Growthonomics: June 2008
June 2008
The most significant national economic event of the last few months has been the May Federal Budget. With a new Labor Government in place, we are all looking for an indication of its interest in fostering small business and entrepreneurial activity. So far, the public comment hasn't been positive. Firstly, the budget was noticeable for its dearth of specific measures aimed at assisting small business. Articles below expand on this:
- Business Spectator - Small Business Forgotten?
- Smart Company - Budget 2008 Reaction
- Small Business - Yahoo - Budget Tax for Small Business
Secondly, the Minister for Small Business, Dr Craig Emerson, whilst having strong credentials for this position, is not a member of the cabinet therefore not in a position to regularly remind his senior colleagues of the criticality of this sector for the wellbeing of the nation. Thirdly, as can be read below, a number of other areas have combined (rising fuel prices, high interest rates, etc) to depress the confidence levels in small business across the country, including the hothouse economy of WA.
The decision to provide corporate Toyota with a subsidy for "assembly" of the hybrid car here was then publicly contrasted with the lack of support for Australian small business parts "manufacture" in the car industry.
The recent demise of the Australian Democratic Party in the Senate reminded me of Don Chipp’s words when he founded the party in 1977 – he commented that if the Liberals represented big business and Labor the unions, then the Democrats’ role would be to champion small business. One can argue whether this role was effectively executed, but it does raise an interesting question – which party does represent the voice of small business? Fortunately, there appears to be no shortage of public comment to remind the government that small business is the engine house of the Australian economy – I will monitor federal and other announcements and report to you in the next newsletter.
Wishing you all a Happy New Financial Year.
