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Legislative Council - Fifty-Third Parliament, Second Session (53-2)
2016-02-10 Daily Xml
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Mining Employment

The Hon. T.T. NGO (15:43): My question is to the Minister for Manufacturing and Innovation. Can the minister tell the chamber how the state government is assisting local businesses to access new opportunities in the mining and resources sector?

The Hon. K.J. MAHER (Minister for Employment, Minister for Aboriginal Affairs and Reconciliation, Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Science and Information Economy) (15:44): I thank the honourable member for his question and his interest in this area. Before I answer this question, I might be upright and answer the Hon. Tammy Franks who asked a question about the Automotive Workers in Transition Program and the expanded access to partners and spouses. I thought it was the case but I wanted to just triple check, but I can confirm to her that we will be taking the widest and most inclusive possible view of spouses or partner.

In relation to the Hon. Tung Ngo's question regarding how the state government is assisting local businesses to access new opportunities in the mining and resources sector, I am very pleased to advise that as part of the state government's Our Jobs Plan we have committed to support the development of industry-led clusters in many areas, including defence, creative industries, water, medical devices and the mining and resources sector.

The government recently entered into an agreement with the peak industry representative body and advocacy group for the ICT industry in Australia, the Australian Information Industry Alliance Association (AIIAA). The Australian Information Industry Alliance Association represents over 400 members and member organisations nationally, including global brands, international companies, and a large number of small to medium ICT companies. The agreement will support our commitment to a cluster in the mining and resources sector, with an Internet of Things-focused cluster for the mining and energy resources sector which will encourage innovation, facilitate collaboration and support access to new markets for companies exposed to the industry.

The state government will provide $250,000 a year over three years to fund the cluster, which is designed to connect machines, devices and people to streamline the flow of information and to allow for real-time decisions. This investment will be critical to the competitive future of our mining and energy resources sector and to those companies that service this sector, providing the opportunity to make our local industry more productive and better able to maintain competitiveness in an increasingly volatile global market.

The AIIAA will take the lead to develop the cluster, which is expected to comprise technology firms, research organisations and supply chain operators in the mining and energy sector. I understand that a wide range of companies have already expressed their interest, including companies such as GE, IBM, Hewlett-Packard, Telstra, Santos, local South Australian SMEs such as IPACS Australia, and research organisations such as the Data to Decisions Cooperative Research Centre. The Institute for Mineral and Energy Resources has also indicated interest in being involved.

We have all the ingredients for successful innovation in this state. We have a strong research community, entrepreneurial businesses, high-quality education, and a proven ability to collaborate. Through this initiative we will maximise the potential for the resources, and particularly the resources services sectors, to grow.

The state government's commitment to expanding opportunities for the mining and energy sector is yet another example of our commitment to transform the economy. We know that the economy is in transition, and to grow we must capitalise on emerging opportunities. The Internet of Things is just one of the very real opportunities for our state. By 2020 it is forecast that businesses exposed to the Internet of Things will require an additional 4.5 million developers globally, which represents a 57 per cent compound growth rate year on year.

We know that the interconnectedness of devices, or the Internet of Things, is driving a major new technology trend, opening up opportunities for mining and energy resource companies in a whole range of areas. Companies that I have already seen in South Australia, like IPACS Australia, are using remote centres—in IPACS' case, its Mawson Lakes office—to provide predictive maintenance for equipment in remote mine sites. This allows maintenance to be provided when it is actually needed and properly predicted, to be provided with sensors rather than a schedule, which may lead to overservicing and increased costs. It is this type of activity that will further develop through the formation of this cluster.

A recent report, Forecast: the Internet of Things, Worldwide, found that, by 2020, 25 billion connective things will be connected, with a value of $1.9 trillion. Our state has a number of innovative ICT firms and research organisations with the expertise, capacity and intellectual property that can capitalise on this opportunity; however, I think it is fair to say that we need things like clusters to take full advantage of these opportunities. In this light, investment is essential if we are going to make sure that South Australia takes its place in our economy and takes a maximum share of the opportunities that present themselves.

I look forward to reporting back to this chamber on the positive impact that this new cluster on the Internet of Things delivers in the near future.

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