes back to the portfolio responsibility for you for ensuring that the guidelines are finalised, the programs are out there and the dollars happen.

I understand there is a lag time, particularly in a new program like that, and you have broken it up into three or four components of that, but my concern still comes back to the timeliness of it all. For example, if we can go to the Job Accelerator Fund, why was it not until November before the guidelines were finalised and grants were able to be applied for?

The Hon. G.G. BROCK: Are you talking about the RDF fund?

Mr GRIFFITHS: No, the Job Accelerator Fund, which is still under the same grants and subsidies line on page 34.

The Hon. G.G. BROCK: It is a challenge, as the member said, but we needed to get this right and we believe we have it right now. We are carrying it over, we have the $10 million for the Job Accelerator Fund, which I think the member is talking about. We have asked for some carryover, which is for the traineeship, and we wanted to make certain we had everything right and we want to make certain we do not waste this money out there and we believe we have everything right now.

Mr GRIFFITHS: Minister, I appreciate that, but my very clear recollection in estimates last year, when asking you a question about the guidelines for the Job Accelerator Fund, you referred to a meeting in August of that year where Mr Rob Chapman had been appointed by you to lead a group to determine the guidelines for it—that was my recollection.

The Hon. G.G. BROCK: Which Mr Chapman is that?

Mr GRIFFITHS: The person who used to be involved in banking.

The Hon. G.G. BROCK: Rob Chapman?

Mr GRIFFITHS: Yes. Maybe I am wrong about that. The personality is not as important as the August meeting that you advised me about, and then the 3½ month delay before the guidelines were finalised. I want to ensure, as I am sure you do, that that information goes out to people quickly, dollars are available to people quickly and opportunities are taken up quickly. That is the basis of what I am asking.

The Hon. G.G. BROCK: The RDF guidelines are already there, as you know. We did consult on the design of the Job Accelerator Fund; it was something different. I am sure I have given the member a briefing on this subject. We divided the $1.6 million, I think it was, into the Indigenous outback; $4 million into a loan section, which we negotiated with some people about utilising for loans for projects; and $2 million for the traineeship, which was just announced recently. I stand corrected: there was $2.6 million from the Job Accelerator Fund across into the RDF fund, and we got cabinet approval for that, too, because of the demand or the expressions of interest. The Job Accelerator Fund is out there now and the only thing we have to wait on is the acceptance towards the $4 million of the loan project program.

Mr GRIFFITHS: Mr Chair, if I may: page 34, still on grants and subsidies. I understand that, but you still have not actually spoken about—if we can go back to July when I asked estimates of last year, between then and November when the guidelines for Job Accelerator were finalised, why did it take one-third of a year to do so?

The Hon. G.G. BROCK: I reiterate: we had some different views about the thing, and we just wanted to make certain we got it right. I make no bones about making certain we get the expenditure right to ensure we are going in the right direction. I am not too sure where the member is coming from that they took another couple of months. We have made the commitment, and I have briefed the member previously. We have committed it; the guidelines are there. We just wanted to make certain we had everything right.

Mr PICTON: My question is in relation to Budget Paper 4, program 3 on page 34. I wonder if the minister can outline the outcomes from the inaugural Regional Summit?

The Hon. G.G. BROCK: I thank the member for his question. As we know, my agreement with the Premier, as outlined in the Charter for Stronger Regional Policy, includes the commitment that the state government, in conjunction with the three South Australian universities, will hold an annual regional summit to receive independent expert policy advice. The inaugural regional summit was held at Whyalla Golf Club on Wednesday 20 May, as most people here are aware.

It was attended by over 140 people and cost approximately $30,000, which was shared between Regions SA and the Department of State Development. Given the focus on collaboration with the three South Australian universities, it was determined that the Minister for Employment, Higher Education and Skills, the Hon. Gail Gago MLC, and the Department of State Development (DSD) would lead the organisation and delivery of the summit, with support from myself and Regions SA.

The inaugural Regional Summit had a positive economic impact on the Whyalla local community. The Whyalla Golf Club, local audio-visual technicians and a local master of ceremonies were hired. A local caterer was used. The catering sourced local produce and wine. The Country Women's Association of Whyalla, the Norrie branch, supplied morning and afternoon tea using local ingredients and the CWA merchandise was included in the presenters' gift bag. 140 people visited Whyalla on the day. These people hired taxis and hired rental vehicles, and some stayed overnight at local accommodation.

A post-summit survey was conducted, and the results highlight approximately 70 per cent of the people rated the inaugural summit as good or very good. Presentations by myself, the Premier, Professor Andrew Beer, Jill and Brian Wilson of Wilson's Pastoral, and John Phinney of Sundrop Farms, were rated as highly valuable aspects of the summit. Approximately 80 per cent of the people said they will attend the summit next year, and approximately 70 per cent said future summits should be held in regional areas.

Mr PICTON: I would like to ask a question on the same budget paper. Will the minister please explain to the committee how country cabinet meetings are benefiting regional communities in which they are held?

The Hon. G.G. BROCK: Again, I thank the member for his question. As one of the key state government commitments contained in the Charter for Stronger Regional Policy, the Premier and cabinet ministers will visit three regions each year, and these visits will include country cabinet meetings. Country Cabinet met in the Riverland, the Adelaide Hills, Mount Barker and Alexandrina, and the West Coast during 2014. These visits were highly popular and we received the warmest of welcomes from the communities we visited.

