Legislative Council Fifty-Third Parliament, Second Session (53-2) 53 2 Parliament of South Australia Legislative Council published Question Time Small Business Development Fund Small Business Development Fund The Hon. R.I. LUCAS Legislative Council Small Business Development Fund The Hon. R.I. LUCAS (15:23): My question is directed to the Leader of the Government. Can the minister assure this house that before 30 June this year some small businesses will actually receive some of the funding from the $10 million Small Business Development Fund program announced back in January of this year as part of the Northern Economic Plan? Secondly, have the guidelines for that particular fund been finalised, and, if so, on what date were they finalised? The Hon. K.J. MAHER Legislative Council Minister for Employment, Minister for Aboriginal Affairs and Reconciliation, Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Science and Information Economy Small Business Development Fund The Hon. K.J. MAHER (Minister for Employment, Minister for Aboriginal Affairs and Reconciliation, Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Science and Information Economy) (15:23): I thank the honourable member for his question about the government's Small Business Development Fund. As members would be aware, the government released a comprehensive plan for northern Adelaide earlier this year, which identified growth areas to create new jobs in industries such as agriculture; food and beverages; health, ageing and disability; construction and urban renewal; defence; tourism; recreation and culture; and mining equipment and technology services. A sector of the economy that has the capacity to assist the transformation of northern Adelaide is the combined effort of the thousands of small businesses that operate in this area. We recognise that many small businesses in northern Adelaide produce quality products and services and with a small amount of assistance will be able to expand their businesses and create further jobs. With the upcoming job losses in the automotive manufacturing sector it is crucial that other sectors of the economy are growing. Certainly one of these areas is small business, and that is what the Small Business Development Fund is designed to do. I thank the honourable member for his particular question, and I am very happy to announce—as he probably would have seen my very good friend the Hon. Martin Hamilton-Smith's press release this week announcing as Minister for Small Business—the Small Business Development Fund, its components and its guidelines. The first component of this fund will be the start-up business grant program, which will allocate $4 million over the next three years to support the creation of new small businesses. This grant program will match dollar for dollar up to $20,000. We know that while promoting small business is important to jobs growth, we do not want people investing significant sums of money into a venture without a strong plan for its success. It is likely that some of the recipients of these grants may be people who have worked in the auto sector and who have received payouts, and to ensure that many of these new ventures are successful grant recipients will have to complete an approved business fundamentals training course. The second part of the Small Business Development Fund will be the business expansion grant program. This program will allocate $6 million over the next three years to help existing businesses expand and create jobs. Grants will be available from between $10,000 and $100,000, again on a matched dollar for dollar basis. These grants will be assessed on a competitive basis, with the chief requirement being the creation of jobs for businesses in the council areas of Salisbury, Port Adelaide Enfield and Playford. We know that there will be a downturn in job losses in the automotive sector, so we are committed to giving this northern Adelaide region this boost. The final decision for funding applications will rest with the Minister for Small Business, who is responsible for the small business grants program. The minister has informed me that recipients of funding from the Small Business Development Fund will have to report back to the government a year after the execution of the agreement, and will need to provide details of job creation activity and evidence of business creation or purchase. Funding will need to be repaid to government if it has not been expended on the job creation activity. I am pleased with this latest step to support businesses, particularly small businesses, in South Australia. I understand that on DSD's website there is greater detail and guidelines for these grant programs. I am very pleased that the honourable member asked me the question today, after the minister, the Hon. Martin Hamilton-Smith, announced the program this week.