Estimates Vote

Department for Trade, Tourism and Investment, $49,464,000

Minister for Trade, Tourism and Investment, $5,294,000

Minister:

Hon. D.W. Ridgway, Minister for Trade, Tourism and Investment.

Departmental Advisers:

Ms M. Antcliff, Acting Chief Executive, Department for Trade, Tourism and Investment.

Ms S. Adlaf, Director, Strategic Operations, Department for Trade, Tourism and Investment.

Ms N. Slivak, Director, International Markets and TradeStart, Department for Trade, Tourism and Investment.

Mr P. Klar, Director, International Education and Tourism, Department for Trade, Tourism and Investment.

Mr G. Artz, Director, Defence and Space, Hi-Tech and Creative Industries, Department for Trade, Tourism and Investment.

Mr J. Ross, Director, Policy and Analytics, Department for Trade, Tourism and Investment.

Ms R. Lang, Manager, Finance, Department for Trade, Tourism and Investment.

The CHAIR: Good afternoon. 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 to an approximate time for the consideration of proposed payments, which will facilitate a change of departmental advisers. Can the minister and the lead speaker for the opposition confirm that the timetable for today's proceedings previously distributed is accurate.

The Hon. D.W. RIDGWAY: Yes.

The Hon. Z.L. BETTISON: Yes.

The CHAIR: Changes to committee membership will be notified as they occur. Members should ensure that the Chair is provided with a completed request to be discharged form. If the minister undertakes to supply information at a later date, it must be submitted to the Clerk Assistant via the answers to questions mailbox no later than Friday 5 September 2019.

I propose to allow the minister and the lead speaker for the opposition to make opening statements of about 10 minutes each, should they wish. There will be a flexible approach to giving the call to ask questions based on about three questions per member, alternating each side. Supplementary questions will be the exception rather than the rule.

A member not on 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 proceedings may submit them as questions on notice for inclusion in the assembly Notice Paper.

There is no formal facility for the tabling of documents before the committee; however, documents can be supplied to the Chair for distribution to the committee. The incorporation of material in Hansard is permitted on the same basis as applies in the house, that is, that it is purely statistical and limited to one page in length.

All questions are to be directed to the minister and not the minister's advisers. The minister may refer questions to advisers for a response. The committee's examination will be broadcast in the same manner as the sittings of the house are broadcast, that is, through the IPTV system within Parliament House via the webstream link to the internet and the Parliament of South Australia video-on-demand broadcast system.

I will now proceed to open the following lines of examination: the portfolio being the Department for Trade, Tourism and Investment, Health Industries SA. The minister appearing is the Minister for Trade, Tourism and Investment. I can advise that the following members have requested to be discharged, being the members for Morphett, Playford and Wright. They have been replaced by the members for Finniss, Ramsay and Elizabeth.

I declare the proposed payments open for examination and refer members to the Agency Statements, Volume 4. Minister, could you please introduce your advisers for the committee and make an opening statement if you so wish.

The Hon. D.W. RIDGWAY: Thank you, Mr Chairman, and thank you for the opportunity to highlight some of the achievements of the Department for Trade, Tourism and Investment for the last year and also the year ahead. It is a pleasure to welcome my great team from the department here with me. They are working very hard to support the government's ambitious reform agenda.

I have with me, on my left, Ms Megan Antcliff, the Acting Chief Executive of the Department for Trade, Tourism and Investment. Further on the left is Ms Sophie Adlaf, Director, Strategic Operations. On my right is Ms Narelle Slivak, Director, International Markets and TradeStart. Behind me on my left is Mr Peter Klar, Director, International Education and Tourism. On the right is Ms Rebecca Lang, Manager, Finance. At the back, assuming they have not swapped seats, is Mr Gavin Artz, Director, Defence and Space, Hi-Tech and Creative Industries, and on the right is Mr Justin Ross, Director of Policy and Analytics.

South Australia has a rich history of innovation and enterprise, fuelled by vast natural resources and world-class industry capabilities. Yet, despite our expertise and natural advantages, in the past two decades South Australia has failed to achieve its full potential, with our share of national income, population and employment growth all declining. To reverse this legacy, the government is embarking on an ambitious reform agenda, on empowering our key industry sectors to tap into new markets and attracting greater interstate and international investment into our economy.

To support our objective to build a stronger and better performing South Australia, the Department for Trade, Tourism and Investment was created at the beginning of the 2018 financial year. Despite facing significant challenges with the state budget, which is still very much under repair, and of course the significant blow of a $2 billion GST writedown, I am pleased to report that South Australia is in a strong position, and the government is steadfast in its commitment to building upon this momentum.

It is no secret that the Marshall Liberal government is positioning South Australia to grow, setting an ambitious target of 3 per cent of growth per annum. After commissioning a New Zealand former minister for economic development, the Hon. Steven Joyce, to review South Australia's international and interstate engagement, the government has wasted no time in taking deliberate actions to drive growth.

We have identified priority sectors that have substantial prospects for growth, and we are working closely cross-agency and in direct collaboration with industry to develop sector strategies and agreed growth targets. Those priority sectors are: food and agribusiness, tourism, international education, minerals and energy, defence and space, creative industries, high-tech, and health and medical industries. As recommended by Mr Joyce, we are coordinating a whole-of-government response to these industry growth strategies through the establishment of the South Australian Growth Agenda, designed to lift the state's competitiveness and attract investment in our leading export industries.

Delivering on this growth agenda is the primary function of my department and will form much of the core work that we do over the next financial year as we build on the foundations that we laid in the previous financial year. Joyce also called on South Australia's state brand to be less inward-focused and to instead promote South Australia to the world. The Department for Trade, Tourism and Investment is now managing the state brand, which includes the much admired gateway logo, and is continuing the local I Choose SA campaign. Together with the recently established state promotion task force, we will position and use the brand to promote South Australia interstate and overseas to increase exports and jobs growth.

Furthermore, the Department for Trade, Tourism and Investment will now have the lead responsibility for the coordination of all outbound economic missions and the development of an annual business missions calendar, which will be developed together with industry and can be found on the department's website. I must also make the point, as evident in the budget papers, that subsequent to the Joyce review there have been significant machinery of government changes affecting the Department for Trade, Tourism and Investment.

Some of the bigger changes include Immigration SA transferring out of my department to Industry and Skills and the following teams transferring into my department as of 1 April 2019: case management and regions, industry policy and analytics, industry and business growth, the State Coordinator-General, the China strategy team and the Office of the Agent-General budget and administration team.

I am pleased that, since its inception, my department is delivering for South Australia. In 2018-19, the department had a target to support South Australian businesses in achieving $50 million in export success through departmental activity. I am pleased to share that $52.3 million of export sales have been reported as of 30 June 2019. Another target was to provide 400 export businesses with training, mentoring and advice on boosting markets; this was exceeded with a record 735 individual South Australian businesses engaging with these services.

The uptake of our Export Accelerator Program has been fantastic, with 55 businesses accessing $1.18 million of grants to facilitate trade opportunities. We are also fulfilling our election commitments to open a trade office network across the globe, with offices already open in China and another one in North Asia. We are well on the way to opening offices in Dubai, the United States and Kuala Lumpur and establishing a trade representative in Guangzhou.

We have fulfilled multiple election commitments in the field of international education. Our international student numbers were around 38,000 last year, bringing in $1.8 billion. I will repeat that figure: $1.8 billion to our state's economy. This is well above the target of 37,250 students for $1.55 billion.

In 2018-19, the department had a target of creating 2,000 new jobs and attracting $500 million of investment from companies in targeted industries that are direct clients of DTTI. As of 30 June this year, 30 company investments had been secured, with over $612 million in capital expenditure invested, creating over 2,800 jobs: 1,851 direct jobs and a bit over 1,000 jobs in construction. Some achievements in the past year include attracting to South Australia Berkshire Hathaway, Southern Launch, Akuo Energy, Sony PlayStation and of course MIT, which I am happy to talk about in a bit more detail later on.

This budget also sets new targets for our department which reflects a movement from specific value targets to whole-of-economy targets. The department now has responsibility not only for its clients but to the whole of the economy and driving sustained economic growth to ultimately reaching our target of 3 per cent growth of GSP.

Last budget the government established the Economic and Business Growth Fund to attract and then support significant new technologies, capabilities and expertise in industries that align to the state's competitive advantages. The government will consider companies that fulfil the objectives of the fund if there is a strong return on investment. This fund has already been used towards Mitsubishi's Australasian headquarters at Adelaide Airport, assisting in public infrastructure for the rebuild of Thomas Foods International operations and attracting Sony PlayStation to South Australia.

The fund has also been used to establish the South Australian Landing Pad. This program, which was announced in March this year, will proactively target and attract international and interstate early stage companies with transformational and high-growth potential across all priority sectors. The program also provides established companies with an effective way of creating, if you like, a beachhead in the state, testing opportunities and growing. The $4 million over four years used to fund the program will enable successful applicants to access only local business service and accommodation, returning all the fund back to the state's economy.

There have also been big wins in the renewable energy sector, with Rise Renewables' pumped hydro project at Baroota and SIMEC ZEN Energy's solar farm at Cultana, both obtaining approvals for development worth a combined $1.05 billion. Additionally, the government has implemented a new industry-to-research engagement model through the business growth and competitiveness portfolio. A six-month pilot led 110 companies to directly engage with experts in robotics and automation within Flinders University to advance company productivity.

The success of the pilot provided this government the opportunity to extend the model and launch the Emerging Technology Interest Groups to enable manufacturing companies to explore key Industry 4.0 technologies facilitated by experts across our major South Australian universities—digital transformation technologies covering virtual and augmented reality, additive manufacturing and 3D design, artificial intelligence and machine learning, advanced sensors, data driven decision-making and the industrial Internet of Things. Within the first month of the launch of this industry group, we have had 80 companies participate within the program.

