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Coalition urges banks to pass on rate cut to small business.

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

The Shadow Small Business Minister, Steven Ciobo, has urged the major banks to pass on the official cash rate cut by the Reserve Bank of Australia to their small business customers.

“Since the RBA cut the official cash rate, only one of the big banks, Westpac, has passed on any sort of reduction in interest rates to business customers,” Mr Ciobo said.

“At a time when we’re facing exceptionally difficult and challenging economic circumstances, a rate cut could make all the difference for Australia’s small businesses.

“It’s been three days since the RBA’s announcement, and small businesses haven’t heard from three of the major banks or the Treasurer for that matter.

“Why aren’t Kevin Rudd and Wayne Swan standing up for small businesses? They should be putting a good word in for them, especially at a time when their confidence levels are so low.

“Small business owners have bills to pay, wages to hand out, and like all borrowers are after reprieve from the banks.

“The Rudd Labor Government is showing absolutely no regard for Australia’s 2.4 million small businesses who are among the nation’s biggest employers.

“Labor’s lack of leadership is affecting the confidence of small business to employ staff, place orders, and make new capital investments.

“This week’s rate reduction would provide much needed relief to small businesses who are facing difficult trading conditions.

“The banks can afford to pass on a rate cut and small business borrowers can afford a reduction in costs.

“It is no wonder small businesses are proceeding cautiously under the Rudd Labor Government.”