Hills Limited

The Hon. R.I. LUCAS (15:03): I seek leave to make a brief explanation prior to directing a question to the Leader of the Government on the subject of grants to businesses.

Leave granted.

The Hon. R.I. LUCAS: One month prior to the last state election, the government announced a three-year jointly funded $5 million partnership with manufacturer Hills. Briefly, two centres of excellence, evidently, were to be established. In relation to job creation, the government indicated they would create five full-time jobs, another 50 or so highly skilled positions would come as the centres matured and then another 30 research positions at allied organisations were also expected. My questions to the minister are:

1. What has been the total level of taxpayer funding provided to Hills under this particular grant arrangement?

2. Can the minister assure the house that the government ensured that the contracting agreement entered into included a provision which required Hills to pay back all the funding if the job targets were not met?

The Hon. K.J. MAHER (Minister for Employment, Minister for Aboriginal Affairs and Reconciliation, Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Science and Information Economy) (15:04): I thank the honourable member for his question and for his interest in this matter. The government entered into a funding agreement for $2.5 million over three years with Hills Limited to establish the Hills Innovation Centre, with matching funds from the company. Hills estimated that the centre, aimed at supporting its transition to higher value-added activities, would lead to the creation of new, highly skilled jobs.

The centre was formally opened on 7 May 2014, with university researchers, students and small businesses having access to the centre, and in January 2015 the centre was moved to Tonsley. The centre has supported, on a competitive basis, start-ups and early-stage companies seeking to progress innovative projects with Hills. The centre has received 94 applications for funding, and two shortlisted projects have been allocated funding. On 27 May 2015 it was publicly announced that the Hills CEO at the time, Ted Pretty, had resigned from the company. In a meeting with the South Australian Department of State Development in June 2015, Hills discussed its interest in remaining involved with the innovation centre but withdrawing from it operationally.

The future of the centre is currently being reviewed by the government and Hills, including expanding access to its 3D printing equipment. In the meantime, one of the two projects funded by the Hills Innovation Centre has recently won multiple design awards from the South Australian chapter of the Design Institute of Australia. It is the award-winning nurse call-assisted device suitable for people with limited hand dexterity or arthritis. Hills also advised, in late 2015, that three South Australian manufacturers are involved in manufacturing this product, which is planned for release this year.

My understanding is that not all the funding has been paid. It was a three-year agreement, and Hills and the Department of State Development are currently negotiating what the withdrawal from the centre will look like.