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House of Assembly - Fifty-Third Parliament, Second Session (53-2)
2016-05-24 Daily Xml
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Whyalla Small Business LoanS

Mr HUGHES (Giles) (14:09): Thank you, Mr Speaker. My question is to the Treasurer. Can you update the house on the Whyalla small business loan program?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:09): I thank the member for his question and, of course, his strong advocacy for this program for the trade creditors affected by the Arrium administration.

The decision in April to appoint a voluntary administrator after Arrium reached an impasse with its major creditors has understandably created a great deal of uncertainty for the people of Whyalla and South Australia. Arrium is not just a major employer in the region but also a significant contributor of supplies and services for a range of small to medium-size businesses. Since the appointment of KordaMentha Restructuring as the administrator, the government has taken a number of decisive steps to address these concerns.

The Minister for Regional Development, the member for Frome, accompanied by the Small Business Commissioner, travelled to Whyalla the day after KordaMentha's appointment to meet with affected businesses and seek their input into what steps they would like the government to take to address their concerns about cash flow. The member for Giles was instrumental in setting up those meetings and, quite frankly, that timely input from contractors and other businesses was invaluable in guiding an appropriate and timely response by this government. We were able to quickly organise financial legal counselling for those businesses so they did not feel that they were alone in shouldering this burden.

Ten days after KordaMentha's appointment, a round table for business and other community members was held in Whyalla, and from that meeting we were able to table an interest-free loans scheme specifically addressing the cash flow challenges that confronted businesses in Arrium's supply chain whose payments had been put on hold by the administration. Ten million dollars, funded by the Regional Development Fund, in interest-free loans of up to $750,000—they can be grants—are now available for these businesses with each application considered on its merits.

I can inform the house that today I have approved the first two applications from the Whyalla small business loans scheme to DSE Civil, for $165,000, and Delmac Power Equipment, for $90,000. I am also advised that there are another 14 applications in the pipeline. This initiative is part of a whole-of-government response to the uncertainty created by Arrium's voluntary administration. An on the ground team is now based in Regional Development Australia's office in Whyalla, with its work overseen by Paul Case, a respected former public servant, who has been appointed as a regional coordinator.

While our steel task force works with the administrator, the Arrium team, the commonwealth government, the federal opposition and other stakeholders, we have not overlooked the needs of the people most affected by this situation—the people and the small businesses of Whyalla. This government and the member for Giles stand alongside all of them while we weather this storm.

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