Country cabinet meetings have continued in 2015, and again I am overwhelmed by the warm welcome and genuine encouragement we receive from the communities we visit. Feedback on issues that emerged during country cabinet from events held during the visit, as well as issues raised by the community through the YourSAy website, are collated, and the feedback is then used to develop an issues paper which is published on the YourSAy website, providing the regional community further chances to provide comment.

Government agencies provide a response to the issues that they are responsible for, and a report is released or back within 90 days of the country cabinet event. The 2014 reports are on the website, and the report from the most recent country cabinet, which was held in the Mid North, has also been published.

Another outcome from country cabinet is individual ministerial announcements. For example, to gain a sense of what might be the most significant way the government could provide assistance, I met with local community leaders in Peterborough, including the mayor and Regional Development Australia Yorke and Mid North.

These people agreed that there was an urgent need for government services to be better coordinated, and the importance of having a physical presence at a central location in the town to support those requirements. As a result, I announced that I would be providing funding for a community development officer to be located in a one-stop shop in the main street of Peterborough. The position will be delivered on behalf of the state government, where regional development—

Mr GRIFFITHS: Excuse me, minister, can I just make a point of order. Minister, I appreciate the information the first time, but not necessarily the second time.

The Hon. G.G. BROCK: I will leave that go.

Mr GRIFFITHS: Thank you.

Members interjecting:

The CHAIR: Order!

The Hon. G.G. BROCK: The state government is committed to stronger, more sustainable regions and the delivery of crucial regional infrastructure. These announcements are examples of ways in which this commitment is being realised. Minister for Sustainability, Environment and Conservation (Hon. Ian Hunter) announced a new conservation park in South Australia's Mid North which was protected by the important sections of Burra Creek.

Acting health minister (Hon. Martin Hamilton-Smith) announced the opening of a new private clinic at Peterborough Hospital, providing the Mid North with much-needed access to oral services and care. This was a great example of a successful public-private partnership, and as the only dental clinic in Peterborough, it provides an important health service to the local community.

Minister Bignell, minister Mullighan and I announced a release of a modern transport system for agriculture, a new partnership approach project, which was identified as one of a number of reform initiatives across the state aimed at ensuring more efficient and less costly transport for primary producers. The project is already seeing recommendations in action, with the approval of quad road trains now operating between Port Augusta and the Northern Territory border, and between Pimba and Olympic Dam. The government will be implementing a range of other measures to boost regional transport productivity in coming months, including the introduction of tri-axle vehicles.

Country cabinet is absolutely providing results for regional communities. It gives the community an opportunity to speak to ministers directly about issues close to their heart. Regional communities also get to hear firsthand the result of these conversations when the government announces its support for regional communities, both socially and economically, and the material outcomes that I have described. In closing, country cabinets are a great asset to the regions and a great asset for all ministers.

Mr GRIFFITHS: I refer to Budget Paper 3, page 106 of the Budget Statement document, where it talks about the Regional South Australia Cabinet Committee, and your opening words, minister, where you refer to the committee being made up of four or five ministers. Is a schedule of those meetings available or are they held on an ad hoc basis? Do you attend all of those meetings and can you confirm if any of those ministers have been apologies at any of those meetings so far?

The Hon. G.G. BROCK: Mr Chair, these are regular cabinet committee meetings.

Mr GRIFFITHS: And?

The Hon. G.G. BROCK: I am not going to comment on who attends cabinet committee meetings. They are in the diary on a regular basis.

Mr GRIFFITHS: From my understanding, in future the cabinet can mean a subcommittee of the cabinet and not necessarily the full cabinet.

The CHAIR: Hang on, minister, I will get some advice on that.

Mr GRIFFITHS: Sure. The reason for my questions is that it actually details quite a bit of the activities of the committee on page 106 and therefore what they do is not secretive.

The CHAIR: Member for Goyder, subcommittees of cabinet are treated the same way as cabinet, and we do not discuss what happens in cabinet.

The Hon. G.G. BROCK: You have asked the question. What are you looking for?

Mr GRIFFITHS: Have you attended all of those, have there been any apologies, are they held on an ad hoc basis or are they scheduled? You have mentioned that they are in your diary on a regular basis, I appreciate that. That is what I asked for.

The Hon. G.G. BROCK: They are regular programs.

Mr GRIFFITHS: And it appears as though any other question on that cannot be answered.

The CHAIR: The minister can answer it in the way he wishes, but you have no right to demand answers about proceedings of cabinet or subcommittees.

The Hon. G.G. BROCK: I have in my opening speech mentioned the cabinet committee and its chair. On page 106 it is called a cabinet committee. I am chairing that. They are on a regular basis and the members are on page 106. I have made comment about who the members of that cabinet committee are and I think that is as far as I will go.

Mr GRIFFITHS: If I may seek some clarification, does the cabinet committee actually consider the need for regional impact assessment statements?

The Hon. G.G. BROCK: Mr Chair, I certainly do not believe that I should be discussing what happens in a cabinet committee.

The CHAIR: Yes, I concur. I rule that way; you do not have to.

