Statutes Amendment (Small Business Commission and Retail and Commercial Leases) Bill

Second Reading

Adjourned debate on second reading.

(Continued from 11 September 2024.)

Mr TEAGUE (Heysen) (16:37): I rise to say a few words in support of the bill. As the lead speaker for the opposition I indicate the opposition's support for the bill, which has been through now at least a couple of iterations on its way here. I commend the minister for engaging particularly with the Law Society in relation to concerns about early versions. One that I perhaps single out to illustrate progress was a concern that, I think, made its way through an early draft and then even a first round review just in relation to the proposed section 12E and the capacity of the commissioner to compel the production of documents, and concerns that the Law Society made on behalf of the profession about the risk at the inappropriate scope of the compulsion for the production of documents.

I welcome the fact that the bill has now made tolerably clear certain exclusions from the commissioner's role and power in relation to what is now a formalised regime of what is described for the purposes of the structure as a designated process of alternative dispute resolution. Of course, alternative dispute resolution plays a central, integral role in the process of disentangling parties from disputes that might have them find their way all the way through formal processes of litigation, the process of attrition in nobody's interest.

The advances for the commission to have now a more advanced means and structure to be able to undertake alternative dispute resolution in relation to small business disputes is welcome. I acknowledge that there remains a certain degree of uncertainty about the scope of the service applying, as it does, to small business. That will be something that will work its way out. I detect that Commissioner Kilvert is really, it seems to me, motivated to make this new process a real winner in terms of serving the small business sector and in turn the relevant disputes that will be caught, the subject of the Retail and Commercial Leases Act, as well.

I take the opportunity to commend the commissioner. As I have said, when working through hearing from the commissioner about how this is going to roll out, it will prove itself up in the process. We know that there is already an established panel of participants. I hope that that may be attractive to expert would-be mediators over time, and the number can be even expanded. Certainly, the provision of alternative dispute resolution at an essentially nominal cost to the parties removes a barrier to participation. I really do hope that it serves as a practical means by which that disentanglement can occur at an early stage and that we are not therefore seeing disputes proceeding unresolved that are not in the interests of either party.

I emphasise that, in terms of addressing the commission's power to compel parties to participate in these processes, it is welcome that references to the nature of that participation be removed. The removal of references to meaningful participation, for example, is welcome. What really needs to be engendered here is an environment in which there is willing and voluntary participation by parties who can see the benefits that are available in participating early in this form of dispute resolution.

With those brief remarks, I again commend the minister for the work that has been done, particularly in the iterations of the drafts that have led us to where we are now. I commend the Law Society for staying the course in its engagement with those iterations as well, I think most recently the subject of a letter in about May, and that follows prior engagement last year. I think that augurs well. Over to you, Commissioner Kilvert.

Ms HOOD (Adelaide) (16:43): I, too, rise in support of the Statutes Amendment (Small Business Commission and Retail and Commercial Leases) Bill 2004. As small businesses are the driving force of South Australia's thriving economy, this government is implementing key strategies to grow and support the small business sector. In rebranding, to become the Small Business Commission SA, a distinction has been made between the commission and the Office for Small and Family Business to reduce confusion for stakeholders and better facilitate the bridging between small businesses and government agencies.

Part of this support is creating an adaptable dispute resolution process, allowing the commission to engage independent mediation while excluding arbitration and expert determination. This bill seeks to implement a consistent approach for dispute resolution across all industries, rather than the limited industries the Small Business Commissioner currently has authority in. This will ensure that all small businesses in South Australia can access the support needed to reconcile disputes.

The bill also authorises the commissioner to impose penalties and fees for noncompliance of mandated mediation sessions and the production of necessary documents. In addition to this bill, work is being done to ensure our small businesses are adequately supported for them to continue growing and thriving.

As we are all aware, some small businesses do currently face challenges around wages, rent and utilities, which can place additional pressure on operational costs. An initiative such as round 2 of the Economic Recovery Fund offers up to $50,000 for energy efficiency investments, with the goal of helping about 8,000 businesses lower their energy costs and contribute to sustainability efforts.

