REGIONAL DEVELOPMENT AUSTRALIA

The Hon. J.S.L. DAWKINS (15:03): I seek leave to make a brief explanation before asking the Minister for Regional Development a question regarding Regional Development Australia involvement in innovation cluster development.

Leave granted.

The Hon. J.S.L. DAWKINS: On 21 February this year, the minister announced the allocation of $2.7 million worth of funding over several years for a pilot program which, as per the minister's accompanying media release, states:

The Fund is designed to grow stronger, sustainable and competitive regions. The Fund provides support to regional communities through Regional Development Australia (RDA) Associations which can access funds to deliver programs that support regional economic development and regional communities.

A number of RDAs had already progressed work in developing innovation clusters in their regions prior to this announcement. However, up until August, the RDAs had no contact from PIRSA regarding their role and involvement in the process or how they can access the funds. Given the delay in government consultation, it is also worth noting that the minister's own media release stated that 'the funds announced today will be available from 1 July 2013'.

Last month, the government finally made contact with the RDAs to discuss their role in innovation cluster development; however, the only thing apparently to come out of the meeting was another media release stating that the government is working with RDAs on this program. In reality, the RDAs have reported that they are yet to hear any further solid details on the pilot program from the government. My questions are:

1. What work is the department actually doing to progress this $2.7 million pilot program with the RDAs?

2. Is there any agreement with RDAs about their involvement and role in developing innovation clusters under the announced government pilot program?

3. What, if any, assistance is the government giving to RDAs who are already significantly advanced in their work on cluster development?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for the Status of Women, Minister for State/Local Government Relations) (15:05): I thank the honourable member for his most important question. Indeed, to demonstrate this government's commitment to regions we were very successful in gaining new money for our regions in the last budget; not all ministers were as fortunate. It was a very tough budget in a very tough economic time, so I think the fact that we were able to obtain new funds for new projects to assist the development of our regions really does demonstrate this government's commitment to the regions.

It involves, as the Hon. John Dawkins outlined, $2.7 million to establish innovation clusters in the Riverland-Murraylands and also the Limestone Coast. Two pilots are being established, and the idea behind this is that businesses in an area can band or collect together, pool their resources and achieve more than they might do on their own, particularly given that our businesses and primary industry and agribusiness sector are predominantly characterised by fairly small family businesses.

We know that this clustering model does very much assist those small businesses that on their own might not have the resources or the wherewithal to develop opportunities across the board. Through methods as simple as regular meetings, strategic planning and joint marketing opportunities, industry productivity can expand and a region's profile and brand potentially grow through these opportunities.

PIRSA is currently working with representatives in both of those regions. They have conducted a number of meetings and some forums as well, and they have already consulted with RDAs, so for the Hon. John Dawkins to come into this place and suggest that they are not consulting is not representing the truth. They have consulted extensively and will continue to do so.

What this model intends to do is to build on the activities and work that have already taken place in both regions. Both regions have already developed some cluster approaches in different types of ways. For instance, the South-East has mainly done it through that diversification forum and activities through there, mainly led by councils; in the Riverland-Murraylands, the RDA has been involved and more central.

Different regions are going about things in different ways, but what this project intends to do is to actually harness the energies, activities and developments that have already occurred and to help use those funds to build on top of that. The direction that those clusters are to take will be industry driven. This is not a government that is stomping into town and telling locals, particularly local businesses and local councils, how to do their job.

What we are saying is that the government's role is to assist and enable, and these funds are here to assist those regions to develop clusters to help those businesses that are interested and willing to come together, to partner together, to work collaboratively with other like-minded organisations to help expand their potential.

We are consulting and working with all interested parties and, as I said, the objective of this work is to enhance the endeavours that have already occurred, to harness and enhance them, and to help build on that very valuable work that communities have already invested in cluster development and activity.