Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Small Business, Senator Sherry. Can the minister inform the Senate of the state of the economy since the chamber last sat, before the general election? In particular, how have the government’s economic policies supported Australia’s small businesses during the global recession and how will the government continue to support this vital sector of Australia’s economy?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting on Deregulation) Share this | Link to this | Hansard source

Thank you for the question. Small business obviously is a major part of our economy. It is a vital sector. There are some two million small businesses, employing some 4.8 million Australians and making up 96 per cent of all businesses. The Gillard government appreciates the very important contribution that small business makes to our economic prosperity and supporting jobs.

We have introduced a range of measures over the last three years and will introduce a range of measures over the next three years to support small business. For example, our tax plan for the future provides tax relief and less red tape for small business, instant write-offs for assets of up to $5,000, simpler depreciation rules and an early cut to company tax. There are a range of other initiatives: the business enterprise centres across Australia; the Small Business Support Line, which is assisting small business owners to access information; the referral services on matters such as obtaining finance and hardship counselling; and the Small Business Online program, which is helping small business owners to go online and engage in the digital economy.

We have also recognised the crucial role of skills training in the context of small business. Our introduction of the Apprentice Kickstart directly assists and enables small and medium enterprises to take on apprentices. We have also made dealing with and selling to government easier for small business. We have implemented consistent and simpler procurement processes and an on-time payment guarantee to ensure small business contracts will be paid within 30 days. There will be a report released shortly giving an update on that particular initiative. During the global financial crisis, it was small businesses and the thousands of people that they employed— (Time expired)

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister inform the Senate of the economic conditions in other comparable countries? Does the minister believe there are significant challenges still ahead for the global economy?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting on Deregulation) Share this | Link to this | Hansard source

As my colleague Senator Wong pointed out, Australia enjoys strong growth. According to many commentators, it is one of the strongest economies in the world, particularly of the advanced economies—

George Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | Link to this | Hansard source

You’ve got the Liberal Party to thank for that, you know.

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting on Deregulation) Share this | Link to this | Hansard source

There is just one problem, Senator Brandis. We were in government, taking the action, while you were opposing our stimulus package to keep the Australian economy strong. If we look at the United States, they face a particularly disheartening situation—

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Senator Sherry, resume your seat. When we have silence we will continue.

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

The time for debating the issue is at the end of question time. I remind senators of that. Senator Sherry, continue.

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting on Deregulation) Share this | Link to this | Hansard source

Thank you. If we turn to the United States, it is a particularly disheartening situation. Unemployment is at 9.6 per cent. Small business in particular in the US has been doing it very, very tough. Just this week, for example, US President Obama signed a $42 billion small business assistance program. I have to say that President Obama has faced the same negative approach from the Republicans as we have faced from the Liberal opposition in trying to save— (Time expired)

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

When we have silence, we will proceed.

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. I thank the minister for his answer. Can the minister outline the Gillard government’s economic priorities over this new term of parliament? Is the minister aware of any alternative policies to the Gillard government’s economic initiatives, discipline and responsibility?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting on Deregulation) Share this | Link to this | Hansard source

As I have indicated, the actions of this Labor government in providing a decisive and timely stimulus—opposed by those opposite—saved tens of thousands of small businesses in this country. But in the next three years we intend to provide further support for small business. There will be major cash flow boosts through special tax breaks and significant tax relief: as I have indicated, the $5,000 instant tax deduction—opposed by those opposite yet again; they are not going to support it—and the ability to depreciate all other assets at a single rate of 30 per cent. This is significant help for small business which is again going to be opposed by those opposite, the wreckers. Time and again, they oppose positive initiatives for small business. Some 720,000 small businesses will get an early start to the reduced company tax rate of some 29 per cent in 2012-13. (Time expired)