When discussing achievements for the last financial year it would be remiss of me not to mention the fantastic work done by the Immigration SA team around the Designated Area Migration Agreements and the national visa settings in the population growth debate. My department undertook a significant body of work to ultimately secure new visa settings, increased state nomination caps and secure the two DAMAs with the federal government.

Of course, with the machinery of government changes Immigration South Australia has moved to the Department for Innovation and Skills, but I am confident the team will continue to do its good work in delivering for South Australia. Incidentally, the team that put that project together included a number of government agencies. As you can see, we have reached and exceeded our 2018-19 goals and have not stopped in implementing our strong plan for real change.

Finally, as announced on 2 July, Ms Leonie Muldoon will come on board as the new chief executive of the Department for Trade, Tourism and Investment. We are excited for Ms Muldoon to commence in the position on 19 August. Ms Muldoon will bring with her a wealth of experience in the trade and investment sectors internationally, and we are confident she has the expertise to drive the South Australian growth agenda and implement the endorsed recommendations outlined in the Joyce review to grow the economy, grow our exports and create local jobs.

There is still much more work to be done and I am looking forward to implementing our ambitious 2019-20 agenda to continue our work in driving growth and creating new jobs.

The Hon. Z.L. BETTISON: Can I draw your attention to Budget Paper 4, Volume 4, page 134, the performance and activity indicators. Why does the government believe it is worthwhile to stop tracking the number of new jobs created from DTTI activity, jobs that you actually just spoke about in your opening statement?

The Hon. D.W. RIDGWAY: I thank the honourable member for her question. Following the Joyce review, we have an ambitious target to grow the economy. It is the view of the government that it is much better to have whole-of-government targets on percentages rather than individual details.

I can repeat the figures: as of 30 June we had those figures of $612 million and the creation of over 2,800 jobs. In discussions with the Hon. Mr Joyce it certainly makes sense to look at a whole-of-government approach to measuring these things. We clearly are very focused on growing the state's economy. We have had below the national average growth for the best part of two decades.

The Hon. Z.L. BETTISON: Minister, why did the government also make the decision to stop measuring the value of exports facilitated by DTTI? Currently, in the performance indicators, these are detailed and now you have made a decision not to capture that data.

The Hon. D.W. RIDGWAY: The data is captured but it is the view of the government and cabinet that the best way to measure it is on the percentage increases so that we can actually look at the trends over the long term. Things change in a number of areas so it is the government's view that that is the best way to measure those statistics over the long term.

The Hon. Z.L. BETTISON: But how will you determine the direct performance of DTTI on jobs and exports if you are not actually going to capture and measure the amount that you achieve?

The Hon. D.W. RIDGWAY: I think it is clear: if you look at the recommendations of the Joyce review it is about—and if you look at all of the great work that happened in New Zealand, which I think is one of the stand-out economies in the Western world in the last decade, they looked at overall growth and areas where they could get growth, and they measured it by looking at the percentage increase.

We will certainly be tracking all of the sectors. I draw the opposition spokesperson's attention to the good example of when we have a drought and our grain exports drop off through no fault of either the primary producers or the international markets. So some of those things can be a little volatile. I think when you are looking at measuring things on a percentage basis, it is a much more accurate way over the longer term to measure those things.

The Hon. Z.L. BETTISON: We might have some conversations about that, but obviously you have put in a new target, so we are looking at the growth of South Australia's share of foreign direct investment. What was the growth in SA's share of foreign direct investment coming to South Australia in 2018-19?

The CHAIR: Sorry, member for Ramsay, could you tell me where you are in the budget papers?

The Hon. Z.L. BETTISON: Budget Paper 4, Volume 4, page 134, continuing on the same topic. Obviously, the new target of 6 per cent is in there, but what is our share now in 2018-19?

The Hon. D.W. RIDGWAY: I thank the honourable member for her question. The Joyce review recommends that foreign direct investment levels be a key performance indicator for the Department for Trade, Tourism and Investment to acknowledge its accountability for the broader investment performance in South Australia. While DTTI does not control this measure on its own it has an opportunity to be a clear influencer on the growth of overall investment in the state over the medium term.

South Australia's long-term average of FDI coming into Australia is approximately 4 per cent over the past 15 years, according to data from fDi Markets. South Australia's share for the full year to 2018 was marginally higher at 5 per cent. The department is aiming to deliver a higher share of foreign direct investment coming into South Australia, with investment promotion and facilitation activities targeting 6 per cent of all foreign direct investment into South Australia.

Data relating to foreign direct investment is poorly captured at the state level, with federal statistical bureaus tracking country to country investment flows. The best source of state level information about foreign direct investment is through its access to fDi Markets, as in the reporting agency or the reporting body, a subsidiary of the Financial Times. fDi Markets provide access to a database of foreign direct investment announcements globally since 2003, based on media announcements.

fDi Markets show that between 2003 and 2018, South Australia attracted approximately $22.58 billion in foreign direct investment, compared with a total of approximately $586 billion nationally. In 2015, 2016 and 2017, the annual change in capital expenditure projects recorded into South Australia exceeded that of Australia quite significantly due to the very high growth of FDI that South Australia was experiencing. South Australia's share of the Australian FDI grew, peaking at 11.7 per cent in 2017, based on fDi Markets. Recorded projects into South Australia peaked in 2017, based on the value of capital expenditure and the number of projects, with the $2.9 billion of capital expenditure representing 41 projects. In the same year, Australia recorded 412 projects with a total capital expenditure $24.7 billion.

The large reported projects recorded in South Australia, according to fDi Markets, included a whole range of projects. Interestingly, SkyCity's expansion is listed in that year but, as we know, it is yet to be completed, so often these things have a little bit of a lag with them. The eight investment projects recorded account for approximately $2.1 billion in capital expenditure.

In 2018, South Australia had 29 FDI projects recorded in fDi Markets with a total capital expenditure of less than half that of 2017. The top eight projects, based on capital expenditure, combined accounted for about $839 million, and there are a few you will be well aware of: EasyMile autonomous vehicles, Mill Film (Technicolor), of course, and SolarReserve opening an office. Of the 29 FDI projects recorded in South Australia, 20 were recorded in the first half of the year.

The Hon. Z.L. BETTISON: On the same page, the performance indicators indicate that you have a target of 3 per cent real growth in business investment in South Australia. What was the real growth in business investment in South Australia in 2018-19?

The Hon. D.W. RIDGWAY: The growth in business investment for 2018-19? We really only have the long-term growth, we do not have the actual.

The Hon. Z.L. BETTISON: Minister, would you like to take that on notice?

The Hon. D.W. RIDGWAY: I will take that one on notice, it might be the easiest way.

The Hon. Z.L. BETTISON: Thank you very much. Minister, has anyone in your department provided modelling to Treasury about the impact of land tax changes?

The Hon. D.W. RIDGWAY: Not that I am aware—although, of course, we are not quite sure what those changes will look like. The legislation the Treasurer and the government have spoken of is yet to be consulted on and yet to be tabled. When we get closer to the end of that process we will have an opportunity to look at what has been proposed.

The Hon. Z.L. BETTISON: Do you share concerns, as have been expressed by the business community, that this might impact business investment growth in South Australia?

The Hon. D.W. RIDGWAY: The department has engaged with a number of businesses over the last few weeks and I think it is fair to say, without any sort of formal discussions, that not one of them has raised this as a concern. It is not something that has been high on the agenda of interstate or international businesses.

The Hon. Z.L. BETTISON: Minister, you have been away for the last few weeks. You do not think this is a topic of concern?

The Hon. D.W. RIDGWAY: I certainly think there is a range of factors that concern us all the time, but in this particular case I suspect that companies looking to invest in South Australia take into consideration a whole range of factors. I am not sure that the current changes to land tax are high on the agenda of international or interstate companies looking to invest here.

The Hon. Z.L. BETTISON: On the same page, what was the real growth in the value of exports in South Australia in 2018-19?

The Hon. D.W. RIDGWAY: When it comes to growth in exports, we have an ambitious target. Some of the export figures can be a little confusing. We have had a particularly bad drought over the last 12 months, and there was the fire at Thomas Foods, of course, which was a concern because that is a major exporter of South Australian meat and some of their figures have had a downturn.

If you look at the national figures, as well, things like coal, iron ore, LNG are going really well. We have a little bit of iron ore activity up in Mr Hughes' electorate but not to the magnitude there is in Western Australia or of the coal that comes out of New South Wales and Queensland. Sometimes those figures can be a little bit misleading, but the total goods and services exports sit at $15.7 billion for the 2018 calendar year. This is higher than the $12.6 billion of exports in 2008, so it is looking over a 10-year period, and that is resulting in annual growth of about 2.2 per cent.

Since the release of the Joyce review, we have been sitting down and consulting extensively with industry groups and the key export sectors. I think the key for us and the new approach with the Joyce review is we really want to make sure that all the activities are industry-led. We want to sit down and talk to industry and find out what they want to do, what markets are important to them and where they want to go.

It is very easy to not listen to industry, but they are the ones who own mortgages and put their businesses on the line to make products, to grow a product, to manufacture a product, to brew, to distil, to turn grapes into wine—whatever they do. I think it is important that we listen to them, and that is something we have been very actively doing over the last not quite six months since the Joyce review was handed down, and prior to that. It is important to work closely with industry. I think government has to work with industry, not industry work with government.

Certainly, in growing those exports, we will be doing trade missions where industry would like us to go, and inbound missions. On a beautiful day, South Australia sells itself. It is a lot easier to have a buyer here to show them South Australia than trying to explain to them on the other side of the world at a trade mission or a trade show where there are 10,000 other people from all over the world saying how good their part of the world is. I think South Australia sells itself. We will certainly be listening to industry. As I just said, we have had about 2.2 per cent of annual growth over the last decade and the figures last year were encouraging.

The Hon. Z.L. BETTISON: On the same page, does Business SA deliver the program related to the number of new export businesses provided with training, mentoring and advice on boosting markets?

The Hon. D.W. RIDGWAY: Can you repeat that, please?

