Small Business Loans

The Hon. D.W. RIDGWAY (15:14): My question is to the Treasurer. Treasurer, I think it was the former government, at the time that Arrium went into administration in Whyalla, that provided a range of loans to assist small businesses. Can you update the house on what action, given the COVID-19 pandemic, the Marshall Liberal government has taken in relation to these loans?

The PRESIDENT: I am sure the Treasurer can do that, but you have asked me to do that, and I am sure that you meant that you wanted the Treasurer to do that. I call the Treasurer.

The Hon. R.I. LUCAS (Treasurer) (15:14): The former government, back I think far as 2016, made available a series of interest-free loans and some grants to small businesses who experienced cash flow problems at the time of Arrium entering administration. My notes indicate to me that some 19 loans in total were made, totalling $5.6 million, and a grant was awarded to the Whyalla City Council for $125,000 at that particular time.

The South Australian Government Financing Authority continues to administer those loans. Unsurprisingly, as a result of the COVID-19 pandemic, some or all those businesses directly and indirectly approached the government for some relief in relation to the repayment arrangements on those loans—some directly to the government, some via the Small Business Commissioner, and in some cases both.

I am pleased to indicate that the government has entered into—favourable to the businesses—15 repayment arrangements in relation to those 19 loans, I think it was, that had been entered into. In broad terms, it generally involves extended repayment arrangements, and most of those small businesses have been very pleased at the results of the renegotiation of their repayment arrangements with SAFA. I am advised also that three loans have already been repaid in full by the small businesses and they therefore weren't requiring any assistance.

I think some of the small businesses did request of the government that we convert the loans into grants. The government, on behalf of the taxpayers of the state, didn't agree to that. These were loans entered into in good faith by the former government. We have honoured those loans. We have been generous, on behalf of the taxpayers, in extending the repayment arrangements. As I said, three of them have already been repaid, and we will continue to monitor the progress and the repayment arrangements for those particular small businesses as they continue, hopefully, to emerge from the COVID-19 pandemic.