Craig Emerson (Rankin, Australian Labor Party, Minister Assisting the Finance Minister on Deregulation) Share this | Hansard source

I thank my friend the member for Lowe for his question and for his ongoing support for small businesses in the shopping centres of Five Dock, Drummoyne, Strathfield, Homebush, Rhodes and, indeed, Burwood. I point out that I got my first ever job in Flemings food market on Burwood Road, Burwood. That job was stacking shelves. It did not pay a lot in those days—$20 a week—but it was a good start.

The Rudd government’s responses to the global financial crisis have been designed to benefit small businesses all around Australia. The Economic Security Strategy included $8.7 billion of financial support for families, for pensioners, for carers, for seniors and for veterans, and these payments, which were made in December, flowed right through the economy. For example, the value of retail trade grew by 3.8 per cent in December, and that was the strongest monthly growth since August 2000. It was described by the Australian National Retail Association as a ‘massive leap’. In relation to those payments, Sara Hoenig, an economist with the Commonwealth Bank, said:

If there were any doubts about the efficacy of government fiscal stimulus packages … the December retail sales report is a clear rebuttal.

Michael Blythe, the Commonwealth Bank’s chief economist, said:

Policy is working in Australia. Lower interest reates and the first-home owners grant have lifted housing activity, and the pick-up in retail sales suggests the Government’s cash handouts have worked.

In December the government also announced a 20 per cent discount on the pay-as-you-go instalment which was due by the beginning of March, and that too received a lot of support from the small business community and continues to do so. Peter Anderson from the Australian Chamber of Commerce and Industry said:

… it will come at an important time in 2009 when cash flows are expected to be tight …

I turn now to the payments under the Nation Building and Jobs Plan, which have now begun to flow to households. Those payments will also support small businesses through the months ahead. On that, the Council of Small Business of Australia said that the plan will:

… provide benefit to many small businesses and to the communities in which they live and operate.

The Chamber of Commerce and Industry Western Australia described it as ‘a timely shot in the arm’ for small business.

Small businesses will also benefit from the government’s 30 per cent investment allowance, and I can point out that that has been welcomed too by the Chamber of Commerce and Industry Western Australia, the NSW Business Chamber, the Australian Industry Group, the Combined Small Business Alliance of Western Australia, Master Association Australia, the National Farmers’ Federation and the Pharmacy Guild. I can also report that Russell Garvey of the business advisory firm BDO Kendalls has said:

... this is a free kick from the Government. It is a genuine bonus from a tax perspective …

So there is another glowing endorsement.

I turn now to Bill Evans, Chief Economist at Westpac, commenting on the latest index of consumer sentiment. An article in the Australian reported:

The big surprise came with the outlook for the economy over the next five years which surged by 15.2%.

It went on to quote Mr Evans as saying:

This could only be interpreted as a strong vote of confidence that current policies are providing a strong foundation in the longer term.

That is just a few out of a much larger number of endorsements of what the government is doing by way of a fiscal stimulus package. That is a lot of support, but what did the Leader of the Opposition also say about the government’s fiscal stimulus package? Let’s look at the first stimulus package. He said on 14 October:

It will provide a stimulus to the economy, that’s for certain—

and he said:

… this is also a very significant economic stimulus …

Then, in this chamber, on 10 March just a few days ago he said:

… we voted for it. But we did not say it would be an effective economic stimulus.

So there he was back in October saying, ‘It will provide a stimulus to the economy; that’s for certain,’ and, ‘This is a significant stimulus.’ Then in this House on 10 March he denied that he ever said it, saying, ‘We did not say it would be an effective economic stimulus.’ The reason for that is the opposition leader is dancing to the tune that is being played by the member for Higgins. The opposition leader did originally support the fiscal stimulus package and he had to change his tune. The Leader of the Opposition is dancing to that tune. Opposition policy in this chamber and in the Senate is being determined not by the Leader of the Opposition but by the leader-in-waiting, the member for Higgins.

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