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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2012-05-30 Daily Xml
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ADVANCED MANUFACTURING STRATEGY

Mr SIBBONS (Mitchell) (14:37): My question is to the Minister for Manufacturing, Innovation and Trade. Can the minister inform the house about how the South Australian government is assisting the manufacturing sector in this state?

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Manufacturing, Innovation and Trade, Minister for Mineral Resources and Energy, Minister for Small Business) (14:37): I thank the member for Mitchell for his keen interest in manufacturing. The manufacturing sector represents about 10 per cent of our total employment, and that is why the state government is committed to ensuring that manufacturing continues to provide sustainable jobs and remains a productive part of our economy.

The past six months have seen the release of Professor Göran Roos' report 'Manufacturing into the future' as well as the state government's Manufacturing Green Paper designed to stimulate industry and community discussion about how to best support the sector. The manufacturing strategy seeks to answer the question about how manufacturing survives in a high-cost, high Australian dollar environment. Much of the answer to that question will focus on how firms compete on innovation and quality instead of competing on cost alone.

The green paper's consultation period has now closed and the government is carefully considering the contributions made on the final form of the strategy. While the strategy is not yet finalised, it is clear that the government must work hand in hand with manufacturers to ensure that they prosper as the economy grows on the back of the mining, defence and agricultural sectors. That is why we are investing $8.3 million over four years to support the Advanced Manufacturing Strategy that will assist in the development of local industry capability and capacity to capture emerging opportunities and accelerate the transition of traditional manufacturing to new areas of high-value manufacturing.

A suite of measures will be put in place to assist the growth of the manufacturing sector. Some of these measures include the creation of the Mining Industry Participation Office (MIPO). It will be a one-stop shop to ensure that existing and potential new suppliers have a full understanding of the opportunities within the mining sector and have every chance to win their fair share of contracts.

It will also include a new initiative called the PACE Manufacturing Fund which will help build a cluster of approximately 150 internationally competitive mining related manufacturing and services companies by 2020. Also included will be industry intelligence and capability mapping to deliver strategic information about the South Australian manufacturing landscape, identify value chain opportunities and emerging industries. Another measure is the further development of the Advanced Manufacturing Task Force and improving the links between research institutions and industry to drive innovation.

Once the Advanced Manufacturing Strategy is finalised, we will work further with the industry and research institutions to develop programs to further develop our state's advanced manufacturing base. The government accepts that the decisions and actions of our manufacturing enterprises will ultimately determine whether we will succeed as a modern, globally competitive and prosperous economy with a vibrant and sustainable manufacturing sector. However, with the right level of government support and favourable policy settings, the manufacturing sector in this state can enter a new era of prosperity.

This government wants to see our manufacturing sector not only service parts of the South Australian and Australian economy but also be considered a global leader in the areas of high-value and niche manufacturing. I think the government is doing all it can to ensure that manufacturing can survive into the future under very different circumstances from the last 30 years.

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