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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2013-06-06 Daily Xml
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INDUSTRY PARTICIPATION ADVOCATE

Ms THOMPSON (Reynell) (14:18): My question is to the Minister for Small Business. Can the minister update the house on the work of the Industry Participation Advocate?

The Hon. T.R. KENYON (Newland—Minister for Manufacturing, Innovation and Trade, Minister for Small Business) (14:18): I can; and I thank the member for Reynell for her question. The government established the Office of the Industry Advocate in February this year to provide recommendations on local participation and procurement. The office has also been tasked with advocating for local companies within government to promote local firms winning contract opportunities. For example, I can update the house that the office has been advocating for RPC Pipe Systems with regard to the Port Wakefield pipeline project. This advocacy has delivered benefits to that firm, which has 80 skilled employees at Lonsdale.

On 13 April 2013, RPC contacted the member for Reynell to report that Leed Engineering, the prime contractor to SA Water engaged to design, supply and construct the infrastructure, was considering using imported pipe. RPC have advised that they were a significant support contractor in Leed Engineering's tender. This work was valued by RPC at $3.6 million and involved the supply of 43 kilometres of high pressure, 375 millimetre diameter Flowtite GRP piping. The matter was referred to the Office of the Industry Advocate by the member for Reynell.

The Office of the Industry Advocate then contacted SA Water on RPC's behalf. SA Water confirmed that its contract signed with Leed Engineering included pipes supplied by RPC Pipe Systems. Then, after speaking directly to RPC, SA Water escalated the matter to senior management, who immediately began direct discussions with Leed Engineering in order to resolve the matter. A number of discussions were held between the parties. Over the next couple of days, the Office of the Industry Advocate stayed in contact with SA Water to ensure the matter was being actioned.

On 23 April, SA Water then confirmed that Leed Engineering would in fact be delivering the project in line with its contractual obligations using RPC. As the house will already know, the Auburn to Port Wakefield via Balaklava project is one of the most significant water pipeline projects in Australia, showcasing advanced manufacturing, engineering and construction capabilities. RPC Pipe System's General Manager, Andrew Sarich said:

The project has been a tremendous boost to RPC Pipe Systems and to the confidence of our people. We have been able to employ 20 extra skilled staff and have stepped up production to a 24 hour operation.

He then continues:

The vision of SA Water, the South Australian Government and the Office of the Industry Advocate, Ian Nightingale and his team, were instrumental. The long term support of our local Member for Reynell, Gay Thompson, and the positive working relationship we have built with South Australian based civil engineering and construction group, Leed Engineering, are greatly valued.

There are significant multiplier benefits as well with additional business and growth opportunities flowing through to our raw materials supplier in Mount Compass, to local freight operations and to other local goods and service suppliers.

Congratulations to the member for Reynell for her advocacy on behalf of this company in her electorate. This is a win for RPC. It is also an indication of the interventionist role that the Office of the Industry Advocate is playing to maximise the return to South Australian suppliers from government contracts. I call on all members of the house to take the opportunity to refer matters such as this to that office. The general office email address is oia@sa.gov.au and the phone number is 8226 8956.

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