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Labor's $42 billion doesn't stimulate small business.



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Wed, 4th February 2009

LABOR’S $42 BILLION DOESN’T STIMULATE SMALL BUSINESS

Mr Steven Ciobo MP Shadow Minister for Small Business, Independent Contractors, Tourism and the Arts

Labor’s $42 billion economic stimulus package fails to help Australia’s 2.4 million small businesses meet their greatest challenge at the moment - cash flow, Shadow Small Business Minister Steven Ciobo said.

“The number one problem facing small businesses at the moment is cash flow, and the Coalition does not believe the Rudd Labor Government’s initiative addresses this core issue,” Mr Ciobo said.

“With 93 per cent of small businesses admitting they are under cash flow stress and simply don’t have the money to invest, how is the Rudd Labor Government’s small business initiative going to assist their bank balance? Labor just doesn’t understand you must have a dollar to invest a dollar.

“Without a positive cash flow, many small business owners simply cannot rush out and spend $2,000 on a new computer. Small businesses have wages to pay, rent to cover, invoices and tax commitments to meet, which can accelerate cash flow stress, particularly during periods of economic slow down.

“The Rudd Labor Government should be taking a much more direct approach in this current economic climate to improve the cash flow of small businesses thus helping to boost growth and helping Australia’s 2.4 million small businesses to keep employing around 3.8 million Australians.

“The Coalition understands cash is king for small business and there must be initiatives to reduce the costs of employing staff.

“That is why the Coalition proposes to directly assist small business by paying a portion of the Superannuation Guarantee Levy. This improves small business cash flow and lowers the cost of employment - to help keep Australians in their jobs and small businesses profitable.

“The focus of this Government should be on jobs, and with an increased number of small businesses having their cash flow squeezed, many small business men and women having to take a pay cut to ensure they can pay the bills and retain their staff, Labor needs to adopt the Coalition’s proposal.

“The Coalition is committed to helping small business and retain the jobs of the 3.8 million Australians who they employ. We invite the Government to sit down and discuss sensible measures to meet the current challenges of the small business community.”