Craig Kelly (Hughes, Liberal Party) Share this | Link to this | Hansard source

I rise tonight to highlight the unfolding disaster being faced by the small business sector under this Labor government. The Prime Minister said in question time today that she is interested in the facts. Well, here are the facts on what this government's policies are doing to small business.

Exhibit No. 1 is the most recent Sensis business index for September. This found that confidence is plummeting and that small business profitability fell sharply during the last quarter and is now at record low levels under this Labor government. It also found that all key performance indicators fell in the last quarter, the proportion of SMEs reporting growth in capital expenditure fell sharply to the lowest levels recorded ever by the index and the proportion of SMEs exporting also fell. It also found that there was a substantial increase in the number of small businesses looking to close up or to sell their business. What an appalling indictment of the failures of this government.

Next is exhibit No. 2: the August 2011 ACCI small business survey. This survey also found that small business trading conditions and confidence have continued to collapse under this government. It found the business conditions index has fallen further into negative territory. Indicators for expected economic performance, sales revenue, employment and investment in plant and equipment are all in substantial decline for small business. What a shameful performance by this government. These results are even before small business is smashed by the insanity of a carbon tax.

These sobering facts are backed up the feedback I am receiving from 11,258 businesses located in the electorate of Hughes—97 per cent of which are small businesses. They have been telling me that business conditions are the worst in living memory. But what is truly disturbing is that the ACCI survey shows that the divergence between small and large businesses performance is at new record highs for the indices of business conditions, expected economic performance and investment in buildings, plant and equipment.

These are the facts. This government's policies are working against small business. Never before has the playing field been tilted so far against small business. Never has small business been at such a competitive disadvantage. Small businesses in Australia face a growing and insurmountable degree of anticompetitive price discrimination in almost every business input—from the costs of materials to interest rates, rent, bank fees and charges, and shipping fees. No wonder there has been a substantial increase in small businesses looking to close or sell their firms.

These facts show that the small business community are in crisis under the policies of this Labor government. But this government has no idea how its anti small business agenda is going to cause long-term damage to the prosperity of our nation. With small business going backwards under Labor, no wonder the nation's productivity is stalled, because it is small business people that drive innovation and it is small business people who risk everything on an idea and in doing so create massive benefits for our nation. You guys just do not understand that. So one might ask: what is Labor's current Minister for Small Business doing? The only noise we have heard from Senator Sherry is the prediction of doom and gloom for the independent booksellers. Such defeatist and demoralising comments not only show that he is simply unfit for the job but also show that he does not have a clue. If he had a clue, he might do well to look at how in the USA independent booksellers have used the Robinson-Patman antidiscrimination act to level the playing field between small and big booksellers. If he had a clue, he might do well to look at Germany where they do not have laws prohibiting retail price maintenance, thereby encouraging greater competition at the wholesale level, and where big and small bookstores are seemingly on every block. And if he had a clue, he would be looking at lifting the absurdity of our current laws which prohibit Australian small book retailers from parallel importing a book to sell to the public but allow a foreign book retailer to sell the same book to the Australian public.

With the small business sector in meltdown, with a Minister for Small Business who does not have a clue, and with a government ready to smash small business with a carbon tax, the future of small business has never looked as dark as it has under this government, and no wonder.

Finally, I would like to extend my deepest congratulations to the new Mayor of the City of Shellharbour, Kellie Marsh, who was elected earlier this evening. Kellie is not just the first Liberal mayor but, along with running mate Paul Rankin, the pair are the first ever Liberal councillors for Shellharbour. What a fantastic result. Congratulations, Mayor Marsh. (Time expired)