Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Innovation, Industry, Science and Research, Senator Carr. Can the minister inform the Senate how the government is working with Australian businesses to help them manage through the global recession? Can the minister describe both the macroeconomic and the sectoral responses the government has made to improve business conditions? Can the minister explain how the government is meeting the immediate demands of the crisis whilst still pursuing its long-term nation-building agenda?

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

I thank Senator Marshall for his question. All Australian businesses have benefited from the government’s actions to stabilise the financial system and to stimulate the economy. We are investing in high-quality, enduring assets that will deliver lasting benefits to the Australian community long after the global recession has passed into history. These nation-building investments are also helping to support jobs and keep businesses going through these very difficult times. We are creating jobs for today by building the infrastructure for tomorrow.

Our investments in social housing and energy efficiency and support for first home buyers are maintaining activity not only in the housing industry but also in the manufacturing and services industries that supply it. The ABS reported today that the number of new finance commitments for the construction of dwellings rose by 14 per cent in March. Our investments in economic, educational and social infrastructure are maintaining activity in construction, in engineering and throughout the built environment sector. Our cash bonuses to pensioners, students, low-income earners and families are maintaining activity in retailing and beyond. Our Green Car Plan has given new hope to workers and businesses in this cornerstone industry and to many more in other sectors who owe their livelihood to it. (Time expired)

Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I thank the minister for his answer. Can the minister inform the Senate what specific measures have been taken to support small- and medium-sized firms through the crisis? In particular, what is the government doing to address the short-term needs of firms that find themselves strapped for cash through no fault of their own and what is the government doing to make small businesses stronger for the future?

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

Small business is the backbone of the Australian economy. That is why we moved in February to make the investment tax break even more accessible to small firms. Our three-point—

Honourable Senators:

Honourable senators interjecting—

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

Order! I need order on both sides.

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

It is a tragedy that the opposition is not interested in the three-point, $8 billion investment tax break that the government has provided to business, which will assist in the cost of acquiring new equipment and technologies for every Australian company. We have also guaranteed payment within 30 days to small business suppliers on Commonwealth contracts. We have provided $1.16 billion in tax relief to small business by deferring and reducing pay-as-you-go instalments. (Time expired)

Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. I thank the minister for his answer. Can the minister update the Senate on how Enterprise Connect is working to strengthen smaller firms as the global recession bears down on the Australian economy?

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

The government’s Enterprise Connect network was established precisely to build on the productivity and innovation capacity of smaller Australian firms. Enterprise Connect has teamed up with 19 organisations to deliver more than 180 capacity-building workshops in capital cities and regional centres in every state and territory. These free workshops are giving smaller firms the tools they need to tackle the global downturn head-on. They offer practical advice on managing cash flow, generating sales and many other challenges that small- and medium-sized businesses are facing today. In many cases, Enterprise Connect is able to work with firms on strategies to apply what they learn. (Time expired)

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.