Investment and Trade Initiatives

The Hon. P. CAICA (Colton) (14:58): Bad luck. My question is to the Minister for Manufacturing and Innovation.

The Hon. L.W.K. Bignell: He called you a hobo.

The Hon. P. CAICA: How is the state government assisting companies—who called me a hobo?

The Hon. L.W.K. Bignell: The member for Mitchell.

The Hon. P. CAICA: Sorry, I was distracted. How is the state government assisting companies to participate in private sector projects in South Australia and across Australia?

The SPEAKER: I'm afraid I missed that.

The Hon. P. CAICA: What was it you missed? The question?

The SPEAKER: What was the question?

The Hon. P. CAICA: The question was, again—but, sir, someone did call me a hobo and I was distracted. How is the state government assisting companies to participate in private sector projects in South Australia and across Australia?

The SPEAKER: Splendid. Minister.

The Hon. S.E. CLOSE (Port Adelaide—Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for the Public Sector) (14:59): I thank the member for his question. This government is committed to ensuring that local industry has the best possible opportunity to win work in major private investment projects. With a highly competitive environment created by a strong Australian dollar, and of course the federal government's economic rationalist attitude to industry support, it is more important than ever that we ensure our local businesses are able to position themselves to successfully bid for lucrative contracts. This government's aim is to support local firms and the South Australians they employ to win the largest share possible of the billions of dollars worth of major projects on the horizon in this state.

Not only do we want local businesses to participate in state government projects we also want them to win the biggest share they can in the many billions of dollars of private sector investment that continues to flow to this state. To achieve that objective, we have established the Industry Capability Network, which now sits as a unit within the Department of State Development. The Industry Capability Network (ICN) has focused its efforts on our key economic growth areas: oil and gas exploration, mineral resources, clean tech and defence-related projects. We want local businesses to understand how to bid for these contracts, what they need to do to win those contracts and then to be able to deliver.

I am pleased to report that, in the past financial year, $103 million worth of contracts awarded to South Australian-based companies were facilitated through the ICN. An additional $9 million of contracts from interstate offices were awarded to South Australian-based companies through using the ICN national network. ICN actively works with the South Australian manufacturing, resources and defence sectors to identify and encourage opportunities for local suppliers to participate in major projects.

In the defence sector, ICN is assisting companies to identify work with projects such as the ASC as part of the Collins Class sustainment project, BAE Systems on its Global Access Program, General Dynamics on the M113 battle-damaged vehicle program and assisting Defence SA with supply chain information for potential suppliers for the LAND 400 project.

In the minerals sector, ICN has been working with both Rex Minerals on the Hillside copper mine project located on Yorke Peninsula and Nyrstar on the Port Pirie smelter upgrade project to provide these companies with information on potential local suppliers. An ICN supply consultant is located within the Nyrstar project team to ensure it is aware of local industry capability. ICN has also supplied information to Santos, BP and Iron Road to assist local industry to participate in current and future resource and energy projects.

In the clean tech sector, ICN has worked with Sundrop Farms, an exciting project in the member for Stuart's electorate, on its greenhouse expansion. Sundrop Farms' greenhouses harness the sun's energy to desalinate sea water to produce fresh water for irrigation, generate electricity and provide energy to heat and cool the greenhouse.

This government is committed to ensuring that local industry has the best opportunity to win work on major projects. The ICN is delivering on this commitment $103 million in 2013-14 and many more millions of dollars in the future as this state continues to grow and become a place where people and business thrive.