The Hon. Z.L. BETTISON: Under the activity indicators, there is a target to provide training, mentoring and advice on boosting markets. Does Business SA deliver this program?

The Hon. D.W. RIDGWAY: Business SA does a part of that. Of course, we also have our TradeStart network around the state that does some work for it, so that is important. We have five or so people. There are two in the metropolitan north and south, the Limestone Coast, the Riverland, the north and one is based up in the Barossa. They do a lot of good work. Mr Todd Miller leads that team and does an excellent job. Of course, we also have the Export Ready Program that Business SA delivers.

The Hon. Z.L. BETTISON: Has Business SA's contract to provide these services been extended and for how long?

The Hon. D.W. RIDGWAY: It has been extended. Because we have a new chief executive, there are a few things we thought it might be useful for the new chief executive to get her teeth into. The funding has been extended to 31 December, and it will be a program that Business SA and Ms Muldoon will sit down and have a look at. We have some opportunities to look at how that program is delivered. I know Mr Martin Haese, the new Business SA chief executive, is excited about the opportunity. Maybe it is not business as usual as we have had over previous times. We are really looking at how we can work closely together, and it is one of the first things that I will ask the new chief executive to turn her mind to because it is important to have exporters ready to export.

In the past, with the large trade missions that the former government did, at times I think we had a lot of people who just went for a look. There was a bit of tyre kicking. Now that we have two trade offices, and ultimately we will have five in place soon, we do not need a trade mission. If somebody wants to export, we need confidence that they are ready to export, and then go to China and see Xiaoya, or go to Japan and see Sally Townsend, or Bill Muirhead and his team in London. We need to make sure that they have the capability and are prepared and ready for export. I am quite certain that we will have training and mentoring programs going forward.

The Hon. Z.L. BETTISON: I turn to Budget Paper 4, Volume 4, page 133. Looking at the explanation of 'significant movements', there is a line mentioning the 'rationalisation of overseas business missions and international advisors'. How many outbound business missions has DTTI conducted in the 2018-19 financial year?

The Hon. D.W. RIDGWAY: While I get the exact figures—because there have been some that they have done where I have not been involved—following the Joyce review, we have certainly made sure that we are more focused on especially our sectors, as I said in my few comments before because I think it is important not just to be saying we are doing business missions for the sake of doing business missions, but we need some outcomes.

We did five business missions last year, and I think there may have been a couple of other exploratory trips and things that various members of the department did. I often got into a lot of trouble in this chamber a few months ago and was a bit flippant in the way I referred to how you build relationships with people, so I will not repeat that today.

The Hon. Z.L. BETTISON: That would be wise, minister.

The Hon. D.W. RIDGWAY: It is important to make sure that you do build relationships with people and businesses. People do not sign up the very first time you have met with them. There is a little bit of an opportunity to, but I think it is important that business is about building relationships. When an international business comes here or one of ours goes overseas, there is a relationship there. Certainly, in China and Japan, relationships are very important. I think that we will see the same will come through in the United Kingdom and the US, Dubai and Malaysia, that it is about knowing the person or the people or the government or the country you are doing business with. So we will be very focused on doing that.

I have some figures here. We had one to China; we did China in July last year. The Governor went to India for us because of course you and I were here in estimates. It was fabulous that he was prepared to do that, and I pay tribute to the work the Governor does. He is very happy to represent the state. I think he may have done it for the former government, and I think it is also important that he is happy to do his bit. We went to China and Hong Kong in November. We did North Asia, Japan and South Korea in March which, of course, was to open the Japanese trade office. Again, the Governor was there to open it. He was very happy to do it. Then we did one to Europe in April this year.

So we have had some activity. You would be aware that we have the new missions calendar up on the website. It is only until Christmas—it is six months—because we want it to be industry-led. We did not want to just say, 'This is where we are going, get on board.' We actually want to make sure that industry has input into where we go and why we go to those markets. So we have developed the first six months and, through consultation over the next few months on our sector plans, I am sure that we will then be able to populate the next six months.

I do not know whether it will be possible, but I am sure there will be certain things that we say, 'Actually, this is very good. We need to keep doing that particular trade show every year for the next five years.' There may well be some components that will evolve over time that we see as annual things—things like SIAL in Shanghai. I have had discussions with the AFL to try to see if we can get the football lined up more closely to SIAL. This year, it was two weeks after. Certainly, from our small exporters, they are not going to go to SIAL and then hang around in China for two weeks waiting for the footy.

I have had discussions with the Victorian minister, Mr Pakula, who is the Minister for Trade, to ask him his view and he thought the same. I have spoken informally to the AFL about whether it is possible to shift it slightly. It is a little bit complicated because they have to have a bye when they get back from being overseas, so it is about scheduling all the matches. It is not just about our exports. I think there is some interest in trying to align all of that.

As I said to minister Pakula, it would be good for South Australia and Victoria to go there as team Australia, have the competition on the footy field and just be there as a team promoting our great products, whether they be South Australian or Victorian food or wine services—they are a big state. He was receptive to that. So we will see how that unfolds over the next few months.

The CHAIR: The member for Kavel seeks the call.

Mr CREGAN: Minister, can I take you to Budget Paper 4, Volume 4, page 134. Earlier, you mentioned the international trade offices. Can you please provide the committee with an update in relation to the opening of those offices?

The Hon. D.W. RIDGWAY: I thank the honourable member for his question. Indeed, one of the commitments the Marshall government took to the election was around opening a network of trade offices. It did confuse us in opposition as to why the former government closed virtually all of them. I think we had 11 at the peak and we kept the Shandong one in Jinan open and, of course, the Office of the Agent-General in London, but all the others were closed. As a state that needs to export to grow its economy, I think that was an interesting decision.

Our policy of regaining our ground in international trade will, we think, transform South Australia's economy through growing exports in our key markets. Of course, we have already opened the first two offices, one being in China which we opened in Shanghai last November. It has been a wonderful opportunity to get back into that market and, of course, we have partnered with Austrade to do that work. Some people have the view that with Austrade it cannot be as nimble or as flexible, but we found it to be a really great opportunity to build that relationship, especially given we have a fabulous federal government and a sensational Minister for Trade, Tourism and Investment, the Hon. Simon Birmingham, who is a South Australian and personal friend.

Stephanie Faye, the Chief Executive of Austrade, is very supportive of, if you like, the sort of Australia House-type model, where, a bit like London, we have the mothership and all the states plug in. We are a small state. All the expense of standalone offices, as grand as they might be, are very expensive—you have all the overheads—whereas with Austrade we can rent the conference room on days that we need the conference room, we can use the videoconferencing when we need to use the videoconferencing, and we have access to the high-tech facilities and all of Austrade's network.

I do detect that there is a real team Australia approach. So we have used that model in Shanghai, and one of the reasons we had to use it is, because we had walked away, we lost our operating licence. I do not know if there was ever a consideration of the former government, but those operating licences are not easy things to get back again. Austrade have one, so it was an opportunity. It was to the point where we could not even have a website that is active inside China because we are not allowed to operate there.

So it has been a good success, and in the 12 months to May 2019 I think exports have gone up $238 million, and China will be a key part of our export story. Clearly, wine exports grew by 13 per cent, up to nearly $1.8 billion in the last 12 months. Of course, being the member for Kavel, you would know how important wine exports are from your region. Maybe Mr Hughes is the only one who would not have any wine growing in his electorate, but pretty much everybody else is close to it or has some growing in their electorate. I think that is interesting. It is a particularly important sector for us and we will continue. One of my great views and beliefs during my career in business is that you should play to your strengths and wine is clearly one of our great strengths. Everybody recognises South Australia's wine.

As I mentioned, the Tokyo office was opened by the Governor in March this year, which is sort of like a North Asia office, Japan and Korea. Each office has a director: a lady called Xiaoya Wei, in China, who has done a great job, and, of course, Sally Townsend, who is the country director in Japan. Sally was born at Tennyson. She is a South Australian who has lived in Japan for about 20-odd years. She is married to a Japanese gentleman up there. For those of you who have met her, Sally is nearly six foot tall and has blonde hair, so she stands out quite nicely in the Japanese market. She will do a fabulous job. To her, it was her dream job.

So those two offices have gone really well. We have three more to open: Kuala Lumpur, Dubai and the United States, and we expect to have the last one open in the 2021 year. Then, of course, as I said before, it is very much about, if you are an exporter and you have a product, and you think you would like to—we have people on the ground. You do not need a trade mission. We have people there 365 days of the year ready to go.

I am excited, and we hope to have some announcements around dates in the near future and also locations, especially the US one. I nominated Dubai and Kuala Lumpur, but with the US one, I think we will have a location. That is one of our biggest export markers, it is one of our longest allies, for a whole bunch of reasons in the geopolitical defence space, and I think that is a market that we have withdrawn from.

After the GFC, the wine boys took a reasonable haircut but I think there is quite a lot of interest back in South Australian products. I also think one area in which the US is ripe for us is in our tourism offering here of fine food and fine wine and a little bit slower paced. I know that in the US or North America there are—we call them grey nomads here and I think they call them snowbirds—about 80 million snowbirds. I suspect nearly all of them have on their bucket list visiting Australia. The goal for us would be to try to prick that so that it is actually South Australia. 'If you are semi-retired or retired, this is the place to come. We have some of the nation's best food and wine. Come and have a look at it.' So I think there are some great opportunities with the US as well.

The Hon. Z.L. BETTISON: Minister, may I make a concern that, while I think your observation is obviously Ms Townsend's height and hair colour, her skills and experience are probably what will serve us best.

The Hon. D.W. RIDGWAY: I could add that her skills and experience were how she achieved the job. She was the stand-out candidate, no doubt about that, and was perfect to the—

The Hon. Z.L. BETTISON: And perhaps 'wine boys' and 'girls'—there are many women involved in the wine industry as well.

The Hon. D.W. RIDGWAY: Yes.