Just during the week, I had the pleasure of visiting a local business in my community to talk about the energy efficiency grants. Thank you to Annette and Violet in Walkerville. They run the amazing Georgie Paws, which is a sustainable dog toy and accessory business in Walkerville. I really commend them for their efforts in creating a more sustainable business, which really reinforces their passion for contributing to a healthier planet. It was my pleasure to go along and talk about the energy efficiency grants. I have had great pleasure dropping in on various local businesses in my community, encouraging them to apply for the grants.

Another wonderful program within this remit is the Women in Business Program, which aims to encourage women business owners of varying experience to develop their business, with more than 2,000 women participating in the program so far, including the incredible and wonderful Jacquie Sinclair, who is owner of Kennedys Boutique in the CBD. Earlier this year, I had the absolute pleasure of visiting Kennedys Boutique with Minister Michaels. They have really just created a wonderful business from the ground up, packing thousands of orders from across all of Australia, and they have a really beautiful product for women. I really want to congratulate Jacquie on the amazing small business that she has created, as well as being an employer of other wonderful women who work in her business.

I also want to thank the minister, her staff and her department for all they do to support small businesses in our community and for this work on this important bill. The significance of small businesses in South Australia's economy cannot be understated. By improving dispute resolution processes and strengthening the role of the Small Business Commissioner, these changes promote a fair and supportive environment while ensuring more effective assistance when facing issues, such as commercial disputes, late payment of invoices and contract disagreements. With those comments, I commend this bill to the house.

Ms O'HANLON (Dunstan) (16:47): I also rise to speak on the Statutes Amendment (Small Business Commission and Retail and Commercial Leases) Bill 2024. We on this side of the chamber know that small businesses are the backbone of the South Australian economy; in fact they contribute over $49 billion to our economy and provide almost 40 per cent of all employment. When small business is doing well, South Australia is doing well.

The Malinauskas government supports small business, and we do so by genuinely listening to the small business community and by using the power of government to deliver practical policies that make a real difference; for example, our $4 million Women in Business Program and the $6.5 million investment over the next four years accompanying the Small Business Strategy. These are both initiatives that have addressed genuine gaps in policy and have been gladly received by the many small businesses I have spoken to, both in my role as a member of parliament and in my previous role as a small business coach and mediator.

This bill addresses a real need of small businesses by ensuring that there are clear guidelines pertaining to the commissioner's role in advocacy and dispute resolution to enable more effective assistance to small businesses facing issues, such as commercial disputes, late payment of invoices and contract disagreements.

I have spoken of my passion for small business before; indeed, not only was I a small business owner before being elected to this place but my husband is also a small business owner, and both he and I come from families who were all successful small business owners. What we see in small business owners is a spirit of entrepreneurialism, a determination to succeed and a need to keep costs down wherever possible to ensure your P and L is as pleasing as it can be.

So ensuring that dispute resolution is available and in fact the first avenue to resolving a dispute is critically important because what we know is that court action is expensive and time-consuming—both commodities many small businesses do not need to be needlessly wasting. Currently, only specific industries can be mandated to participate in dispute resolution as a means of solving a dispute. This bill seeks for this to be consistent across all industries, providing a greater level of support to all small businesses, regardless of the sector they operate in.

In addition to mandating businesses' attendance at mediation, the bill also empowers the commissioner to require businesses to produce relevant documents where necessary. To enforce this, a maximum penalty of $20,000 and an expiation fee of $1,200 will be applied for noncompliance. The bill also highlights the office's role in promoting a fair and supportive business environment by not only facilitating independent dispute resolution but also acting as a conduit between small business and government agencies.

Rebranding the Small Business Commissioner to become the Small Business Commission SA aligns the office with similar structures in other states and clarifies the office's identity without altering its function. It also distinguishes the Small Business Commission SA from the Office for Small and Family Business, as this has caused confusion amongst stakeholders in the past.

Furthermore, the bill introduces a formal definition of alternative dispute resolution that excludes arbitration and expert determination, ensuring that business owners have certainty as to the extent of the dispute resolution types available.

Another significant element of the bill ensures settlement agreements reached through mediation facilitated by the Small Business Commissioner will be treated as minor statutory proceedings, simplifying enforcement in the Magistrates Court.

In addition to the changes to dispute resolution processes, the bill enacts changes, originally proposed by the Law Society of South Australia's Property Committee in 2018, to the Retail and Commercial Leases Act. These are significant changes that provide certainty to small businesses.