Mr GRIFFITHS: The role is explained, as I understand it, on page 106. If I may, I will go to a different question, still with the same budget paper reference. It is about the regional statement, one which was released by the previous minister for local government in December 2013. As part of the minister's responsibilities, does the minister intend to update that document?

The Hon. G.G. BROCK: I think the member is referring to what the previous minister for regional development indicated, is that correct?

Mr GRIFFITHS: It is.

The Hon. G.G. BROCK: In December 2013 the state government published a Regional Statement for South Australia following extensive consultation and feedback on a draft document released on 18 December 2012. The regional statement brought together current government plans, strategies and services with regional plans and roadmap ideas, and highlighted how we will consolidate and build upon current initiatives to help ensure our regional communities are prosperous, healthy, educated and safe.

The regional statement was developed around four themes that regional communities, Regional Development Australia associations and the Local Government Association of South Australia identified through the consultation process; namely, a commitment for regions, working together, empowering regional communities and aligning regional priorities. The regional statement highlights to regional communities and government agencies the linkage between government plans, strategies, programs and services.

It reaffirms the government's commitment to regional areas by emphasising the importance of regional communities to the continuing economic development of the state, including new opportunities for major resources and other projects. It builds on South Australia's Strategic Plan by working closely with relevant state agencies and key stakeholders.

More recently, the government's commitment to regions has been further strengthened through my agreement with the Premier, with the government committing to a range of initiatives and a $39 million funding package for 2014-15 for regional South Australia.

Mr GRIFFITHS: Is this one of last year's packages?

The Hon. G.G. BROCK: That is what we are doing now—

Mr GRIFFITHS: Yes; in 2013-14?

The Hon. G.G. BROCK: Since early July I have been holding roadshows across regional South Australia to listen and to understand how we can best assist with achieving regional priorities. The focus is on jobs, investment, economic diversity and creating the links to inform government policy that will promote improved regional economic and social outcomes. This will provide strong support for the state's 10 economic priorities, building on the strength of regional economies, which drive around half of South Australia's gross state product.

So far Regions SA has held five roadshows with key regional leaders, including participants from local councils as well as the business and community sector. I have travelled to Rowland Flat in the Barossa Valley for the Barossa, Light and Lower North region roadshow. For Adelaide Hills and the Fleurieu, the road show was held in Strathalbyn, and Port Augusta was the location for the Far North region roadshow, where we had the pleasure of being hosted in the magnificent new sports facility in that community.

The Murray and Mallee region roadshow was held last week at the Pike River Eco Resort at Lyrup, and then I returned to my home town of Port Pirie, where we held the Yorke and Mid-North region roadshow at the Flinders Motel on Main last week. Three more roadshows will be held over the next couple of weeks in Mount Gambier, Kingscote, and Port Lincoln to complete the series and cover all regions across the state

I have made it clear that the purpose of these roadshows is to identify the top priorities where a partnership between the region and the state government is essential to have the most impact. This is about accelerating each region's ability to take action. I have committed to listening and understanding the issues, and therefore I have taken part in the workshops and stayed throughout the day, speaking with people, so that I can gain a deeper insight into the opportunities and the challenges to be addressed in those regions.

I made it clear that my expectation is that those present would have the chance to nominate their top issues and that we would identify actions to take over the next three months to three years. I believe we need to be focused, given that we do not have unlimited resources, and we need to tackle those issues which are most critical. I have committed to progressing issues on a statewide level where they are raised across multiple regions, as well as region-specific priorities. Working together is key, as no single body or sector can bring about significant change on its own. The roadshows are all about action: about getting change happening to advance regional economic development.

I committed at these roadshows to getting back to the participants soon after the event with a summary of the day, highlighting the priorities identified, and then to work on priorities in partnership with the RDAs and local stakeholders. Feedback from participants was very positive. People were pleased to see a broad spectrum of participants brought together to talk about regional-level issues. They also appreciated the action orientation of the event and the chance to hear about some of the great things happening across the state to drive change, such as the recent 90-day transport project, which has already started to deliver productivity benefits to the agriculture and transport sectors.

I also made it clear that I am committed to holding another series of roadshows in 12 months' time, where we would report back on what actions have been taken and how we have addressed these priorities. It is my vision to put regions in focus and to ensure that the contribution and role of regional communities remains a key focus of government priorities, and to work in partnership with all involved.

Mr GRIFFITHS: I appreciate the detail provided there, minister. While there is a commitment in the next calendar year for the roadshows to occur again, is there a collective form of document being developed from it? The first part of my question related to the regional statement, which is rather outdated, because it would not reflect initiatives that your appointment as a minister created opportunity for. From the need to update that document, and roadshows and the issues identified—and there would be some commonality across regions. I do not want bureaucracy to be bogged down in this, but is there some form of wider ranging document, not just for accountability from your perspective but an understanding from all who have the opportunity to look at it to see that, 'Yes, the government is working on this, this, this and this, or this exists to try to help this.' Is that sort of thing being done?

The Hon. G.G. BROCK: As I said, we are out with the roadshows at the moment and it is not collaboration, it is listening to what those people have to say. We have seven regions in South Australia. We are collating all that information and bringing it all together. A regional directions paper will be brought back as we go along. Again, we need to get our facts and a basic plan, because each region is unique and everyone has different priorities.

