Sue Boyce (Queensland, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Conroy, and refers to the insolvency statistics released this week by the Australian Securities and Investments Commission. The number of companies going broke in the three months to January 2009 increased by 698, or 30 per cent, when compared to the same quarter last year. Aren’t these figures further evidence that the December cash splash has comprehensively failed to help Australian businesses?

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

I thank the senator for the question. As perplexing as the question is, it again demonstrates that those opposite simply have lost their grasp of basic economics. What you have here is the impact caused by the rest of the world contracting and the dramatic effect of that on the Australian economy. We have made it abundantly clear. We have been honest and upfront with the Australian public that, while we are better placed to resist these pressures, we will be impacted. It includes the small business sector and it includes working families. They are going to be buffeted by this. But what you have with this government is a commitment to act decisively and fast.

To argue that the economic stimulus package prior to Christmas has not had any positive impact in slowing the decline is to defy the statistics as they exist. It is just tragic that the retail sales figures came out two days after the idiotic decision taken by those opposite to oppose the stimulus package that we put in place. Let me be clear: if only they had waited another couple of days they would have realised that the line that they have taken is completely and utterly disproved by the figures that were released. It is just embarrassing. They climbed a long way out on a limb, making a guess, and they have been left high and dry. The Australian public have seen right through them. They recognise a government that is taking decisive and swift action to protect the economy as best it can—(Time expired)

Sue Boyce (Queensland, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. In pursuit of some sort of response regarding basic economics, can I point out further that insolvencies in the state of Queensland increased by 164 in the past three months compared with the same period last year—an increase of 60 per cent and double the national average. Is this an indication that the federal government does not understand Queensland industry, has its priorities somewhere else in Australia and is doing nothing to help Queensland business?

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

The government has taken action. Unfortunately, in this area of supporting small business, those opposite decided to oppose it. This government’s Nation Building and Jobs Plan provides substantial support to Australia’s almost two million small businesses by providing a $2.7 billion small business and general business tax break to help boost business investment, bolster economic activity and support jobs, stimulating demand for the services of small businesses through $12.2 billion in targeted payments to families and individuals and undertaking significant infrastructure investment in a range of sectors, including education, housing and roads. The government’s temporary investment tax break will help Australia’s small businesses, boost investment and bolster economic activity. (Time expired)

Sue Boyce (Queensland, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question based on the fact that the vast majority of these Australian companies that went into insolvency were small businesses. Given that the recently released Sensis small business survey for the February quarter reports that small business confidence for the next 12 months is at a record low—down 75 per cent from the same time last year—do these figures again indicate that the government is failing small business operators and their families?

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

Once again, the opposition demonstrates that they are trying to walk both sides of the street. They are crying poor about the impact of the global recession on Australia’s small businesses, yet when it came to the chance to vote for a measure that would assist small businesses in this country they voted against it. They have no credibility—no credibility at all. The small business tax break, this particular benefit for small business, means they will receive an extra 30 per cent tax break for assets costing more than $1,000 compared with $10,000 for other businesses. Those opposite had the chance to vote for it and what did they do? They chose to oppose it.

Helen Coonan (NSW, Liberal Party, Shadow Minister for Finance, Competition Policy and Deregulation) Share this | Link to this | Hansard source

It went through.

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

Do not sit there and pretend it went through. It went through despite the fact that you voted against it. It was a specific measure to assist small businesses. Do not come in here and cry crocodile tears. You had the chance to support them. (Time expired)