Trade and Investment Budget

360 The Hon. J.M.A. LENSINK ().28 August 2024). Can the Minister for Trade and Investment advise:

1. The 2023-24 target for new jobs secured through Invest SA was 4,000 but only 799 have been achieved. What is the reason for the significant shortcoming?

(a) Why has the 2024-25 target remained at 4,000?

(b) What will Invest SA do different over the forward estimates to achieve this target?

2. What is the breakdown of the 4,000 new jobs that will be secured through Invest SA in 2024-25?

(a) How many of those jobs will be full-time, part-time, contracted, or other?

(b) Which industries will receive this job growth?

3. How many inbound and outbound government trade missions, as opposed to business trade missions, have been conducted in the last 12 months?

(a) Where were these trade missions to?

(b) What was the expenditure for each mission?

4. Are the new trade offices in Frankfurt and Washington DC fully operational?

5. Are the two trade offices used to expand South Australia's presence in India new or existing offices?

(a) Where in India are these offices located?

(b) Are these offices fully operational, and if not, when are they expected to be?

(c) What kind of funding has been allocated to these offices?

(d) Are these offices managed by DTI or AusTrade?

6. What is the visitation of each of South Australia's international trade offices?

7. What is the breakdown of the individual earnings and business value of each of South Australia's international trade offices?

8. Do performance indicators between each of South Australia's international trade offices differ, and if so, how?

9. Has any consideration been given to expanding Brand SA's board to provide representation for regional South Australia?

10. The 2024-25 budget records awareness of the benefits of buying local has increased to 90 per cent among the South Australian population. How is this figure determined?

11. The 2024-25 budget records an 'increase in shoppers actively seeking local products.' How is this recorded?

12. Is there a target for the number of business missions to global events that the government seeks to achieve?

13. As recorded in the 2024-25 budget, which markets are deemed 'priority' by the government?

14. The 2023-24 budget set a target to 'engage consumers to switch a portion of their spending towards local product and produce.' What change in consumer spending has been seen?

15. How will the 'Buy SA For SA' campaign address the value of buying local amidst a cost-of-living crisis?

16. What has the uptake of the state brand been, and is there a target for increased use of the state brand?

17. Why are services from Shared Services and DPC no longer offered to DTI for free, as they were in 2022-23?

18. Which grant funding projects are ending in 2023-24 or reducing in 2024-25?

19. How does the Department for Trade and Investment measure client satisfaction?

20. Which 400 businesses received export services from the Department for Trade and Investment in 2022-23?

(a) What is the department's criteria for which businesses they provide services to?

21. Did DTI meet its savings targets in the last financial year?

(a) Is the department still committed to saving $4.6 million this financial year?

(b) What operating efficiencies are still implemented across the department?

22. The 2022-23 budget provided $1.1 million per annum from 2024-25 to re-launch Brand SA. This budget provides $1.0 million to continue and enhance Brand SA. Is this funding two different initiatives, or the same money?

23. Is the investment attraction program—titled 'Positioning South Australia to thrive in the global economy' in the 2024-25 budget—a new program this year?

(a) How many grants have been awarded in the past 12 months, and are expected to be awarded each year?

(b) Which existing programs will be extended under the investment attraction program?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries): The Minister for Trade and Investment has advised:

1. Invest SA ultimately secured an estimated 881 jobs as the full year result for 2023-24. Budget reporting is compiled before the full year result is confirmed, hence the upgraded figure. Invest SA has continued to meet and exceed its capital expenditure target of $750 million, facilitating just over $1 billion of investment into South Australia.

Companies make investment decisions based on current and predicted economic conditions, with job creation estimated.

Recent trends in foreign direct investment (FDI) markets data shows that job creation from foreign investment has declined across Australia, contracting 9 per cent year-on-year to May 2024.

South Australia has experienced strong job creation through investment facilitation over the past decade. On average, investment facilitation activities have created around 3800 jobs per year since October 2015.

(a) Invest SA predicts a boost in job creation in 2024-25 following the Economic Recovery Fund delivery. Additionally, several large projects will commence during 2024-25, including the Hydrogen Jobs Plan.

(b) Invest SA utilises major events to attract and bring targeted investors and businesses to South Australia, promoting the South Australian economy and its competitive strengths.

