Estimates Vote

Department for Trade and Investment, $125,192,000

Administered Items for the Department for Trade and Investment, $1,799,000

Minister:

Hon. J.K. Szakacs, Minister for Trade and Investment, Minister for Local Government, Minister for Veterans Affairs.

Departmental Advisers:

Mr D. Reynolds, Chief Executive, Department for Trade and Investment.

Ms T. Blight, Chief Operating Officer, Department for Trade and Investment.

Mr C. Wood, Executive Director, Invest SA, Department for Trade and Investment.

Mr T. White, Director, Trade, Department for Trade and Investment.

Mr T. Pearce, Finance Manager, Department for Trade and Investment.

The CHAIR: Welcome to today's hearing for Estimates Committee B. I respectfully acknowledge Aboriginal and Torres Strait Islander peoples as the traditional owners of this country throughout Australia and their connection to land and community. We pay our respects to them and their cultures and to elders both past and present.

The estimates committees are a relatively informal procedure and, as such, there is no need to stand to ask or answer questions. I understand the minister and the lead speaker for the opposition have agreed an approximate time for the consideration of proposed payments, which will facilitate a change of departmental advisers. Can the minister and lead speaker for the opposition confirm that the timetable for today's proceedings, previously distributed, is accurate?

The Hon. J.K. SZAKACS: Yes.

Mr WHETSTONE: Yes.

The CHAIR: Changes to committee membership will be notified as they occur. Members should ensure the Chair is provided with a completed request to be discharged form. If the minister undertakes to supply information at a later date, it must be submitted to the Clerk Assistant via the Answers to Questions mailbox no later than Friday 6 September 2024.

I propose to allow both the minister and the lead speaker for the opposition to make opening statements of about 10 minutes if they so desire. There will be a flexible approach to giving the call for asking questions. A member who is not on the committee may ask a question at the discretion of the Chair.

All questions are to be directed to the minister, not the minister's advisers. The minister may refer questions to advisers for a response. Questions must be based on lines of expenditure in the budget papers and must be identifiable or referenced. Members unable to complete their questions during the proceedings may submit them as questions on notice for inclusion in the assembly Notice Paper.

I remind members that the rules of debate in the house apply in committee. Consistent with the rules of the house, photography by members from the chamber floor is not permitted while the committee is sitting.

Ministers and members may not table documents before the committee; however, documents can be supplied to the Chair for distribution. 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.

The committee's examinations will be broadcast in the same manner as the sittings of the house, through the IPTV system within Parliament House and online via the parliament's website.

I now proceed to open the following lines for examination: portfolio, the Department for Trade and Investment; minister appearing is the Minister for Trade and Investment. I declare the proposed payments open for examination. I call on the minister to make an opening statement, if he so desires, and then the opposition, if he so desires.

The Hon. J.K. SZAKACS: Thank you, sir. I congratulate you on the resounding support that you have received from this committee to assume the Chair. Can I acknowledge and introduce the advisers that I am accompanied by today: Mr David Reynolds, Chief Executive, Department for Trade and Investment; Mr Chris Wood, Executive Director, Invest SA, from the department; Tim White, Director of Trade from the department; Tricia Blight, Chief Operating Officer from the department; and Trevor Pearce, Finance Manager from the department.

I am proud to sit here with terrific advocates for South Australia. If I may, I also in beginning acknowledge the strong, largely bipartisan and nonpartisan support that this government receives from the opposition, and the opposition has received in its former iteration in government. Trade and investment is one of those matters of public endeavour which does largely command a nonpartisan approach, and I acknowledge that from the outset today.

The department facilitates South Australia's strong, effective and sustainable growth by identifying and promoting our state's competitive advantages; driving local, national and international investment; and increasing, diversifying and facilitating the export of goods and services.

Invest SA was established in July 2022 as part of the South Australian government's election commitment to amplify the government's attraction of international and national investment into South Australia. Invest SA has delivered strong investment outcomes for our state. In its first financial year since being established, Invest SA supported the attraction of over $1 billion of investment into South Australia across key sectors of economic growth. In the 2023-24 financial year, it is my pleasure to be able to inform you and this committee that Invest SA has secured 41 projects, with a total value of more than $1.005 billion.

Strategic investment is critical to protect and grow jobs and create a more resilient and complex economic base. Invest SA is working closely with its stakeholders, including existing businesses, our overseas offices and other government agencies, to develop and deliver an effective whole-of-government investment attraction approach. It also leverages Australian government funding programs to attract strategic investment, stand up new future-focused industries and drive step change in existing industries.

My department also provides significant support to South Australian companies looking to expand their international footprint. The department works closely with companies that can make an impact, locally and internationally, on the state's economic outlook. This includes directly assisting companies to expand their international market presence or to diversify into new markets.

The department's trade strategy in international representation offers valuable in-market on-the-ground insights for South Australian exporters to do business and to expand their international footprint. DTI targets relating to trade include facilitating $50 million in trade outcomes for South Australian businesses and providing export support services to 400 South Australian businesses. I am pleased to inform that DTI has exceeded these annual targets for the financial year 2023-24.

DTI provided almost 2,000 separate export services to 462 unique South Australian businesses in this last financial year. These services that DTI facilitated resulted in South Australian businesses recording export outcomes amounting to $78.1 million. DTI has achieved 96.7 per cent client satisfaction on DTI trade and investment support activity.

As a long-term partner of the Australian government's TradeStart program, DTI has export advisers located across metropolitan Adelaide and regional South Australia. They deliver export mentoring, advice and support services to export-ready companies. These advisers have connections through South Australia's overseas officers and Austrade's global network.

Since coming to government in 2022, Brand SA has undertaken a series of activities aimed at raising awareness of South Australian products and produce and supporting local business. In August of 2023, Brand SA launched the Buy SA. For SA. campaign, aimed at converting local consumers to purchase local products and produce. Through Buy SA. For SA. Brand SA asks businesses to use the state logo and consumers to look for it while shopping to contribute towards jobs and the South Australian economy.

