House debates

Monday, 9 September 2019

Private Members' Business

Defence Industry

6:00 pm

Photo of Graham PerrettGraham Perrett (Moreton, Australian Labor Party, Shadow Assistant Minister for Education and Training) Share this | Hansard source

I rise to speak on the motion moved by the member for Herbert that acknowledges the important role of small business in the future of Australia's national and economic security and, in particular, the integral role that small business plays in our defence industry. I know of that valuable contribution that the more than 16,000 or so businesses in my electorate of Moreton—the sole traders, the partnerships and the small employers—make to our economy. Some of those businesses in my electorate play a significant role in the defence sector. Great local business like GJR Technologies, trading as Grabba International, at Acacia Ridge export their products around the world. EM solutions at Tennyson, a company I have dealt with over many, many years—and I've toured there recently with the member for Corio—develop mobile satellite communication systems. One of their systems is used on the Australian built Bushmaster 4WD armoured vehicle. Haulmark Trailers at Rocklea are actively involved in the design and manufacture of military trailers for a variety of applications, including the transportation of tanks and other armoured vehicles made right in Rocklea.

In Redbank, just outside my electorate, Rheinmetall Defence Australia has established its Australia-New Zealand headquarters and Military Vehicle Centre of Excellence. Rheinmetall was the successful tenderer for the Australian government's LAND 400 Phase 2 contract, announced at Archerfield Airport in my electorate. The centre of excellence will be the regional hub, with an expected program of continuous design, build and support for up to 5,000 military vehicles throughout Australia and the Asia-Pacific. It's a wonderful opportunity for more local businesses to be involved in this important manufacturing sector.

Cultivating successful small businesses in our regions and in our cities is vitally important for a growing economy. Small businesses are unique and face a variety of challenges. I recently hosted two round tables for small businesses in my electorate of Moreton. Small business owners are very busy people, but some of them took time out from their day to come into my office and tell me about their experiences. It was a wonderful opportunity for me to hear directly from our local small businesses about the challenges they're facing in the current economic climate. Apart from bills being paid too slowly, the other important message I received loud and clear was that the economy is flat and very problematic. It's no surprise to anyone who watches what is going on in the economy. It was good to hear today in question time that it's no longer a surprise to the government. The Prime Minister said in question time today, 'We know the Australian economy has gone backwards in the last quarter.'

We know that small businesses are on the front line when it comes to the economy slowing down. Wages have flatlined. What does that mean? People have less money to spend, especially in our small businesses. The median annual disposable income in 2017 was $542 less than that was back in 2009. For businesses to flourish, especially small businesses, they need people to spend money. But at the moment people don't have the money to spend. Small businesses are not only struggling, they're dying.

Of the small businesses that were operating in June 2014, more than 35 per cent are no longer operating. That's not a healthy survival rate for small businesses, especially when compared with previous years. It's no wonder these are the facts that we're faced with, when economic growth is at the lowest level since the global financial crisis. Wages are growing at one-sixth the pace of profits. That's the worst wages growth on record. Household debt has surged to record levels. It has increased by $650 billion. Business investment is down 20 per cent since the Liberals came to office. It's now at the lowest level since the 1990s recession. Consumer confidence is down. Productivity is declining, flatlining and heading south. Gross debt has risen to over half a trillion dollars. And what is the Treasurer's response—that dude who's asleep in the passenger seat? He says either, 'Labor, Labor, Labor,' or, 'Don't talk down the economy.' This is an appalling legacy for a government that has already started its seventh year. The economy is floundering and the government has no plans to turn it around.

We were told that the tax cuts would be the magic bullet to recharge the economy. In the month following the tax cuts, retail turnover fell by 0.1 per cent. They had one bolt to fire and it fell woefully short. Leading that fall were the cafes, restaurants and takeaway services. They fell 0.6 per cent. This is a government with a political strategy but no economic plan. They only believe in 'wedgeslation', not the national interest. Small businesses are not only an integral part of our defence industry; they're integral to the economic health of our nation. Small businesses are the canaries in the coal mine. When they're not doing well, the economy is not doing well. And, if small business is struggling, it directly impacts the 4.9 million people employed in small businesses. Small businesses have an important role in the future of our national and economic security.

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