Chris Hayes (Werriwa, Australian Labor Party) Share this | Hansard source

The Rudd government understands that you do not just create business success. The government understands that the policy settings play a crucial role in helping business, particularly small business, to achieve its potential. That is why the Rudd government is committed to implementing the policies that provide practical support for small businesses and, in particular, independent contractors. The measures in the Tax Laws Amendment (2009 Measures No. 1) Bill 2009 are a further example of the decisive action taken by this government to assist small businesses to weather this global economic crisis. We have, as part of our $42 billion Nation Building and Jobs Plan, a plan for these tough economic times that aims to strike the right balance between supporting growth and jobs now and delivering much needed investment in strengthening the economy for the long term. In that, we are providing an extra $2.7 billion of temporary tax breaks for small businesses and other businesses to boost their investments and to assist them with their planning.

It should be noted that this very responsible nation-building plan was not supported by the opposition, which is a bit strange considering that I have heard the opposition claim for many years now that they are the friends of small business. Yet this position that was adopted by Labor, a $2.7 billion provision to assist small business, was opposed at a time when, quite frankly, small business needed all the encouragement they could get. After listening to those opposite speaking on this bill earlier, I find it clear, quite frankly, how out of touch they have become.

By the way, that does not stop just with small business. You start to see this pattern emerge. Only yesterday, the opposition drafted an amendment committing them to supporting amendments to rip away the redundancy pay of hardworking Australian employees. This is at a time when we are, regrettably, faced with the reality of redundancies, and I certainly see signs of that in my own electorate. That is nothing to be proud of, but it is something that we need to be understanding about. I think the last thing people want to see is their elected members of parliament coming and doing something so extreme as to take away those protections that they rely upon and should be able to. It was not this side of the House that decided to ignore the health experts, the AMA, the police and parents concerning the alcopops measures. This is, again, not an issue of political gamesmanship; these are very serious things when you think about the consequences not only for my kids and your kids but for everyone else that we represent throughout our constituencies who could possibly be affected by these measures.

These are things which are now becoming a little symbolic of the opposition. I submit that, in a place like this, you cannot be in opposition simply for the sake of opposition. Certainly, the Rudd government was elected, and elected quite significantly, with a very clear mandate for reform. But to be opposed at every step of the way on fundamental issues not only stands us apart in terms of domestic politics but also stands the opposition apart from every credible—and, indeed, conservative-led—country in the free world at the moment. I say that with particular respect to the economic stimulus package.

We know that small business is the backbone of our economy. It is the economic powerhouse. Therefore, we are committed to working with small business and to helping them to remain viable—particularly during the challenges that are now being thrown up by the global financial crisis. As I indicated earlier, the Nation Building and Jobs Plan has specific benefits for small business people, many of whom, obviously, are in my electorate and every other electorate. Those who have a turnover of $2 million or less will be able to claim a reduction of 30 per cent on their eligible assets, which are those that cost $100,000 or more. Assets must have been acquired between 13 December 2008 and 30 June 2009, or construction on them must have been started between these times, with installation occurring before 30 June 2010. For assets acquired between 1 July 2009 and 30 December 2009, and where they are installed and ready for use before 31 December 2010, there will be a deduction available to the small business people concerned of 10 per cent of the asset costs. They are very real, and they are very much appreciated out there among the small business people that I—and, no doubt, others—talk to. It is easy for people to talk about small business being the backbone of the economy but, too often, these are nothing more than hollow statements. You have got to be prepared to follow these up with tangible benefits to show that we are actually backing small business, which is the lifeblood of this nation.

As a former adviser to a number of businesses from a range of different areas, I know the importance of helping business and of helping the development of small businesses—which go through those fledgling stages—into mature organisations. I also know about the importance of the part they play not only in our local economies but also in our state and national economies. Small business and independent contractors create much of the prosperity that we currently enjoy. Three-quarters of a million small businesses employ nearly four million people, while there are another 1.2 million businesses in the country that are still small businesses but do not employ anybody. So you are talking about three-quarters of a million small businesses employing up to four million people. That is quite a significant number. It does take a lot of commitment to commence in a small business in the first place—apart from everything else, to endure the financial risk, which is something that is not taken lightly. People do actually go some way to ensuring that they safeguard their decisions in that respect, but the reality is that the various industries in which small businesses operate are highly competitive, and therefore efficient, areas.