Supporting local business promotes economic growth. It creates jobs and provides businesses with the foundations for growth beyond local markets. Brand SA is actively encouraging more South Australian businesses to register to use the state brand, with a goal to reach 10,000 total registrations by the end of this month.

A new campaign, 'Make it your business', is running on digital channels, targeting business decision-makers to reinforce that the logo is available across all sectors and, most importantly, is free to use. Since re-establishment, Brand SA has built digital channels and acquired a digital audience of over 60,000 South Australians.

As part of our activities a key part of the government's trade strategy is presenting opportunities for South Australian companies to participate in overseas missions. Business missions aim to build capacity within local companies and expand our trade options in very important international markets. South Australia's overseas office network is a critical link to drive the state's international agenda, create jobs and grow its economy by establishing effective connections, leads, business matches and outcomes relevant to their market.

Our Washington office was established in January 2024 to pursue opportunities in defence and AUKUS, advanced manufacturing, energy, and health and medical, and the South Australian trade and investment office in Germany is now fully operating and targeting opportunities in green hydrogen and renewables, including storage systems, as well as in the defence, advanced manufacturing and health and high-tech sectors.

Due to the growing importance of India to Australia and the commercial opportunities expected to flow from the Australia-India Economic Cooperation and Trade Agreement, our footprint in India has been expanded with the establishment of two new locations in Chennai and Mumbai. Finally, this financial year DTI has successfully delivered business missions to Germany, Korea, New Zealand, Singapore, China, Dubai, India, Japan, Hong Kong, Vietnam and the United States across key priority sectors including food and wine, creative industries, energy, mining and critical technologies.

As we enter a new financial year it is this government's intention to deliver upon the commitments we have made to ensure the best outcomes for the people of South Australia. As I mentioned earlier, DTI has facilitated in two years over $2 billion of investment into South Australia in our priority sectors, and trade international teams are delivering on their targets, expanding South Australia's overseas network and travelling to key markets of relevance.

I very much look forward to supporting the growth of South Australia's economy through our continued trade activity and the active pursuit of investment from interstate and overseas, leading to more jobs and a more prosperous South Australia for all.

Mr WHETSTONE: Just a short introduction. I do want to re-emphasise the minister's comments about the trade and investment portfolio as a key economic driver to South Australia's economy, as well as the importance that I think has been demonstrated previously, with the bipartisanship and the continuity, that a government's role plays within the trade space. It is a key economic portfolio that I think has been under emphasised for many, many a day.

I would like to think that the government will continue to put more and more effort into initiatives generating interest in our state, but also generating a growing economy. I wish the minister well; it is a new portfolio for him, and an exciting portfolio that really does have a considerable amount of opportunity for the South Australian economy.

Moving on, I refer to Budget Paper 3, page 23. Minister, are you able to explain why the department has overspent its 2023-24 operating budget by $18 million?

The Hon. J.K. SZAKACS: I thank the member for his question. I can advise that the main changes to income, as reported in the Statement of Comprehensive Income, can be best described by the following. I will preface this by saying there may be a series of questions from the member that relate to the department at large; of course, I am responsible for the trade and investment program, and I understand that Minister Champion, who will be in estimates later today, may be able to inform members of some additional information with respect to his programs. However, I will endeavour to provide at large answers to sufficiently cover the member's questions this morning.

The $10.8 million increase in income from the 2023-24 budget of $177 million to the 2023-24 estimated result of $188 million is mainly due to the increase of $5.735 million related to the Real Property Act 1886 and increased payments to Land Services SA due to increased volume; $1.939 million mainly related to intragovernmental transfers for legislative and code amendments, reforms and the Housing, Infrastructure, Planning, and Development Unit sales; grants of $0.399 million related to the TradeStart contract extension; and $1.393 million related to the planning fee amendments.

In terms of the $18.658 million, about which the member specifically asks, the budget increase in expenses from the 2023-24 budget to the 2023-24 estimated results mainly relate to $9.7 million general supplies and services and $5.735 million related to the Real Property Act 1886 increased payments to Land Services SA due to the increased volume, and net carryovers of $2.562 million, $2.884 million, salaries relating to planning fee amendments of $1.239 million, and the TradeStart contract extension of $0.637 million.

I can add additionally, for a more fulsome response, that the $9.28 million decrease in expenses from the 2023-24 estimated result into the 2024-25 budget mainly relates to the Real Property Act, carryovers and planning fee amendments budget adjustments that occurred in the 2023-24 estimated result.

Mr WHETSTONE: So the majority of the $18 million I have asked about, you said it was attributed to general supplies. Can you expand on what general supplies is?

The Hon. J.K. SZAKACS: I am advised that the majority of that is related to planning-related portfolio matters, so I think that my endeavour to best answer the question will be served by taking that on notice and seeking that advice through the appropriate minister.

Mr WHETSTONE: Is the Trade and Investment budget being offset into planning? Am I reading into that? You have talked about some of these operating budget numbers. You have mentioned coming out of Trade and Investment, but you are talking about an offset into planning. You have mentioned code amendments, I think. Can you expand on the money that is being either transferred or offset into planning?

The Hon. J.K. SZAKACS: I can advise there is no transfer and there is no offset.

Mr WHETSTONE: The 2022-23 budget estimates $174 million in operating expenses for 2023-24 but this year's budget allocates $193 million. Can you further explain what that $19 million increase is?

The Hon. J.K. SZAKACS: Again, I can advise that the member's question may be better directed to Minister Champion with respect to detail because the driving factors relating to the question from the member are planning related. But insofar as the Department for Trade and Investment program activities are impacting, it is the impact of the additional budget measures that were announced in the budget with respect to those trade and investment programs—and Brand SA.

