BUSINESS CONFIDENCE INDEX

In reply to the Hon. J.S. LEE (14 September 2011) (First Session).

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for Tourism, Minister for the Status of Women): The Minister for Small Business has advised:

1. Despite the 'perfect storm of adverse conditions', South Australian small and medium enterprises (SME's) recorded the strongest improvement in confidence levels of any state and territory, with confidence increasing by 16 percentage points during the August to October 2011 quarter. The confidence of South Australia's regional SME's increased by nine percentage points—only South Australia and the Northern Territory's regional areas recorded increases over the quarter.

Furthermore comments made by Liberal Party members about ceasing support for key sectors of the economy, such as the manufacturing sector, may also be affecting business confidence in the state.

2. The Government is committed to reducing regulatory red-tape and has a program which requires agencies to meet annual targets to reduce red-tape. The Government established The Competitiveness Council in 2006 as a sub-committee of the Economic Development Board to recommend practical ways in which the State Government can make South Australia the most competitive place to do business in Australia and New Zealand.

The Competitiveness Council has to date focused on red tape reduction and the achievement of the Government's two $150 million savings targets, as areas where it can add value. The Council has delivered $168 million in net annual savings to business from the first phase of its Red Tape Reduction (RTR) Program, well ahead of the $150 target set by Government in 2006.

Despite the best efforts of the Liberal Party, the Government recently passed legislation to establish a Small Business Commissioner in South Australia. The Commissioner will provide a range of functions with a central purpose of a low cost mediation service for business-to-business disputes or business to state and/or local government disputes. The other key functions are to:

Provide education and guidance to help inform decision making to minimise disputes occurring;

Monitor and investigate unfair market practices and non compliance with industry codes and report to the Minister;

Offer other alternative dispute resolution mechanisms where appropriate;

Work proactively with key groups to encourage better business conduct and the principles of fair dealing and good faith; and

Advise the Minster on matters affecting small business.

I find it somewhat hypocritical that your question asks: 'what measures will the Government introduce to address the challenges facing business?' and yet the Liberal Party did not support the establishment of the Small Business Commissioner in the Parliament.

I trust that these answers to your questions will allow you to reflect upon the excellent work that the Government is doing to assist small business.