Aerospace Alliance

The Hon. T.T. NGO (15:07): My question is to the Minister for Manufacturing and Innovation. Can the minister inform the house about the recent launch of the advanced manufacturing aerospace alliance and the impacts this will have on South Australia?

The Hon. K.J. MAHER (Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Aboriginal Affairs and Reconciliation) (15:07): I thank the honourable member for his question, and I can provide him with some information.

The Hon. S.G. Wade: It's impressive—a new approach from a new minister.

The Hon. K.J. MAHER: I thank the Hon. Stephen Wade for his interjections and I am very pleased that, in the absence of a couple of his colleagues, he is having an opportunity to spread his wings and interject in such a forceful manner as well.

The Hon. S.G. Wade: I'm encouraging you.

The Hon. K.J. MAHER: I think he is taking a step—

The PRESIDENT: Come on, Mr Maher, just answer the question, please.

The Hon. K.J. MAHER: I do apologise, Mr President. I do acknowledge that the rumours of a leadership challenge in this house in the opposition ranks are completely untrue and he is not trying to—

The Hon. S.G. Wade: I'm impressed the government is asking questions without notice of their own ministers. That's great.

The PRESIDENT: Answer.

The Hon. K.J. MAHER: Thank you, Mr President. South Australia is embarking on a period of significant economic transformation, as a number of the questions that have been directed to me today indicate. But with some of the challenges that face us comes opportunity, and we know that there are many pathways for our state's industries to achieve global competitiveness through innovation and high-value products and services.

The government is strongly committed to working with industry to facilitate the transformation of our manufacturing sector, providing targeted support and investment in the areas that we believe can make the greatest difference to our economy and our community. As part of our jobs plan, we are committed to developing the future industries for South Australia.

A core component of this plan is to support the development of clustering, precinct development and entrepreneurship. We have committed almost $5 million over the next four years to support clustering across a range of industries, including aerospace, creative industries, medical devices, mining and resources and clean tech. Recently I had the opportunity to launch Australia's first aerospace cluster which will ensure South Australia's status as an international leader in aerospace development will be enhanced and places the sector in a position to capitalise on opportunities that come our way.

The alliance, which currently consists of 20 members, is focused on capturing work from the global defence and commercial aerospace sectors through its collective strength, innovation and capacity. This alliance is a collaboration project between the Defence Teaming Centre and not-for-profit association established by industry, the Department of State Development and other members of the local defence industry. It will assist small and medium-sized companies to link in with global defence giants such as BAE Systems.

It is expected that, over the next 20 or so years, one-third of the total estimated 33,500 new wide-bodied passenger aircraft, worth about $4 trillion, will be delivered in the Asia-Pacific region. The Australian Aerospace Alliance presents an excellent opportunity for local industry to meet some of this demand through the alliance's network of companies that are well placed to deliver in this very competitive industry. Already, the alliance has assisted Cobham Airlines to secure a $640 million contract, which will see the company supply, integrate, maintain and operate search and rescue aircraft for the Australian Maritime Authority.

This government will be providing almost $1 million of both direct and indirect support over three years to assist the advanced manufacturing Aerospace Alliance to become an independent and self-sustaining cluster, a cluster that will continue to secure growth from within the global defence and commercial aerospace sectors. We will continue to work to position South Australia as a focal point for the development of clusters which can link small to medium-sized enterprises, large businesses, research organisations, financiers, government agencies and support services together to maximise our capacity in an increasingly competitive global market. In relation to our defence contracts, I must pay tribute to the very good Minister for Defence Industries and member for Waite, who is doing exceptionally good things in this area.