MicroFinance

The Hon. J.S. LEE (14:40): Thank you, Mr President. My question is to the Minister for Human Services about microfinance. Can the minister please provide an update to the council about the work of microfinance in South Australia and how the initiative is helping to ease cost of living pressures on low income earners?

The Hon. J.M.A. LENSINK (Minister for Human Services) (14:40): I thank the honourable member for her question and for her interest in these areas. Many people would be familiar with the use of microfinance, which has received welcome publicity, particularly through Mr Muhammad Yunus from the Grameen Bank, who is a previous Nobel Prize winner. Microfinance has been in use in developing countries for some time, often focusing on the women and mothers in the communities who can use microfinance to establish small businesses for themselves and assist themselves to get out of poverty.

In South Australia, we have some groundbreaking work being done in microfinance. I was very pleased that this year on 22 October we had an annual conference being held in Adelaide, called 'Small Loans, Big Hearts', which brings together the state's no interest loans (NILS) or microfinance sector and brought together some 40 or 50 delegates.

The Good Shepherd Microfinance organisation was the organiser of that particular conference. It traditionally brings microfinance workers from all over Australia to network and hear the latest news from GSM and the broader sector. This year, multiple conferences are being held in every state across Australia to focus on local issues and enable more microfinance workers to attend.

Good Shepherd Microfinance is a world leader in ethical and affordable financial inclusion products, services and advisory activities. The Department of Human Services currently funds Good Shepherd Microfinance to coordinate and expand the network of no interest loan scheme providers in the state, to run the Salisbury Good Money store and to deliver the LaunchME microenterprise trial.

The Good Money store initiative is a high street style shopfront service that provides ethical financial products in direct competition with payday lenders. A range of microfinance options is available. The Salisbury store was the first outside of Victoria, with Queensland following suit a number of years later with an additional two stores. There are now seven stores in Australia.

The rollout of Good Money stores has created a significant uptake in the suite of ethical finance products provided by Good Shepherd microfinance that were previously contained to the not-for-profit community or, more specifically, traditional welfare agencies.

The flagship product, the no interest loans, provides access to safe, fair and affordable credit for people on low incomes. Loans can be accessed for essential goods and services, such as fridges, washing machines, car repairs and medical procedures. These products are clearly assisting people in a range of areas. We are very excited about some of the initiatives that are taking place in South Australia and look forward to the good works of these organisations continuing.