Mr GRIFFITHS: I appreciate the minister's answer on the regional directions paper. If I may ask a question about regional impact assessment statements (RIAS), given that they are highlighted on page 107 of Budget Paper 2, Volume 3. We have had questions in the chamber, and discussions, about the regional impact assessment statements. I believe there is one now for the Snowtown police station, but before that the only additions from last year's questioning to you about them I think was the guidelines, based around how they would operate the RIAS.

I have a particular concern of a RIAS not having been prepared for the marine parks, which was a significant policy. Anyone who looks at the fact that the RIAS is actually prepared when significant change is to occur—you have required, as part of an indication of support for legislation with the government, that one has to be done based around 1 October, which I believe is the date. However, as part of the collection of that information for that regional impact assessment statement, are you advised or briefed on issues as they are arising, not just at the end of the 12-month period from the sanctuary zones being implemented?

The Hon. G.G. BROCK: To clarify, are you talking about the marine parks?

Mr GRIFFITHS: Yes.

The Hon. G.G. BROCK: This matter relates to the portfolio responsibility of the Minister for Water and the River Murray, Hon. Ian Hunter MLC, as you are aware. However, I can confirm that the government is committed to preparing regional impact assessment statements in relation to sanctuary zone impacts at Port Wakefield, Ceduna and Kangaroo Island. On 18 September 2014, the government committed to preparing the regional impact assessment statements for Port Wakefield, Ceduna and Kangaroo Island to assess the implementation of marine park sanctuary zones. The regional impact assessment statements are on track to be completed by 1 October 2015.

I am advised that the Department of Environment Water and Natural Resources has engaged the Goyder Institute for Water Research and the South Australian Centre for Economic Studies to prepare regional impact assessment statements (RIAS) for Kangaroo Island, Ceduna and Port Wakefield. The RIAS will investigate any social or economic effect on these areas that may result from sanctuary zones which came into effect on 1 October 2014. I understand that the results of the three regional impact assessment statements will be used to inform the ongoing marine parks monitoring, evaluation and reporting program, and the future review of the marine park management plan, as required by the Marine Parks Act 2007.

The Goyder Institute for Water Research has allocated $202,016 to the preparation of these regional impact assessment statements. I am advised that the regional impact statements are on track to be completed by 1 October 2015. The Draft Marine Parks (Statutory Authorisation Compensation) regulations were released for a six-week public consultation period on 3 July 2015, and submissions close on 14 August 2015. The draft regulations support section 21 of the Marine Parks Act 2007, which deals with affected statutory authorisations compulsory acquisition and associated processes for determining fair and reasonable compensation. The aim of the regulations is to provide a clear process for those intending to apply for compensation under the Marine Parks Act 2007. Applications for compensation are not dependent on finalisation of the regulations.

At this time, the number and merit of any compensation claims, and therefore the cost of any future compensation claims, is not known. But if I could reiterate, I have regular meetings with minister Hunter, and PIRSA is also on the marine park RIAS working group.

Ms DIGANCE: I will continue on Budget Paper 4, Program 3 statement, page 34. I think you have touched on this, but I wonder could you please provide the estimates committee with a comprehensive update on the Regional Development Fund?

The Hon. G.G. BROCK: I thank the honourable member for her question. The significantly enhanced Regional Development Fund (RDF) will deliver greater support for projects that provide better infrastructure, drive economic growth, create jobs and leverage increased investment in regional South Australia. In the 2014-15 financial year, over 200 expressions of interest were received, seeking a total grant volume of over $100 million from the Regional Development Fund, excluding the country cabinet program.

I have been delighted with the outcome of the RDF grants program for the 2014-15 financial year. So far, the RDF will support 40 separate projects, which will lead to the creation of 653 new jobs in regional South Australia and generate investment of more than $334 million. Among the grant recipients was the Sundrop Farm, which will receive $6 million towards a 20-hectare expansion of its greenhouse business at Port Augusta, involving at least 100 jobs during construction and about 150 in operation.

The RDF grants program met its objective of driving economic growth and productivity in the 2014-15 year by investing in projects that will create jobs and new opportunities for regional South Australia. In 2015-16, there is still a high demand for grant assistance, as evidenced by the large numbers of inquiries to Regions SA requesting expressions of interest, where 158 expression of interest forms were sent out in April and May of this year.

The RDF 2015-16 grant round consists of three grant programs. The first one is a major projects program to support major economic projects that create sustainable economic benefits to the state or the broader region. Funding for this program can be provided, from $200,000 to a maximum of $2 million, with leveraged funding at a minimum ratio of $3 for every $1 of grant.

The second program is a community infrastructure program to support investment in regional communities to develop economic infrastructure and grow their capabilities as a foundation for future jobs and economic growth. Funding for the community infrastructure program can be provided from $200,000 to a maximum of $1 million, with leveraged funding at a minimum ratio of $2 for every $1 grant. Thirdly, the country cabinet program, worth $150,000 per year, is part of the country cabinet.

There were 88 expressions of interest received in round 2, with the funding sought so far exceeding the amount of grant funding available. Forty expressions of interest seeking a total of more than $50 million have been shortlisted for full application. Thus far the Regional Development Fund's program has produced some great results that will have a positive and lasting impact on regional communities in South Australia.

