Clive Palmer (Fairfax, Palmer United Party) Share this | Link to this | Hansard source

My question is to the Deputy Prime Minister. Why is the Commonwealth the No. 1 petitioner of bankruptcy and liquidations in Australia, closing businesses down and moving people from productive employment to unemployment? Why doesn't the government introduce a chapter 11 provision similar to the US, where 85 per cent of companies in chapter 11 emerge to keep people employed, exports going and government revenue flowing? Will the government lead and introduce such a measure for Australia?

Warren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

In response to the honourable member, I suggest that if he listens to the budget tonight he will see a government that is delivering on its commitment to small business. There are tax reductions for small companies and unincorporated businesses, all giving them a much better chance to make a go of it in a thriving economy.

We are more interested in building strong businesses than we are in propping up or dealing with failures. But we do recognise that there are many businesses that are living with the legacy of Labor governments that have imposed burdens upon them that make it very, very difficult to be competitive. For instance, Labor governments have introduced industrial relations systems that can make it very difficult for them to be competitive with countries around the world. Labor governments have put in place barriers to prosperity rather than encouragements for businesses to do well. As a result of our budget initiatives, there will be more opportunities for businesses to do well and more opportunities for business to be optimistic about its future and to employ more people.

The honourable member has referred to the US chapter 11 system, and that is a system that has attracted quite a bit of attention also in other countries. We have a taxation review coming up and we are looking at a whole range of measures in that regard, and I have no doubt at all that the chapter 11 proposals in the United States will be a part of any consideration of that nature.

But our primary objective tonight and today is to build an atmosphere of confidence for Australian business so that they can create jobs and look prospectively to the future, one of profitability, so that issues about what might be done in bankruptcy do not even come on their agenda, so that they can be profitable, employing, earning and helping to build a better country.