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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2013-10-29 Daily Xml
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Question Time

FOOD AND WINE PROMOTION

The Hon. D.W. RIDGWAY (Leader of the Opposition) (14:24): I seek leave to make a brief explanation before asking the Minister for Agriculture, Food and Fisheries a question regarding a missed opportunity.

Leave granted.

The Hon. R.L. Brokenshire: Which one?

The Hon. D.W. RIDGWAY: There are thousands, I know, but I'm going to focus on one today.

The PRESIDENT: Is that part of your explanation? The Hon. Mr Ridgway, you have the call.

The Hon. D.W. RIDGWAY: Thank you, Mr President. In 2012, Labor signed an agreement which would, we were promised last year, open trade links and gateways for South Australian premium food and wine. The minister had herself photographed with a prawn, to mark the announcement, which involved spending $2½ million of taxpayers' funds to open shops for South Australian products in the cities of Zhangzhou and Nanping in Fujian Province. However, I understand that no shop is yet open; in fact, in Zhangzhou the building has not even been built.

Having led a recent delegation to China, I have seen for myself the opportunities for premium food and wine in the world's second biggest economy, and I have seen South Australian food and wine entrepreneurs establish retail outlets in a fraction of the time it has taken the minister to get her shop open. Those South Australian businesses made a smart commercial decision, and that was to operate out of Shanghai, the largest and wealthiest city in China, and Wuhan, with a population of some 10 million on a major trade route—not Fujian, where the retail market is nowhere near as strong. My questions to the minister are:

1. What due diligence was done before the decision was taken to open in Fujian Province, and will she share that due diligence with us?

2. Who provided the minister with the recommendations to open in Fujian?

3. What other cities and provinces were investigated before the decision was taken to open in Fujian?

4. Why were other cities rejected?

5. Why does it take the minister more than a year to open an outlet when private enterprise can do it in just months?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for the Status of Women, Minister for State/Local Government Relations) (14:26): I thank the honourable member for his most important question. As they say, a little knowledge is a dangerous thing. It is obvious that the Hon. David Ridgway has learnt very little from his trip to China, and he has certainly failed to listen to the detail of the information I have given in this place on numerous occasions.

Not just myself but a number of members of this government have visited China and other countries on numerous occasions, taking with us numerous delegations to explore opportunities across a wide range of different areas and sectors, including China. We have visited a number of different provinces and cities. I have visited several cities, including Shanghai, Beijing and numerous other cities.

This government has worked very hard to forge strong relationships throughout China, not just in the primary cities but also in the second-level cities, where often in the markets there is less competition and a greater opportunity for a state like South Australia to be able to enter that marketplace. In these second-level cities, we are still talking about hundreds of millions of people being involved in these markets. By South Australian standards, when we talk about second-level cities, all we are really saying is that they are slightly smaller than Shanghai and Beijing.

We have worked very hard to position ourselves in those first city opportunities, but we have also cast our net more broadly than that and have looked at second-level cities as well, and Fujian is a very prominent second-level city, so we have sought opportunities there. That is not the only city, not by a long shot. I have visited many different cities, not just in China but also in Hong Kong and Japan. Many other ministers also have visited different cities and sought different opportunities.

In terms of the food safety centres I have talked about in this place before, the development of those centres is a project run by the China-Australia Entrepreneurs Association Incorporated (CAEAI), and it is the primary industry responsible for the building of these outlets. So, the Hon. David Ridgway misses the point altogether: the South Australian government is not building these facilities.

The Hon. D.W. Ridgway interjecting:

The Hon. G.E. GAGO: We are not building these facilities. We are working with private industry in China to build these facilities. The MOU that was signed—and obviously the Hon. David Ridgway hasn't read it—indicates, if you like, a willingness to pursue business negotiations, to forge strong relationships and pursue opportunities on that front.

I was very pleased with the moneys that have been set aside in our latest budget. It shows how serious South Australia is in pursuing opportunities in China. There was additional money put aside in that budget for China opportunities. Nowhere did it say 'Fujian building any buildings' or doing anything specific in Fujian. It was part of our China strategy and, again, the Hon. David Ridgway clearly hasn't even read that project proposal because he has that completely the wrong way around. That money is about being able to establish, if you like, case managers—people on the ground to be able to take up business opportunities and keep building those business relationships and keep looking for other investment and business opportunities, because there are many.

In terms of the work the China-Australia Entrepreneurs Association Incorporated had been involved in, I have reported in this place before that there were three different sites that the CAEAI had purchased. There is no South Australian money in that purchase; this is money from this particular group. They have purchased, I understand, three sites. Two of the sites have since been cleared; there was previous construction on the sites. They have been cleared and they are ready for building, and I have reported here before that, in terms of the Zhangzhou initiative, which involves a theme park and retail food and wine aspects, construction has already commenced at that site.

As I said, the advice I have received is that the centres are progressing. Obviously, I am not in a position, and this state government is not in a position, to be dictating to a private Chinese company about their construction schedule, but obviously we offer every encouragement for those projects to proceed. Our part of the project is to line up those businesses here in South Australia that wish to, and have the capacity to, or would like to explore the capacity to be able to participate in retailing their products through these outlets once they are established.

I have reported in this place that we have done a great deal in that space in terms of calling for expressions of interest from businesses here in South Australia, setting up a database, working with Food SA to establish that database, and making connections. When Chinese delegations come here, we have used that database to set up specific appointments between those businesses from China and their particular interest here in South Australia to try to streamline those processes.

We have been extremely successful in developing export potential in our premium food and wine, not just in China but also in Hong Kong. I have reported in this place that we have come back from these delegations, from these trips, with contracts signed with our primary industry people and other South Australian businesses for local produce coming here from South Australia involving our local farmers—contracts that have been signed. Since those delegations, there have even been further contracts developed and signed as well, so there has been a flow-on effect that we are still seeing the benefits from.

The feedback I get from primary industry—those people who have expressed interest and been involved in these delegations, whether they have come with us overseas or received appointments here in South Australia—has been overwhelmingly supportive. Primary industry get that this government is working hard to make those connections and we are delivering on the ground. We are delivering contracts here in South Australia for South Australian local produce—we are delivering it.

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