Department of State Development www.statedevelopment.sa.gov.au VISION South Australia – Globally Engaged. DRIVING FORCE Creating Opportunities. P 2 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 Department of State Development ANNUAL REPORT 2014-15 P 3 1 JULY 2014 – 30 JUNE 2015 Department of State Development ABN: 83524915929 Level 4, 11 Waymouth Street Adelaide SA 5000 GPO Box 320 Adelaide SA 5001 DX 541 Telephone: +61 8 8226 3821 Email: [email protected] Website: www.statedevelopment.sa.gov.au ISSN 2205-605X (print) 2205-6068 (electronic) ISBN 987-0-9872018-4-3 (print) 987-0-9872018-5-0 (electronic) P 4 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 HON GAIL GAGO MLC HON JACK SNELLING MP Minister for Employment, Higher Education and Skills Minister for the Arts Minister for Science and Information Economy Minister for Health Industries Level 9 Level 9 Terrace Towers CitiCentre Building 178 North Terrace 11 Hindmarsh Square Adelaide SA 5000 Adelaide SA 5000 HON TOM KOUTSANTONIS MP HON IAN HUNTER MLC Minister for Mineral Resources and Energy Minister for Water and the River Murray Minister for Small Business Level 9 Minister for State Development Chesser House Level 8 91-97 Grenfell Street State Administration Centre Adelaide SA 5000 200 Victoria Square Adelaide SA 5000 HON MARTIN HAMILTON-SMITH MP HON KYAM MAHER MLC Minister for Investment and Trade Minister for Manufacturing and Innovation Minister for Automotive Transformation Level 13 Minister for Aboriginal Affairs and Reconciliation 200 Victoria Square State Administration Centre Level 6 Adelaide SA 5000 45 Pirie Street Adelaide SA 5000 Dear Ministers I have the pleasure of submitting to you the Department of State Development Annual Report and financial statements for the year ended 30 June 2015. The report has been prepared in accordance with the requirements of the Public Sector Act 2009 and the Public Finance and Audit Act 1987. Yours sincerely Dr Don Russell Chief Executive Department of State Development 30 September 2015 P 5 CONTENTS 1 CHIEF EXECUTIVE’S FOREWORD 1 2 ABOUT THE DEPARTMENT 5 3 ACHIEVEMENTS BY PROGRAM 11 Program 1: Office of the Economic Development Board 11 Program 2: Employment and Skills Formation 11 Program 3: Science, Technology and Information Economy 12 Program 4: Arts 13 Program 5: Health Industries 14 Program 6: Mineral Resources and Energy 14 Program 7: Opportunities for Small Business 17 Program 8: Water Industry Technical and Safety Regulation 17 Program 9: Globally Integrating the SA Economy 18 Program 10: Industry and Innovation 19 Program 11: Aboriginal Affairs and Reconciliation 20 4 DELIVERING THE ECONOMIC PRIORITIES 23 5 ABBREVIATIONS 29 6 APPENDICES 31 6.1 Ministerial accountability 31 6.2 Legislation administered by the department 32 6.3 Management of human resources 34 6.3.1 Workforce diversity 34 6.3.2 Executives 35 6.3.3 Leave management 35 6.3.4 Performance development 35 6.3.5 Leadership management and development 36 6.3.6 Employment opportunity programs 36 6.3.7 Work health and safety and injury management 37 6.4 Reporting against Carers Recognition Act 2005 38 6.5 Disability access and inclusion plans 38 6.6 Urban Design Charter 38 6.7 Reporting against Whistleblowers Protection Act 1993 38 P 6 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 CONTENTS 6.8 Regional Impact Assessment 38 6.9 Public complaints 39 6.10 Sustainability reporting 39 6.11 Fraud 40 6.12 Consultants 40 6.13 Overseas travel 46 6.14 Freedom of Information 46 6.15 Reconciliation statement 46 7 FINANCIAL STATEMENTS 47 8 LIST OF FIGURES/LIST OF TABLES 119 P 7 CHIEF EXECUTIVE'S 1 FOREWORD Twelve months ago, the Department of State Development (DSD) was formed with a very clear direction – to lead the economic transformation of South Australia and to help create jobs. We want to create and drive opportunities for people, for businesses, for industry and for the state as a whole. The Department of State Development works hard to ensure its activities are efficient, effective and align with the Premier’s 10 economic priorities. We are continuing to build new capabilities in sectors where South Australia is already enjoying competitive strengths and which are expected to have above average growth in global demand. By bringing together a collection of agencies under one umbrella, we have strengthened our capacity to link up important functions of government that need to work successfully together if we are to transform the South Australian economy and provide growth. DSD’s mandate is to identify and explore opportunities for growth aligned to six of the ten economic priorities. With these priorities as a guide, we are committed to working with business and the community to ensure South Australia works to its strengths and prospers in the global economy. We need to build South Australia’s international connections and alliances and we are working with businesses to build our state’s reputation as a great place to live, work and do business. This department is supporting those who take risks, push boundaries and take their businesses and ideas to the