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Legislative Council - Fifty-Third Parliament, Second Session (53-2)
2015-12-09 Daily Xml
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Business Transformation Voucher Program

The Hon. G.A. KANDELAARS (14:41): My question is to the Minister for Manufacturing and Innovation. Can the minister update the chamber about the most recent round of business transformation vouchers?

The Hon. K.J. MAHER (Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Aboriginal Affairs and Reconciliation) (14:41): I thank the honourable member for his question and his strong and continuing interest in manufacturing in South Australia. The state government's Business Transformation Voucher Program was established in 2014 to support South Australian companies to improve their productivity, efficiency and international competitiveness. This program is aimed at companies to assist them in accessing specialist expertise to undertake or to better undertake management training and mentoring, export readiness, marketing and brand strategy, and business model development and business planning, and to identify business and manufacturing process improvements and implement business review recommendations.

It is the case that transforming our economy will rely on the ability of local manufacturers to adopt new ways of doing things and develop high value products and services using advanced technologies. I can advise that, in the most recent round of grants, $155,000 of funding was awarded to four South Australian manufacturers to grow and diversify their businesses. Kennewell CNC Machining is a machining business based in Murray Bridge that has been operating for some 20 years, providing precision parts and machining services to the manufacturing, resources and after-market four-wheel drive motor vehicle industries.

I understand that, in 2006, the company began to diversify by establishing a business to sell their after-market products for four-wheel drive vehicles. These products are machined by Kennewell and sold largely over the internet to the customer. The business transformation voucher grant will enable Kennewell to partner with Kingsgrove Consulting for a project that will involve a strategic review of the company's business operations with the goal of identifying new business opportunities that will assist the business to grow and introduce new high value manufacturing processes.

Also, KJM Contractors was established in 1992 and is a South Australian owned family business that provides remote accommodation and hire; logistics and maintenance; food services; and engineering, manufacturing and modular buildings. KJM is located in Adelaide's northern suburbs and currently employs around 300 full-time equivalent employees. KJM Contractors was successful in receiving a grant of $50,000 for a project with SAGE Automation to develop and implement a new innovative manufacturing process to increase productivity and reduce costs. This will support the company to diversify its products and customer base.

In addition, Krix Loudspeakers design and manufacture loudspeakers for the commercial cinema and consumer hi-fi markets. The business was established in 1974, and those who regularly play in bands and who are interested in these sorts of things would well know Krix Loudspeakers.

The Hon. D.W. Ridgway: It is a family-owned business and very good.

The Hon. K.J. MAHER: I am pleased the Hon. David Ridgway is endorsing the government's programs and what we are doing in terms of providing Krix Loudspeakers with an ability to grow. The company was granted $50,000 for a project with a focus on reviewing the company's current manufacturing and packaging processes and to identify opportunities for greater efficiencies and capacity. Skara Smallgoods also received a grant. They were established—

The Hon. D.W. Ridgway: I've been to their factory as well.

The Hon. K.J. MAHER: Unsurprisingly, the Hon. David Ridgway has been to a factory that makes food. It is a family owned and operated business—that is still surprisingly in business after the Hon. David Ridgway visited the factory—that supplies a range of fine European-style smallgoods and meats. The company operates from a purpose-built facility. Whereabouts, Ridgy?

The Hon. D.W. Ridgway: The factory is in behind Mount Barker.

The Hon. K.J. MAHER: Mount Barker. It is the only producer of smallgoods in Australia that is free-range certified.

The Hon. D.W. Ridgway: Do you like the shopfront they've got? Have you been there?

The Hon. K.J. MAHER: I am sure it is great. The company was awarded $50,000 for a project with a focus to review the current manufacturing and packaging processes and to identify opportunities for operational improvements and capital investments required to make the company more efficient. I am pleased to say that it is not just with the Business Transformation Voucher Program that we are seeing some of our food manufacturers receive grants to succeed. I know that with the former federal industry minister, former Liberal and now National, Ian Macfarlane, we announced a joint commonwealth-state grant to Mexican Express recently for a Mexican value proposition to keep their food manufacturing evolving.

The Business Transformation Voucher Program continues to support companies that are committed to transforming their businesses to improve their efficiency, productivity and international competitiveness. I congratulate these companies on their successful applications. I might add, to save the Hon. Andrew McLachlan asking me tricky questions in his lawyerly way which I will have trouble answering, that the grant recipients are selected on the basis of merit for their proposal aligned with the program guidelines I have here and I could go through in great detail. There is a panel comprising people both from industry and from government. I am happy to talk to the Hon. Andrew McLachlan about who they are and how they are awarded.

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