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Clipsal contract hurts small business

The Weatherill Government is refusing to compensate a South Australian small business that has been left more than $80,000 out of pocket after providing services for this year’s Clipsal 500 event.

South Australian company Pursuit People Solutions contracted with Victorian company Elite Systems Australia Pty Ltd, to erect scaffold platforms for this year’s Clipsal 500 event.

Elite Systems had a five year contract with the South Australian Tourism Commission (SATC) to provide services to the Clipsal 500 event.

Just 5 months after Pursuit People Solutions entered into the contract and after the services had been provided, Elite Systems went into external administration owing Pursuit more than $80,000 for erecting the platforms.

“The Weatherill Government failed in its due diligence when it handed a five year contract to a company that folded within 5 months of the contract starting date,” said Shadow Minister for Tourism, David Ridgway.

“It is totally unacceptable that a South Australian small business has been left high and dry as a result of SATC incompetence.

“This small business did the right thing and paid its workers the money they had earnt but the Weatherill Government is refusing to do the right thing by Pursuit.

“The Weatherill Government has failed this South Australian small business which understandably relied on the fact that Clipsal is a State Government event.

“It is particularly rich for Minister Bignell to be spruiking the economic activity generated by the Clipsal 500, when a South Australian small business is being ripped off and may go under as a result of providing services to the event.”

The Weatherill Government set a precedent to pick up the tab after it gave $400,000 to local businesses to ensure they were compensated for taking part in the unsuccessful Kangaroo Island Surf and Music Festival in 2012.

“As the Weatherill Government has bailed out local business in the past, it is only fair that they remain consistent and compensate South Australian businesses left out of pocket by Elite Systems.”