The CHAIR: Thank you. Member for Elder do you have another question?

Ms DIGANCE: Yes, I do, thanks. Minister, it is to do with Regional Development Australia. Will the minister please advise the committee what financial commitments the state government has made to the Regional Development Australia associations in South Australia?

The Hon. G.G. BROCK: Thank you, Mr Chair, and again I thank the honourable member for her question. The state government has developed strong relationships with the South Australian RDAs. The RDA program is a nationwide commonwealth initiative, and in South Australia it was based on a tripartite understanding between the commonwealth, state and local governments. Importantly, this collaborative approach acknowledges the existing and separate relationships that each party has within the three spheres of government, and the benefits that these relationships can bring to maximising investment for regional development.

I acknowledge and appreciate the RDA funding from the commonwealth government and the local councils as part of the RDA program. In the past, funding for RDAs from the regional development portfolio contributed to an administrative and operational expenditure of RDAs. RDAs commonly refer to this as core funding. In 2010, a decision was made to cease funding to RDAs as the federal government established and funded RDAs throughout the nation. The RDAs were advised at this time. That funding was worth $3.98 million excluding GST.

Funding was provided to individual RDAs through five-year funding agreements and was contractually tied to co-contributions from local councils on a $3 to $1 basis, that is the state and the local. A range of governance, administrative and operational obligations were required of RDAs, which is no longer the case.

In 2014, Regions SA worked with the RDAs to establish a new framework for regional collaboration which recognises that both parties have a strong alignment of roles and responsibilities for advancing the economic prosperity and growth of the regions. RDAs will provide a three-year project plan outlining how the funds will be used. RDAs were also consulted on funding arrangements for the next three years and collectively determined the distribution of the $3 million per year between their associations. In a tight budgetary environment, this is a significant investment of public funds.

The RDAs will receive state funding to identify and drive priority activities that will generate economic development in regional areas, taking into account the resources and aspirations of communities, as well as the plans and priorities of governments; assist stakeholders and proponents to develop viable project proposals and access funding sources; provide advice to governments on current issues, challenges and opportunities in regional areas; and assist with promoting awareness of government initiatives and access to government programs.

This distribution sees state government funding provided to RDAs based on agreed grant funding guidelines that incorporate activities for all three tiers of government and that provide for a renewed emphasis on regional economic development. In particular, the funding will be directed towards growing regional economies, improving infrastructure and creating sustainable jobs.

The result of this funding arrangement is that the South Australian government is now the major funding partner of South Australian RDAs. The state government funding will enable RDAs to undertake a broad range of activities that will drive economic development and make a real and lasting difference in regional communities. In addition to the funding that is provided directly to RDAs, the RDAs are also eligible to apply for grants from the expanded $15 million Regional Development Fund. RDAs can identify projects that are being considered in their communities and ensure that all available avenues are pursued to progress them.

Therefore, the RDAs are able to provide advice and assistance to proponents in assessing not only the $15 million Regional Development Fund but also the federal government's National Stronger Regions Fund. The RDA role in identifying and facilitating funding for priority projects in the past has been vital and doubtless the RDAs will continue to make a valuable contribution in this regard in the coming years.

I am confident that the funding arrangements that have been put in place for the RDAs for the next three years will enable them to achieve some fantastic results for regional South Australia. The RDAs collaboratively determined the regional distribution of the funding based on the competitive needs of each region. The RDA Barossa asked for $380,000; the RDA Limestone Coast, $400,000—this is for 2015-16 to 2017-18—RDA Far North, $400,000; RDA Adelaide Hills, Fleurieu and Kangaroo Island, $425,000; RDA Murraylands and Riverland, $450,000; RDA Whyalla and Eyre Peninsula, $470,000; and RDA Yorke and Mid North, $475,000. Again, I compliment the work of the RDAs across all of South Australia.

The CHAIR: Member for Goyder, do you have any more questions?

Mr GRIFFITHS: I do, Chair, but the member for Mount Gambier has asked permission to ask a question of the minister.

The CHAIR: Go ahead.

Mr BELL: Budget Paper 3, Budget Statement, page 106 to do with the country cabinet committee. Could you explain why it has taken seven months between the first country cabinet meeting to occur and the one scheduled for October 2015? Would you agree that, if you do not achieve the promised three visits per year, it is an indication that the committee has lost interest in the regions? You met in March 2015 and your next one is October 2015, and I am wondering why the seven-month delay, and will you get the three in this year? That is the crux of it.

The Hon. G.G. BROCK: We will achieve three every year. The frequency and the location is determined in conjunction with myself and the Department of the Premier and Cabinet.

Mr BELL: And the reason for the seven-month delay?

The Hon. G.G. BROCK: I do not have the exact reason here but obviously we have to mix in with the availability of all ministers and also with the sitting of parliament. I cannot give you a definite answer but I guarantee—

Mr BELL: But you can give a commitment that it will be—

The Hon. G.G. BROCK: I can give you a commitment that there will be three every year.

