Senate debates

Tuesday, 29 November 2022

Questions without Notice

Regional Small Business Support Program

2:39 pm

Photo of Perin DaveyPerin Davey (NSW, National Party, Shadow Minister for Water) Share this | | Hansard source

I'm glad the minister has been talking about workers in the regions because my question is to the same minister—but with his emergency management hat on—Senator Watt. Minister, in estimates I asked you whether the Regional Small Business Support Program was to be continued after 31 December—the end of the current round of funding. Your answer at the time was that you were considering your options. Minister, what are those options?

2:40 pm

Photo of Murray WattMurray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | | Hansard source

Thank you, Senator Davey. I presume the program you're talking about is the Regional Small Business Support Program pilot, which was a form of financial counselling. I think it was originally offered after the bushfires but it has been going for a couple of years. As I indicated to you at estimates, that was a matter that we were giving consideration to, because the former government, despite saying that they thought this was a really important program, only decided to put money in the budget through to 31 December this year. I don't quite understand why the former government, that you were part of, decided to have a funding cliff for this service, given that you thought it was so important. Be that as it may, again, that's something that we've inherited.

I recently approved an extension of that service to 31 March 2023, so that these services had funding certainty to carry them through the high-risk weather season. I'm not sure, Senator Davey, whether you are aware but the former government, of which you were a part, actually commissioned a review of this service which found that rather than the service primarily being used by businesses who were suffering from the impact of natural disasters, in fact it was mainly being used to deal with issues arising from COVID-19 and the impact on businesses from that, and from other matters as well, and certainly not the kind of floods that we're seeing at the moment. But we decided, regardless of the findings of the review, that it was important to give those services certainty and it was important to give their clients certainty and that's why we extended it until 31 March next year, to carry them through this disaster season. Those services that have funding remaining at that point in time will be able to continue it beyond 31 March to 30 June next year. In the meantime, we are giving thought to what other services and funding could be provided to provide the kind of financial counselling that you're talking about. But it would've really helped if the funding didn't cut out on 31 December in the first place.

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Senator Davey, a first supplementary?

2:42 pm

Photo of Perin DaveyPerin Davey (NSW, National Party, Shadow Minister for Water) Share this | | Hansard source

(—Deputy Leader of the Nationals and Deputy Leader of the Nationals in the Senate) (): I would say we were expecting to be able to do a MYEFO, which could have addressed that. We appreciate hearing that it's extended to 31 March. I am amazed to hear that you don't consider COVID-19 a disaster for small businesses. Minister, you have, in your possession, a letter written to you by the New South Wales Rural Financial Counselling Service director— (Time expired)

Photo of Murray WattMurray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | | Hansard source

I don't think I got a question there, but I think I know generally where it was heading.

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | | Hansard source

I give leave to finish the question.

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Leave has been granted for you to finish the question.

2:43 pm

Photo of Perin DaveyPerin Davey (NSW, National Party, Shadow Minister for Water) Share this | | Hansard source

I really appreciate that. How will hundreds, and possibly thousands, of farmers and rural small businesses be assisted if these financial counsellors are not funded to continue their work post, what you have now confirmed, 31 March 2023?

Photo of Murray WattMurray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | | Hansard source

As I said, this program was initially created to assist small businesses who were suffering financial impacts of drought or natural disasters. And as I said, the review that was commissioned by the government, of which you were a part, found that in actual fact most people were using it for the business impacts of COVID-19, which is not what the service was provided for.

I had the option of pursuing what your government had put in place, which was to cut funding out on 31 December. But my view was that it was important that those services and their clients had certainty to carry them through the disaster season, which is why we have made extra funding available to carry them through that season. That's not what your government did. Your government, in all of its budgets, didn't extend the funding beyond 31 December. We are continuing that service.

You mentioned farmers, Senator Davey. There is actually a separate funding program available for rural counselling for farmers and that remains in place. There is no risk to that funding at all. You shouldn't be mixing up those programs— (Time expired)

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Senator Davey, a second supplementary?

2:44 pm

Photo of Perin DaveyPerin Davey (NSW, National Party, Shadow Minister for Water) Share this | | Hansard source

What does the Rural Financial Counselling Service say to the current 130 small business clients that they are going to be unable to assist post, maybe, 31 March 2023, which was not in the budget? Who will provide advice to these businesses in the West Wyalong local government area and others like that?

Photo of Murray WattMurray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | | Hansard source

Senator Davey, it's obviously a matter for each of those services to decide what they want to say to their clients, but one thing they might say is: 'Isn't it good we had a government that extending the funding beyond 31 December this year?' The situation that your government left them in was that the funding was going to cut out on 31 December this year.

You might have forgotten about it, but your government had a budget back in, I think, March or April this year and decided to not extend the funding. Now you want to come in here and ask why we haven't provided funding any more long term than you did. We've actually extended this funding beyond what your government had agreed to, to 31 March this year, because we do recognise that these people need some certainty.

Your government decided that is was going to cut out the funding right in the middle of the disaster season. That's how much you cared about those services. We've actually taken a different view, provided that certainty, and there is an ongoing program for rural financial counselling for farmers. There is no risk to that whatsoever. In the meantime, we are considering other options for financial counselling for businesses to go with the grants that have already been approved for small businesses. (Time expired)