Small Business

Mr TELFER (Flinders) (15:54): My question is to the Minister for Small and Family Business. What impact, if any, will this morning's developments at Beston Global Food have on small businesses in South Australia?

The Hon. P.B. MALINAUSKAS (Croydon—Premier) (15:54): Obviously the news of Beston going into voluntary administration—some weeks ago now—was exceptionally disappointing for the dairy industry and for shareholders of Beston themselves. This is a South Australian company with some significant prominent South Australian businesspeople who have been responsible for the establishment and the running of that business in the past, names that would be well familiar to the Liberal Party. No-one wants to see any business of any size go into administration. Of course, it happens from time to time and it is what we see in the entrepreneurial world of business. Some people take risks and sometimes those risks do not work out 100 per cent of the time, otherwise everyone would do it all the time.

So, we do not cast judgement on the operators or the business leaders who take a risk, often with their own capital, if it does not work out in the way that they would have hoped for or anticipated. Of course, it was a good thing that that business was able to be sustained, albeit as it turns out temporarily, through the administration process. The recent news that that will no longer be the case is also disappointing and we expect the market to respond as effectively and efficiently as possible. The government is taking advice on any actions that we can take from this point and it is a situation that we monitor quite closely.

I note that the Minister for Primary Industries, obviously being responsible for the dairy sector, is in touch and seeking to be in touch with representatives of the industry to make sure, if there are things that the government can reasonably do, that we contemplate them. Notwithstanding the fact that obviously it is a diverse sector and that Beston is not the only game in town with respect to the dairy industry, we want to generate a degree of competitiveness because that contributes to demand for dairy product.

We did start to see evidence—I am trying to get my timing right—I think starting around 18 months ago for milk prices to actually head in the right direction in South Australia, which we have not seen for some time. That is good news for producers. Beston, of course, contributed to the demand for milk supply. They were making products that in many instances were exported overseas. I know their mozzarella had demand from international markets which creates demand, in effect, for our South Australian milk supply to go elsewhere around the world, which is only good news.

The dairy industry is exceptionally competitive and tough and that has been well documented over a long period of time, but rising milk prices was something that gave a lot of people hope and also resulted in some thoughtful recalibrations, in terms of capital investment in the sector to make it even more efficient and effective, again which it has done with great success in many respects, principally to the benefit of the consumer more than anybody else.

I note there are people in the chamber who have more knowledge of the dairy industry than I would profess to, but we do not for a moment diminish, or speak with any ill will for those people who did their best at Beston to make it work. Like I said, the government will continue its efforts. We will engage with SADA to make sure that, if there are reasonable things the government can contemplate, they are given due consideration.