As an advocate for small and family businesses in my electorate, I want to thank the Minister for Small and Family Business, Andrea Michaels MP, for her ongoing commitment to improving regulation and support for South Australia's small businesses. I know that, as someone who has been involved with small business herself for many years, Minister Michaels understands the challenges, joys and sheer hard work that go into running a business.

Minister Michaels spearheaded the development of the South Australian Small Business Strategy and ensured it was a genuine reflection of the needs of South Australian business owners by undertaking the most comprehensive and intensive engagement program with small and family businesses this state has ever seen and ensuring it was backed up with substantial funding, as mentioned earlier, of $6.5 million.

To that end, I want to acknowledge the many small businesses in my electorate: the many cafes, restaurants, pubs and bars, gift shops, clothes shops, homeware shops, professionals and many more. We understand the difficult business environment you are currently operating in. This bill seeks to provide small businesses with the support they need to overcome some of the challenges they may face, which can mean the difference between success or failure, and to support their growth and resilience.

Along with our $14 million Small Business Strategy and other programs like the Small Business Fundamentals Program, the Women in Business Program and the Small Business Digital Capability Program, the government recently announced round 2 of the Economic Recovery Fund, offering energy efficiency grants of up to $50,000, with $20 million allocated to this round. The initiative aims to help up to 8,000 businesses lower their energy costs.

The Statutes Amendment (Small Business Commission and Retail and Commercial Leases) Bill 2024 demonstrates that this government is listening to the small business community and values the incredible contribution small business makes to not just our economy, as important as that is, but to our society and to our local communities.

Mrs PEARCE (King) (16:53): I also rise to speak on the Statutes Amendment (Small Business Commission and Retail and Commercial Leases) Bill 2024. As the member for Dunstan has just explained, we are a government that is committed to supporting small businesses because we know that they are the backbone of our state's economy. They help to create strong and connected local communities, and I know that they certainly contribute significantly to mine. I was reminded of this at a recent presentation evening for the Modbury Jets Soccer Club. While I was there, I had the opportunity to catch up with Ryan and Corina, two local legends who have been operating Smith Partners Real Estate in the heart of Golden Grove for over a decade. They absolutely exude passion for their local community.

For those who do not know Smith Partners Real Estate, they are truly impressive in what they have been able to achieve over the past decade. Just to name a few of those achievements, they were the recipient of the 2018 and 2017 silver award for the REISA Awards for Excellence in the category of small agency, as well as being finalists in the same category for 2016 and 2015. They were also named as one of the five finalists across Australia in the category of best new office back in 2015 in the Real Estate Business Awards. They have continued to grow and thrive over the years. Just last year, they were awarded the highest honour of No. 1 real estate office in South Australia in the medium agency category—quite an amazing achievement that we are all so incredibly proud of them for.

More important is what they have been able to achieve in our local community. They are deeply ingrained in our local community, so much so in fact that they even travelled interstate to be able to cheer on our mighty Modbury Jets at the Australia Cup a little earlier this year. I am very confident that through the work that they have been doing, and their ability to partner with other local community businesses, sporting clubs and organisations across the community, they are doing great things. I will just name a few that they have partnered with.

They have partnered with: Styled. Home Staging; Muffin Break; Sfera's; Read Brothers; WRXSA; Key Conveyancing Services; Cass and Co Conveyancing; Down to Earth Electrical, Data and Air-Conditioning Services; Inspect Real Estate; the Epilepsy Centre; Eckermann Conveyancers; Carpet Giants; MLS Plumbing and Gas; The Grove tavern, one of my absolute favourite local pubs in the area; Cancer Council; SATS; Merritt Plumbing and Gas; MND Australia; Plantscape Interiors; Officeselect; Storage King; ATTICA; Pinnacle Pools and Spas; Simmonds Heating and Cooling; M&R Airconditioning; Gepps Cross Rams; the Tea Tree Gully Tennis Club; the Modbury Jets; the mighty Modbury Hawks; and Still Aware.

That is quite an extensive list, but it goes a really long way to showing just how much of an impact just one local business can have in a local community to be able to support a strong and connected local community, and in turn helping to support our state's economy.

I sincerely thank Smith Partners for all the contributions that they have made to our community to date. Of course, I express my appreciation for their contribution in the years to come, which I am sure that they will continue to do and deliver for our community.