The CHAIR: Is there a question, member for Ramsay? I am keen to stick to the budget papers here, not some running commentary.

The Hon. Z.L. BETTISON: Continuing on Budget Paper 4, Volume 4, page 133: what was the total cost to conduct the G'Day USA business mission and why did you not go?

The Hon. D.W. RIDGWAY: The G'Day USA business mission, my understanding of that was that it was funded by the Premier, and my understanding is that it was funded from his budget. We cannot all be out of the state all of the time. As reported, I think I had six overseas trips last year. There is a limit to how many times you can be away from South Australia. The Premier and minister Pisoni went. That is my recollection. I think that was very much funded by the Department of the Premier and Cabinet.

The Hon. Z.L. BETTISON: What was the budget for business missions in 2018-19, and the budget for business missions in this upcoming year in 2019-20?

The Hon. D.W. RIDGWAY: I will just wait for my team to get the accurate details for you. As I said, we have drifted away from the big, large travelling caravans of business missions that the former government had. I do have the actual figures here. The budget for 2018-19 was $599,000 and for 2019-20 will be $624,000. I make this comment: it is about sitting down and talking with the industry about what they want. It is really important that we support industry with what they want to achieve from growing their businesses. Towards the end of the former government, there was a level of, I would say, business mission fatigue, that people got on board and went and said, 'Oh, gee, there is another one next week, or next month, we'd better go.'

I detected speaking to industry that, again, while for businesses to go it is a tax-deductible expense, there again you are not running your business if you are out on a trade mission. So we are really keen to make sure we do what business wants to support business. I did also mention about the value of the inbound missions. I think we overlooked that. As I said, I have the good fortune of being on the 13^th floor of the State Admin Centre, and, looking out to the south on a nice day, South Australia sells itself. It is beautiful.

With the inbound missions that we did last year, obviously China with the Shandong Group came to the show; we had a horticultural one in October; and we did some work around an inbound mission around cricket when India came. I think where there are target countries and, although they are great people, I am not sure we do much export or opportunities with the West Indies, so when the West Indies are in town for test cricket, we may not have an inbound West Indian mission, but if you have some contacts, maybe you can help me there.

Then we had Tasting Australia, which I think is in 2019. That is a key one to bring people in. When we are showcasing our great food and wine, autumn is a perfect time to showcase our state to international buyers. I know a number of food and wine buyers came in this year. I am keen to try to grow and expand that. We are fortunate that, back in a former Liberal government, either minister Ingerson or minister Hall grabbed the name 'Tasting Australia', so now we own Tasting Australia. It is not 'Tasting South Australia'.

It is probably a bit of a fluke perhaps, but 25 years on I think we should be really pleased that we have that title of that event: Tasting Australia. Let's face it, it is hard in the international market. A lot of people know a bit about Australia. It has always been a challenge for South Australia to stand out from the crowd. So for us to have an event that is about Tasting Australia, I think we should be very proud of that.

Of course, there was also an inbound wine mission at the same time, bringing in influencing wine writers. The inbound mission is something where we are not competing. Once we have somebody here, there is nobody else in their stand five metres down the exhibition hall trying to sell their product: we have them captured here.

The Hon. Z.L. BETTISON: So, minister, do you admit now that you got it wrong—like the Joyce review said, that it was wrong to cut back the business missions?

Mr PEDERICK: Do you have a budget line?

Mr ODENWALDER: Point of order.

The Hon. Z.L. BETTISON: We were talking about the business missions.

The CHAIR: There is a point of order. Member for Hammond, it is unparliamentary to interject. As such, if you seek the call, you can perhaps do it through me, Member for Hammond.

Mr PEDERICK: Thank you, sir, for your guidance.

The Hon. Z.L. BETTISON: It is very clear on page 133 about the rationalisation of overseas business missions. It is stated very clearly on the budget paper.

The Hon. D.W. RIDGWAY: I do not think we got it wrong. When I have spoken to Mr Joyce, again we talked about business missions.

The Hon. Z.L. BETTISON: But you have changed the size of it from when you first came into government. You minimised the amount of trips and now you have reverted back.

The Hon. D.W. RIDGWAY: I think it is a $25,000 increase. I am not sure that from one budget to the next—okay, it is an increase, a relatively small one. We are not going to stray away from our approach of, again, smaller, more targeted missions, going where industry wants. There are some opportunities in markets all over the world where we can just take the people or, as I have said numerous times already this morning, if industry wants to go and we have an officer in a market, we get them over there and get their product in front of some buyers.

If you think about the Joyce review, we will be guided by the recommendations of the Joyce review. Mr Joyce said we should have an annual calendar. I think that is something that you have obviously questioned us about, and I think that is a reasonable thing. Businesses need to actually plan a little bit ahead.

The Hon. Z.L. BETTISON: So you think it was a mistake not to have a calendar that was publicly available?

The Hon. D.W. RIDGWAY: No, I think it was just an evolution. Once the Joyce review was underway—it was initiated in October last year and we did not get the findings until March—we had some activity. Clearly, we opened a Japanese office. That was around Foodex. The Food SA team were going to take some of their people to Foodex so there were some opportunities to take some other people up there. Joyce has said to us that he really wants us to make sure that we consult with industry sectors and groups, and only really proceed with those that are sought after and encouraged by exporters. The participating companies should be prequalified.

What I have said before is that we want to make sure that we have the training and mentoring, but also make sure that we go where the companies want. We have been consulting extensively with food and agribusiness, international education, tourism, energy, minerals, defence—all the sectors. International education is an interesting one. We have 40-odd per cent of our students come from China. It is good to see we are getting some extra growth now out of India and some other parts of Asia.

Interestingly, Latin America has started to show up now as a growth sector for us. I am led to believe that may be due to some of Latin America's concerns about the US and access to the US, but it presents a great opportunity for us, through Brazil, Argentina, Chile, Mexico. When we catch up at our trade, tourism and investment ministers meetings, some of the other states and Austrade have been focusing on Mexico as well. I think there are some opportunities in there, but again, we will go where the industry sectors want us to go and support their activities.

The Hon. Z.L. BETTISON: Minister, you like to listen to business: you have said that that is very important. I go back to the issue of land tax because I do not think that you are listening to business. Business is speaking quite clearly about this.

Mr CREGAN: Point of order, sir.

The CHAIR: Yes, member for Kavel.

Mr CREGAN: This is clearly debate.

The CHAIR: There is an element of debate. I am keen to get the budget line item and page, member for Ramsay, in terms of land tax.

The Hon. Z.L. BETTISON: Let me move on. Budget Paper 4, Volume 4—

The CHAIR: I am happy to take the question, if it is there.

The Hon. Z.L. BETTISON: I will move on, Chair.

The CHAIR: Very good.

Mr CREGAN: There wasn't a question.

The CHAIR: Order! I do not need your assistance, member for Kavel. Sorry, member for Ramsay, all yours.

The Hon. Z.L. BETTISON: Budget Paper 4, Volume 4, page 131, agency highlights. When will the growth agenda be publicly available?

The Hon. D.W. RIDGWAY: Of course, there will be four chapters of the growth agenda, and they will be informed a bit by the sector plans. We are working through the sector plans at the moment, and there are a couple that are reasonably well advanced. If you like, the eight sector plans are the verticals: you have tourism, food and wine, defence and space, high-tech, energy and mining, international education, creative industries, and health and medical. Then, if you like, the growth agenda forms the horizontals, which are around trade and investment, water and environment, innovation and skills, and infrastructure.

We do not actually have to have all the sector plans developed and released, but we need to make sure that they are sufficiently developed so that we know the growth agendas are going to support them. The growth agenda that Mr Joyce recommends has 25 or so actions or policy initiatives over a period time.

The Hon. Z.L. BETTISON: Like the South Australian Strategic Plan.

The Hon. D.W. RIDGWAY: I am not going to get drawn on that, Mr Chairman. A good example is the DAMAs (Designated Area Migration Agreements) that affect every sector in terms of skilled people, whether it is Thomas Foods wanting skilled people in their rebuild or people in high-tech, the defence sector or the health and medical industries.

The opportunity to get population growth in South Australia is very important, and things like DAMAs are a policy initiative that will populate the growth agenda. I am pleased to say that we were very happy to be able to negotiate that with the federal government. There are also things like international education, where we have been able to get an extra year of post-study work rights on the visas. I think we will see significant growth in the international education space.

When it comes to timing, it is really about trying to make sure that we develop the sector plans. When they are sufficiently developed, we will start to develop some of the sector plans in the second half of this year. When we are comfortable that we have had enough consultation with industry to be comfortable with the growth agenda and that we have the elements that will support all the sector plans, we will be releasing them.

The Hon. Z.L. BETTISON: Is DTTI the lead agency for the growth agenda?

The Hon. D.W. RIDGWAY: Yes, DTTI is. As I said in my opening statement, it is an important part and one that we will focus a lot of our attention on over the next 12 months. It is really about creating a competitive business environment, and it hinges on an understanding of what industry needs and how government can respond to help it. We are certainly pinning a lot of work on the Joyce review and implementing it, especially the growth agenda.

It is interesting to note that my department was responsible for 37 of the 58 recommendations from the Joyce review. Some were obviously to DPC and other parts of government. We have completed 16 of those 37, which includes all the machinery of government changes. Nine others have now been implemented and there are 12 in progress. A lot of them are included in and around the growth agenda, which, as I said, will be informed by the evolution of the sector plans.

The Hon. Z.L. BETTISON: Minister, I am a little confused—as you should be as well, as minister—about the increase in international student numbers, which is a very positive part of our economy. It is going to be part of the sector plans and the growth agenda, and yet, in the performance indicators on page 134, you are not actually giving a very clear target or result about international student numbers going forward. I am curious as to why you have made that decision.

