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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2012-09-18 Daily Xml
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REMLAP

Mr VENNING (Schubert) (15:44): During question time today a question was asked by the opposition why almost 6,000 jobs have been lost in regional South Australia, and the government all but ignored the question. Today I will tell of just one sad case that reveals exactly this problem.

I would like to pay tribute to a successful small business from my electorate, which after 23 years was forced to close its doors due to this government's lack of support and its decision to award a state government contract to an interstate company. Remlap, a small clothing manufacturing business located in Palmer, has for years supplied the CFS with its protective clothing. However, this year it lost the contract to an interstate company. The loss of this contract resulted in Remlap losing approximately 90 per cent of its business and, as a result, it had to close its doors for good on 30 June and its employees lost their jobs.

Remlap is Palmer spelt backwards, which is a small country town near Mannum. This Weatherill Labor government could have taken measures to ensure that Remlap remained in business but it failed to do so—even I made representations on its behalf without success. In June 2012 the State Supply Board granted approval for a new tender to be called for the supply of specialised uniforms to justice portfolio agencies, not just the CFS but also police, MFS, SES, courts and corrections. This automatically precluded Remlap from being able to lodge a competitive tender as it was a small company and did not have the equipment to be able to produce such a wide range of uniforms.

To its credit, Remlap approached the company that had been awarded the contract to see whether it could subcontract to supply just the CFS uniforms but to no avail. In her response to the correspondence from the proprietors of Remlap, the minister on 6 July 2012 said:

I do understand the significant role a small business from regional South Australia has on a wonderful community like Palmer.

I could not agree more. Well, if that was the case, why didn't the minister and the government continue to support a company that has successfully supplied CFS uniforms to the government for so many years? It has recently been reported to me that the new uniforms—which I assume will be provided by the new supplier that was awarded the contract—will not be available to the volunteers until the 2013 season, possibly even the 2014 season—not be available!

It is an absolute disgrace that we have a successful local South Australian company that can supply and has been supplying protective CFS clothing for nearly 20 years, yet volunteers who could be out fighting fires will not able to do so because they wait for their protective clothing to be manufactured interstate. What a disgrace!

Small business in rural and regional areas employ local people and keep small towns like Palmer alive. The state government has shown yet again its disregard for country communities by awarding another government contract interstate, which was previously undertaken by a small rural business. I would like to pay tribute to the Borchardts who ran such a successful business for so many years, providing employment opportunity in Palmer.

The product they made was very good (I do own some of it myself), and it was very much appreciated by the emergency services. I have seen some of the CFS volunteers wearing their Remlap overalls that are over 10 years old. They are still in good condition and they are very attached to them because they are of very good quality. There are no breakages, no rips, no tears. We all heard about the problem with the protective clothing for ambulance volunteers, which contained a residue and which caused sickness amongst the volunteers. Apparently that same interstate company has now been awarded this contract. I am very concerned about that.

I am very sad and sorry that they have been forced to close their business, and I thank them for their support over so many years. Unfortunately, Remlap is not alone. Recent business confidence surveys (NAB and the National Sensis Business Index) showed that South Australian business confidence is the lowest in the nation. All I can say is, no wonder.

Retail growth in South Australia for the 12 months until June was on 0.67 per cent compared to a national increase of 2.84 per cent. Building approvals for the 12 months to June fell by 24.9 per cent, the worst performance of all the mainland states. In the 12 months to July, insolvencies in South Australia rose by 38 per cent, the worst performance in Australia. In the quarter to July, over 109 businesses went into external administration in the last 12 months. Is it any wonder?

The cost pressures being faced by South Australians are as a result of Labor mismanagement and are hurting South Australian businesses—country and city. These poor figures are hardly surprising when, in addition to low consumer confidence, businesses have to contend with the highest taxes in Australia, increased compliance costs and rises in electricity and water charges. The Olympic Dam expansion has been scrapped. If the Weatherill government continues failing to support South Australian small business, where will the economy finish?

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