As part of my appreciation, I am absolutely proud to be part of a government that wants to support businesses like Smith Partners Real Estate. With that in mind, we have this bill before us today that represents the first major revision of the Small Business Commissioner Act 2011 since its commencement, and it is an essential step in supporting the office's future strategic direction. It aims to provide clearer guidelines around the commissioner's role in advocacy and dispute resolution.

By strengthening these functions, the bill will help the commissioner to offer more effective assistance to small businesses facing issues such as commercial disputes, the late payment of invoices and contract disagreements as well. One of the key changes introduced by this bill is to provide consistency in the state's office's alternative dispute resolution services across all industries. Currently, the Small Business Commissioner can only mandate dispute resolution for businesses in specific industries.

This bill will extend this level of greater support to all small businesses, regardless of the sector that they operate in. This will ensure that every small business in South Australia can access the same level of support when they face disputes or challenges. Additionally, the bill empowers the commissioner to require businesses to attend mediation sessions and produce relevant documents when necessary. To be able to enforce this, a maximum penalty of $20,000 and an expiation fee of $1,200 will be applied for noncompliance.

We acknowledge the difficult business environment that many small businesses are currently facing. Rising costs, including wages and rent, are increasing the financial pressures on businesses making it more important than ever to be able to provide a robust support network. This bill does ensure that small businesses have access to the help that they need to be able to navigate these challenges and continue to grow and thrive. By strengthening the role of the Small Business Commissioner and improving the legal framework around dispute resolution, this bill will provide small businesses with the support they need to overcome challenges and also to thrive.

It complements the work that we are doing through our $14 million Small Business Strategy, which is being rolled out through the Office for Small and Family Business, based on six key themes that were identified through consultation with small businesses. These themes, of course, include strengthening business capability, building skills and workforce, navigating the digital environment, boosting sustainability, embracing diversity and improving access to government services. These focus areas are being supported by a range of initiatives designed to help small businesses build their capabilities to be able to remain competitive and, of course, to succeed.

Programs like the Small Business Fundamentals Program provides essential support in areas such as financial management, marketing, human resources and business coaching. Over 2,300 participants from various industries have already accessed the program, benefitting from mentoring and also essential knowledge-building.

Additionally, we also have the Women in Business Program, which is a $4 million initiative designed to support women entrepreneurs in all stages of their business journey. This program, I am really excited to share, has reached over 2,000 women, helping them to grow and succeed in the areas that they are passionate about.

This government is also prioritising digital readiness and resilience through the Small Business Digital Capability Program, which includes the Cyber Uplift Step Program. This initiative helps businesses safeguard themselves against the growing threat of cyber attacks, equipping them with the necessary skills to protect their digital assets and respond effectively if breaches do occur.

We also understand that sustainability is a key focus for businesses right now and we also have programs to support in that area. As a part of this effort, I am really pleased to share that round 2 of the Economic Recovery Fund has been launched, offering energy efficiency grants of up to $50,000 to help small businesses invest in energy-saving measures such as efficient appliances, power generation equipment and building improvements as well.

This is something that I know many in my local community have been very excited about as I have been getting out there and engaging with our local businesses in our community about the opportunities that are presented to help them with not only their short-term needs but also their long-term needs. With $20 million allocated to this round, this initiative really does aim to help build up 8,000 businesses and lower their energy costs, contributing to both economic and environmental sustainability.

For those who have not already had a look at this, I certainly encourage all local businesses in my local community to continue looking into this initiative. As I have already said, I know that it will provide benefits for years to come should they be successful in their applications. With all that in mind, I commend this bill to the house.

The Hon. N.F. COOK (Hurtle Vale—Minister for Human Services, Minister for Seniors and Ageing Well) (17:02): I am absolutely speaking in support of the bill, brought in here by my colleague, who I want to commend for not just the excellent work in regard to this bill but for her excellent work more generally in terms of advocacy around the small and family business portfolio connecting with the consumer and business affairs. I think she is doing an extraordinary job advocating on behalf of so many thousands of small businesses we have that keep our economy ticking.

This bill does propose a range of changes—the first significant changes in more than a decade, I understand, since about 2011—which include reforms to the management of leases and, even more importantly, improving dispute resolution. As I said before, this speaks significantly to the way that this minister has worked in a conciliatory manner to bring in all of these reforms and a range of funding and policy initiatives, really helping small business in South Australia.

