SinoSA House

In reply to the Hon. D.G.E. HOOD (18 March 2015).

The Hon. G.E. GAGO (Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for the Status of Women, Minister for Business Services and Consumers): I have been advised:

1. South Australian companies will have access to SinoSA House following the signing of the final agreement. The final agreement is currently being negotiated with Chinese counterparts.

2. The seed funding supports the negotiations with the Qingdao government to establish SinoSA House. This includes functions to assist SA companies to develop a China business strategy and costs such as personal, legal and travel.

3. It is anticipated outcomes could be expected after 12-18 months following the establishment of the first subsidiaries in Qingdao.

4. This is a first initiative of its kind and the full extent of its benefits cannot be modelled easily. Economic return will depend on the company and industry mix that take part in the initiative.

5. Four companies (Austofix, Ellex, Cavitus, Ziltek) travelled to Qingdao as part of the May 2015 government delegation. Each company signed a Heads of Agreement with SinoSA and the Qingdao National Industrial High-Tech Development Zone relating to their intentions to establish activities within the SinoSA business incubator in the Qingdao High Tech Zone. Other companies involvement will be dependent on future negotiations.