world. South Australia’s economic performance has been varied across its industry sectors. There have been positive signs through improved consumer spending and in the tourism and international education sectors. The state has seen improved competitiveness in other trade exposed sectors as a result of depreciation of the Australian dollar which will support further economic activity. However, the state is currently experiencing a number of challenges including the significant structural adjustment required when car manufacturing stops in 2017, a slowdown in China’s economy and continued uncertainty, and a slow recovery in Europe. Further challenges include falling commodity prices which are affecting mineral production. In a recent speech to the National Press Club, the Premier outlined that a response to the current impacts on the Australian economy is a national task to build a new economy that is open, high-growth, high- technology and clean-technology. Australian governments have a responsibility to assist Australian industries and communities to adjust to current and expected future global circumstances. We have to transform old industries and find new ones in order to compete on a global stage. This is something the Government of South Australia is working on and as the Premier stated "We're destined to shape our own future not to be beholden to others". Major economic transformation in South Australia depends on our state’s ability to find new ways of doing things through innovation, adapting quickly to new and emerging opportunities and through supporting and growing our existing industries. As the South Australian Government’s principal economic development agency, DSD has accepted lead responsibility for implementing government actions to assist in the required structural transformation. P 1 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 1 CHIEF EXECUTIVE'S FOREWORD The six economic priorities DSD is aligned to include: PRIORITY 1: Unlocking the full potential of South Australia’s resources, energy and renewable assets PRIORITY 3: A globally recognised leader in health research, ageing and related services and products PRIORITY 4: The Knowledge State – attracting a diverse student body and commercialising our research PRIORITY 6: Growth through innovation PRIORITY 9: Promoting South Australia’s international connections and engagement PRIORITY 10: South Australia’s small businesses have access to capital and global markets. DSD also actively contributes to the remaining four priorities: PRIORITY 2: Premium food and wine produced in our clean environment and exported to the world PRIORITY 5: South Australia – a growing destination choice for international and domestic travellers PRIORITY 7: South Australia, the best place to do business PRIORITY 8: Adelaide, the heart of a vibrant state DSD is working to build capabilities in sectors where South Australia is already enjoying competitive strengths. The focus is on activity in resources and energy, industry and innovation, investment, trade and immigration, health industries, arts, renewable energy, and Aboriginal affairs and reconciliation. DSD also supports the Economic Development Board which brings together a wide range of business, research and promotional expertise to tackle the development challenges that are facing the state. In May 2015 the department announced a new focus for skills development in South Australia that will bring under one umbrella all the publicly-funded initiatives in our skills, employment and training system. WorkReady changes how vocational education and training courses are subsidised and purchased to maximise the value the public receives from its investment. It was developed with industry to ensure skills training is targeted at the industries and professions that will lead to more jobs. WorkReady repositions training, employment and skills policy, activity and investment. It ensures that people are getting the necessary support to start training at the right level, that they complete their training and that they are equipped to move into jobs. Building a skilled, capable and work ready workforce, able to fill current and emerging job opportunities, will be the hallmark of WorkReady’s success and is critical to achieving increased productivity and driving innovation to support economic growth and jobs. The department played a leading role in the Premier’s successful trade and investment mission to China in May 2015 as part of the South Australia Shandong Cooperation and Development Forum. The department P 2 1 CHIEF EXECUTIVE'S FOREWORD coordinated the largest outbound mission in the state’s history, which included around 250 delegates from business, local government, research and education institutions, and State Government agencies. In March we launched the Export Partnership Program to help South Australian businesses engage with key trading partners in targeted international markets. The program provides eligible companies with up to $50,000 over two years, on a 50:50 funding model, for activities such as training, market research and mentoring.