These include the Small Business Fundamentals Program, which boosts skills in areas such as financial management, marketing, human resources and business coaching, and the Women in Business Program. I heard my colleague the member for King just before speak to some of these excellent programs. There really is a flavour as well coming from having potentially more women around not just the cabinet table but the caucus itself, really speaking strongly on behalf of supporting women, financial literacy, financial independence, and the Women in Business Program, which is that $4 million support for women entrepreneurs in all stages of their business journey, which is part of that excellent work that is happening.

There is the Small Business Digital Capability Program—we could all do with a bit of help in regard to that; reboot is not always the answer, I guess—which includes the Cyber Uplift Step Program that helps businesses safeguard against the growing threat of cyber attacks and to respond effectively if breaches occur. There is also the Mental Health and Wellbeing Program that provides support for business owners and employees, helping them build resilience and cope with mental health challenges.

The Small Business Sustainability Support program is helping small business assess their climate impact and implement energy-efficient practices, reducing environmental footprints and delivering cost savings. Another program is the Economic Recovery Fund, which includes energy-efficiency grants of up to $50,000 to help small businesses invest in energy-saving measures, such as efficient appliances, power generation equipment and building improvements, all helping businesses do what they do best without as high overheads as they have seen previously.

All of the initiatives are critical to support a part of our economy that employs around 300,000 people. That is about 40 per cent of our workforce. It is quite significant. Previously, as the member for Fisher, I did quite an exercise in discovering where businesses actually were in my electorate. That electorate now is probably a big chunk of the member for Davenport's electorate and part of my electorate.

When I was first really getting to know the different areas within the business community in my electorate, it was often described as more of a dormitory because there is not a lot of industry. It is where people live and raise a family. However, I did uncover that there was a significantly high proportion of sole traders and businesses being operated from home. Often, we do not see some of the businesses that are there but they certainly are there and they are a major employer and contributor to our economy. A thriving small business sector is absolutely critical for our state overall but even more so for our local communities.

Small businesses respond to local needs and employ locals. They give people a chance to spend their hard-earned dollars outside the major chains. I may just mention some of those major chains that have recently come under a cloud in regard to those very serious allegations of manipulating prices with fake specials. I think small business gives us an opportunity to actually spend the money in those family-run operations which probably are not doing such practices.

Within my ministerial portfolio, we also have some programs that are supporting people, and again especially women who may have been out of the workforce for some time, to build their own businesses. There are two great examples of these women whom I have met recently. One of them, of course, is an excellent human with the name Natalie, who is an autistic single mum with two autistic children. She established her business called Adore hairdressing.

Natalie noted a gap in the market, and she provides specialised in-home hairdressing services for children with autism, as well as older people in care facilities; an excellent initiative, particularly for people who find a lot of discomfort and displeasure in attending places where there is a lot of stimulus going on—noise, lights—and also the discomfort of leaving a home environment.

Then there is Michelle, who set up her business Adelaide Arts Psychotherapy and Therapy Dog Services. She provides creative therapy and animal-assisted services to clients funded by the NDIS. Michelle now has a thriving business after experiencing a really challenging business partnership breakdown that led to 12 months of unemployment a number of years ago. It significantly impacted Michelle's emotional and financial wellbeing.

Both of these women were supported by a program called LaunchMe, which is a partnership between Good Shepherd—who are excellent micro-finance providers of support to many people who are often needing support, financial assistance, and who provide low-interest loans or no-interest loans with the support of our department—and the Department of Human Services. LaunchMe is an excellent program which gives women with a sustainable business idea access to no-interest business loans of up to $5,000, as well as business coaching and resources. In the 2023-24 financial year, 31 women were supported through this program.

If we want people to take a risk, innovate and become entrepreneurs, then government needs to create the right conditions for people to succeed. If government puts in the hard yards at the start with good legislation and good regulation, people will step up and put in the hard yakka to build a business for the future.

But this is not just a generic discussion about generic businesses and businesspeople. Sadly, people with disability still face significant stigma and discrimination in workplaces across Australia and, in fact, across the world. For so long, Australia prided itself on giving people a fair go, so we need to keep up our efforts to make our workplaces fairer and more inclusive. But the barriers to mainstream employment mean that people with disability, and those with partial capacities to work due to medical conditions, caring responsibilities or age, often turn to start their own businesses as a way to participate, as a way to participate in the economy on their own terms.