Mr WHETSTONE: In regard to your ministerial office, the cost of provision, there was an increase of one FTE and there is a budget increase of $241,000. I guess you can explain what the $241,000 is but that extra one FTE, what role is that? What role do they play?

The Hon. J.K. SZAKACS: I can take that on notice, but I would anticipate that that would be an additional FTE with respect to the additional portfolios for which I am now responsible.

Mr WHETSTONE: The FTE difference between the 2022-23 actual and the 2023-24 estimated result increased by 75.7 FTEs. That is 26.3 more FTEs than was budgeted for. Can you give me an understanding of that?

The CHAIR: What page?

Mr WHETSTONE: We are on workforce summary. I would imagine that is Budget Paper 4, Volume 4, page 114.

The Hon. J.K. SZAKACS: Sorry, sir, would you mind repeating the question?

Mr WHETSTONE: The FTE difference between the 2022-23 actual and the 2023-24 estimated result was an increase of 75.7 FTEs. That is 26.3 more FTEs than was budgeted for. Can you give me a reason for that increase?

The Hon. J.K. SZAKACS: I am happy to continue to endeavour to get the best information for the member, but the figures that the member just quoted do not add up on page 114. I think the member mentioned an increase of 75.

Mr WHETSTONE: It might be at page 111. I beg your pardon; it is page 111, the workforce summary.

The Hon. J.K. SZAKACS: Again, that is the workforce summary for programs responsible to both me, as the Minister for Trade and Investment, and also to Minister Champion in his broad portfolios. To best give the member an answer across the entire department, which relates to portfolios not administered by me, I will take that on notice and seek to confer with Minister Champion to get the best information, because there is FTE that he is responsible for as minister that I simply cannot advise.

Mr WHETSTONE: Minister, are you referring me to Minister Champion through his current role, or as the former minister—

The Hon. J.K. SZAKACS: No, I am taking it on notice for you.

Mr WHETSTONE: Thank you. While you are there, could you give me an understanding of what the roles of these additional 26.3 FTEs are?

The Hon. J.K. SZAKACS: If I can just clarify: the member mentioned 26 FTE on page 111.

Mr WHETSTONE: It is 26.3. The difference will be between the 2022-23 actual and the 2023-24 estimated result, where there is an increase of 75.

The Hon. J.K. SZAKACS: Sure, but if I can just clarify: the member specifically sought my endeavour to take on notice a question regarding 26 FTEs. If I could just clarify specifically—

Mr WHETSTONE: There are 26.3 more FTEs than were budgeted for.

The Hon. J.K. SZAKACS: Sure.

Mr WHETSTONE: The 2023-24 budget estimates—

The Hon. J.K. SZAKACS: No, sorry. Again, not according to page 111.

Mr TELFER: Ask about the increase. Do not set a number—just whatever the increase is.

Mr WHETSTONE: There is an increase of FTEs.

The Hon. J.K. SZAKACS: This is workforce summary, page 111?

Mr WHETSTONE: Yes, across the workforce summary, the 2022-23 actual as opposed to the 2023-24 estimated result. Can you give me an understanding of what roles the extra FTEs play?

The Hon. J.K. SZAKACS: Yes, I can. I am happy to take that on notice.

Mr WHETSTONE: Thank you. Regarding the budget estimate of 380 FTEs, which should have been a reduction of 10 over the past 12 months—the former minister has even said that the workforce was expected to be at 380 by the end of 2023—what has caused such a drastically different outcome for the 2023-24 budget of 380 FTEs and the 2023-24 estimate of 409? What is the difference, or why is there a difference between the estimate and the budget?

The Hon. J.K. SZAKACS: Whilst I am happy to provide some additional detail on notice for that, I am advised that the 2022-23 result was impacted by a number of vacancies, which have been filled subsequent to the 2022-23 financial year.

Mr WHETSTONE: Minister, obviously the vacancies come and go. Is there a priority for vacancies, once they are created, to be filled? Do you have a priority in your department for what vacancies are to be filled first?

The Hon. J.K. SZAKACS: I am advised by Mr Reynolds that all of them are of a high-order priority, so there is a keen interest and priority from the department to fill vacancies as soon as they become available.

Mr WHETSTONE: Moving to the program net cost of service summary, trade and investment net costs: the 2023-24 budget for trade and investment net cost was $46.904 million compared with $53.009 million in this year's estimated result. Why has the net cost of trade and investment blown out by $6.1 million?

The Hon. J.K. SZAKACS: I am advised that is due to carryovers with respect to major funding and commercial arrangements. I can endeavour to provide some additional information for the member with respect to those specific projects; however, I will take advice with respect to some of the commerciality or commercial-in-confidence arrangements around them. But I can advise specifically and explicitly that the $6.628 million is with respect to carryovers with respect to specific projects and funding arrangements.

Mr WHETSTONE: Minister, what measures will you put in place to meet the estimated $46.904 million budget to make these savings? What measures will you put in place to meet the $46.904 estimate?

The Hon. J.K. SZAKACS: If I can refer to my previous answer: explicitly, there are no savings measures in relation to the change in budget. It is a carryover that impacts the accounting for 2023-24, so there are no additional measures of which I or the department are undertaking to endeavour, as the member puts it so explicitly, that the additional expenditure across 2023-24 and then the reduction into 2024-25 are in relation to carryovers.

Mr WHETSTONE: I refer you to Budget Paper 4, Volume 4, page 112, Investing expenditure summary. The department's 2023-24 investment program was $1.4 million. This year, it is $4 million. Can you give me an understanding of what the $2.6 million increase is for?

The Hon. J.K. SZAKACS: I am advised that they are relating to capital works in the planning side of the administered items. Again, I am happy to either take that on notice or invite the member to refer that question to the minister this afternoon.

Mr WHETSTONE: Just so I have a better understanding, with the planning program there is an increase of $2.6 million directed to planning of the investment program?

