Catryna Bilyk (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Small Business, Senator Sherry. Can the minister outline to the Senate how the internet is reshaping the way business is being carried out around the world? What is the contribution of e-commerce to gross domestic product and how fast is it growing? How would the Gillard government's National Broadband Network help businesses expand, increase productivity and boost jobs?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

Thanks to my colleague Senator Bilyk. My colleague Senator Conroy today made some very important announce­ments about the future of the NBN. I want to comment on the importance of the NBN to economic growth, particularly for small and medium-sized business. This is a major economic reform. It will help business across Australia, particularly in the regions, to take advantage of the enormous online opportunities.

These opportunities, the National Broadband Network online connection, have been well spelled out in a major new study, released by McKinsey Global, on the impact of the internet on jobs, growth and prosperity in the world's economies. It examined some 13 countries responsible for 70 per cent of the world's economic growth. It found that the internet is a significant job creator. In France, for example, it has resulted in a net addition of 700,000 jobs—that is, 2.4 jobs created for every job lost. In the survey of 480,000 small and medium-sized businesses across 13 countries, 2.6 jobs were created for every one lost.

It also found the internet contributed to 21 per cent of the economic growth in the last five years in advanced economies. All industries benefited from the web, and in fact small to medium-sized enterprises benefited to a disproportionately greater degree. Some 75 per cent of the economic impact was a positive result for small to medium-sized businesses. SMEs with a strong web presence grew more than twice as quickly as those with no or minimal web presence. I quote from the report. (Time expired)

Catryna Bilyk (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister outline to the Senate how the Gillard government is helping small businesses go online to take advantage of the enormous growth in e-commerce and internet use.

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

The Gillard government, particularly my colleague Senator Conroy, is rolling out the NBN because it is a very important economic reform. We intend to roll it out whereas the Liberal-National Party intend to roll it back. I have heard that theme before—the roll-back theme—and we know how successful it is.

My colleague Senator Conroy and I were at the PayPal Driving Business Online program launch last week. It has received great support from small business. In the visit they made to Armidale there were 41 one-on-one consultations with small business, in Coffs Harbour it went similarly well, and I understand Lismore is booked out. The National Party should take note. This is regional Australia wanting more information about web based connection and the internet—a major economic reform that particularly benefits regional Australia. (Time expired)

Catryna Bilyk (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

My President, I ask a further supplementary question. Is the minister aware of any alternative policies to the Gillard government's world-leading NBN? Do these alternative policies pose risks to Australia's long-term prosperity?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

The Gillard government has a vision for Australia to become a global digital leader. This is a major economic reform. We are aiming to put Australia in the top five advanced economies by 2020 in the percentage of businesses and not-for-profit organisations using the internet. It drives productivity, it expands customer bases and it creates jobs.

Worldwide, e-commerce is forecast to grow exponentially over the next 20 years. Currently there is $1.4 trillion—

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern and Remote Australia) Share this | Link to this | Hansard source

They won't be able to afford it in Australia, Nick; you know that.

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

We cannot afford not to, Senator Macdonald. You have to come out of the past. Why does the Liberal-National Party oppose this important modernisation of the Australian economy? The NBN is going to put Australia amongst the leading five economies of the world. We are about rolling it out. All you are about is the negative, about opposition and about rolling it back. That is all you can do. (Time expired)

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.