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Small business, big losers



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ΜίβΚ LIBERAL

News Release Federal Secretariat: P.O. Box E13.Queen Victoria Terrace. A C .T 2600 Tel .(062)73 2564

MR DAVID CONNOLLY, MEMBER FOR BRADFIELD SHADOW MINISTER FOR ARTS, HERITAGE AND ENVIRONMENT

SMALL BUSINESS, BIG LOSERS

"The failure of the Hawke Government's Mini-Budget to meet economic reality will threaten the economic survival of small businesses and the jobs of their employees on the North Shore", Mr David Connolly said today.

"The Mini-Budget represents a token gesture of Government saving which retreats from the real issues of discounting full wage indexation for the effects of the dramatic 20% devaluation of the Australian dollar".

"Employers are expected to bear the brunt of the Government's surrender to the ACTU".

"The Government has failed the business community by refusing to argue or discounting of the inflationary effect of devaluation in., the September national wage case".

"The small business sector will be hardest hit as it faces spiralling wage costs despite the 20% devaluation of the Australian dollar".

"In addition, the Government will support a productivity increase estimated to be some 3%. All this comes after a 2.6% wage rise in April and a 2.7% non-wage drift outside the Australian Conciliation and Arbitration Commissic in the second half of 1984 alone".

"The Hawke Government by ignoring the interests of small businesses is jeopardising an economically important sector which generates 82% of all private sector jobs".

"The key failure of the Mini-Budget is the Hawke Government's reluctance to address the wages question. While they know which way they should ... go on this issue they are obviously intimidated by the ACTU. They have rejected the business community's preference for discounting wage,

indexation and will stitch together a deal with the ACTU to delay and tone-down the productivity wage case", Mr Connolly said.

15/5/85

David Connolly (062) 72 7087/6337