Shadow Minister Media Releases
Small Business Problems And How To Solve Them (08/05/2009)
The Shadow Minister for Small Business and Regulatory Reform, Don Page, has outlined the problems small business in NSW face and how to solve those problems in a key speech in the NSW Parliament.
Mr Page said supporting small business is critical to maintaining employment at a time when NSW has the second highest unemployment rate in Australia behind Tasmania at 6%. He identified some key facts the NSW Labor Government should take on board. These include:
- 56% of business liquidations in Australia are occurring in NSW (i.e. more liquidations are occurring in NSW than the rest of Australia put together).
- The Reserve Bank says the level of bad loans in the business sector is 6 times higher than the home mortgage sector.
- ABS figures show 22,000 people left NSW for Queensland last year, many of them small business people, because of the more business friendly environment in Queensland.
- The IPART has recommended a 20% hike in electricity prices.
- According to the Sensis Business Survey the NSW Labor Government is regarded as the least small business friendly Government in Australia.
Mr Page said there are 443,000 small businesses in NSW and if each business employed just one more person, 443,000 new jobs would be created.
“Surveys of the small business community show the sector believes taxes are too high in NSW compared to other States and there is too much red tape,” Mr Page said.
He said the NSW Government should do the following things:
- Immediately rule out the 20% electricity price hike immediately as small and medium businesses cannot afford it.
- Reduce the number and rate of taxes in NSW including an immediate cut of 15% in payroll tax to enable NSW business to compete with other States including Queensland. (Currently the NSW payroll tax rate is 5.75% and Queensland is 4.89%).
- Guarantee that Government agencies will pay their bills within 30 days of receiving their invoice. If they don’t, penalty interest rates would apply.
- Cut the delivery time for major infrastructure projects as many small and medium businesses are employed as subcontractors on these projects.
- Set specific targets for removing unnecessary red tape and report progress to Parliament each year in a transparent manner.
Mr Page said NSW had the second highest unemployment rate, the highest taxation rate and one of the lowest growth rates in Australia.
“Not only are the policies of the NSW Labor Government a problem for employment in NSW, as the largest State, NSW is dragging down the nation’s performance,” Mr Page said.
