SMALL BUSINESS

The Hon. I.K. HUNTER (14:47): I direct my question to the Minister for Small Business. Will the minister provide details of efforts being made to ensure that small businesses in our state are in a strong position to attract and retain staff even as they confront the challenges created by the current economic conditions?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business) (14:47): I thank the honourable member for his question. This government acknowledges the valued contribution of small business operators in supporting the South Australian economy, and we are strongly aware that such businesses face obstacles and challenges in their operations, especially in these uncertain times. One of the ways to better tackle these challenges is through improved workforce planning and development. I recently had the privilege of being invited to the Inner Southern Business Enterprise Centre to launch a building business capability program in the workforce development project.

Through the Department of Trade and Economic Development the government has worked with management consultant Strategon to develop a program of workshops to improve the capacity of businesses to plan for their workforce development. A range of very comprehensive and practical training and reference materials has been developed for these workshops, with input from both private and public sectors. I was particularly heartened that, in a climate where the business environment is at its most challenging for some time, small business operators were able to invest some of their valuable time to take part in this program.

Throughout the world, in every workplace, someone is being touched by the prevailing economic conditions over which they feel they have little influence, and businesses in South Australia cannot expect to be immune. The good news is that there are approaches and tools that firms can take to develop business plans that will allow them to compete in this environment. It was not that long ago that business forums were focused on the tightness of the labour market and the need to find better ways to attract and retain good employees. While higher unemployment is expected to be a feature of the economic outlook in the short term, South Australia's economy is well positioned to emerge from the current global downturn in relatively good shape.

Businesses, as well as government, need to plan ahead based on the long-term outlook, which, in terms of South Australia, remains promising. Businesses have to use this time to ensure that they are prepared for the changed conditions when the business cycle again turns in their favour. By developing modern work practices and analysing the strengths and development needs of their workforce, businesses can maintain a significant edge over their competitors until the next upswing begins.

As I just mentioned, I attended the launch of a workshop in the Inner Southern Business Enterprise Centre at Clarence Gardens. However, a number of organisations have confirmed their interest in offering this workshop program to select groups of small and medium sized firms, particularly those employing five to 100 employees or contractors. These participating organisations include: the South Australian Centre for Innovation, Defence Teaming Centre, North Adelaide Business Enterprise Centre, Eyre Regional Development Board, Whyalla Economic Development Board, Yorke Regional Development Board, Mid North Regional Development Board and three industry skills boards.

The first of a monthly series of workshops began on 16 March at Port Lincoln and similar workshops will be held in the Upper Spencer Gulf region from the end of this month. Other programs are being developed for Gawler and Mount Gambier. The workshops will not be limited to metropolitan Adelaide but, rather, will be available to businesses throughout regional South Australia.

This government is committed to the development of small business. It is doing that through the development of the small business statement, which will help shape South Australia's future small business policy, and it is also doing it right now in terms of organising these workshops to build up the capacity of this important sector of the economy.

The small business statement has taken on added importance amid the unfolding economic crisis, the full impact of which is yet to be felt here in South Australia. With South Australian small business employing more than 46 per cent of the total non-agricultural private sector workforce it is vital that the government provides support during the current economic downturn. Maintaining the health of small business will be the key to minimising any job losses in this state.

The Rann government has slashed red tape, reduced payroll tax, rolled out services through the business enterprise centres and regional development boards, and responded to the Jaffe report into family business. All this action was taken before the financial global crisis arose to overshadow the national and local economies.

Small businesses have a crucial role to play in restoring economic growth, and supporting businesses during these uncertain economic times is an important step in warding off the threat of economic downturn and avoiding any major job losses.