The Hon. J.K. SZAKACS: That is largely correct. Thank you to my advisers for providing this information to me now so I can inform the member, with respect to his question, that annual programs total $0.447 million for 2023-24, $1.9 million in 2024-25 and $1.477 million in 2025-26. Across the out years, the $3.277 million that the member referred to in his previous question can be broken down into $1.9 million relating to the expert panel recommendations e-planning systems upgrades and enhancements for PLUS; $1.1 million for the e-planning system upgrades and enhancements at PLUS; $0.2 million for the SAILIS system upgrades and enhancements, also at PLUS; and $0.1 million for survey equipment purchases.

Mr WHETSTONE: I refer you to Budget Paper 4, Volume 4, page 112, New Projects. The department's only new project this year is a $1.4 million office fit-out. Can you give me an understanding of what the office fit-out is?

The Hon. J.K. SZAKACS: I can definitively say it is not my office. I will take some advice on that.

Mr WHETSTONE: Could I help you with that? Potentially, Frankfurt? Potentially, Washington?

The Hon. J.K. SZAKACS: No. It is a design office for the Government Architect.

Mr WHETSTONE: Besides the office fit-out, why have there been no new projects over the last two years? Are any new projects being planned currently?

The Hon. J.K. SZAKACS: We are not a capital business, with respect to the member's question. These are capital projects. We are not a capital-intensive operation at the Department for Trade and Investment.

Mr WHETSTONE: Are you able to give me a breakdown of minor capital works and how much of the $3.2 million is attributable to each under minor capital works?

The Hon. J.K. SZAKACS: Yes, I can do that—I can take it on notice and provide a breakdown for the member.

Mr WHETSTONE: I refer to Budget Paper 4, Volume 4, page 112, Annual programs. What annual programs is the department continuing this year and can you provide a breakdown of the funding for each program, either ceased, reduced or received more funding?

The Hon. J.K. SZAKACS: I can advise that annual programs can be broken down into $447,000 for 2023-24, $1.924 million for 2024-25 and $1.477 million for 2025-26. I advise that they are largely around IT, office furniture and so on, but reiterate that capital works and capital programs are not even a minor part of our operation, these are very much administrative-based annual programs with respect to capital.

Mr WHETSTONE: Can you give me an understanding of what was done about the plant protein program? That was in the 2022-23 budget target.

The Hon. J.K. SZAKACS: I can. The Department for Trade and Investment consolidated three well-regarded international and Australian food companies within the global protein industry, which led to the announcement on 1 March 2022 of a successful application for an Australian government Modern Manufacturing Initiative collaboration stream, granted $113.5 million. This consortium comprising AGT Food and Ingredients (a Canadian-based global leader in value-added processing of pulses), Australian Plant Proteins (the owners of Australia's only commercial pulse protein isolate extraction facility) and Thomas Foods International (Australia's largest, family-owned meat processor) proposed this $380 million project to establish the protein ingredient and food manufacturing hub in South Australia.

The project was proposed to be funded by a successive contribution of $113.5 million from the Australian government Modern Manufacturing Initiative, $65 million from the South Australian government and $200 million from industry. The South Australian grant was contingent on the consortium securing the Australian government Modern Manufacturing Initiative collaboration stream grant. The Australian government has since confirmed that it withdrew its previous commitment to provide a Modern Manufacturing Initiative grant to the consortium for this project.

The $65 million state contribution is planned and is being used for other economic development initiatives of the South Australian government. Plant-based protein remains an undertaking, with recognition of the growing global demand for high-quality plant proteins, local employment opportunities and the export potential the sector could deliver. My department continues to pursue opportunities for development of the plant protein sector in South Australia.

In this vein, a $500,000 grant has been provided to the Australian grain export subsidy Integra Foods to deliver a plant protein export market development project. This grant will support research, new product development and market development activities for the export of faba beans plant protein from Integra's Dublin facility.

Mr WHETSTONE: Where has the remainder of funding allocated to that plant protein initiative been diverted? You have put some money on the table for a continuation but there is a lot more money that was—

The Hon. J.K. SZAKACS: I can advise, from an accounting perspective, that $65 million was never on the balance sheet of my department. That was always held in contingency or in the Economic Recovery Fund administered by the Treasurer through DTF.

Mr WHETSTONE: Do you have plans to recoup any of that money for ongoing projects? Obviously, that money was a commitment and it was not put in a budget line, but as a minister do you and your department have any aspirations to justify that money coming back to a program within your department?

The Hon. J.K. SZAKACS: It is a good question. I think that the way the member prefaced the question with 'recouping' is not an accurate way to put it, or an appropriate way to put it from an accounting perspective. The funding was a Treasury and Finance and now an ERF matter. But absolutely, to go to the substance of the member's question, plant protein-based activity is still a firm priority of the government, particularly the Department for Trade and Investment. Since becoming minister, I have had a number of conversations and briefings that I have sought, and have received from my department, with respect to their pursuit of activity in this regard.

I note that Invest SA is undertaking, as it has across a broad-based portfolio, very good work—excellent work, in fact—in working with both international and domestic capital with respect to plant protein-based economic development. It is, and remains, a key priority to develop. Whilst this project was not able to be successful based upon the fact that there was a co-contribution necessary from the federal government and, unfortunately, notwithstanding the previous endeavours from the previous minister, the federal government was unwilling to continue in that stream. The priority for this government in South Australia and my department remains strong with respect to plant-based protein.

Mr WHETSTONE: Is the wine expansion and diversification program continuing?

The Hon. J.K. SZAKACS: It is, and I can provide some additional information for the member. It absolutely continues, and remains a very strong focus of this government, particularly with respect to the now recovering export market into China. The program is important. It delivers market diversification to ensure the continuing commercial success for existing brands, and expand exporter access to new markets. It creates positive sentiment for South Australian wine in these key markets across the world.

The member, I know, is well aware—he is a strong advocate for the outstanding wine that is produced in his region in the Riverland—that over $300 million in South Australian wine exports annually was redirected to diversified markets during the 3½ years when China imposed tariffs on our wine. The program to date has directly supported $18.2 million in export outcomes. These are supported into diversified markets.

