Bernie Ripoll (Oxley, Australian Labor Party, Shadow Minister Assisting the Leader for Small Business) Share this | Hansard source

It is always a pleasure to speak about small business and what we as a parliament can do to support it. This motion put forward by the member for Ryan is without base and without fact. Indeed, it is not backed up by any facts. What is not in doubt is that the Abbott government's budget is having an immediate impact on the Australian economy and, likewise, on small business. The results of the Westpac index of consumer confidence surveys taken after the Abbott government's budget showed that consumer confidence fell sharply by 6.8 per cent in May—a direct result of the Abbott government's budget. It fell more sharply in that one period after the budget than during the whole time of the GFC or at any other period in many years. If the Abbott government is the best friend of small business, I would hate to see the enemy. Almost 60 per cent of respondents in the Westpac survey said the budget would make it tougher on family finances in the next 12 months. That is one of the worst outcomes possible for small business and for families.

The ANZ Roy Morgan Consumer Confidence survey showed that, after the delivery of the Abbott government's budget, consumer confidence had fallen 14 per cent since April, its fastest drop since the global financial crisis. Weekend reports from property analysts say that these sharp falls are being felt in the economy, with house prices in Australia's capital cities falling for the first time in 12 months. That is another hit under the Abbott government. The RP Data index suggests there is a strong correlation between consumer confidence levels and housing market activity. Further, Australian retail turnover in May 2014 fell 0.5 per cent from the previous month, seasonally adjusted, following a fall of 0.1 per cent in April 2014. It should also be noted that the decrease was unexpected by analysts and follows more bungling and mismanagement by the Abbott government. The largest contributor to the fall was clothing, footwear and personal accessory retailing, which fell by 2.3 per cent. Department stores fell by 2.6 per cent, household goods fell—it goes on and on. That says one thing: the Abbott government makes promises then delivers a budget that hurts the economy, small business and families. Everybody takes a hit.

There is no doubt that consumer confidence is falling, as was stated in the motion, but it is falling because of the Abbott government. It has fallen more during the Abbott government's short reign in power than in the previous six or seven years combined. Unbelievable damage has been done by the Abbott government.

We hear all this talk about the carbon tax. This is the government that won a huge mandate but does not know what to do. It cannot get anything through. It does not know whether it is coming or going. It does not know whether it is Arthur or Martha. We will see whether it can figure out whether, because of something it puts forward, prices will go down, because right now everything continues to go up. Prices are going up, not down. We are not seeing electricity prices go down. We will be keeping the government to account, as will families and small business. When the carbon tax goes—if it goes and under what form it goes; we will see how good the government is in getting this right—we will see how much, what percentage and how many dollars, consumers will save or whether there will be a negligible impact on consumers, nothing they would notice in their wallet or the family budget.

Before the election Tony Abbott claimed a heap of things. I have not got time in all of today to tell you how many things he claimed, none of which he has kept his promises on, would be different under a government he led. Business is not feeling any benefit; that is certainly true. Even former Liberal leader Dr John Hewson was critical of the Abbott government. It just has got it wrong.

Experts have long claimed that only by having a target for renewable energy will consumers ever see cheaper power prices. Under Liberal governments at a state level power prices have gone up. Under the Abbott government, at the Commonwealth level, electricity prices are still going up—not by 10 per cent but a lot, lot more. Rather than certainty being brought back for small business, for family budgets and for the economy, we are seeing more shambolic processes from this government that cannot organise itself in the House and cannot organise itself in the Senate. Those opposite cannot negotiate to save their lives. They cannot help small business; they made promises to small businesses that they cannot keep. They said that the world would be a better place after September 2013 election, but the exact opposite has happened. Instead of small business feeling good and instead of families feeling good about themselves and the economy and so spending more, they are spending less. They have felt less confident after the election of the Abbott government. After nearly 12 months—we are getting there—they feel even worse than they have ever felt.

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