Rural Business Support

The Hon. N.J. CENTOFANTI (Leader of the Opposition) (14:25): My questions are to the Minister for Primary Industries and Regional Development regarding cuts to the Small Business Financial Counselling program run by Rural Business Support:

1. Given my question regarding reductions in staff and services to Rural Business Support yesterday in the chamber, has the minister made efforts to contact Rural Business Support to seek clarification on cuts to the Small Business Financial Counselling program?

2. If so, can she clarify if these cuts are occurring?

3. Why is it that as the Minister for Primary Industries, whose department works closely with Rural Business Support, she was not aware of the cuts yesterday?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (14:26): I thank the honourable member for her question. I can provide the following information: the state government provides a range of support services to rural businesses and regional communities affected by hardship and adverse events, such as bushfires, drought, severe floods and storms, biosecurity outbreaks, industry downturns and, of course, in the last few years, COVID-19.

The Family and Business Support program is currently funded through a combination of state and commonwealth programs, including flood, bushfire and drought programs. Over $1 million has been allocated to this program across several adverse events in 2022-23. A portion of this budget will be carried forward into the new financial year to continue this important work, especially relating to the River Murray floods.

This includes the Rural Financial Counselling Service program (RFCS), which is an Australian government initiative that provides free and independent financial counselling to eligible farmers, fishers, foresters and small related enterprises who are experiencing or are at risk of financial hardship. This is jointly funded by the Australian and South Australian governments.

The Australian government also funded a Regional Small Business Support program pilot to support small regional businesses to build their resilience in times of drought and included areas affected by the 2019-20 bushfires, COVID-19 and flooding events in 2022 and 2023.

I am advised that the Australian government has made a decision to not continue the pilot, which will conclude on 30 June 2023, and that this has resulted in a reduction in rural business support staff associated with the program. Rural Business Support provide rural financial counsellors who work with South Australian clients on all facets of business management and planning and provide support to take action towards business goals.

Rural Business Support have been providers of the RFCS program since its inception in 2006. They will continue to deliver the program's objectives, which are to transition clients out of financial crisis to improve business profitability or facilitate a dignified exit through succession planning or sale of assets and above all to improve financial wellbeing and resilience in rural communities.

The state government has allocated Rural Business Support $1,137,750 (GST exclusive) for management and delivery of the Rural Financial Counselling Service in South Australia from 1 July 2021 to 30 June 2024. This arrangement provides flexibility for Rural Business Support to focus resources where they are needed.