And this reinforces the need for a Small Business Commissioner with the right powers to ensure this part of our economy has the tools and protections to thrive. As noted earlier, a critical part of this bill is to improve mediation, which can resolve disputes faster and come at a dramatically lower cost than traditional court proceedings.

One of the pillars of the South Australian Economic Statement is an inclusive economy. Now, economists often talk about the three Ps when it comes to economic growth, and they are population, participation and productivity. In even simpler terms, this is how many people can potentially be working, those who are engaging in the labour market, and how much they produce or do when they do get involved. An economy that is more inclusive finds a way to bring people into the market; people who can provide goods and services for others while providing for themselves and their families.

One of the greatest tragedies of the modern era is the vast amount of wasted human potential that is left by the wayside because the traditional model of standard full-time employment in mainstream workplaces does not suit their needs. As a good Labor person and a union member, I will always support improvements to workplaces that make them safer and more inclusive.

As someone who is deeply committed to making life better for those on the margins of our community, and on the margins of the labour force, I am so pleased to see legislation like this that helps to make the small business sector a more inclusive place also. When people have a valued role in their community and have the opportunity to create value, then we all win. I really feel that this is exactly what this bill does and what it seeks to do. I commend the minister for bringing this bill to the house and I commend the bill.

Mr HUGHES (Giles) (17:14): I also rise to support the Statutes Amendment (Small Business Commission and Retail and Commercial Leases) Bill 2024. I think it is an important enhancement of the bill that we have before us. Obviously, there are a number of provisions that have been strengthened, that have been changed, to assist small businesses. We all know that in this state small businesses employ about 40 per cent of the workforce and indeed well over 90 per cent of the actual businesses in the state, so they have an incredibly important role.

Both currently and in the past, I have been made fully aware of the importance of small business, given what my community has gone through on a number of occasions. I reflect upon the role that previous Small Business Commissioner, John Chapman, played when Arrium went into administration and the role that John Chapman played was exceptional and essential.

I want to call him out because of the work that he did. The case then of Arrium is a bit of a similar picture in some ways, but hopefully it is not going to have the same result. Arrium had been very tardy in paying their contractors, especially some of their small contractors and small businesses in Whyalla. Many businesses had not been paid for a period of over 90 days and that was sort of the maximum that Arrium used when it came to the payment of small businesses. Come the 90 days, they would always then find something to question in the invoices, so the delays became even longer. That is bad enough under normal circumstances, but when Arrium then went into administration all of these businesses had major cashflow issues. Indeed, a whole range of those businesses would have gone to the wall if it were not for the intervention of the Weatherill government.

As I said, John Chapman played an incredibly important role in that. I had a part to play, but a couple of contractors, Jarrod Starkey, an employee of a contractor, as well as Kingsley Ewings, who owned Ewings Contractors, a heavy haulage company, assisted me very ably. We worked together to bring together a whole bunch of contractors and then had a meeting at Kingsley's business. There were scores of contractors there, all facing an incredibly difficult time, so we listened to what they had to say. John Chapman went back to Adelaide and got the imprimatur of the ministers at the time to act quickly to put something together to provide a package for the contractors.

Without that multimillion dollar package that was provided, a whole bunch of contractors would have gone to the wall and the industrial contractor ecology in Whyalla would have been destroyed, with the loss of all those skills and the loss of all those businesses that were built up over many years. Many of these were small family businesses in which they had put all their heart and soul into developing and they were put at risk because of the actions of a large company. I will always acknowledge the role that the Small Business Commissioner played. Now we have Nerissa Kilvert as the current Small Business Commissioner. She has been visiting Whyalla. She is encouraging all of the contractors who are experiencing difficulties to get in touch to provide their story so that we have a comprehensive picture of what is going on once again in that contractor ecology in Whyalla.

Despite what was discussed in parliament today during question time, when that big word 'administration' loomed large, as a responsible government and as a government that has taken an incredibly deliberative approach to what is going on at the steelworks, we have to look at all contingencies. Administration might be one of those contingencies, but it is certainly not a certainty. There are all sorts of scenarios that could develop when it comes to the operation of the mines and the steelworks in Whyalla, but suffice to say we are part of a government that is incredibly committed to the ongoing future of mining and value-adding in Whyalla.