The Hon. D.W. RIDGWAY: I thank you for the question. I am still confident that we will have—and when the international education plan is released there may be more details in and around the actual figures. The Premier and I have made it very clear: we wanted to double our numbers from 35,000 to 70,000 students. We want to take it from $1.5 billion to $3 billion. For every four students it creates one job. Every student that comes here spends $46,000, on average—that is their contribution to the economy. So they are a particularly important part of the economy. We have had some really good increases in the first half of this year.

The Hon. Z.L. BETTISON: It is fantastic.

The Hon. D.W. RIDGWAY: So I think when you see the sector plans, then we will have an opportunity to have a look. But again, it contributes to a percentage of the growth of the state as well.

The Hon. Z.L. BETTISON: So you will not actually be able to see how many international student numbers are increasing, as you do currently with the performance indicators? It is actually going to be part of what section? How will we actually be seeing, transparently, the international student numbers?

The Hon. D.W. RIDGWAY: I think you should not be too concerned with that because I am sure that if the numbers are good I will be telling you all about them. As part of our sector plan the estimated target for 2019 is 41,000 enrolments, so we have some targets that will be in the actual sector plan. I think you will see that when that starts to roll out.

The Hon. Z.L. BETTISON: It is curious that you will no longer be capturing that data, but I will move on to Budget Paper 4, Volume 4, page 130, looking at the net cost of services. The net cost of services will be cut by $26.745 million to $49.608 million. What programs or activity will be cut, reduced or merged into other activities due to these cuts? It is quite a substantial cut for your department.

The Hon. D.W. RIDGWAY: It is, and those figures can be a little bit misleading. I will actually get one of the team to provide perhaps a more detailed—no, maybe I have it here. A lot of those cuts or the reduction is around programs and things that have finished that were not—you know, legacy—

The Hon. Z.L. BETTISON: So there are programs that you are not continuing?

The Hon. D.W. RIDGWAY: Or legacy ones that were funded under the previous government that have reached the end of their project. So if you look at it there, you are right, the cost of service is $49.6 million. We were created on 1 July 2018 and there were further changes on 1 April 2019. The department has undertaken an internal organisational redesign process to reshape the department's structure to enable it to meet the recommendations of the Joyce review and deliver on the government's key priorities.

Due to the timing of the recent MOG changes and the internal restructure, the department has presented one program entitled 'Trade and Investment' in the state—just one program. So it is just one program in the budget papers. Compared with the 2018-19 result, our cost of service has decreased by $26.8 million.

The Hon. Z.L. BETTISON: Twenty-six point eight million—

The Hon. D.W. RIDGWAY: Yes—

The Hon. Z.L. BETTISON: —cut out of your department?

The Hon. D.W. RIDGWAY: —and that is due to a reduction in the forward commitments to the economic investment fund, which no longer exists, of $13.4 million; industry and business growth case management and regions programs of $8.4 million; the health industries fund of $2.1 million; the Export Accelerator Program of $500,000; and the Destination Adelaide grant of $400,000. Then there was the $3.8 million reduction in various programs and operational efficiencies, and that is offset by an expansion; we are putting some money back into our new trade and investment offices.

The Hon. Z.L. BETTISON: Can you detail that $8 million? That is quite a significant amount of money for programs.

The Hon. D.W. RIDGWAY: I will take that one on notice, I think. We can provide that detail, but we just do not have it at my fingertips.

The Hon. Z.L. BETTISON: Just to clarify from your answer then, you said that there is a decrease of $8.4 million for business case managers; is that correct?

The Hon. D.W. RIDGWAY: That is what I am advised, but I will take that on notice and get the detail for you.

The Hon. Z.L. BETTISON: So that is an additional $8 million—

The Hon. D.W. RIDGWAY: No, my understanding is—and we will take it on notice—that $26.3 million or $23.6 million or whatever—

The Hon. Z.L. BETTISON: So the $26 million—

The Hon. D.W. RIDGWAY: The $26.8 million was made up of that, yes. I think that was part of it.

The Hon. Z.L. BETTISON: Perhaps, minister, I can ask you to detail the $26.8 million cut and all the programs that were cut and all the activities that were cut from that significant cut.

The Hon. D.W. RIDGWAY: As I said, I will take that on notice and give you all the details.

The Hon. Z.L. BETTISON: Thank you very much. Budget Paper 4, Volume 4, page 129: on a headcount basis, how many people work at DTTI today?

The Hon. D.W. RIDGWAY: I will get that figure from the team in a moment as I do not have that figure in front of me. There certainly has been some restructure and changes, there is no question about it. Obviously, there has been the MOG changes that have precipitated some movement of staff around and, of course, we have a pretty challenging budget environment as well. There is always this, if you like, arm wrestle between trying to get the right number of people and making sure that the actual team has the resources to deliver. We are pretty confident we have got that right.

As of 25 June this year, the department employed 131 actual FTEs. The associated departmental cap, as of 30 June, was 136 FTEs, with the department having vacancies in five FTEs pending the implementation of new organisational structures. This excludes my ministerial office staff and the Office of the State Coordinator-General.

The Hon. Z.L. BETTISON: Minister, I ask you take on notice and come back to me about the actual headcount as opposed to FTEs that you have provided today.

The Hon. D.W. RIDGWAY: No, I think that is actual. That 131 is—

The Hon. Z.L. BETTISON: People.

The Hon. D.W. RIDGWAY: That is my understanding of the—

The Hon. Z.L. BETTISON: Not FTEs.

The Hon. D.W. RIDGWAY: It is written in my brief here as 'actual'. We will take it on notice and if it is anything different we will provide you with an answer but if it is no different then you can take that as being 131.

The Hon. Z.L. BETTISON: Using the same basis, how many people worked at DTTI at the end of 2017-18 and 2016-17?

The Hon. D.W. RIDGWAY: I think we have some figures but it is a bit awkward to compare things because immigration has gone out and different parts have come in. We will take that on notice because you are not comparing apples with apples and it can be a bit confusing if you just look at them in isolation. We will take that on notice because if the immigration team has gone then it might have been in the team before but it is not there anymore. I think we will take that on notice and provide you with a more accurate indication.

The Hon. Z.L. BETTISON: Are all the people in DTTI, from the last machinery of government changes, still working at the department?

The Hon. D.W. RIDGWAY: Which machinery of government change, the one—

The Hon. Z.L. BETTISON: You have obviously had two machinery of government changes but most substantially after the department started on 1 July. I understand that on 1 April this year, and I am asking if the same people who were part of that machinery of government change—particularly those who came into your department—do they still stay in your department? You had a lot of case management people come in—

The Hon. D.W. RIDGWAY: Yes.

The Hon. Z.L. BETTISON: —and you had people from about four or five different areas. Are they still there?

The Hon. D.W. RIDGWAY: My understanding is that most of them are. Their roles may have changed when we realigned with the recommendations of the Joyce review. My understanding is that some of the activities were possibly changed slightly but those people, by and large, are there.

The Hon. Z.L. BETTISON: Have there been any redundancies made since the last machinery of government changes?

The Hon. D.W. RIDGWAY: Since April?

The Hon. Z.L. BETTISON: Yes.

The Hon. D.W. RIDGWAY: I think there may have been a couple—about three, I am told. Why don't we take that on notice and provide you with the actual details?

The CHAIR: The member for Hammond has been patiently seeking the call.

Mr PEDERICK: I refer to Budget Paper 4, Volume 4, page 132, highlights. Could the minister please update the committee on the achievements for the 2018-19 year in attracting companies to South Australia?

The Hon. D.W. RIDGWAY: I thank the honourable member for Hammond for his ongoing interest in growing our state's economy. Previously, in my opening statement, I mentioned that the government is committed to boosting the state's investment as part of our ultimate goal of reaching 3 per cent growth in our gross state product. In 2018-19, the Department for Trade, Tourism and Investment facilitated $584 million worth of investment which created 2,560 jobs.

Over the course of the year, DTTI was able to attract a range of companies to South Australia and I would like to highlight a number of these to the committee. Firstly, this year one of the world's biggest companies, Berkshire Hathaway, owned by Warren Buffett, announced that they were establishing operations in Adelaide as its reinsurance division takes over the management of the Motor Accident Commission's back book of the compulsory third-party vehicle insurance claims. That is a good outcome, to have Berkshire Hathaway in Adelaide. They will continue to grow their presence here and, I think, will probably look to other investment opportunities.

As part of that transaction $300 million of the reinsurance premium was retained in South Australia, with $100 million retained for five years, for local funds management, and yesterday we saw the Treasurer announce that they have put out to tender the contract to manage that $100  million, which will run for the next five or so years. I know the government and Treasurer will work with the selected fund manager to try to develop a fund management sector here, and I am certain there will be some jobs that will grow from that.

That is part of our government's ongoing commitment to boost the local funds management sector, because we want to boost South Australia's finance sector by developing a strong sector and attracting and maintaining talented workers. Years ago, fund managers had to be right next to the stock exchange in Sydney or New York or London but now, with modern connectivity, with the connected world we live in, those people can be located anywhere. This is a fabulous opportunity to establish a small—to start with—funds management sector here. While it is a high-pressure sector to work in, with the beautiful lifestyle in South Australia there are some wonderful opportunities to live here and work in that sector.

Another one that is particularly important is that in December last year the Premier announced that Southern Launch would establish a dedicated commercial rocket launch site at Whalers Way on the southern tip of Eyre Peninsula. This was a fantastic announcement for South Australia. There is an increasing demand for launch locations for the small, polar-orbiting cube satellites that shoot out over the North and South poles and South Australia has a coastline that faces south, so there are some great opportunities there.

This particular launch site is expected to conduct about six launches a year for third-party clients and is estimated to create about 35 jobs. South Australia provides the perfect place for these low orbit satellites, and international companies can come in and launch their satellites from here. This was also part of the commitment we made to the space sector in the lead-up to the federal government announcing that the national Space Agency would be here, that we actually had some skin in the game. We said we wanted to help fund a company to establish a launching facility, and that sent a strong message to the federal government that we were serious about the space sector in South Australia. Of course, the federal government subsequently announced this national Space Agency.