Mr GRIFFITHS: If I may return to the Regional Impact Assessment Statement. I appreciate the response provided by the minister to the last question that I asked on that. Indeed, as part of that, he referred to regular meetings that he had with minister Hunter about the marine park and the RIAS for that. Can I just seek some clarification, though, because in listening to the minister on radio one day—I hope I am correct and not putting this incorrectly— but my recollection is that he said that no matter what the input is or the feedback is, there will not be any changes to the sanctuary zones. That is my recollection of what he said. In the discussions that the minister has held with minister Hunter, is there an understanding from you that if changes are required changes will be made?

The Hon. G.G. BROCK: I think the member for Goyder can recall he asked this question in the chamber and I answered the question in the chamber.

Mr GRIFFITHS: I remember the day well, minister. Can I ask then how many meetings have you had with minister Hunter about the marine parks RIAS?

The Hon. G.G. BROCK: I know they are scheduled on a regular basis, bearing in mind we have to collate the meetings between the ministers and my visits into the regions, which is very important. I have regular meetings, and I think it is on around a monthly basis. I cannot give you the exact dates.

Mr GRIFFITHS: I take your word on the monthly basis. Have any issues arisen during those discussions such that you felt that an adjustment to policy needed to occur?

The Hon. G.G. BROCK: To date, the RIAS, as we indicated earlier—I think the Institute of Goyder and SACES are fulfilling that. I have not been advised of anything outstanding at this point.

Mr GRIFFITHS: To clarify, do you see any form of regular update as part of that 12-month cycle before the final report has to be handed down? Are reports given to you on an interim basis?

The Hon. G.G. BROCK: The RIAS are still being finalised from discussions. Michael O'Neill has been out to all the different regions, and he is collating that. It will be coming back to me. In discussions nothing has been brought to my attention at this point. As I said earlier, the RIAS are being handled by minister Ian Hunter MLC, but nothing has come to my attention at this point.

Mr GRIFFITHS: Have residents of the communities of Kangaroo Island, Ceduna and Port Wakefield that you have referred to contacted you about the marine park sanctuary zones, and have you found it necessary to take up discussions on those communities' behalf with minister Hunter?

Mr PICTON: On a point of order, Chair, what budget reference is this pertaining to?

Mr GRIFFITHS: Page 107.

The CHAIR: You could loosely draw that link, but I do not think the minister needs to go into conversations he has had with other ministers. This is examining his responsibility in terms of the appropriation.

Mr GRIFFITHS: Absolutely.

The CHAIR: Alright. So, the minister does not need to detail his meetings with minister Hunter.

Mr BELL: Unless he is willing to do so.

The CHAIR: Unless he is willing to do so. I am advising that he does not need to.

The Hon. G.G. BROCK: To answer the question, minister Hunter gives me a progress, as I indicated. I had a phone call last week from one person in Port Wakefield, and other than that there has been no contact to me directly.

The Hon. P. CAICA: I refer to page 34 of Budget Paper 4, portfolio statements Volume 4, Program 3. Minister, can you please explain how the government is continuing to support the key outcomes of the Limestone Coast Economic Diversification Forum, as detailed by the region's business and community leaders?

The Hon. G.G. BROCK: I thank the honourable member for his question. In 2012 the Limestone Coast experienced a significant downturn in some of its key industries, including forest processing and dairying, and the regional leaders came to the state government requesting assistance to look at options for diversifying the economy.

The Premier convened a forum in September of that year, bringing together the Limestone Coast businesses and community leaders, to identify the key priorities for the region. The task for implementing these was picked up by a regional group under the framework of the South-East Local Government Association (SELGA). The work of the Limestone Coast Economic Diversification Group is currently orientated around several projects, including fostering collaboration within and across all industry, and mobilising industry and business leaders.

The state government has been pleased to support one of these projects through the 2014-15 Regional Department Fund, the Regional Food Initiatives Program. The Limestone Coast collaborative received $80,000 over two years and has employed a part-time project officer to implement this project plan. This group of like-minded organisations and individuals came together out of a leader's forum convened by the Limestone Coast Economic Diversification Group. The focus is on capacity building for agriculture, food, wine and tourism businesses and, through collaboration, development of a regional brand.

In this financial year, the state government is pleased to partner with Regional Development Australia Limestone Coast by contributing $15,000 to further foster and mobilise industry and business leaders. The Regional Leadership Development Program intends to develop an overarching framework for a regional emerging and alumni leadership program that is supported by businesses willing to fund and sustain it long term. Following the identification of the best fit model for the region, a process for implementation will be developed, including engaging with regional businesses and identifying potential participants.

To develop and gain support for implementing these projects, the Limestone Coast Economic Diversification Group has engaged with all levels of government, industry and business leaders, and across the education, research and development sectors. As intended, the group has been successful in informing the projects and programs of the state government's strategic priorities of 'Premium food and wine from our clean environment' and also 'Growing advanced manufacturing'.

The membership of the group includes representatives from the South East Local Government Association, Regional Development Australia Limestone Coast and the South East Natural Resource Management Board. It continues to work with the state government through Primary Industries and Regions SA and the Department of State Development, the Australian government through the Department for Industry, and with the 2012 forum facilitator Mr Dennis Mutton as required.

I look forward to discussing progress of the diversification of the region's economy as well as understanding other priorities and issues of concern when I meet with businesses and community leaders in the Limestone Coast as part of the Regional Roadshow program, which will be held in August 2015.

