House debates

Monday, 3 March 2014

Private Members' Business

Small Business

Photo of Bert Van ManenBert Van Manen (Forde, Liberal Party) Share this | Hansard source

I move:

It is with great pleasure that I rise to speak on this motion in relation to small business—part of the engine room of our economy. This motion seeks to commend the coalition government for its strong commitment to small business in Australia. It also notes that small business is essential to the Australian economy. There are approximately two million actively trading small businesses in Australia employing some 4.6 million people. In addition, small businesses generate over $900 billion in income and contribute some 34 per cent of industry value-add.

It also notes that under the previous Labor government 412,000 jobs were lost in the small business sector and there are now some 3,000 fewer employing small businesses than was the case when the Howard government left office. The share of employment provided by small businesses has shrunk from 53 per cent of the private sector workforce in 2007 to 43 per cent under the former Labor government. The motion also notes the support of small business owners throughout Australia by endorsing the coalition's small business policy, which outlines some 23 initiatives to further remove the challenges and roadblocks in their way.

Since the election, the general consensus in the electorate of Forde within our small business sector is that, for the first time in many years, the future is starting to look brighter. My conversations with local small business owners, whether I am at the local chamber of commerce or out in the electorate, are becoming increasingly positive. Yet they are frustrated at the continual blockage of legislation that will help them grow and build their business by the former government and their allies the Greens in the Senate. You can see the early signs of restoration in business confidence after years of decay and neglect. Small business owners in Forde are beginning to feel optimistic again. They can see that they finally have a government that takes their contribution to our economy seriously. As I mentioned previously, small businesses generate over $900 billion in income and contribute around 34 per cent of industry value-added.

In Forde, small business is the primary employer of our local workforce; it is the engine room of our local economy. Since coming into government, we have actioned a number of items from the policies that we took to the election to ensure this sector is given the critical support it needs to thrive and prosper. We have appointed a small business minister in cabinet and moved small business from Industry to Treasury. We have moved to protect the privacy of home-based businesses on the business names register and implemented a dedicated small business support line with Fair Work Australia. We have begun the process of a root and branch review of the competition laws, with the release of draft terms of reference. In the House we have passed legislation to remove the pay clerk burden from the Paid Parental Leave scheme for employers, but as with many things this is being held up in the Senate by Labor's go-slow. We have passed legislation to remove the carbon tax and introduced new assistance measures for small businesses affected by natural disasters in the form of concessional loans of up to $100,000 which will be administered by state and territory governments.

Work has also commenced with the states to build the roads of the 21st century, because people do not want to spend their lives sitting in cars backed up on highways—especially not self-employed business people who spend 12-hours-plus a day running their businesses. In Forde, the M1 from Loganholme to Daisy Hill is a car park during peak hours. I will continue to push for a resolution to this issue for my community.

Unfortunately, as we reflect on this and many other things, I think we need to remember that the previous Labor government's wasteful spending—resulting in $123 billion in accumulated budget deficits over the forward estimates, with gross debt heading towards $667 billion—means that it is going to be very difficult to find funding to fix these problems. But least with the new government there is now some hope as we seek to get the books back into order.

One of the biggest issues in the Forde electorate is the need for an upgrade to the overpass on the M1 at Exit 54 in Upper Coomera. What can be a 10-minute trip for some residents can take up to 40 minutes during the peak hour. A couple of weeks ago I had a number of meetings with local business people in that community. They are also complaining about that traffic issue, as it is significantly affecting productivity and their ability to get to jobs quickly and efficiently. Whilst there is no immediate commitment from the government on these projects, as with the M1, I am intent on seeking a resolution to these issues on behalf of my electorate until they are resolved.

We do, however, have a commitment to reduce the compliance burden on small business by cutting overall costs to business of existing regulations by at least $1 billion each year. It is pleasing to note that this is being assisted by local councils such as the Logan City Council, who are making great strides in reducing red tape hurdles for new development projects.

On the topic of burdening small business, we have already passed legislation in the house to remove Labor's crippling carbon tax—yet again held up in the Senate by Labor's go-slow. Small business was not able to pass on the cost of the carbon tax as easily as big business and trading conditions have been tough enough without the increased costs of the carbon tax that compound along the supply chain. I have previously shared an example of the cost impost on electricity alone for one of my local businesses. A commercial drycleaner in my electorate, Aarons Linen in Meadowbrook, faced an increase in their electricity spend after the carbon tax was introduced and had to find close to an additional $100,000 per year. On the subject of improving the cost of running a business, the coalition has pledged to reduce the company tax rate by 1.5 per cent from 1 July 2015. All of these moves are part of our Real Solutionsplan to create one million new jobs over five years.

In September last year, it was reported by the ABS that local unemployment figures in Forde had reached 6.32 per cent, which was up from 6.17 per cent in June 2013. So I am very pleased to be part of a government that seeks to create new jobs for our local communities with more opportunities for work, not just for the monetary reasons but also for the sense of satisfaction and personal pride for people who are able to work and contribute to our society.

Two years ago, a local causeway in my electorate suffered damage to its foundations from flooding. The local community were impacted by lengthy delays, as the causeway was reduced to one lane while a new causeway was being built. During this time, I had the opportunity to meet with the company that was constructing the new causeway and to seek information as to what options there would be in terms of the repair of the bridge but, more importantly, the options for local businesses to take part in that rebuilding project. I was surprised to hear that local small businesses in the construction and engineering industry, despite their attempts to jump through the various hoops of the onerous tendering processes, were unable to secure a government contract directly. The coalition understand small business, and we know they face significant obstacles in securing government contracts. Tender documents and accompanying obligations, including requirements to have very expensive insurance, can be overly complex and impose barriers for small businesses, including in my electorate, to secure government contracts. The coalition seeks to improve small business access to Commonwealth contracts and will commit $3 million towards the implementation of this initiative designed to actively encourage small-business participation in this area.

As I mentioned earlier, we have outlined some 23 initiatives to strengthen the small businesses sector in Australia. For businesses to thrive, their customers need to feel safe and confident about the future ahead. Forde remains one of the fastest growing regions in South-East Queensland and it has often been overlooked. But, under this government, a number of commitments have been made to achieve better outcomes for our local businesses.

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