VTT CELLULOSE FIBRE REPORT

Mr PEGLER (Mount Gambier) (14:38): My question is to the Minister for Manufacturing, Innovation and Trade. Can the minister update the house on the VTT report and support the government is providing to the South-East?

The Hon. T.R. KENYON (Newland—Minister for Manufacturing, Innovation and Trade, Minister for Small Business) (14:39): As usual, the member for Mount Gambier asks pertinent and very important questions and, as usual, he remains a strong advocate for his electorate. I thank him for the question.

The member for Mount Gambier was one of a number of key stakeholders present to receive an update on stage 2 of the VTT report in Mount Gambier last week. Members would be aware that the state government is funding a comprehensive cellulose fibre study that involves the VTT Technical Research Centre of Finland working with the South-East forestry industry to identify a sustainable road map and achievable market opportunities for higher value-added activity in the forestry sector.

VTT is a world leader in translating cellulose fibre opportunity research into business opportunities. It is also globally connected to major international cellulose fibre players. Stage 1 of the VTT report focused on a value chain analysis of the Limestone Coast forestry industry, an analysis of the resource availability within the Green Triangle and identification of potential opportunities for higher value-added activities.

Last week, stakeholders received an update on stage 2 of the project, which will deliver a strategic road map for the Limestone Coast's forestry sector to transition to sustainable, higher value manufacturing opportunities. I am advised that VTT will deliver the completed report in September 2013 and in conjunction with this industry update I announced a grant of $80,000 to Regional Development Australia Limestone Coast to deliver the manufacturing work strategy business model innovation program in the South-East.

This program will complement and support the objectives of the VTT cellulose fibre study, as forestry industry representatives will be the first business offered participation in the study. The business model innovation program will be delivered in a series of applied learning workshops centred on innovation-based business strategies and will help participants learn about how they can develop more effective and strategic business models and increase their ability to innovate and be more profitable.

I am pleased to be a part of the government that has got behind the South-East and I would like to take this opportunity to thank the South-East community for their warm hospitality throughout my recent visits to the region.

Members interjecting:

The SPEAKER: I call the member for Heysen to order and I call the member for Waite to order. The member for Unley.