For the honourable member's benefit, it is interesting that when I was fortunate enough to be in Germany and meet with the German space agency people, as well as the UK space agency people, they all asked when the announcement of the SmartSat CRC was going to be, and where was it going to be. I guess they were in their sector, but I was blown away that people on the other side of the world actually knew what was going on in our state. That was a great announcement.

Another announcement was that Akuo Energy, in partnership with the South Australian-based Enerven, will invest $12 million in Renmark for a renewable energy site. Called the Jane Eliza Solar Farm, it is 15,000 solar panels on 10 hectares of land within the Renmark Paringa Council area. The idea is that it will power 2,000 homes and create 40 jobs—so, a good little renewable energy project. Akuo also has plans to rollout several more of these projects across South Australia, I suspect in some of these regional communities. That will be good, because it will create more certainty and, hopefully, bring cheaper electricity for South Australian consumers.

The other announcement that I think was particularly exciting was that world-leading university Massachusetts Institute of Technology (MIT) decided to come to Lot Fourteen. When it was announced they said it was the world's number one university, and the Hon. Frank Pangallo quickly googled and said, 'It could be Stanford or Harvard.' Well, in some years MIT actually knocked them off as being the number one, but if you are in the top three with Stanford, Harvard and MIT that is not bad.

They are going to establish one of their Living Labs at Lot Fourteen. They have already established one in New York, Beijing and Istanbul, and to have them here will be a wonderful opportunity. I have to take just a little bit of credit for this one. In March 2017, I flew to New York and then on to Washington to go to a blockchain world summit which, it is fair to say, was probably outside my pay grade; nonetheless, I was there.

The Hon. Z.L. Bettison interjecting:

The Hon. D.W. RIDGWAY: No, none whatsoever. One of the main reasons for going was to meet one of the individuals from MIT and to pitch to them that South Australia is a place they should bring one of their Living Labs to. That meeting happened 2½ years ago. Now, 2½ years on, MIT have come to Adelaide as one of the world's leading universities.

In opposition, you do lots of things. You have good days and bad days in opposition, but that was one of those long shots, to go to the other side of the world, meet somebody and, again, build that relationship, build that friendship. He said to me, 'You are not an academic, so why would you want this?' I said, 'Mate, it is because I love my state and I know that what you could bring to our great state would be wonderful for South Australia.' It was a 2½ year project, and I was delighted when we got that opportunity.

One of the other exciting announcements was getting Sony Interactive Entertainment to Adelaide to open a new office. There are 32 system engineer jobs that did not previously exist. They have three offices around the world that back up their Interactive Entertainment PlayStation. At any time anywhere in the world, there is an office at work. I think there is one in California. When California signs off, they sign to us. When Adelaide signs off, they sign to Germany, I think. We have this wonderful opportunity with jobs that did not exist in Adelaide, an opportunity to support our gaming sector and creative industries. We have seen just today the young man who won the world championship in whatever that game was.

Mr PEDERICK:Fortnite.

The Hon. D.W. RIDGWAY:Fortnite. He said his mother had thrown his PlayStation out three times because she was sick of him playing it, but now that he has won almost as much money as the winner of the US Open, I think it shows that that sector has a huge opportunity.

The Hon. Z.L. BETTISON: Chair, relevance.

The Hon. D.W. RIDGWAY: I am nearly finished.

Mr Pederick interjecting:

The CHAIR: Order, member for Hammond!

The Hon. D.W. RIDGWAY: I am just trying to give four or five examples across a diverse range of sectors where we have had some success. You can see that with Sony, MIT, Akuo, Southern Launch and Berkshire Hathaway. We have had a great year, and I am looking forward to an even bigger and better year next year.

The Hon. Z.L. BETTISON: Referencing the same page, did you provide MIT with any concessions, inducements or assistance to come to South Australia?

The Hon. D.W. RIDGWAY: No. I might add, I just built a relationship with them and they came.

The Hon. Z.L. BETTISON: They are not receiving any subsidised rental at Lot Fourteen?

The Hon. D.W. RIDGWAY: I am not sure of the actual rental. I do not believe they are. They have BankSA, Westpac and Optus as industry partners. I do not believe they are getting any, but I will double-check that for you.

The Hon. Z.L. BETTISON: You will take that on notice?

The Hon. D.W. RIDGWAY: I will take that on notice. The relationship was around, 'We have a great state. You come and have a look.' They came and are here.

The Hon. Z.L. BETTISON: You provide ambition for all shadow ministers, minister.

The Hon. D.W. RIDGWAY: Absolutely. DSpark is also one of their industry partners.

The Hon. Z.L. BETTISON: Can I move to Budget Paper 4, Volume 4, page 128.

The Hon. D.W. RIDGWAY: Hang on just for a moment. Optus is contributing, as one of the industry partners, to the rent and the office accommodation.

The Hon. Z.L. BETTISON: But can you take that on notice and detail—

The Hon. D.W. RIDGWAY: If there is any change from Optus, we will provide you with an answer.

The Hon. Z.L. BETTISON: Your ministerial office has had a budget increase of $45,000 compared with the previous financial year. What was the increased budget for?

The Hon. D.W. RIDGWAY: We will get the paper from the actual advice, but I suspect it is just ongoing small salary increases across the team. I do not think there is any particular project that we are looking to fund from my ministerial office. We do not have any details. I will take that on notice.

The Hon. Z.L. BETTISON: Obviously, your department has had enormous cuts made to it. Since I have been in opposition, since you have been minister, we have had tumultuous changes. It is completely different. Do you think it is actually appropriate for your own office to have an increased budget while you are losing more than $26 million out of your department?

The Hon. D.W. RIDGWAY: As I said, I will take that on notice. Some of that $26 million, of course, is for programs and projects that have come to the end of the program. So I think it is not just an ongoing recurrent cut of $26 million. We will take that on notice as to why there is an increase. I suspect it is most likely just operational costs that have gone up.

The Hon. Z.L. BETTISON: Obviously, you have had some change of staffing. How do you measure your officers' performance?

The Hon. D.W. RIDGWAY: That is an internal office measure for me. I am not sure that there is a budget line that says how do I measure my officers' performance. I do not believe there is a budget line for that and I do not believe I need to respond to you on how I measure my officers' performance.

The Hon. Z.L. BETTISON: I refer to Budget Paper 4, Volume 4, page 131, looking at the investing expenditure summary. Was the $232,000 office refurbishment in 2018-19 for a DTTI office or was it for the minister's office?

The Hon. D.W. RIDGWAY: That was for my office. As you would be aware, I came into the office after the election. It was the office that your good friend Martin Hamilton-Smith, as minister, had been in—and obviously a close friend of Mr Hughes and Mr Odenwalder. It was interesting. The minister was minister for trade and investment, and I was amazed at the state the office was in: paintwork chipped, carpet stained, holes in the wall even. It was. I have known Martin Hamilton-Smith, I have been to his house and it is always pretty good.

Mr CREGAN: It's immaculate.

The Hon. D.W. RIDGWAY: It's pretty good, yes. So I was just surprised—I was very surprised at the state of it.

Of course, I am two floors below the Premier. I meet regularly with ambassadors, consul generals and a whole range of people. So we managed it within the existing budget. We thought, 'We need to freshen this up.' So there was new carpet and some paint. We took a wall out of the boardroom because the boardroom had no actual outside windows. You would have a boardroom meeting and there was no light coming in—there was a little bit of light out of one window—so we have opened it up.

It was done within the existing resources and we had some artwork. We got the Tourism Commission to provide us with some photographs—that is probably not the technical term for them—the whole-of-wall ones. The one in my boardroom is of Dolphin Beach on Yorke Peninsula. Everybody who comes in asks me where it is and how to get there, whether they are the US ambassador or the New Zealand ambassador. Next Monday, I am meeting the Malaysian trade minister. I guarantee he will say, 'Where is that?'

I want to showcase our great state and we took the opportunity to do that. But I was surprised at how scruffy it looked. Even the tiles on the floor of the disabled toilet were falling off and had to be repaired. The lift doors were all chipped and the surrounds around the lift doors. It was quite amazing, the poor state it was in, given it was in the same building as the Premier and given he was the minister for trade and investment. We had torn furnishings—some of the chairs were torn—so we have refreshed it and, as I said, everybody who comes to that office comments on it.

The Hon. Z.L. BETTISON: Minister, would you take on notice to detail the expenditure out of the $232,000?

The Hon. D.W. RIDGWAY: Yes, sure.

The Hon. Z.L. BETTISON: Why is there not any investment activity budgeted for new trade offices in 2019-20?

The Hon. D.W. RIDGWAY: Why is there not any investment?

The Hon. Z.L. BETTISON: Investment activity budgeted, looking at page 131.

The Hon. D.W. RIDGWAY: I expect that it is because—

The Hon. Z.L. BETTISON: You did have a budget in 2018-19, but there is no budget for 2019-20.

The Hon. D.W. RIDGWAY: I think what it is, shadow minister, is that each trade office in the election commitment has a budget of its own. We do some refits within Austrade, but it is not a capital investment on its own. It comes out of the actual trade office budget itself.

The Hon. Z.L. BETTISON: Do you intend to open the remaining trade offices?

The Hon. D.W. RIDGWAY: Do I intend to? Yes. It was an election commitment.

The Hon. Z.L. BETTISON: When will they open?

The Hon. D.W. RIDGWAY: As I said earlier in my contribution, we are close to finalising some dates and locations. Clearly, Dubai and Kuala Lumpur are self-nominated as the cities and locations, and, of course, the US. We are partnering with Austrade, and there is a whole range of Austrade offices all over the US. So we are just going through a process of working out which is the best one for us to fit with and how we can leverage the best benefit.

