House of Assembly Fifty-First Parliament, Third Session (51-3) 51 3 Parliament of South Australia House of Assembly published Question Time Schneider Electric SCHNEIDER ELECTRIC Mr RAU House of Assembly Enfield SCHNEIDER ELECTRIC Mr RAU (Enfield) (14:12): My question is to the Premier. Can he update the house on developments at the new Schneider Electric facility at Gepps Cross? The Hon. M.D. RANN House of Assembly Ramsay Premier Minister for Economic Development Minister for Social Inclusion Minister for the Arts Minister for Sustainability and Climate Change SCHNEIDER ELECTRIC The Hon. M.D. RANN (Ramsay—Premier, Minister for Economic Development, Minister for Social Inclusion, Minister for the Arts, Minister for Sustainability and Climate Change) (14:12): I thank the honourable member for his question. This morning I had the pleasure of opening the new Schneider Electric facility at Gepps Cross. This facility represents an exciting new chapter in what has been a real South Australian success story. Clipsal is, without doubt, one of our state's most enduring and recognisable businesses, established in 1920 when Alfred Gerard developed an adjustable, one size 'clips all'— Mrs Redmond interjecting: The Hon. M.D. RANN House of Assembly The Hon. M.D. RANN: That is what it was called, one size 'clips all'—that is where the name came from; I am trying to explain that in the best way I can—metal conduit fitting. In 1930, Alfred and his son Geoff developed the first all-Australian light switch. Clipsal also pioneered the use of thermoplastics in the 1950s. During World War II the Clipsal factory at Bowden, which, of course, is going to be a centrepiece development, a green business hub, part of our transport corridor linking with the tram— The Hon. M.J. Atkinson House of Assembly The Hon. M.J. Atkinson: Welcomed by the local residents. The Hon. M.D. RANN House of Assembly The Hon. M.D. RANN: Welcomed by the local residents. During World War II it was involved in the war effort in making morse code sets and also making the switches for the release of bombs in aircraft, which I must say I found really interesting. Since then, the company has expanded into Asia and beyond. The acquisition by Schneider Electric in 2003 has enabled Clipsal to benefit from the expertise and experience of a true global giant in the power and control solutions industry. Clipsal Australia is now the No. 1 brand of electrical accessories across Asia, and employs more than 1,000 South Australians. The new $35 million development at Gepps Cross brings together all of Clipsal's metropolitan Adelaide operations under a single roof. The facility also incorporates Schneider Electric Australia, as well as a number of shared services for the Schneider Electric Pacific Zone. It will be home to about 1,000 on-site staff, and occupies a total floor area of almost 30,000 square metres. It also features energy-efficient lighting, vast open space and soundproofing, and will host Clipsal's sales, marketing, manufacturing, logistics and support functions. The new facility represents a major and ongoing investment in South Australia's manufacturing industry, and will help ensure that Clipsal Australia remains the pre-eminent supplier of electrical products in Australia and a significant player across the Asia Pacific region as part of Schneider Electric. This new facility illustrates the growth and diversification of manufacturing industries in Adelaide's northern suburbs. It is also home to operations of a number of global defence companies—including BAE Systems, Ultra Electronics and Saab Systems—all of which are based at Tech Park at Mawson Lakes. There are a lot of other things happening in terms of the big infrastructure projects—the Northern Expressway, employing a huge number of people and contractors, the upgrade of the railway line and, effectively, a doubling of the size of the Lyell McEwin Hospital. South Australia offers advanced manufacturing companies significant cost savings compared to other states, access to major markets and investment opportunities to build on their core capabilities. Mr Williams interjecting: The Hon. M.D. RANN House of Assembly The Hon. M.D. RANN: You want to talk about taxation? That is why we brought down payroll tax to equal lowest in the country. Independent commentators such as Access Economics have noted— Members interjecting: The Speaker House of Assembly The SPEAKER: Order! The Hon. M.D. RANN House of Assembly The Hon. M.D. RANN: They spend most of their time arguing with each other but it would be nice to be able to answer a question that, I have to say, I would like to have had more notice of but a question that I think deserves an answer. Independent commentators such as Access Economics have noted that South Australia is better placed than other states to emerge from the global financial downturn in good shape. Access Economics forecast last week that our state will outstrip the national rate of economic growth over coming years. It also predicted that South Australia's unemployment rate will remain below the national jobless level throughout the entire five-year forecast period. Of course, that prediction comes after the annual rate of employment growth in South Australia has exceeded the national rate for eight consecutive months. Compare that to downturns in the past. ABS figures show that 101,000— Members interjecting: The Hon. M.D. RANN House of Assembly The Hon. M.D. RANN: If you want to hear the jobs figures, I am very happy to give them to you. ABS figures show that 101,000— Members interjecting: The Speaker House of Assembly The SPEAKER: Order! The Hon. M.D. RANN House of Assembly The Hon. M.D. RANN: —new jobs have been created in South Australia since 2002—101,000 extra jobs, more than there was then, more than there was when you were in power, two AAMI stadiums full, as I know you are obsessed with stadiums—but there is always more that can be done. In that respect, there can be few better examples in South Australia than Clipsal Australia in partnership with Schneider Electric which, from memory, was established in France in the Alsace region—it sounds like a name from the Alsace region—in about 1836. It now has offices in all Australian states and is represented in more than 25 countries worldwide. There was a lot of speculation when Clipsal was sold to Schneider about what the future would bring: would it be shifted holus-bolus to China or somewhere? What we saw today with the executives from France, as well as Hong Kong and Australia, is a big commitment here in South Australia in the northern suburbs.