The Hon. P. CAICA: Again, Budget Paper 4, Program 3 in the agency statements, page 34—minister, can you provide details of any program in the Job Accelerator Fund that specifically targets the employment of young people in regional areas?

The Hon. G.G. BROCK: Again, I thank the honourable member for his question. As part of the state government's $10 million Jobs Accelerator Fund, a $2 million Regional Youth Traineeship Program will be offered to all 57 regional local governing bodies which, for the sake of simplicity, I am calling 'councils' but which comprise regional councils, the Outback Communities Authority, Aboriginal community councils, and the APY and Maralinga areas. The state government funding will take the form of a grant for part of the costs of employing each of 57 trainees for two years, with the participating councils contributing the remaining funding.

Each council will receive up to $14,500 per annum, or $29,000 over two years, independent of individual council awards and enterprise bargaining conditions. The individual council is responsible for all other costs in engaging the trainee. The purpose of the program is to assist each council to offer entry-level employment to a young person aged 17 to 24 who is a resident of regional South Australia to increase workforce participation. This program aims to assist young people in regional areas to participate in the labour market through paid full-time work and education and training or combined learning and work.

The selection criteria for the program will consider an applicant's previous work history, with a preference given to those who have not previously been employed. The program will be delivered by the Local Government Association of South Australia on behalf of the state government. It is intended that trainees who have successfully met the set criteria could be offered an ongoing entry-level role after the completion of the traineeship depending on council priorities and funding. Trainee opportunities are likely to involve office work such as administration, IT, website development or accounting, or skilled outdoor work such as horticulture, parks and gardens, or welding or mechanical.

The traineeship is full-time for 24 months from commencement, and the level of training is envisaged to be at Australian Qualification Framework level 3 or above. The program is designed to create sufficient incentive for regional local governing authorities to continue employing these trainees following the conclusion of the program. In closing, I think this program is being well received by all councils across regional South Australia.

Mr GRIFFITHS: Minister, I will refer back to the regional impact assessments again. This one is about WorkReady, which I understand is not a portfolio responsibility of yours, but impacts on regional South Australia, so I am referring it back to page 107 of Budget Paper 3, where you talk about regional impact assessment statements. There is quite a bit of paperwork on that.

I presume that you would have sought and been provided with briefings prior to the announcement of the policy change in mid-May—so only a couple of months ago. Were there any issues attached to that that you expressed concerns about and believed that a RIAS should have been undertaken for?

The Hon. G.G. BROCK: I thank the member for Goyder for his question. This is a matter of importance to regional communities, and it is of interest to me as Minister for Regional Development. However, this matter falls within the portfolio responsibilities of another minister in the other place, and so, with respect, I would suggest that you refer this question to that minister so you can receive the most appropriate accurate response. I am led to understand that minister Gago has already faced the estimates committee.

Mr GRIFFITHS: If I may just add to that, minister, I am certainly aware that the minister has met with—

The Hon. G.G. BROCK: I apologise, I meant the minister in this place (the Legislative Council), not in the other place.

Mr GRIFFITHS: Yes, I did know what you meant. I am aware that minister Gago (from this place) has indeed met with various RTOs from regional areas. I do not necessarily need to provide you with feedback on that; they have spoken to me about it. My understanding is that RTOs have also contacted you directly, and I believe that you have had a conversation with at least one RTO. Has there been any outcome, from your point of view, from that discussion? Did you give them any assurances of things that you would undertake, and has that occurred?

The Hon. G.G. BROCK: Mr Chairman, as the member for Goyder is, I think, well aware, Caroline—

Mr GRIFFITHS: Graham.

The Hon. G.G. BROCK: —Graham came in and saw me. Yes, I gave a commitment to talk to minister Gago, which I have, and my understanding is that there are discussions with minister Gago and Ms Graham going on at the moment.

Mr GRIFFITHS: If I can just seek clarification please. Minister, thank you for the detail. So, have you relayed that back to Mrs Graham? I have not asked her this, so I do not know. I am not trying to trap you out on this, but I just want to make sure that there is an opportunity for the information that presumably Mrs Graham, on behalf of her own organisation and other RTOs in regional South Australia, provided to you about the concerns on WorkReady so that there is feedback actually occurring.

The Hon. G.G. BROCK: I have not spoken to Ms Graham personally, but I will take that on board. I am sure that we would have communicated with her, but I cannot answer that question at the moment for the member. Certainly, she is the only one who has spoken to me, to my recollection.

Mr GRIFFITHS: Minister, if I can refer to Budget Paper 4, Volume 4, page 35. This is a numbers-based question. You actually highlight, at about the two-thirds spot on that page, that there are 48.1 FTEs for the 2015-16 budget. Can you just confirm how many of those actually operate within the regions and how many are based within the metropolitan area?

The Hon. G.G. BROCK: To answer the member, Regions SA has 29. Of those, we have five regional coordinators and the rest are other people coming out of Regions SA's allocation who go out into the regions. Regions SA has 29 and, of those, five are regional coordinators.

Mr GRIFFITHS: Given that the budget papers show 48.1, can you clarify where the other 19 are?

