Industry Participation Advocate

The Hon. A. PICCOLO (Light) (14:14): My question is to the Minister for Small Business. How is the Industry Participation Policy securing work for local businesses through government projects?

The Hon. M.L.J. HAMILTON-SMITH (Waite—Minister for Investment and Trade, Minister for Small Business, Minister for Defence Industries, Minister for Veterans' Affairs) (14:14): I thank the member for his question. I know that small business is vital to him in Gawler and the region, and that is why the government created the Industry Participation Advocate's position in February 2013 to make sure that local businesses, small businesses, got the first go at almost $4 billion worth of goods and services contracts let annually by the South Australian government and that they win this work to create jobs and investment right here at home.

Added to this is the growing amount of construction, funded by the commonwealth but managed by the state government, that forms part of our plan. The state government, through the Industry Participation Policy, requires the submission of industry participation plans, with tender documents for government projects over the value of $4 million in metropolitan Adelaide and $1 million in regional South Australia. Data from the State Procurement Board now records the immediate success of the state government's initiative, and 90 per cent of the value of goods and service contracts was let to suppliers located in South Australia in 2014-15. This compares with 79 per cent in 2013-14 and only 51 per cent in 2012-13 when we set out on this path and made these changes.

Major construction projects valued over $50 million in the 12 months to the end of April 2016 had an estimated work package dollars spent in South Australia of $637 million out of $698 million. That is an outstanding achievement by this state. It is 91 per cent of retained spending in South Australia for major construction procurements in the supply chain benefiting locally-based businesses. A number of ministers on this side of the house need to be commended for their support for this policy and their active involvement in it to make sure that our small businesses get the work they deserve.

Projects built by South Australians for South Australia include the River to Torrens Road Project, the O-Bahn, the City Access Project, the Darlington upgrade and many, many others. Each of these programs had an industry participation plan. This shows the improvement since the launch of the Industry Participation Policy administered by Ian Nightingale, who was appointed as the Industry Participation Advocate in February 2013 and who, may I say, is doing an absolutely outstanding job for the state.

Also, 1,232 businesses attended an OIA Meet the Buyer event in 2014-15. In addition to this, 148 businesses attended our Supplying to Government Workshop Seminar. I was just at one of these on Tuesday and it was attended by nearly 300 people. All the various government departments had their project managers and people there. It was really a 'meet the buyer' exercise, and it was extraordinarily well attended by small businesses and strongly supported by the civil contractors who helped to host the event.

I told local businesses at that event that, over the next three years, the budgeted capital work spend for the state government is between $1.327 billion and $1.516 billion per annum. This represents all manner of projects in scale and size. On top of this, the $985 million Northern Connector will be delivered and provide maximum employment and economic development opportunities for the state. Of course, for housing contractors and suppliers, there is the $208 million package to build 1,000 homes.

This government is making sure that our own small businesses, and workers within them, get the benefit of every dollar of state government outlay, and that is good for jobs, good for business and good for South Australia