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House of Assembly - Fifty-Fourth Parliament, Second Session (54-2)
2021-02-02 Daily Xml
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Adelaide Venue Management Corporation

360 The Hon. Z.L. BETTISON (Ramsay) (3 December 2020). The Adelaide Venue Management Corporation annual report 2019-20 references a business interruption policy from SAicorp:

(a) Is this a standard policy offered, or was it created in response to the pandemic?

(b) What is the period of indemnity of this policy?

(c) What are the specific terms of this policy?

(d) What is the total payout from SAicorp to date?

(e) Is this insurance scheme available to any other government entity or government-managed event?

(f) Has there been any discussion regarding offering a similar scheme to other events and festivals in South Australia?

The Hon. S.S. MARSHALL (Dunstan—Premier): I have been advised:

1. Business interruption insurance is a standard component of the South Australian government's captive insurance arrangements, which are administered by the South Australian Government Financing Authority (SAFA). The Regulatory Order Extension (under which the COVID-19 claims have been paid) has been included under the business interruption cover for many years. It is a standard policy and was not created in response to the pandemic.

2. There is no specific business interruption indemnity period defined in the Insurance Agency Agreement between SAFA and Adelaide Venue Management (AVM). The indemnity period is determined on a 'reasonable' basis by SAFA, with regard to the activities of the agency and the circumstances of the loss. For AVM, the indemnity period for the COVID-19 business interruption claim has been agreed at 24 months.

3. Business interruption cover provided under the agency agreement with AVM covers losses for interruption or interference with AVM's activities as a result of a closure or evacuation of premises on or from which AVM's activities are conducted. Claims are limited to the sums insured for business interruption under AVM's agency agreement.

4. SAFA has engaged forensic accountants to assess AVM's claim, which is being paid in arrears on a quarterly basis. A total of $13.7 million has been paid to AVM to date, constituting $6.2 million for the period March to June 2020 and $7.5 million for the period July to September 20.

5. The South Australian government's captive insurance arrangements administered by SAFA are generally not available to entities outside of government.

6. The South Australian and the commonwealth government are continuing to provide significant support to assist businesses and not-for-profits to survive the COVID-19 pandemic.

Examples of relevant support available include:

Two rounds of $10,000 emergency cash grants for eligible small businesses and not-for-profit organisations who employ staff. Round 2 also included grants of $3,000 for small businesses without employees that operate from a commercial premise;

Land tax relief to support tenants and landlords;

Payroll tax relief for businesses, including payroll tax waivers for eligible businesses and a payroll tax exemption on JobKeeper payments;

Great State travel voucher scheme which provides $100 vouchers for use at participating CBD and North Adelaide stays, and $50 vouchers to spend on regional and suburban accommodation;

Waiving of various fees and charges including liquor licensing;

Investment in nature-based tourism and support for the tourism industry through the Tourism Industry Development Fund; and

$10.2 million in 2020-21 for the creation of an Arts Recovery Fund with a focus on creating employment for professional and practising artists.

In addition, the commonwealth government is providing a range of support packages to help businesses and workers in South Australia, including the JobKeeper payment for eligible workers, the Boosting Cash Flow for Employers Scheme, the JobSeeker payment and support measures for apprentices and trainees.

The commonwealth government is also providing specific further support to the arts and creative industries in response to the impacts of COVID-19, including the $250 million COVID-19 Creative Economy Support Package and an additional $400 million for the Location Incentive to attract large budget international film and television productions to Australia.

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