I can provide some additional information to the member in support of this question regarding the continuing of the diversification program. In the year to April 2024, wine exports to Hong Kong were up 60 per cent to $258 million and to the United Kingdom they were up 4.5 per cent to $241 million. They are our two largest markets and they are supported significantly by $144 million of exports into the US, 109 into Canada and 89 into Singapore.

Since July of 2021, the continuing Wine Export Diversification Program has delivered over 86 initiatives involving 1,650 brands from 16 South Australian wine regions. It supports initiatives like the South Australian Wine Ambassadors Club, which has recruited 42 leading wine importers in Japan, South Korea, India, Vietnam, Singapore, Hong Kong and New Zealand. Since this program's inception, a total of 65 new-to-market brands have secured distribution across seven countries with first-order value of $1.768 million.

It also supports exporters undertaking programs such as the US Market Entry Program in partnership with Wine Australia and further supports campaigns, 20 in total, including campaigns and activations into Hong Kong, the UK, the US, Canada, Singapore, New Zealand, Japan, Korea, India, Vietnam and China.

Mr WHETSTONE: Moving on to the South Australian Landing Pad Program, has that program been discontinued?

The Hon. J.K. SZAKACS: No.

Mr WHETSTONE: How has it performed over the last 12 months?

The Hon. J.K. SZAKACS: I can advise the member that it has performed and met its goals. It has provided grants of $100,000 to assist interstate or international companies to establish an office in South Australia. To date, 45 companies have been approved for the program and the member, I am sure, would be very pleased to know, as I am sure he does already, that there is investment in this year's state budget to continue and upscale the program.

It is a very good program. It is one that is in the feedback I receive and I asked specifically, with the engagement I have across the sector, particularly with recipients, about the success and the value in which our prospects see this. We are very pleased this has been a key focus of the government and a key focus of our ongoing strategy.

Mr WHETSTONE: I just reflect on your previous answer about the Wine Export Diversification Program. You talked about over 1,600 brands in South Australia. Are you able to give me an understanding of how many brands have participated in outbound or inbound trade programs?

The Hon. J.K. SZAKACS: Sorry, is the member after a total number?

Mr WHETSTONE: A total number, yes.

The Hon. J.K. SZAKACS: It may be something that I can best take on notice to provide the fulsome detail. It is quite a number, sir. If you give me a moment, I will endeavour to provide some information now, but a more fulsome answer may be more appropriate for me to take on notice.

I will endeavour to take that on notice, because over that period of time there were a number of delegations and also a number of wineries have been supported. I can perhaps provide some advice to the member about recent delegations, particularly with respect to the re-engagement into China. A total of 36 wineries were supported as part of the state government's China re-engagement program and strategy. I note that a number of wineries from the Riverland were part of that supported program, including Byrne Vineyards and Negociants Australia.

There was an endeavour by the department—this was an endeavour that was some time before my swearing-in as a minister—around a diversified approach to the wineries involved in that support, but it is absolutely the ongoing endeavour of the department to support wineries and exporters into market. I mentioned in my opening statement the importance of supporting business, exporters and investors being in-market. On-the-ground in-market is incredibly important. We will continue to do that, and that will see that total number of wineries continue to be significant.

Mr WHETSTONE: Moving on to Invest SA highlights, Budget Paper 4, Volume 4, page 113, dot point 1, I notice the 2022-23 actual. You have already mentioned or stated that it was just over $1 billion. The 2023-24 target is $750 million and the estimated result was again close to $1 billion, but the 2024-25 target is again $750 million. Why is there a target of underachieving, or an under $1 billion result, when we are looking to grow investment through Invest SA attraction and your target is $750 million?

The Hon. J.K. SZAKACS: I thank the member for his question, particularly his strong support for the overachievement of Invest SA in their investment attraction. The target in the budget papers was arrived at through a comprehensive process by the department. It is certainly my expectation, as is the activity on the ground by Invest SA, to continue their success in achieving and overachieving across those targets.

I do not think for a moment that there is any agency in the government which sees a target as a maximum. It is a minimum endeavour, and the work that is being undertaken by Chris Wood as the lead and his excellent team, both Invest SA and across the entire department, will in my view continue to exceed, continue to deliver the strong BD for South Australian businesses and inbound capital. I would be most optimistic that we will be sitting here next year with the member being able to talk about our overperformance again.

Mr WHETSTONE: Do you think Mr Wood is playing it safe, do you?

The Hon. J.K. SZAKACS: No. Mr Wood is an ambitious senior member of the government, and his work and his team are exceptional.

Mr WHETSTONE: How much of that figure of just over $1 billion of investment into South Australia via Invest SA was foreign investment? Is there a breakdown of that figure by industry?

The Hon. J.K. SZAKACS: I can provide some additional information for the member and also I can endeavour to provide some information on the breakdown while I am here today. For the 2023-24 financial year the target, as already mentioned, being $750 million, has been exceeded. In terms of a breakdown for the member, 41 projects have seen the accumulation of $1.005 billion. This represents 134 per cent of DTI's total investment target.

Of the 41 secured projects, 26 were secured through FDI, with a total value of $681.3 million, representing 67.8 per cent of the total investment facilitation in this financial year. These FDI investments were mainly in minerals and energy, food, wine, agribusiness, health and medical sectors. Further to answering the member's question regarding a breakdown, a further $323 million was facilitated in local or national direct investment, and this can be broken down.

With respect to the breakdown across sectors, it is $741.5 million in minerals and energy; $93.3 million in the critical technology sector; $77.4 million in food, wine and agribusiness; $51.2 million in tourism; $22.1 million in defence and space; $15.2 million in health and medical; and $4.1 million in creative industries.

