Business Transformation Voucher Program

The Hon. G.A. KANDELAARS (16:11): This is the first time I have had an opportunity to ask the Minister for Manufacturing and Innovation a question, and I congratulate him on his elevation to the ministry. Can the minister update the council about the Business Transformation Voucher Program?

The Hon. K.J. MAHER (Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Aboriginal Affairs and Reconciliation) (16:11): I thank the honourable member for his question and his interest in this area. The South Australian government is committed to supporting South Australian manufacturers as they enhance their competitiveness, productivity and profitability. The $4.5 million Business Transformation Voucher Program has been developed to help high-value South Australian manufacturing businesses identify opportunities to accelerate their growth through innovation.

The Business Transformation Voucher Program was one of the first initiatives to be rolled out as part of Building South Australia: Our Jobs Plan, the state government's $60 million response to the looming closure of the automotive vehicle manufacturing industry in 2017. The Business Transformation Voucher Program provides up to $50,000 for manufacturers to gain expert advice and implement recommendations to improve their profitability and competitiveness.

That is $50,000 to help businesses engage specialists to assist them with things such as reviewing and identifying business and manufacturing process improvements, developing a marketing and brand strategy, developing a business model and business planning, training and mentor management, preparing themselves to capture export markets, and implementing any recommendation that arise from those reviews.

Successful applicants are required to provide dollar-for-dollar matching funds. So far, 23 local companies have been part of this scheme to transform their businesses. One of the local companies that is striving to transform their business is the Udder Delights Group. Udder Delights was established in 1999 as a goat cheese factory in the Adelaide Hills town of Lobethal. The company has grown to become a well-known and respected brand in Australia and makes its products from locally sourced goats and cows milk.

This South Australian food manufacturer has used its voucher to engage Sage Automation to provide an independent expert review of its manufacturing and packaging processes to identify opportunities for operational improvement and capital investment so that the company can achieve greater efficiency and capacity. Udder Delights aims to automate the packaging process utilising high-tech, innovative methods to meet the growing demands of local and export markets.

Agribusiness is one of the sectors that the government has identified as a growth area for this state. Another successful company, Fruit Wise Pty Ltd, was established in 2005. The business manufactures snack pack products from 100 per cent Australian-grown pulped fresh fruit, with no added sugar, fat or preservatives. The business has used its vouchers to engage Kingsgrove Consulting to assist it to improve manufacturing operational performance around quality and product consistency. These are just a couple of the 23 companies that have so far received transformation vouchers.

The government is also working with companies to identify opportunities for them to apply for similar support through jointly-funded programs that we are rolling out with the commonwealth government, such as the Next Generation Manufacturing Investment Program, as part of our response to the decline of the auto industry in this country and in this state.

I encourage all manufacturers looking to transform their business and capture new opportunities to visit the Department of State Development website or GRANTassist at grantassist.sa.gov.au to find out how we can help them to make South Australia a place where people and businesses thrive.