Legislative Council - Fifty-First Parliament, Third Session (51-3)
2009-07-15 Daily Xml

Contents

BUSINESS ENTERPRISE CENTRES

The Hon. J.S.L. DAWKINS (15:02): I seek leave to make a brief explanation before asking the Minister for Small Business a question about business enterprise centres.

Leave granted.

The Hon. J.S.L. DAWKINS: Most members would be aware of the network of business enterprise centres (BECs) which exists across metropolitan Adelaide. These independent organisations, a number of which have won national awards in recent years, receive funding from the three tiers of government as well as the business sector.

Under the current resource agreement with the Department of Trade and Economic Development, BECs are due to receive their annual state government funding component in the last week of each financial year. However, they were recently advised by DTED not to expect the funds before 1 July. Indeed, I understand that today—a fortnight into the new financial year—the funds have still not been provided to the BECs. This is affecting the ability of the centres to meet financial commitments within their local communities and beyond. My questions are:

1. Is the minister aware of this delay in funding?

2. Will the minister assure the council that the BECs will be paid the state government funding component immediately?

3. What action will the minister take to investigate this funding delay?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business) (15:03): I thank the honourable member for his question, because the business enterprise centres are a very important part of the services that government delivers to small business. My colleague the former minister for small business entered into a three year contract back in 2008 to fund the seven BECs and the two enterprise centres (commonly referred to as the BEC network). The purpose of that was to enable the network to provide an extension of its existing services, including information, advice and business assistance to small business operators.

The BECs receive varying levels of funding support from their respective local councils, and the funds are administered by independent agreements with each BEC. The federal government has committed to provide funding to 36 BECs across Australia, including funding to eight of the nine South Australian enterprise centres, and that funding varies from $200,000 to $350,000 per annum for a period of four years. State government funding of $150,000 per annum, excluding GST, is provided to each centre for a period of four years—that is, $450,000 in total per entity over the period.

The current arrangements are due to expire as at 30 June 2011. I will investigate the matter raised by the honourable member. Those arrangements were put in place to give the BECs longer-term certainty in relation to their funding, which will be delivered. I am not exactly sure of the agreed date for payment but, given that the honourable member has raised this issue—

The Hon. J.S.L. Dawkins interjecting:

The Hon. P. HOLLOWAY: Funding is for the year. Presumably it will be out of the current budget. I will investigate the matter. We appreciate the work done by BECs, and if there is any problem I will have it addressed quickly.