There are many reasons for that, not least of which are the workforce that is dependent upon that, the sovereign manufacturing capacity, and also the dependence that a lot of these small to medium-sized businesses in Whyalla have on GFG, for good or ill. It is clear that at the moment GFG are not paying their bills on time and often question invoices to delay things even further. The tactics that some of the companies have had to use to get paid if they provide essential services are tactics that they should not have to use but have been forced to use.

The Small Business Commissioner is up there again, providing really active support in the community of Whyalla. There has been a group of contractors who have come together—facilitated by, amongst others, Jarrod Starkey, who helped the last time—so that the contractors can have a bit of a voice and can share their collective experiences. They have sent the message out to the people they know, asking people to get in touch with the Small Business Commissioner. It is essential that we support these businesses in Whyalla.

I visited a number of contractors the other week. Some of the stories are very difficult. One contractor, Tony Angel, started work at the steelworks many years ago. He developed some particular skills and took the chance to go out on his own and build his own business. That has been an exceptional business in Whyalla, Avid Engineering. It provides great services when it comes to metal fabrication and fibreglassing work, a lot of which is focussed on the steelworks and the mines. This is a business that he built up over many years, a business that employed locals—and locals who were committed to the business. He had a very limited turnover of staff, so when he employed people they stayed with him.

Tony has had to take heartbreaking action in relation to his employees: he has had to lay off 19 of his employees, many of whom have been with him for many years. He is still retaining them as casuals in the hope that work will come. One of his issues is not so much the late payments, although there is a little bit of that, but it is the fact that work from GFG, from Liberty and from SIMEC has essentially dried up. After building this business over all of these years, he has had to let go of some people, although he is still employing them as casuals where he can. This is the difficult situation that is now being faced in Whyalla when it comes to our incredibly important contractor base. Once again, this is a role that the Small Business Commissioner is playing in the community to provide the assistance that she can within the powers and the resources that she has.

Like I said, there is a whole range of potential scenarios with that big operator, but it is one of those things in this country: that imbalance of power between small businesses and big businesses and some of the really, really big businesses. Some of this needs to be tackled at a federal level. One of the issues is the issue of big companies using small companies as their piggy bank and owing them money for—it could be 30 days, it could be 60 days, it could be 90 days, it could be more than that.

There has been some legislative change at a federal level. Some people with better knowledge may correct me if I am wrong. Some of that legislative change at a federal level has been about the big companies now having to report their payment schedules, but it needs to go beyond that. I think this is the first stage. There are other potential amendments, assuming big businesses do not start to do the right thing by small businesses, because it is totally unacceptable for big businesses—and some of the biggest businesses in this nation—to use the small business sector as piggy banks and not paying in an efficient and timely way.

Of course, there have been changes at a state government level in this state when it comes to the requirement for state departments and agencies to pay in a timely way. That is a good move and we should see that move—like I said, it is more of a federal issue when it comes to some of the big corporations in Australia doing this. At the end of the day, small business is a massive employer. It is people getting out there, taking a risk and having a go, and we should not be putting in place unnecessary barriers and unnecessary traps. Anything that we can do to strengthen the role of the Small Business Commissioner to provide the resources that are needed is a welcome step forward. I commend the bill.

The Hon. A. PICCOLO (Light) (17:26): I rise in support of this bill. I understand from my reading of the bill that it demonstrates this government's commitment to supporting small businesses in this state by providing a whole range of new measures to provide them with some dispute resolution mechanisms, etc.

Importantly, this bill represents the first major revision of the Small Business Commissioner Act 2011 since it commenced all those years ago. I will provide some background information, Mr Speaker, because I was actually involved in the process of getting the Small Business Commissioner Bill going. Minister Tom Koutsantonis was the minister at the time and the bill was based on two inquiries which were undertaken by a committee that we both sat on at the time; they were the franchisee inquiry and also the farm machinery inquiry that we undertook. It is interesting that the farm machinery inquiry was actually opposed by the Liberal members of that committee at the time, and also the Small Business Commissioner Bill was opposed by the Liberal Party when it was introduced—

The Hon. A. Michaels interjecting:

The Hon. A. PICCOLO: Yes, minister, it was opposed by them. I do remind those opposite from time to time what they did in those days. This bill and the original act represent the first major and significant mechanism for small businesses to get some protection when they are dealing with larger businesses, and that is really important.