The Hon. G.G. BROCK: I will get Mr Frater to elaborate on that further.

Mr FRATER: The previous decision to create Regions SA was for an employment figure of around 30 FTEs. We are currently running at around 29. In addition, there are nine staff in the minister's office. Also, there is an indigenous economic development initiative; there is one staff member working on that. The remaining 9.1 staff are what is called the overhead allocation, where they take all the corporate, all the ICT, all the other processes and they smear them across the rest of the department.

Mr GRIFFITHS: My thanks, Mr Frater, for the details on that. I refer to Budget Paper 3, page 112. It is a question about the Skills for Jobs in Regions program, which was part of last year's budget papers. I am just seeking some clarification on whether that program still exists. For example, a commitment was given prior to the 2014 election to expand the Skills for Jobs in Regions by $213,000 per year over the next four years to help an additional 1,000 older South Australians, and the 2014-15 budget includes the expansion of the same program, which will target communities facing the greatest employment challenges with the goal of 6,000 more people in jobs over the next three years. Does the Skills for Jobs in Regions program still exist?

The Hon. G.G. BROCK: What page was that?

Mr GRIFFITHS: Page 112, minister. I will accept some criticism for being creative with my reference. It talks about population and unemployment. This program is a strong driver of employment opportunity and helping fix our unemployment in regional South Australia. It quotes the statistics there, which are rather concerning. Is the minister able to confirm whether that program still exists?

The Hon. G.G. BROCK: I thank the member for the question. Again, this matter is of great importance to the whole state, to regional communities, and it is of interest to me as the Minister for Regional Development, but as this comes under the portfolio of minister Gago I would, with respect, suggest that you refer this question to her so that you can receive a most appropriate and accurate response. It is minister Gago's portfolio.

Mr GRIFFITHS: I do respect that, and I know that I was being creative in the reference page that I gave, but I would have hoped that, as part of the substantial information that is no doubt provided to you as part of the estimates process, details of programs as they operate in regional in South Australia would have been provided to you. That is why I wanted to put some clarification there.

Ms DIGANCE: I would like to take the committee's attention back to Budget Paper 4, Volume 4, Program 3, page 34. Will the minister explain how the state government's support of the South Australian Regional Awards assists in delivering Primary Industries and Regions SA's objective of facilitating strong, vibrant and sustainable regional industries and communities?

The Hon. G.G. BROCK: I thank the honourable member for her question. The South Australian Regional Awards, coordinated by Brand SA, are held annually across the state to celebrate and showcase the achievements of individuals, groups and organisations contributing to regional South Australia. The program provides a benchmark for excellence by publicly recognising the achievements and successes of those who make a difference to the state's seven regions.

The awards reward and provide a standard for excellence within regional South Australia in all sectors, including small business, sport, the arts, food, wine and tourism. PIRSA, through its Regions SA division, is the major partner for the 2015 South Australian Regional Awards and the category sponsor of the Premium Food and Wine from our Clean Environment—Wine Award.

The 2014 regional awards, which were also sponsored by PIRSA, saw 2,346 nominations and 646 entries received across state—the highest figures the program has ever received. The 2015 nominations have now closed, and Brand SA has again reported excellent responses across each of the categories in all regions. The presentation evenings will be held across the state during October for the 2015 awards. Again, I will be attempting to get to as many as those as I can, and I encourage all local members to attend as well.

Through its involvement in the judging process and presentation evenings in each of the seven regions, PIRSA will continue to collaborate to support regional stakeholders and identify future opportunities for growth and sustainability across all regional economic sectors. An example of collaborative success can be demonstrated through two inductees to the Regional Awards Hall of Fame in 2014 having received supporting funding from PIRSA for significant regional projects. Almondco Australia received $1.9 million through the Riverland Sustainable Futures Fund to assist in the installation and commissioning of new pasteurisation equipment, and Golden North at Laura received $200,000 through the 2013-14 Regional Development Fund towards the expansion and upgrade of its Laura ice cream production facilities—and, if I may say so, it is the best ice cream in South Australia.

Ms DIGANCE: I agree with you, absolutely.

Mr GRIFFITHS: We are very short of time, but I have a question about the northern Adelaide irrigation scheme. Has the minister been briefed on that and on the opportunity it presents in the northern areas as well as the Mallala and Two Wells area? What level of support exists to help fund that infrastructure?

The Hon. G.G. BROCK: I have not had a full briefing at this stage. I am aware of it and I am getting a full briefing, and I am looking forward to the implications of that because it offers great opportunities.

Mr GRIFFITHS: Just a point of clarification. You referred to the Jobs Accelerator Fund and the Regional Loans Scheme and I know you talked about the dollar values attached to it, the $200,000 versus the $2 million maximum, but how does it actually work from an interest cost point of view for the businesses that apply for that support? That was page 108 in Budget Paper 3.

The Hon. G.G. BROCK: We will take that question on notice. We do not want to give you the wrong information, but we are happy to take that on notice and get back to the member, bearing in mind that interest rates are up and down.

Mr GRIFFITHS: They are reasonably static at the moment, actually.

The CHAIR: With that, according to the agreed timetable, I declare the proposed payments for the Department of Primary Industries and Regions and the administered items for that department completed. Thank you, minister, and thank you to your advisers.