Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Hansard source

Small businesses are the backbone of the Australian economy. Therefore, it is important, as small businesses are key members and participators in the economy, that this government implements a policy of responsible economic management. The core elements of responsible economic management are to ensure that we put downward pressure on inflation and downward pressure on interest rates. If you fail to do that, what happens is the reverse—interest rates go up, it affects economic activity and growth and then it affects employment. That is why this government, since the beginning of this year, has embarked upon a clear-cut strategy to fight the fight against inflation. We will continue that fight, even in the absence of support from those opposite. If we fail to do that effectively, the roll-on consequences of further interest rate rises for small business in particular would be very bad indeed. That is why the government has a clear-cut policy on a $22 billion surplus. That is why those opposite are conducting, by reverse strategy, a $22 billion raid on the surplus. The second important contribution which we can make in terms of the impact of small businesses out there earning a living and working hard for their families and for the Australian economy is the work that I referred to yesterday by the Minister for Small Business, Independent Contractors and the Service Economy, and that concerns—

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