This includes major events such as Gather Round and LIV Golf.

Over the last 12 months, Invest SA has attracted around 540 senior business leaders/investors to South Australia from 450 companies from strategically targeted sectors through major events, including 155 interstate and 182 foreign companies. Engagement with these investors will continue.

2. Due to the dynamic nature of investment attraction and the global economy, Invest SA advises forward predictions are challenging.

Invest SA targets the below sectors of opportunity:

Creative industries;

Critical technologies;

Health;

Minerals and energy;

Defence;

Space;

Food, wine, and agribusiness (including green economy); and

Tourism.

Outcomes for 2024-25 will be reported on after 30 June 2025.

3. The Department for Trade and Investment hosted 22 inbound missions, 16 from government and six from business. It also delivered two outbound ministerial missions, both of which included support for South Australian businesses to attend trade shows and elements of the program.

(a) See table in response to question below.

4. Yes.

5. In April and June 2024 respectively, the department for trade and Investment opened two new Austrade embedded offices in Mumbai and Chennai, India. These offices replaced the previous single office in New Delhi.

(a) Mumbai and Chennai.

(b) Yes, they are fully operational.

(c) Funding for these offices has been allocated by the Department's International offshore network budget.

(d) The Department of State Development manages the South Australia overseas offices and sub-contracts office location and operational support through Austrade.

6. The overseas network does not facilitate external 'visits' to each office, but instead coordinates outreach, engagement, and events with stakeholders via appointment.

7. The international trade offices support all South Australian businesses by providing market intelligence, opportunity identification, networks and introductions and the delivery of major trade and investment events and exhibitions.

When South Australian businesses travel to the respective markets, teams provide briefings to companies and assist industry bodies and chambers to coordinate market engagement.

8. The KPIs are achieved through a one team approach, meaning that overseas offices, DTI sector teams and onshore staff all contribute.

9. Brand SA's advisory board is a skill-based, diverse board, comprising high-profile South Australians from a diverse range of sectors.

The current board members have experience living, working and running businesses across South Australia, including in our regional areas.

10. Market research was conducted with South Australians in March 2023, prior to the launch of the Buy SA. For SA campaign and again in April 2024 to measure changes. This showed a 6 per cent increase in the reported understanding and importance of buying local.

The research showed 90 per cent of South Australians now associate the state logo as a marker of local goods (up from 72 per cent pre-campaign).

11. Market research was conducted with South Australians in March 2023, prior to the launch of the Buy SA. For SA campaign and again in April 2024 to measure changes.

12. The South Australian government dynamically targets its support and market activations toward global events that align with priority sectors.

13. The department's priority markets are supported by the international network of offices and are listed on the department's website.

14. The encouragement to 'switch a portion of spending toward local product and produce' is a message of the Buy SA. For SA campaign, rather than a measure of the campaign.

15. Buy SA. For SA. is fundamentally about building the local jobs and economic proposition in South Australia. Our government, in bringing back Brand SA (cut by the former Marshall Liberal government), believes promoting consumers to buy local is both meritorious and widely supported by businesses and the South Australian community.

16. Currently 9,615 businesses are registered to use the state brand. Brand SA aims to maintain average growth of 1 per cent, per month, which has been achieved over the 2023-24 financial year.

17. There is no change to the arrangement.

18. The South Australian Landing Pad Program is being replaced by the Investment Attraction or Acceleration Program which has the same funding.

19. Customer satisfaction rates are captured through surveys following the conclusion of the activity or program.

20.

(a) To be eligible for trade services, businesses must have an ABN registered in South Australia at the time of provision of service.

21. Yes.

(a) The Department of State Development is committed to achieve the savings announced in the 2022-23 Budget.

(b) Operating efficiencies and cost pressures continue to be managed within existing resources.

22. Funding for Brand SA in the 2022-23 budget provided $2 million in 2022-23, and $2.025 million in 2023-24, reducing to $1.051 million in 2024-25 and $1.077 million in 2025-26.

The 2024-25 budget provides additional funding to maintain an annual budget provision of approximately $2 million.

23. Yes.

(a) The Investment Attraction Program is a new initiative, no grants have been awarded in the past 12 months. The program aims to provide up to 10 grants each financial year.

(b) The Investment Attraction Program replaces the South Australian Landing Pad Program.