SOUTH AUSTRALIAN RESEARCH AND DEVELOPMENT INSTITUTE

The Hon. J.S.L. DAWKINS (15:18): I seek leave to make a brief explanation before asking the Minister for Agriculture, Food and Fisheries questions regarding the South Australian Research and Development Institute.

Leave granted.

The Hon. J.S.L. DAWKINS: On ABC radio on 28 August this year, the Treasurer (Hon. Jack Snelling) made the statement that the government has 'certainly got a strong commitment to SARDI'. The government is currently involved in discussions with the University of Adelaide with the aim of the university absorbing the functions of SARDI. In addition, $1 million was cut from research and development activity to SARDI in the 2012-13 budget to meet budget savings targets. My questions are:

1. How is the government supporting research and development in this state whilst currently in discussions with the University of Adelaide to divest SARDI and over $70 million worth of assets and South Australia's total agricultural research capability to the university?

2. What is the current status of the deal being done by the state government to transfer its responsibilities for SARDI to the University of Adelaide?

3. Will the minister advise the council of the detail of the assets that would be transferred to the University of Adelaide under such a deal?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for Tourism, Minister for the Status of Women) (15:19): The relationship between SARDI and the University of Adelaide is not a new one. Over the last 18 years we have developed a very strong collaborative relationship with significant benefits to both parties. I am advised that in 2010 a joint working group was established between PIRSA and the university to develop the relationship further and, in particular, to explore opportunities for integration. A two-stage process was agreed upon, with stage 1 covering the major issues that would need to be agreed in deciding if integration was feasible and beneficial. Stage 2 covers the details of a proposed integration and due diligence around the proposal.

Currently, stage 2 of the process investigating the integration of SARDI with the University of Adelaide is progressing and includes financial analysis. SARDI and the University of Adelaide are, as I said, engaged in this due diligence process, which has included looking at assets, human resources, funding and governance. An industry advisory committee with representatives from all major agriculture and fisheries related industries, and significant business acumen as well, was formed in May 2011 to help advise on this process, and a number of issues have been looked into.

As I said, a range of options were looked at in terms of assets. At this point in time no decision has been made in terms of what the final model might look like. We are certainly very committed to having a continuing and ongoing partnership with the university. We are looking at ways in which we can establish SARDI to be able to continue to provide the vital services that it does for our primary industry sector, and I have also talked in this place before about the benefits of partnership with the university. The collaborative relationship with the university would attract significant additional commonwealth funding.

No decision whatsoever has been made about transfer of assets. As I said, they are all matters still being considered, and a final model for this new collaborative arrangement has yet to be decided on. A significant amount of work has gone into this because it is a very complex issue. The needs of the university and the administrative and governance arrangements of the university are complex. Those of SARDI are complex as well, and the government is very clear about what our needs are in terms of the future for our research and development. The dialogue continues with the new Vice Chancellor, and I have had a chance to meet with him. They have been very positive discussions indeed, and so our deliberations continue.