Senator PAYNE (7:28 PM) —This evening I rise to address what I and the coalition regard as a very important issue for all people, particularly in greater western Sydney—that is, the issue of small business reform. My New South Wales coali tion colleagues are undoubtedly aware of the significance of the greater western Sydney area in terms of its population growth and its growth in industry—in particular, in the manufacturing, building and construction, transport and storage, engineering and retail sectors. I am pleased to have the opportunity on almost a daily basis to work closely with my colleagues the member for Parramatta (Mr Ross Cameron) and the member for Lindsay (Miss Jackie Kelly) in this part of Sydney, listening to and working with business.

On a national level, though, small business confidence has firmed over the last three months to February of this year and is now at its highest level since the post-election peak of May 1996. The informative February 1998 Yellow Pages Small Business Index shows that business confidence is up this quarter in manufacturing, building construction and building services, with the transport and storage sector—essential parts of the western Sydney business community—seeing a boost in confidence of eight per cent—from 45 to 62 per cent since the November quarter.

The index tellingly goes on to say that, with the exception of the election induced euphoria in the May 1996 survey, small business's assessment of the economy is now at its strongest level since February 1995. Proprietors in all states and territories are strongly positive about the current state of the economy. In New South Wales, our small business proprietors have the strongest perception of economic growth and a strong sales and profit growth. The coalition's approach to small business reform is undeniably paying off right across the nation. This means that important areas such as Sydney's greater west have the opportunity to expand in business and to contribute in a far greater capacity to the nation's economy.

The greater west generates 20 per cent of the New South Wales work force and some 24 per cent of the New South Wales economy. The coalition acknowledges the contribution of the businesses of greater western Sydney and has fostered an open and accessible approach to receiving feedback from business proprietors at a grassroots level by providing opportunities to discuss the issues confronting businesses through seminars, forums and the like.

Just last Thursday I had the pleasure of chairing such a forum in Penrith. The event was organised by my colleague the member for Lindsay, Jackie Kelly, and the President of the Penrith and Districts Chamber of Commerce, Mr Ian Palmer. About 70 representatives of small business in both western Sydney and the Blue Mountains area were able to attend. A range of guest speakers was able to join us including my New South Wales state parliamentary colleagues the Hon. John Hannaford MLC, the opposition's spokesperson on small business in New South Wales; the Hon. Chris Hartcher MP, the opposition's spokesperson on industrial relations; the Hon. Mike Gallacher MLC, who spoke on workers compensation; and particularly my federal colleague the Parliamentary Secretary to the Minister for Workplace Relations and Small Business, the Hon. Alan Cadman, the member for Mitchell.

The seminar's great success was a reflection of the work of one of the many strong organisations that stand behind small business in the greater western Sydney area—that is, in this case, the Penrith and Districts Chamber of Commerce. As with all of the various chambers of commerce in our area, they are actively involved in ensuring that small business is aware of the changes that are occurring at the federal level and the options that are available to all small business as a result of the reforms that this government has introduced.

But the chambers do not only represent small businesses as a cohesive whole; they work with the community. They work through the local print media to ensure that people are informed about the issues that are confronting their own small businesses and the options that are available to them. One of the most interesting things to come out of the seminar, and very timely, might I say, in relation to today's activities in the chamber, was strong, unanimous and steadfast support for the government's proposed changes to unfair dismissal laws in the Workplace Relations Act, which was today rejected in the chamber.

The opposition's job-destroying unfair dismissal laws left over from their period in government have been amended since the coalition's victory in March 1996. But the message from small business is that more changes are necessary for the continued viability of their sector. It is a message that has gone unheeded by those on the other side. It is clear that the rejection of the government's amendments means a more difficult road ahead for any prospects of expansion for this vital sector.

What those on the other side must now do is stand accountable before their small business communities in their electorates across the nation and explain to all proprietors the obscure agenda behind their rejection of these amendments. The proposed changes set out to achieve one thing: very simply, to provide a better future for small business in this country, to provide certainty for small business.

The opposition and the Democrats have made a conscious decision to place obstacles in the way of those things and in the way of Australia's economic prosperity. The coalition by contrast sees its role as providing business with the opportunity to move forward. The reforms that we have introduced and the commitment we have shown to small business is evident in the mood of the small business proprietors I spoke to in Penrith last week and all across western Sydney in fact. It is comforting to them at least to know that as yet we are only part way through our program of reform. There is more to be done and they, the people on the ground, the people in the workplaces, support our aims.

I find it difficult to understand the obstructionist activities of those opposite when the call from the electorate for reform in this area is absolutely unequivocal. What the government has done is to provide a positive atmosphere for business to get on with the job. For example, interest rates are at their lowest in 30 years. This is an atmosphere that is conducive to confidence in investment for a small business that looks to a bigger and brighter future. If businesses are to make decisions to expand, they need to know where they are going and where they are going to be in a couple of years time. The low interest rates and low inflation achievements of this government provide small business with the stability and certainty they need to make their decisions for the future.

I was particularly encouraged at the small business seminar in Penrith to also witness the support for the coalition's proposed tax reform. There was a clear message—that compliance costs to do with taxation and administration are hurting Australian business. The coalition's tax reform will create world's best practice to ensure that Australian business is competitive not only within our region but also with business around the world. It is ridiculous that Australian businesses can spend more hours per week working out complicated compliance issues than in any other country in our region. This government is about creating a framework for a successful and competitive future for small business. The representatives of the Penrith and Districts Chamber of Commerce present last week gave me and my colleagues a clear indication that they consider the coalition is in fact on track to achieve these aims.

But tax reform and the need for changes to the unfair dismissal laws were only two of the major issues raised at the seminar. A number of the government's other reforms in areas such as access for small business to the Commonwealth banking ombudsman, cutting tax on savings, cutting fringe benefits and capital gains tax, cutting red tape and giving retail tenants a fair go were all equally applauded.

It would be remiss of me not to point out that overwhelmingly the most important achievement of this government for small business was our efforts to repay Labor's debt. We have in fact come a long way under the guidance of the Minister for Workplace Relations and Small Business (Mr Reith) and the federal Treasurer (Mr Costello). We acknowledge that there are areas that still need to be addressed. We are working towards rectifying the unacceptable situation that was left over from 13 years of Labor Party administration.

If we want to ensure a successful small business community not only nationwide but also for greater western Sydney we have to listen. That is what we are all about—identifying the problem areas at a grassroots level and responding to them. There are encouraging signs of growth. People in Sydney's west are expanding whether in industries like real estate, construction or retail. Let us hope that the actions of those opposite today will not affect that trend.

I would on this occasion also like to bring to the attention of the Senate not only the success of the government's reforms in greater western Sydney but also acknowledge the strong organisational support that exists for business in the area. In addition to the chambers of commerce, I am also in contact with the Greater Western Sydney Business Connection, known to those familiar with it in the west as `The Connection'. Both the member for Parramatta, Mr Cameron, and I work with The Connection to take the message of western Sydney businesses to the government. It was established over 10 years ago in 1985 to promote the Parramatta CBD—which, after all, is the geographical heart of Sydney—and to enhance its business potential. After a decade of doing that, The Connection's focus is now directed across greater western Sydney. That wider focus has seen an expansion in business development opportunities which The Connection has championed since its inception. And growing out of the organisational structure of The Connection came the birth of the Asia Business Connection.

Western Sydney is a strong region for business. It is a rewarding job to bring back to this place words of encouragement and support for the framework that is being built from the coalition's small business policies—policies which go a long way to ensuring that business is not held back in western Sydney, but that it is in a strong position to move forward to the next millennium with sound business confidence.