Drought Assistance

The Hon. B.R. HOOD (15:15): I seek leave to make a brief explanation prior to addressing questions to the Minister for Primary Industries and Regional Development regarding community impact of drought.

Leave granted.

The Hon. B.R. HOOD: Small and family businesses form the economic backbone of country communities, yet many are being pushed to the brink by a combination of worsening seasonal conditions and rising input costs. My questions to the minister are:

1. What assessment has the government made of the drought's impact on cashflow in regional towns, particularly for small businesses whose survival is directly tied to the fortunes of local primary producers?

2. Does the government have a credible plan to support them in any issues they may be facing?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (15:16): I thank the honourable member for his question. As we have said throughout this drought, both prior to announcing the first drought package back in November last year, through the subsequent times and through to April, when we announced the second drought package, this is about primary producers and farmers but it is also about regional communities. We know that when there are good times in the farming communities that does flow through in terms of increased spending in regional communities in regional businesses, often small businesses in particular, which is a very positive outcome.

When there is a sustained drought, as we are seeing at the moment—and I have said before that in some parts of South Australia they are entering their third year of drought, others their second —it has been an issue that has been building more and more. That is the reason that we announced the $73 million drought support package, which has I think, from memory, more than 20 different streams or initiatives within it.

That includes a number of things of direct relevance to small businesses, and I assume the member is referring to small businesses other than direct farming businesses. There is, first of all, the opportunity for small businesses to apply for the $1,500 grants, which are being administered through Rural Business Support (RBS). That is not limited only to farmers but is accessible also to other small businesses that are affected.

We also implemented the Connecting Communities grants, which was about bringing people together but also about supporting local businesses through that. So whether it be a barbecue and some drinks or another type of community event, that is designed to be able to provide additional business for those small local businesses.

I know that one of the events I have spoken about previously was described as a street party for that particular town. That was about bringing people into the town to ensure that those who are able to will spend locally and those who are not able to still will be able to come to those sorts of events, to have some company, some social outlet, and to have a talk with other people—other farmers—about the drought but also with other people and members of the community about other matters.

In addition to that, there are things such as the sports and recreational grants, which are under the jurisdiction of my colleague the Hon. Emily Bourke. That can be used for a number of different purposes. It might be, on my understanding, something like uniforms for the local footy club or netball club, which we would hope would be sourced locally, or it might be for additional water saving infrastructure, which again we are encouraging people to spend locally. These are just some of the initiatives that are within the drought package which can provide benefits to small businesses in regional communities.

We continue to meet not just with drought-affected farmers directly but also with others such as local government organisations and various others within regional towns and townships to see how they are tracking. It is obviously very difficult for them, as well as directly for the primary producers.