Mr WHETSTONE: I appreciate the breakdown. Obviously, the main headline is that 66 per cent of the billion dollars of investment came via either energy, mining or defence. Are there any other programs that will be put to help boost investment in those other sectors? You did mention I think it was $60 million. You whizzed the numbers at me pretty quick. But the food and wine sector, the service sector—there are sectors that I think are under-represented. Are there any other initiatives that the department will put in to further boost those sectors that I think are under-represented?

The Hon. J.K. SZAKACS: I think the best way that I can respond to the member's question, which is a fair and reasonable one, is that in fact the programs being delivered by the department, even going down into the dedication of FTE across the department, are disproportionately from a value perspective devoted to those industries the member raises that are at the lower end of that band. For example, critical technologies; food, wine and agri; tourism; defence and space; health and medical; and creative industries are all disproportionately supported.

I do not say that in a contrary or negative way, but they are disproportionately supported by resourcing of the department. That is a firm focus around the growth. It is also a very frank recognition that the value of investment in projects in the minerals and energy sector is by capita, by project, much larger than in projects in the remaining sectors of which I have informed the member.

Mr WHETSTONE: As I read it, the department was already meeting its per year investment targets into South Australia before Invest SA was re-established. How was re-establishing Invest SA contributing towards the figure? I understand we have moved up from the target of 750; if re-establishing Invest SA has contributed significantly towards the department's targets, why has the target remained at 750?

I know I have already asked this, but I am trying to validate Invest SA's worth and also understand the evaluation program for lnvest SA's goals. How are they being met? Are there KPIs, are there targets set by you as the minister or by your management?

The Hon. J.K. SZAKACS: I will be very forthright from the get-go in answering the member's question: Invest SA is doing an outstanding job. The creation of Invest SA was a pillar of our commitment to the community and the business community of South Australia in going to and being successful at the 2022 election. It is not just our compact with the South Australian public and business sector that we should and must deliver on our commitments, it is the overwhelming feedback I have had in my short time as minister from my engagements—both domestically across Australia and with business across the globe. Amongst the very first things they raise with me is the outstanding support they receive from the Invest SA team.

That is really important, and it is not just important because the key focus of our government is to support the moving of capital and to support the focus of attracting investment into South Australia to grow scale and, most critically, to support the prosperity of South Australians through regional capacity, through job creation, and through business strength. Some of the greatest advocates for South Australia are those businesses that are being supported by Invest SA.

I was recently in Hong Kong to lead a very senior delegation—in fact, I was the first minister of any jurisdiction in Australia to travel to Hong Kong since the lifting of COVID restrictions, I think in the last four years I was the first minister to be there. There was one particular engagement that was a very high level business engagement supported by the local Australian Hong Kong chamber, and what was really pleasing to hear was the number of conversations in the room, strong voices from those who had been supported by Invest SA, speaking about and evangelising South Australia to those prospects. Very firmly at the core of that is the work undertaken by Invest SA.

I do not seek to mischaracterise the member's questions or his previous reasonable commentary around Invest SA, but it is certainly part of the ongoing strategy of our government with respect to economic development and with respect to economic prosperity. Invest SA is going nowhere; they are standalone, and the team, led by Chris, is doing a good job.

If I can provide specifically to the member's questions about some of the outcomes. Again, there are some that I simply cannot speak to today because of commercial considerations, and in due course subject to those commercial considerations being finalised we will be able to furnish this place and the member with additional details. But companies like Neon, Omni-Health, Zoho Corporation, of course the $140 million investment into Port Bonython Hydrogen Hub and Aerobond space machines company are just some of the companies that are growing jobs in South Australia.

With respect to some of the targets and KPIs that the member asked about and referred to, since its creation in June 2022, 5,000 jobs have been created. For example, $15 million has been invested through Kongsberg Defence for a purpose-built facility in Technology Park, which I understand is opening very soon. In addition, in conjunction with South Australia's clinical trial, Echo Systems supported successful capital raising of $14 million, finalising a deal of $12.5 million for a very exciting hydrogen production facility in Boliver.

Again, if I can use that as a demonstration of the wraparound impact that the work of Invest SA has, that has been raised by the Japanese Ambassador to Australia in his meeting with me. I have personally engaged with Marubeni. The first thing raised with me at both of those meetings was the outstanding support that they have received from Invest SA.

Mrs PEARCE: My question relates to Agency Statements, Budget Paper 4, page 113. Can the minister explain how the South Australian government has driven trade and investment outcomes by hosting major events such as the AFL Gather Round and LIV Golf?

The Hon. J.K. SZAKACS: I thank the assistant minister for her question. Of course, it is in her role as assistant minister to support the engagement and participation of young people in activity. Can I just say how critical it is that they can see our state supporting the attraction of major sporting events to South Australia. There are many young people in my community who speak incredibly fondly of seeing their heroes run around their local footy oval at AFL Gather Round, and young golfing prodigies walking around LIV Golf. It is a very exciting time for those people. I also note the exceptional work that the assistant minister does in this space.

Invest SA utilises major events to attract and bring targeted investors and businesses to South Australia, promoting the South Australian economy and its competitive strengths to attract investment. The benefits of organising investor and client events alongside major events allows Invest SA to offer additional incentive to visit South Australia. As a result, Invest SA has been able to attract decision-makers and senior business leaders to promote opportunities in South Australia.

Over the last 12 months, Invest SA, through major events, has attracted 542 senior business leaders and investors to South Australia from 451 companies from strategically targeted sectors including 155 interstate and, excitingly, 182 foreign companies. Investor events vary in scale, with the smallest having just four attendees and the largest having over 200 attendees, with an average of 68 attendees per event. In 2023-24, major events that have been held include:

the FIFA Women's World Cup, where 113 people from 69 companies were directly engaged by Invest SA;

the Horasis India Meeting, where 208 people from 189 companies were supported;

the Adelaide International Tennis Tournament, which was seven people from seven companies (I think the member for Hartley put on his tennis whites and got down there);

the Adelaide Motorsport Festival, which was 42 high-net worth individuals and 13 tier 2 net worth individuals;

the AFL Gather Round, which was 84 people, including 19 interstate investors and 77 companies; and

LIV Golf, which was 65 people from 44 companies.