At the federal level, we see the federal government taking some action on a code of practice for the retail sector—again, that is big businesses that deal with small businesses. In those cases the small businesses are usually farmers of some sort. Farmers are an important small business in this state and, in fact, one of the motivating factors to get this bill off the ground back in 2011 was issues raised by farmers in my electorate at the time who were having difficulties getting their farm machinery serviced or supported by the manufacturers. So the bill came as a result of those two inquiries.

The original bill was supported by what was then the South Australian Farmers Federation as well. I remember the minister, myself and the then CEO of the South Australian Farmers Federation working very closely not only to get the bill up but, more importantly, to get the structure of the bill at the time to have provision through regulation for a whole range of codes of practice in different industries. This bill was deliberately intended in its design to be flexible, to be amended from time to time, to enable different sectors in different industries to be brought under the oversight of the commissioner.

Coming back now today, I understand that this bill provides clearer guidelines around the commissioner's roles in advocacy and dispute resolution, an important part of the bill. By strengthening these functions, the bill helps the commissioner to offer more effective assistance to small businesses facing issues such as commercial disputes, late payment of invoices and contract disagreements. Commercial disputes were a major motivator back in 2011, which was part of the franchise inquiry, when a lot of franchisees had disputes with franchisors. The franchisees were obviously the weaker party in that case and often were locked out of premises and shopping centres, etc., and that motivated that inquiry.

One of the key changes introduced by this bill is to provide consistency in alternative dispute resolution across all industries. This actually increases the coverage of the bill to make it very clear that it does not matter what industry you are in, you can be supported by the Small Business Commissioner. The bill also extends the level of support to all small businesses regardless of the sector they operate in. This will ensure that every small business, whether it is in urban or rural South Australia, can access the same level of support when they face disputes or challenges.

Additionally, the bill empowers the commissioner to require businesses to attend mediation sessions and produce relevant documents when necessary. To enforce this, a maximum penalty of $20,000 and an expiation fee of $1,200 will be applied for noncompliance. Again, that is very important because when we have a power imbalance between two businesses, the bigger party can use the delays to hurt the smaller party in any dispute and force them out of any dispute resolution process. So it is really important that we have these penalties.

The bill amends the objects section of the Small Business Commissioner Act to better reflect the commissioner's day-to-day functions. It highlights the office's role in promoting a fair and supportive business environment, facilitating independent dispute resolution and acting as a bridge between small businesses and government agencies. That is one thing we need to remember: often, small businesses have disputes with government and this bill does cover that, which is really important. The office will undergo a rebranding to become the Small Business Commission of SA. This change aligns with similar structures in other states and clarifies the office's identity without altering its function. Importantly, it removes any confusion between the Office for Small and Family Business and the office of the commissioner.

To provide certainty regarding the scope of alternative dispute resolution, the bill introduces a formal definition of alternative dispute resolution that excludes arbitration and expert determination. That is very clearly a different process. This legislative power is available to the commission under the bill and is intended to offer a structured yet flexible process for resolving disputes. I think the important part of the dispute is the mediation process. It is designed to get parties to speak to each other and understand each other's position and hopefully come to a mutual agreement. When parties come to a mutual agreement, it is the best agreement we can get.

Another element of this bill is the streamlining of court processes. Settlement agreements reached through mediation facilitated by the Small Business Commissioner will be treated as minor statutory proceedings, simplifying enforcement in the Magistrates Court. This will enable the parties to avoid the reprosecution of the case in the Magistrates Court. The bill includes amendments to the Retail and Commercial Leases Act that were originally proposed by the Law Society of South Australia's Property Committee in 2018, which I assume the member for Heysen was referring to earlier in his comments.

Mr Teague interjecting:

The Hon. A. PICCOLO: Well, I will give you the benefit of the doubt. These amendments include simplifying the process of determining whether companies are listed on foreign stock exchanges, clarifying that lease warranty exclusions apply to both renewals and extensions, specifying that preference rights do not apply where lessees have a right of renewal, and simplifying wording regarding lease termination in section 76.

This bill importantly recognises the difficult environment small businesses are operating in at the moment and it seeks to support those small businesses to make sure there is a level playing field in our economy. With those comments, I support the bill.

Debate adjourned on motion of Mr Odenwalder.