Legislative Council: Thursday, June 23, 2016

Contents

Question Time

Business Transformation Voucher Program

The Hon. J.M. GAZZOLA (14:33): My question is to the Minister for Manufacturing and Innovation. Can the minister update the chamber on how the government's business transformation vouchers are helping South Australian companies to grow?

The Hon. D.W. Ridgway interjecting:

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) (14:33): I thank the honourable member for his question and his ongoing interest in matters that are within my portfolio responsibility. It is not always usual that I get questions that relate to my portfolio—

Members interjecting:

The Hon. K.J. MAHER: It is not always the case in this chamber that honourable members are well-versed enough to know what falls within ministers' portfolio responsibilities, so I am very glad that the Hon. John Gazzola—

The Hon. D.W. Ridgway interjecting:

The PRESIDENT: Sit down. I've got a little stereo here, you on one side, and the Hon. Mr Gazzola on the other side.

The Hon. D.W. Ridgway: That's because his leader is incompetent.

The PRESIDENT: I think it is pretty improper to be calling out while the honourable minister is giving an answer. Let him give his answer without any interruption.

The Hon. K.J. MAHER: Thank you for your protection, Mr President. The honourable Leader of the Opposition is very testy because of the performances the Hon. Andrew McLachlan has been putting in over the last few days.

The Hon. D.W. Ridgway interjecting:

The Hon. K.J. MAHER: He is well known as a future leader of this chamber. As I said, I thank the honourable member for his question about industry diversifying and taking advantage of emerging growth opportunities. The state government's Business Transformation Voucher Program has had applications ongoing for a number of years. This program is designed to provide up to $50,000 to help companies improve their productivity and competitiveness through our specialist expertise with things like business planning and business modelling development, manufacturing process improvements, marketing and brand strategies, leadership and management development and export development.

Since this program was established, there have been in excess of 50 grants announced to assist companies to transform their operations to take advantage of new and emerging opportunities in their industries. Successful companies enter into a funding agreement, which includes reporting obligations to ensure the grant is used according to the purpose of the program.

I am happy to be able to inform the council that a recent round of Business Transformation Voucher Program grants included three businesses that will each receive $50,000 to help them grow their operations. Enzo's at Home is a ready-to-eat gourmet food supplier, which was founded in 2004 by the owners of Enzo's Restaurant, now located in Hindmarsh. The company received $50,000 for a project with Colby Industries to improve the company's production processes. I had the opportunity to meet with Michael Fazzari from the company today to discuss Enzo's growth opportunities. The company has grown by around 30 per cent in the last year, and he is looking to expand into new markets across Australia.

The range of products currently available are in South Australian supermarkets—Foodland in South Australia—and hopefully will soon be available in Queensland supermarkets. I also understand that the company is looking at other opportunities around Australia and internationally. This particular project will enable the company to capitalise on this success and enable the company to allocate resources to further develop new market opportunities in the future.

A honey collection and packaging business located at Gepps Cross, Panda Honey, has also been identified as a company which has opportunity to expand, particularly into the very large Chinese market. I understand that the rapid growth experienced by this company has increased pressure on the company's production systems and control of production costs. The $50,000 business transformation grant for Panda Honey will enable the project to analyse production methods, identify issues and improve efficiencies in the business.

This project will also identify new plant and machinery to replace existing systems to meet the increasing demand, while reducing the cost for the business. The government will support the company to increase its capacity through enabling the development of new products for both local and export markets and enhance the business potential for future growth opportunities both here and overseas.

The third company that received funding support through the Business Transformation Voucher Program was Stair Lock Pty Ltd. Stair Lock is a third-generation, family-owned business that has been in operation since 1982, and specialises in the manufacture, supply and installation of stair systems. I understand that this company has experienced strong growth in recent years, which has resulted in the business operating from three different sites—two manufacturing and one administration—which is now restricting the businesses efficiency and increasing its costs.

The $50,000 business transformation voucher for Stair Lock will work on a project to provide validation for a cost-effective solution to consolidating all the companies at one site. This project is expected to assist this South Australian business to achieve greater profitability and transition to higher value products in the building and construction sector.

Transforming areas of our economy will rely on the ability of our manufacturers to adopt a new way of doing things and develop high value products and services using advanced technologies. The Business Transformation Voucher Program is helping local manufacturers and other businesses to achieve this through teaming up with expert consultants to identify areas of businesses that can improve so they can grow their business, grow their revenues and create new jobs. I congratulate these companies on their success in this program.