Invest SA mainly and mostly supports these corporate events; however, it does also receive some support from the Department of the Premier and Cabinet, especially event funding for these larger events like Gather Round and LIV Golf.

On top of contributing more than $83 million to the South Australian economy, outcomes from events held alongside the 2023 AFL Gather Round included nine South Australian companies in discussions with investors, ranging across direct investment, mergers and acquisitions, and IPOs. Of the nine companies, six are continuing discussions for further investment following the major event held with the SA Business Chamber, and three from other corporate events held at Gather Round. The outcomes of the 2024 Gather Round, whilst not able to be reported at this time, I am advised will be fruitful for South Australian business.

Due to the considerable amount of time involved, the dedication of the government in both pursuing and locking in these major events and sporting events for multiyear contracts is critically important. Relationships across the business development undertaken by Invest SA are critically important, and it is highly beneficial for our team to be able to plan rounds across multiple events and over multiple years, where the engagement can continue and relationships can be built upon thanks to these major events.

Mr WHETSTONE: Minister, is there a budget line for major events in trade and investment?

The Hon. J.K. SZAKACS: No.

Mr WHETSTONE: I did not think so. Moving on, I refer to Budget Paper 4, Volume 4, page 113. The department has supported a number of South Australian businesses on outbound business trade missions. Likewise, 200 international businesses were hosted on inbound business trade missions. How are they monitored for success?

The Hon. J.K. SZAKACS: I thank the member for his question. In direct response to the monitoring and outcomes, I am advised that there is, at the completion of each delegation, an internal review and internal monitoring of key outputs and key inputs, particularly with respect to lessons learned and future planning. Secondly, all the activity around the attraction of these inbound delegations is reported in activities and then, ultimately, in the activity that is before us today for examination.

Mr WHETSTONE: Thank you, minister. Can you give me an understanding of the cost of outbound trade missions, as well as the cost of inbound trade missions? Is there a cost per mission or an overall cost? Can you give me an understanding of what these reviews will mean for the benefit of either inbound or outbound trade missions?

The Hon. J.K. SZAKACS: I think it was the second part of the member's question that was regarding inbound. I will endeavour to seek some information. If I can provide that to the member during the course of estimates today, I will. With respect to outbound, over the last 12 months, departmental staff have travelled on a number of business missions to our priority markets I think I mentioned in a previous answer—

Mr WHETSTONE: Are you able to give me a number of how many missions in 12 months?

The Hon. J.K. SZAKACS: I can seek that breakdown, yes—including the United States, United Kingdom, Europe, India, South Korea, Japan, Singapore, UAE, New Zealand, Hong Kong, Vietnam, and China. The cost of staff travel for these missions across the 2023-24 financial year was approximately $473,000.

Mr WHETSTONE: The department is delivering on the China support package, $185 million. Obviously, there has been a priority with wine exports to re-engage with those winemakers and wine businesses. Are you able to give me an understanding of where that $1.85 million is directed? Also, how is that money being distributed?

The Hon. J.K. SZAKACS: I can. I thought for a moment there the member had given us an upgrade to $185 million.

Mr WHETSTONE: It is $1.85 million.

The Hon. J.K. SZAKACS: It is $1.85 million. I can break that down for the member. As he would be well aware, in March 2024, to coincide with the lifting of tariffs of wine exports into China, the $1.85 million re-engagement support package was announced. This is being delivered in partnership with the South Australian Wine Industry Association and our Department of Primary Industries and Regions.

It does include, amongst a number of disbursements across the $1.85 million, a new in-market Shanghai-based wine adviser, who is dedicated to exporter capability, building two-way market activation and immersion marketing and communication, and campaign support and technical cooperation administration.

The department held a series of China market insight workshops in January and February 2024 across the Coonawarra, Barossa, Riverland and Adelaide Hills wine regions. On market activation, the DTI has: led 23 producers on a Taste of South Australia China Trade Mission in Guangzhou and Chengdu in March 2024; convened a wine importer round table and a South Australian wine forum in Beijing during the visit to China by Her Excellency the Hon. Frances Adamson AC, the Governor; and supported 37 wine exporters to exhibit at Vinexpo Hong Kong, and four buyer meetings in Shenzhen in May 2024.

In June 2024, DTI commenced a targeted marketing campaign to build awareness and understanding amongst Chinese industry and consumers of South Australia's premium wine offering. The department will arrange an inbound visit program to South Australia for six to eight leading Chinese wine importers in the latter part of 2024.

I am further advised that PIRSA is leading a program of technical cooperation that will include research, industry and regulatory exchange with a focus on South Australia's sister state of Shandong. With respect to the phasing of the $1.85 million, I can advise the member that there is a three-year phasing and, due to the partial year because of the March 2024 announcement and kick-off, the program will see a significant tempo increase across the 2024-25 financial year.

Mr WHETSTONE: I did note that you were visibly shaken not to have met the Chinese Premier during his most recent visit. Are any other support packages planned or assistance to re-engage China with both red meat and rock lobster?

The Hon. J.K. SZAKACS: I sincerely thank the member for his checking in on my wellbeing.

Mr WHETSTONE: I was concerned for you, minister.

The Hon. J.K. SZAKACS: I would never accuse the member of being anything other than being concerned for my wellbeing. I am sorry to be the one to disappoint the member after his strong vote of support for my art of persuasion, but I was not visibly shaken by not being able to meet with the Premier of China. I am happy to inform the member that I have not met with Xi Jinping either, nor did I meet with–

Mr WHETSTONE: Shame!

