Business Transformation Voucher Program

The Hon. A.L. McLACHLAN (14:39): Supplementary question arising out of the answer of the minister: how is the projected growth of these companies that the minister has referred to measured—top line revenue or EBIAT (earnings before interest after taxes) in making the grant?

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) (14:39): I thank the honourable member for his supplementary question, his incisiveness and the pressure he is putting on his own frontbench colleagues; I thank him very much for this. For the honourable member's information, because I know he is very interested in these things, I might be able to outline some of the processes that are gone through with the Business Transformation Voucher Program. There are eligibility requirements for assistance under this program. The business must:

be a financially viable Australian business with the majority of business in South Australia;

must have been in operation for longer than 12 months;

be able to enter into a legally-binding funding agreement with the South Australian government;

be willing to provide information and data including financial information as required;

be prepared to commit to senior executive or board level engagement; and

submit a proposal that has been developed and co-endorsed both by the applicant and an eligible service provider.

Members interjecting:

The Hon. K.J. MAHER: I am making sure that I am providing enough information to satisfy the member's questions and future supplementary questions. They have to contribute a minimum of 50 per cent of eligible expenditure from non-government funding. A project under the Business Transformation Voucher scheme could include—

Members interjecting:

The PRESIDENT: Order!

The Hon. K.J. MAHER: —undertaking business improvement reviews, development of plans and recommendations for improving profitability, productivity and the employment of businesses, and the implementation of recommendations by a consultant.

Members interjecting:

The PRESIDENT: Minister, sit down. I am finding this very informative and I cannot hear through the interjections, if you don't mind. Please allow the minister to finish without interjection.

The Hon. K.J. MAHER: Thank you, Mr President. The sort of expenditure that businesses who are applying for and successfully receive a business transformation voucher may expend it on things like payment to advisers, consultants, training organisations, research providers and other services for business improvement, capability development, business development, mentoring and research and development work undertaken; purchase of capital equipment consistent with recommendations of a review; project management costs provided by external parties; and other costs associated with preparing relevant materials, training and other guidance and activities in support of the objectives of the Business Transformation Voucher Program.

Applications for the grant will be assessed against a number of criteria—which the honourable member will be very pleased about—which are the impact of the project on improving profitability; the extent of new capabilities, new markets and new products or services being developed through the project; projected increase in exports; the capacity of the nominated service provider to deliver the project; the capacity, including management capability of the applicant to successfully undertake the project and to drive sustainable growth; the methodology proposed to undertake the project; and the projected benefits to the South Australian economy including the contribution of the proposed activities to the diversification of the South Australian economy.

I am able to inform the chamber that applicants for the Business Transformation Voucher Program are selected on the merits of their particular application based on all of these criteria which I do not assess as minister and I do not think would be proper for me to assess as minister.

I receive the recommendations from the selection panel which includes Chris Stathy OAM, company director and consultant; Alistair Taylor, Acting Director, Manufacturing and Small Business, DSD; David Rush, Manufacturing Manager, DSD; Lou Jansen, Principal Commercial Advisor, Industry and Information, DSD; and Mr Mark Ledson, Principal Industry Development Officer from the Department of State Development. There is no remuneration paid to the panel. They make their decisions and I am happy to receive the advice of the panel on the criteria that I have outlined.