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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2012-05-16 Daily Xml
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Question Time

SOUTH AUSTRALIAN RESEARCH AND DEVELOPMENT INSTITUTE

The Hon. J.S.L. DAWKINS (14:21): I seek leave to make a brief explanation before asking the Minister for Agriculture, Food and Fisheries a question regarding the South Australian Research and Development Institute and its impact on agricultural research.

Leave granted.

The Hon. J.S.L. DAWKINS: Last year, the then minister for agriculture, food and fisheries (Hon. Michael O'Brien MP) initiated discussions with the University of Adelaide with a view to the university absorbing the functions of the South Australian Research and Development Institute, known to us all as SARDI. My questions are:

1. What is the current status of the operations of the South Australian Research and Development Institute, especially its agricultural research centres, amid discussions regarding it being absorbed by the University of Adelaide?

2. Does the deal include all the agricultural research centres operating under the banner of SARDI in South Australia?

3. Under the proposed deal will it mean that the state Labor government will essentially gift $70 million of assets to the University of Adelaide?

4. Does this also mean that the state government will have no further investment in research and development in South Australia, particularly in agriculture?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for Tourism, Minister for the Status of Women) (14:23): I thank the honourable member for this important question. Over the last 18 years SARDI and the University of Adelaide have developed a very strong, collaborative and mutually beneficial relationship. In early 2010, a joint working party was established between PIRSA and the university to look at developing that relationship further and, in particular, to explore opportunities for some more formal integration.

A two-stage process was agreed upon, with stage 1 covering the major issues that would need to be agreed to in deciding whether integration was feasible and beneficial, and stage 2 covering the details of a proposed integration and the due diligence around that. Currently stage 2 of the process, investigating the integration of SARDI with the university, is progressing, and that includes obviously some detailed financial analysis.

It is anticipated that, if approved, the merger potentially could be finalised by the end of this year, if all goes well. SARDI and the University of Adelaide are currently engaged in a due diligence, which is focused on assessing assets, human resources, funding and also governance. The details of those negotiations are still being completed and are yet to be finalised. An industry advisory committee with representatives from all major agricultural and fisheries-related industries (and, I understand, significant business acumen) was formed in May 2011 to provide assistance and advice with the integration process.

An in-principle agreement has been reached—or this is what is being considered—on the following: SARDI is integrated as a controlled entity into the University of Adelaide; the entity would report to a board which, in turn, would report to the Deputy Vice-Chancellor Research University of Adelaide; SARDI research priorities remain the same and the applied focus is retained; a 10-year state funding commitment tied to clear KPIs addressing the South Australian government commitments to the national research development and extension framework and to support emergency management and biosecurity technical services, as well as the provision of scientific advice to inform policy and underpin regulation; and also the employment terms and conditions of staff will not be less than the provisions under which they are currently contracted.

They are the areas where in-principle agreements have been reached. As a controlled entity in the University of Adelaide it is expected that SARDI would have access to funding arrangements between the university and the Australian government, and this would see future SARDI infrastructure needs largely being met through access to Australian government funds which, as part of a state agency, SARDI is not currently eligible to access. So that will open up the doors to significant financial opportunities to go into research.

The university obviously benefits from the synergies of the merger in terms of education and fundamental research outcomes. This is achieved at cost to the South Australian government in that it is no more than currently invested in SARDI. This will effectively achieve significant repositioning of the University of Adelaide in the national network without increasing state expenditure on research and development and, obviously, the synergies also benefit SARDI research outcomes.

In terms of the details of which particular assets are being considered and what their status would be, as I said, those negotiations and considerations are still on the table. The negotiations have not been completed, and I will be making an announcement when they have been finalised.

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