The Hon. J.K. SZAKACS: Shame, that is right, but we are working on it. I can, though—and I am sure much to the member's excitement and support—advise that South Australia is incredibly well represented and served in the international diplomatic arena and within our federal government by two outstanding South Australian ministers, who are leading what has been an extraordinary turnaround in the repair of the relationship with China compared with that overseen by the Morrison Liberal government. The foreign minister, Senator Wong and the Minister for Trade, Senator Farrell, both of whom are South Australian senators, are doing a great and outstanding job in re-engaging with China. Whilst I did not meet with the Chinese Premier, they did, as did our Premier, Peter Malinauskas.

With respect to the engagement and re-engagement and repair of what are two very important—as the member has rightly referred to—outstanding matters, being beef and lobster, I can provide some additional information for the member. I can say from the outset that it is certainly safe to say that we here in South Australia—industry, primary producers, fishers, farmers—would have much liked to have seen the lifting of restrictions with respect to beef and lobster by now, and the impact that these issues, with respect to tariffs or lobster bans, is having on regional communities is significant and profound.

That is known by the leaders of our advocacy at a commonwealth level, Senator Wong and Senator Farrell. I engage with them on a regular basis and, I should add also, the Minister for Agriculture, Murray Watt, who, whilst not a South Australian, certainly has been extremely forthcoming and open to direct engagement with South Australia on these important issues.

Perhaps to the member's satisfaction, I reiterate that we—the government and the opposition—are all on the same page in wanting to see these restrictions eased as soon as we can. It is very promising to receive confidential briefings and also the aeration of these matters through public reporting, particularly from Minister Farrell, about a high degree of optimism regarding the hopeful imminent lifting of bans on lobster. As we have with wine, the government stands ready, willing and able to respond immediately and quickly in support of industry. Certainly in my short time as minister I have been engaging directly with industry to hear from them about what they see and what they would prioritise as re-engagement.

The focus of that, and the core of that, is the continued support for diversification. Whilst there has been, with respect to lobster, a significant impact on the value of exports, the volume of exports of live lobster has continued to hold strong. It is much to the reasonable concern of industry that an 'all eggs in one basket' approach to market is not a prudent, fit-for-purpose, long-term approach for industry.

But, parallel with that, are of course the immediate impacts that the lifting of bans into a market would have on the ability for our live lobster to return to the dinner plates, the restaurants, and the markets of China. They have put to me that they would seek the support of government in that immediate re-engagement. At this stage, it would be premature of me to be able to put a timeline on when those bans on lobster may be lifted into China. However, I am satisfied that the best case and the best advocacy are being put forward by Minister Wong, Minister Farrell and Minister Watt.

Mr WHETSTONE: Moving on to page 113, dot point 7, can you explain what the TradeStart export advisory services partnership is?

The Hon. J.K. SZAKACS: The TradeStart program is delivered in partnership with Austrade. It includes a team of six trained advisers based in the South-East, the West Coast, the Mid North and across Greater Metropolitan Adelaide. Over the past two years TradeStart has delivered 881 export services to 374 South Australian businesses, facilitating over $26 million in exports. Services to businesses include export guidance, market research, business to business introductions, capability building activities and in-market support. TradeStart advisers also support connection between South Australian export businesses and our international office network.

The TradeStart program has three regional offices: Mount Gambier, covering the Murraylands, Limestone Coast and the Mallee; Barossa, covering Barossa, Eden Valley, Clare, the Riverland and the Mid North; and Port Lincoln, covering the EP and Far West Coast. TradeStart works with over 280 active clients in South Australian regions, and over the past six months they have supported delivery of export readiness and market insight initiatives in the Riverland, South-East, West Coast and other regions.

A highlight of this regional engagement has been 125 unique services delivered into 28 Riverland wine brands over the past two years. This has encompassed export guidance and business matching global connections and market research. Over 15 individual Riverland wine brands have joined outbound trade missions or participated in inbound trade activities in these past 12 months.

Another very important demonstration of regional support saw DTI provide a grant of $500,000 to Dublin-based Integra Foods, as I mentioned before, in pursuit of the ongoing plant protein export market development project. In May 2024, just last month, I executed a new four-year agreement with Austrade to continue the delivery of TradeStart services across forward estimates to support South Australian exporters. I think this is a unique South Australian relationship that we have with Austrade, one that, again, regionally is held in high regard, and one where I acknowledge my appreciation to Austrade for their commitment to this unique approach.

Mr WHETSTONE: I note that the Agent General to the UK and Europe, the Hon. David Ridgway, has just had a contract renewal. When will Mr Haese, the Special Envoy to Singapore, have his contract assessed?

The Hon. J.K. SZAKACS: I take the opportunity, albeit that Mr Ridgway is a direct appointment—the Agent General was a direct appointment from the Premier—to thank Mr Ridgway for his work in the UK as a terrific advocate for South Australia, and particularly for the on-the-ground support that he provides to many South Australian businesses in their endeavours in the UK.

With respect to Mr Haese, he is appointed under very different contractual arrangements than the Agent General. Mr Haese is not contracted. He is remunerated for his time and travel, so there is no contract renewal in the same manner as the Agent General having an extension to his contract.

The CHAIR: Time is up, I am afraid.

Mr WHETSTONE: I have one last question.

The CHAIR: Alright, I am a generous Chair so I will give you one last question.

Mr WHETSTONE: I have been well behaved today.

The CHAIR: Although you are eating into our scone time, I will give you one last question.

Mr WHETSTONE: With regard to the trade office network, are all of those trade officers under performance indicators?

The Hon. J.K. SZAKACS: Yes.

The CHAIR: Thank you for your very succinct answer.

The Hon. J.K. SZAKACS: I would not want to stand in the way of your scones, sir.

The CHAIR: The time allotted having expired, I declare the examination of the portfolio of the Department for Trade and Investment completed. I thank the opposition for their contribution, I thank the minister for his comprehensive answers, and I especially thank the public servants. I know all the work that goes into the lead-up to estimates, so thank you for your contribution.

Sitting suspended from 10:32 to 10:45.