In 2019, we would expect to probably open Dubai, and that is in the next six months. Whether it is this year or early next year will just depend on the US location and Austrade's capacity. I would say Kuala Lumpur would be some time next year. Dubai is one where we are keen to get into the market quickly. As you would be aware, shadow minister, next year Dubai hosts the 2020 expo. It is the advice from the team here that we should get into that market sooner rather than later and establish a little bit of a presence. We have not been there for some time. I think Nick Alister-Jones was there when I was first in opposition and I met with him on a couple of occasions over there.

I think it is important that we actually open that one sooner rather than later for the expo reasons. Austrade cover all of Africa from Dubai and we are getting increasing numbers of international students from Mauritius and Madagascar and some of those places. Also, we will be able to do some work back into India and some of those parts because we are not, at this point, planning on opening an office in India, it is more—

The Hon. Z.L. BETTISON: So no office in India at this point?

The Hon. D.W. RIDGWAY: In the foreseeable future. It may be something we look at. We have an election commitment of five offices and so we will fulfil our election commitment and then make an assessment as to whether there are other parts of the world we need to have a presence in. We do retain the office embedded in Austrade in Mumbai. Mr Rahul Ranjun is currently in that role and he will be operating under the director from Dubai. I suspect, in the longer term, Sally Townsend might try to recruit somebody to have in Seoul. That is the most likely time frame: Dubai, then probably the US, and then Kuala Lumpur.

The Hon. Z.L. BETTISON: What is our budget for the world expo in Dubai?

The Hon. D.W. RIDGWAY: The federal government has quite a significant budget for it. Given it is in the next financial year, we have sort of talked about our involvement but the federal government, I think, has quite a substantial investment there. We have a trade and tourism ministers meeting coming up in October. I am sure that is when it will be on the agenda to have a discussion around what the federal government sees as a part of our partnering—

The Hon. Z.L. BETTISON: But there would be an expectation that we would put in a certain amount of budget because that is what has happened in the past?

The Hon. D.W. RIDGWAY: The federal government is working with the department on what they would like to see from us. It is one of those projects where we all have to pay our way, but the feds are very keen to have a strong presence there, so I know they have made a long-term commitment, and then we will have those negotiations with the federal government as to how much it costs us, what do we get for our money—

The Hon. Z.L. BETTISON: What is your expectation about our investment costs?

The Hon. D.W. RIDGWAY: I think it is an important part of the world and given that the world expo only happens every five years, to have a presence there I think it is great that the federal government has done that. I do not have any sort of line of sight of the amount of money that we are going to need to spend. We have not had those discussions. I have not raised it, other than just broadly that, yes, we will be there with minister Birmingham or even minister Ciobo prior to that. It was like, 'We are going to do it. We will give you more details.' My advice is that those negotiations are now starting to take place.

The CHAIR: The member for Finniss has the call.

Mr BASHAM: I refer to Budget Paper 4, Volume 4, page 134, performance indicators. Following on some questioning from the member for Ramsay earlier, can the minister share the outcomes of the past year's investment into the international education sector?

The Hon. D.W. RIDGWAY: I thank the honourable member for his question and his ongoing interest in international education. It is interesting to note that yesterday there was a $5 million investment to attract international students to Victor Harbor. It demonstrates firsthand that the education industry is driving growth throughout all of South Australia; it is not just in and around the CBD when it comes to student accommodation and the activities here.

I think we have had some exceptional results in the past year. Since day one, we have invested more money in international education than the ever before and made the key strategic decision to drive more international enrolments into our great state. The international education sector is South Australia's largest export behind wine, with $1.8 billion being generated by almost 37,900 students in 2018. I think international education was hoping to jump ahead of wine but, of course, wine has had a nice surge so they are still going to be playing second fiddle.

As I mentioned in my opening statement, it is well above our target of $1.55 billion for 2018. It is also really interesting to note that South Australia's year-to-date enrolments to March have increased by 11.4 per cent when compared with the same time last year, and that figure is 30,400 enrolments for the first three months of the year.

I think the other really important thing is that the national growth rate for the same time was 11.1 per cent, so this was the first time since 2011—eight years—that we have been ahead of the national growth. I think it is important to note that because it was a sector we felt was somewhat neglected by the former government. We have a strong policy to invest and, of course, we have the four-year post-study work rights visas, and I am sure we are going to see that figure grow.

We increased the funding to StudyAdelaide to $2.5 million and that has been particularly well received. StudyAdelaide has a student ambassador program that selects outstanding students from key markets to share Adelaide as a high-quality destination through their eyes, and 16 ambassadors were appointed in 2018, up from two. I repeat that: 16 in 2018 and only two in 2017.

Also, StudyAdelaide has strengthened our state interaction with overseas agents, with bigger and better familiarisation tours fulfilling another election commitment. Our most recent tour earlier this year, saw 87 influential agents and representatives from over 20 countries come and gain firsthand knowledge of living and studying in South Australia.

In my department, Migration SA also secured favourable changes, as I said, to the commonwealth policy for international students to get an additional year of post-study work rights as well as changing the criteria to encourage more students to stay in South Australia. These visa measures provide our education institutions with additional recruitment tools, fundamentally improving our recruitment position to prospective international students into the future.

Throughout the past year, I have been working very closely with the international education industry through a thing we call MACIE, the Ministerial Advisory Committee for International Education. Despite these great outcomes we have had, we know there is a lot more to do. As part of the growth agenda, my department has been working with the sector on an industry-led international education plan to 2030. This process has developed new ambitious targets and an overarching strategy not just to increase student numbers but also to direct and indirect contributions that international education makes economic growth.

The Marshall Liberal government welcomes international students to our state and the investment sector, and will continue to acknowledge the benefits. As I said earlier, every four students creates one job, and a student spends around $46,000 when they are here, and we see investment, so it is an important part of our story going forward and we continue to invest in it.

The Hon. Z.L. BETTISON: Budget Paper 4, Volume 4 page 131: all your proposed trade offices, are they going to be embedded in Austrade?

The Hon. D.W. RIDGWAY: Certainly a part of the Joyce review recommendations was that that made somewhat sense. As I said earlier in a contribution, where Austrade has an office, a bit like the Australia House model, there are some benefits, especially when you have consular issues, visas and migration. If you are in the same building as a team of federal departmental people, it makes that a little bit easier. We looked at that opportunity, and Joyce thinks that is a sensible way to go.

I mentioned earlier the great relationship I have with the current federal minister, who happens to be our local South Australian senator, and Stephanie Faye, in her role as chief executive, They are very focused on the Australia House model. It just makes sense. It works really well in London. I am sure you have been to the Agent-General's office, and that works really well there.

I notice that in the Japan office, the New South Wales team are there—the team being one person, I think, like we have—and they said there are so many opportunities where they can actually, if you like, cross-collaborate together. So I think when they are in Austrade, there is less of this silo mentality. We are a small state. We are not New South Wales, Victoria or Queensland. They have much bigger budgets. Victoria has a significant network of people in offices globally but I think they are starting to review that, too.

Our intention is to have people in to partner with Austrade where it is possible. If there is a market, ultimately we might decide that we cannot do it and we want to stand alone. I have also said to existing team members that, if they thought there was a better opportunity and a better way to get better value for South Australian taxpayer dollars and grow our exports more quickly, we would be happy to look at that, but right now we favour the Austrade model and the Australia House model.

The Hon. Z.L. BETTISON: But, minister, do you agree that your election proposal and commitment to standalone offices was far too expensive and way over the top?

The Hon. D.W. RIDGWAY: I do not necessarily say that it was far too expensive and way over the top, but in the end, we have made a commitment to open five new offices around the world. Again, it is about delivering value for South Australian taxpayers. We have two in place. We have another three to open. They will provide our exporters with first-class service. My view is that a responsible government will make decisions that are in the best interests of South Australian taxpayers. We do want to make sure we get those offices open and operating. I think the Austrade model works well. Following all of the election and the Joyce review, he recommended that we try to partner with Austrade, so we do not shy away from that.

The Hon. Z.L. BETTISON: Budget Paper 4, Volume 4, page 131: what particular unit within DTTI will assume the functions that Brand SA once operated?

The Hon. D.W. RIDGWAY: It is going to be a different approach. We have a state promotions team. I think there is already an advertisement out for a state promotions director. Some of the work that Brand SA has been doing is gone—I think the regional awards, Hello from SA, Solstice Media has picked up. I know there is some discussions around I Choose SA with some other private industry sectors that want to make that work. We will manage the brand. So we have a state promotions unit and an executive position that is vacant, but we are recruiting for that position now.

Of course, we are managing the brand. In the first month, I think we have had 47 applications to use the state brand and 42 applications for I Choose SA. I know Glam Adelaide is doing some of the functions and the networking events, which is exactly what the Premier's understanding was. He wanted the private sector to step up to try to do some of this work. Also, Joyce recommended us to have a much more outwardly-focused look at marketing South Australia. That is our goal, and we will be working hard to promote our great state interstate and overseas.

The Hon. Z.L. BETTISON: There is no doubt at all that Brand SA is very, very popular. I have to say that I am very pleased that you have continued the I Choose SA program. I had many people reach out to me about concerns that that would not continue. How many staff and what budget will be given to the promotions area?

The Hon. D.W. RIDGWAY: We are in the process of establishing that. When we talk about the brand, I know that props are not allowed in normal question time, but I will just hold this up. As the honourable member can see, I am absolutely invested in the state brand. From day one I have made sure my business card demonstrated the brand and the logo.

The Hon. Z.L. BETTISON: Minister, I do not doubt your support for the state brand. I think this was not your decision.

The Hon. D.W. RIDGWAY: Certainly, we are working through that and the opportunities. Again, as the dust settles, they are looking at taking on some of the activities of Brand SA that add value to businesses. In some of the industry sectors, as mentioned earlier, Glam Adelaide are doing some of the networking function activity. Solstice Media are doing the awards and the Hello from SA work. We have the South Australian Club. I think it is early days for this to unfold, but I expect that the consumers will not see much different, and businesses will still get the support of government. As you can see, we are invested in the state brand. I promote it every day I hand out a business card.

