Helen Kroger (Victoria, Liberal Party) Share this | Link to this | Hansard source

As a former small business owner and operator, my question is to the Minister representing the Minister for Small Business, Independent Contractors and the Service Economy, Senator Carr. Will the minister confirm that small business attitudes and confidence in federal government policies are at their lowest ebb in the 15-year history of the authoritative Sensis small business survey? Senator Carr, don’t these figures prove that the Rudd Labor government is now considered by small business to be the worst government ever?

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Order! This is question time, not banter time across the chamber. Senator Conroy, I put out a general reminder to the question committees around this place that questions should be addressed to the chair and not across the chamber to the individual ministers.

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

Thank you, Mr President. The NAB monthly business survey from which I presume—

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

Senator Conroy interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Order! Senator Conroy, let Senator Carr answer the question.

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

Thank you, Mr President. I presume the senator is referring to the latest business survey. The business conditions clearly indicated in that survey had deteriorated in July. Business confidence remained ‘steady’ with the NAB noting that ‘confidence remains significantly above recessionary levels’ and that trade conditions and the employment index were at their ‘lowest levels since 2001-02’ and the business confidence index has remained at the same levels since 2001. Business expectations for the December 2008 quarter have deteriorated and concerns have been expressed about fuel prices remaining high, with 47 per cent of respondents nominating it as the ‘single most important influence’, and interest rates. However, concerns about wages growth have eased. Many of these results of course are at their lowest levels since 1992. Issues of most concern to business relate to global developments. The consumer sentiment bounced back in August but remains below both the 33-year and the 10-year averages. The index remains close to its lowest level since June 1993.

US consumer sentiment, I might point out on the other hand, if we look at the international comparisons, has fallen to its lowest levels since 1980. Japanese consumer sentiment has fallen to its lowest levels since 1982. The United Kingdom consumer sentiment has fallen to levels not recorded since 1974, and in Europe and the United States business confidence has slumped to 1972 levels.

So it is quite clear that there is a period in which we are now seeing that business is worried about rising fuel prices, increased interest rates, the consumer downturn, lower consumer confidence and decreased business. And in the context of the legacy that has been inherited by this government as a result of the failure of the Howard-Costello government, is it any wonder that there was a softening in business confidence? Business conditions indexed in the June quarter were at their lowest levels since these surveys have been undertaken. However, the availability of suitably qualified staff has either been the biggest or the second biggest constraint on investment for all businesses. So there is a long-term problem here as a result of the previous government’s failure to deal with some of the fundamentals within the Australian economy, and this is precisely what this Labor government is seeking to do to deal with the legacy that has been left to us by the previous Howard-Costello government.

Helen Kroger (Victoria, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Senator Carr is most welcome to come back to my office and I will brief him about the fact that there is a Sensis small business survey, which his advisers seem not to have advised him about.

John Hogg (President) Share this | Link to this | Hansard source

Order! This is not a debating time. Please ask the supplementary question.

Helen Kroger (Victoria, Liberal Party) Share this | Link to this | Hansard source

Doesn’t this record high disapproval rate for Labor’s small business policies prove that the former Labor leader, Kim Beazley, was so right when he infamously admitted that Labor has never pretended to be a friend of small business?

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

I am not altogether certain that there is much to be answered in that supplementary question. Frankly, there may well have been an invitation, which I will not be responding to. The simple fact of life is this: the Australian economy is facing difficulties and these are inherited difficulties that have come as a result of the failure of the previous government to face up to the simple facts of life when it came to the capacity constraints in the Australian economy, to eight interest rate rises in a row, to serious skills shortages that had been developing for quite some time and to its failure of will to actually deal with question of fiscal discipline.

It has been put that there is a particular difficulty with consumer confidence. By international standards, Australian conditions are very strong. The global credit crunch that we are now facing— (Time expired)