The Hon. Z.L. BETTISON: Minister, will you take on notice my request about staffing and budget given to this unit and perhaps come back to me in six weeks to respond?

The Hon. D.W. RIDGWAY: Yes.

The Hon. Z.L. BETTISON: Were you provided—

The Hon. D.W. RIDGWAY: Can I just add, for the new executive, who starts in 20 days, it certainly will be one of the things that is early on her agenda. I know that the time frames are six weeks. She has three weeks before she is here. You may get a response that there is no answer at that point, because it really is something that we want the new chief executive—but we have a state promotions unit, and we are out recruiting for a head of state promotion. So there are activities underway. We might be able to give you some preliminary advice, and then, once the final decisions are made—

The Hon. Z.L. BETTISON: We obviously do not want too much lag time, because it is so important—

The Hon. D.W. RIDGWAY: No, but I am keen to provide you with accurate information. I suspect it may be a little unrealistic to say to the chief executive, 'You have three weeks to finalise all of this and get an answer to the shadow minister.' As hardworking as you are, maybe what we can do is give you some interim advice and then maybe follow-up or give you a briefing at some point.

The Hon. Z.L. BETTISON: Minister, were you provided with any modelling, briefings or advice from any South Australian government department about the cost implications of DTTI taking on any of the Brand SA activities?

The CHAIR: Member for Ramsay, what page are you on for this?

The Hon. Z.L. BETTISON: It is very clear that you have Brand SA now—

The CHAIR: I was just asking, for my benefit, which page you are on.

The Hon. Z.L. BETTISON: Page 131. Minister, were you provided with any modelling from any other South Australian government department about the costs?

The Hon. D.W. RIDGWAY: Of what?

The Hon. Z.L. BETTISON: Of running these elements of Brand SA that will now be SA promotions or promotions SA.

The Hon. D.W. RIDGWAY: All we have, if you look at the Joyce review, is a responsibility for marketing and promoting South Australia. We did not take on Brand SA; Brand SA has ceased to be. Some of the activities have gone to other parts of the community and other parts of the private sector. What we will be doing is looking how we market South Australia interstate and overseas, because the Premier felt that Brand SA did not do that work. This is an opportunity to do it differently, and we are working our way through that.

The Hon. Z.L. BETTISON: Perhaps I could be more specific. Obviously, the role of supporting the state brand logo is a key part of it. Was there modelling done, that you received, about how much that would cost to do if you did it in-house? If we just focus on the state brand and logo, which is a key part of that work, did you get any modelling from any South Australian government department about the cost of doing that?

The Hon. D.W. RIDGWAY: I will take that on notice.

The Hon. Z.L. BETTISON: Okay.

Mr ODENWALDER: I have some omnibus questions:

1. For each department and agency reporting to the minister:

What is the actual FTE count at 30 June 2019 and the projected actual FTE count for each year of the forward estimates?

What is the total employment cost for each year of the forward estimates?

What is the notional FTE job reduction target that has been agreed with Treasury for each year of the forward estimates?

Does the agency or department expect to meet the target in each year of the forward estimates?

How many TVSPs are estimated to be required to meet FTE reductions over the forward estimates?

2. Between 1 July 2018 and 30 June 2019, will the minister list the job title and total employment cost of each position with a total estimated cost of $100,000 or more which has either (1) been abolished and (2) which has been created.

3. Will the minister provide a detailed breakdown of expenditure on consultants and contractors above $10,000 between 1 July 2018 and 30 June 2019 for all departments and agencies reporting to the minister, listing:

the name of the consultant, contractor or service supplier;

cost;

work undertaken;

reason for engaging the contractor, and

method of appointment?

4. For each department and agency for which the minister has responsibility:

How many FTEs were employed to provide communication and promotion activities in 2018-19 and what was their employment expense?

How many FTEs are budgeted to provide communication and promotion activities in 2019-20, 2020-21, 2021-22 and 2022-23 and what is their estimated employment expense?

The total cost of government-paid advertising, including campaigns, across all mediums in 2018-19 and budgeted cost for 2019-20.

5. For each department and agency reporting to the minister, please provide a full itemised breakdown of attraction and retention allowances as well as non-salary benefits paid to public servants and contracts between 1 July 2018 and 30 June 2019.

6. What is the title and total employment cost of each individual staff member in the minister's office as at 30 June 2019, including all departmental employees seconded to ministerial offices?

7. For each department and agency reporting to the minister, could you detail:

(a) How much was spent on targeted voluntary separation packages in 2018-19?

(b) What department funded these TVSPs? (except for DTF Estimates)

(c) What number of TVSPs were funded?

(d) What is the budget for targeted voluntary separation packages for financial years included in the forward estimates (by year), and how are these packages funded?

(e) What is the breakdown per agency/branch of targeted voluntary separation packages for financial years included in the forward estimates (by year) by FTEs?

8. For each department and agency reporting to the minister, how many executive terminations have occurred since 1 July 2018 and what is the value of executive termination payments made?

9. For each department and agency reporting to the minister, what new executive appointments have been made since 1 July 2018, and what is the annual salary, and total employment cost for each position?

10. For each department and agency reporting to the minister, how many employees have been declared excess, how long has each employee been declared excess, and what is the salary of each excess employee?

11. In the 2018-19 financial year, for all departments and agencies reporting to the minister, what underspending on operating programs (1) was and (2) was not approved by cabinet for carryover expenditure in 2019-20?

12. In the 2018-19 financial year, for all departments and agencies reporting to the minister, what underspending on investing or capital projects or programs (1) was and (2) was not approved by cabinet for carryover expenditure in 2019-20? How was much sought and how much was approved?

13. For each grant program or fund the minister is responsible for please provide the following information for 2018-19, 2019-20, 2020-21 and 2021-22 financial years:

(a) Name of the program or fund;

(b) The purpose of the program or fund;

(c) Balance of the grant program or fund;

(d) Budgeted (or actual) expenditure from the program or fund;

(e) Budgeted (or actual) payments into the program or fund;

(f) Carryovers into or from the program or fund; and

(g) Details, including the value and beneficiary, of any commitments already made to be funded from the program or fund.

14. For the period of 1 July 2018 to 30 June 2019, provide a breakdown of all grants paid by the department/agency that report to the minister, including when the payment was made to the recipient, and when the grant agreement was signed by both parties.

15. For each year of the forward estimates, please provide the name and budgeted expenditure across the 2019-20, 2020-21, 2021-22 and 2022-23 financial years for each individual investing expenditure project administered by or on behalf of all departments and agencies reporting to the minister.

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

17. For each department and agency reporting to the minister, what is the total cost of machinery of government changes since 1 July 2018 and please provide a breakdown of those costs?

18. For each department and agency reporting to the minister, what new sections of your department or agency have been established since 1 July 2018 and what is their purpose?

19. For each department and agency reporting to the minister:

What savings targets have been set for each year of the forward estimates?

What measures are you implementing to meet your savings target?

What is the estimated FTE impact of these measures?

The Hon. Z.L. BETTISON: Budget Paper 5, page 89: how many companies has the South Australian Landing Pad attracted to date?

The Hon. D.W. RIDGWAY: There has been strong interest. I do not have the exact number with me. I will take that on notice. The advice I have had is across a number of different sectors as well, so that is quite a good opportunity. I think I explained earlier it is for companies that already exist; they have actually had to be in operation for 12 months prior, so it is not a venture capital thing. It is not a start-up; it is actually an existing company.

In the opportunity I had to go to Hannover Messe, we had a meeting with a number of the companies who are in the supply chain for the offshore patrol vessels—smaller companies in Germany. This is a perfect thing. They think, 'Well, we've got a deal with and a contract for defence. We'd like to do something in the civil space.' They were quite interested in the opportunities. That is a few years away, the offshore patrol vessels, but they are looking at how they might be able to come and get a foothold in the South Australian market.

It was only launched on 1 July. I think there is maybe only four at this stage, but it is only, what is it, the 30^th today. That is not bad; that is one a week. So there have been applicants, and there is quite a lot of strong interest, but we will get the more accurate details for you. It is certainly about supporting companies that have got a little track record and that are uncertain about how to get into the market. We think it is a good initiative.

The Hon. Z.L. BETTISON: Why is there no matched funding required to receive a Landing Pad grant?

The Hon. D.W. RIDGWAY: We wanted to say to companies that we are open for business. There is a whole range of new things and I think the guidelines are up on the website. We do not cover everything so they will have some costs that they will have to pay for themselves. There are two components to it: there is some for accommodation and some for advice. They are the two components in it. All of the details of the guidelines and conditions are on the website. We expect that they will have to put some money in but really we want to say to businesses, 'We are open for business.'

If you are a young business, or even an existing business like some of the ones I met with in Germany, which would probably fit more with the defence Landing Pad, potentially, although they do want to get into the civil space, there is an opportunity to come here. We want to say, 'We are open for business.' Naturally, they will incur costs because you could not open a business—the maximum amount of money for one company will be $80,000. If you have some staff, rent, and all the things that you are looking at doing, you will be paying more than $80,000 in the first year for that.

The Hon. Z.L. BETTISON: Given that the Landing Pad will attract foreign firms, what type of visas will be granted to the successful applicants?

The Hon. D.W. RIDGWAY: I suspect that will be a matter for negotiation with the federal government. Of course, we hope that some will be coming in from overseas but there is no visa provided with that program so they will still have to go through their normal application process. Clearly, the DAMAs and some of the increased occupations list with DAMAs will provide opportunities for an enhanced number of people.

We also have to remember that it is not just about overseas, it is about interstate. When Sydney house prices get to double what Brisbane's are, there is a mass exodus of people into Queensland because it is simply too expensive. I expect that we will start to see some of that, where people are wanting to move to South Australia for career opportunities but also because of those cost pressures.

The CHAIR: Alas, minister, the time has expired. There being no further questions, I declare the examination of proposed payments for the portfolios Department for Trade, Tourism and Investment and Health Industries SA completed.

Sitting suspended from 10:45 to 11:00.