I, for one—and I hope this goes for every member of this House, quite frankly—am committed to working with small businesses in my electorate. No doubt each and every other member has the same view, which they apply in their electorates. Let us face it: when you cut through this, we know that locking in prosperity really comes from the security and the ability of small businesses to be able to grow and flourish. I know that my region has the capacity—and deserves the opportunity—to lock in its share of Australia’s prosperity. My electorate deserves to be able to share in that now and into the longer term because it is contributing to the building of greater prosperity measures.

Local companies in Werriwa are good enough to compete on the world stage and, by the way, many already do compete successfully. I would just like to single out one: Broens Engineering. I happen to know this company quite well. Carlos Broens, who operates the company—which now employs in the vicinity of 350 people—when I first met him, was, along with his brother, a toolmaker. Our kids went to school together. Carlos came from South America, established his business here and found a niche in advanced engineering. He is not tertiary educated, though he is a very good toolmaker. He brought his skills to bear in such a way that his organisation now has, apart from everything else, contracts with Mercedes-Benz and, I think, BMW—although I am not quite sure about that. His business certainly exports to China—out of Ingleburn, I might add. In addition to all that, he has been preselected for the manufacturing of the wing roots on the Joint Strike Fighter, if that contract goes ahead. Here is this little company, started by two people down in the backblocks of Ingleburn, now absolutely out there competing on the world stage. Last year alone, I think Carlos took on 34 apprentices. For an outer metropolitan area of Sydney, that is a very significant commitment to staff development and training from a person who knows the value of working with TAFE colleges. As a matter of fact, he has actually set up, on his site, a more localised element—if you like—of a TAFE campus, as he engages with TAFE New South Wales to deliver training to his employees in Ingleburn.

Local companies are to be encouraged because they, like Carlos Broens’ organisation, will deliver results. Our policy settings have to help small business to achieve. It is not about going out there and picking winners—looking at what the economic climate is going to be like and picking which company is likely to succeed in that climate. We need to make sure that there is proper competition within industries. We want effective and efficient industries emerging. We need to back our small businesses and let them rely on their ingenuity, their skills and their flexibility to be able to deliver results.

Mr Deputy Speaker Scott, I have spoken to you on many occasions about my electorate of Werriwa and, in particular, the business community there. In my electorate I have 4,000 small businesses which are actually employing people. There are 6,000 businesses which are predominantly independent contractors—owner-drivers, consultants et cetera—that do not employ anybody. In terms of the small business component, we are talking about 10,000 people within my electorate who would qualify at this stage. So about 60 per cent of my business community fall within this category. Just to provide some perspective: 94 per cent of all my local businesses have a turnover of less than $2 million. That shows you what end of the market they are at. A lot, as I indicated, are consultants—many working from homes these days with the advent of mobile phones and computers—independent contractors, owner-drivers et cetera. They are driving their local business, but we need to assist them, and we did that through our announcement the other day of our Nation Building and Jobs Plan. Small business will directly benefit from that $2.7 billion. Every single one of the small businesses in my electorate is hardworking. They have to be to achieve commercial success. The government believes that they should be rewarded for their effort, their risk taking and their entrepreneurial endeavour so that they can continue to thrive and, importantly, create local jobs.

Only recently, I was very happy to see that a contract had been awarded to widen the Hume Highway between Ingleburn and Campbelltown. This section of the highway is about 16 kilometres. It is a total spend of $140 million. I was particularly keen to see that a local company, based at Prestons within my electorate, won that contract. I was pleased not just because George Kypreos is a very good fellow with a very good engineering team that has runs on the board for engineering and highway work but also because, as it was a local company that won the whole contract, there is a very real chance that other local contractors and other locals will be employed on this project to widen the highway—which could possibly be a three-year engineering task. That is good for the local economy. The people who will work on that project will probably buy their goods at the local shops and, if their partners work, they will be accessing local childcare providers. This is good for the whole economy. So the fact that a local company won the contract was absolutely fabulous. This local company—started by George and one or two others many, many years back—competed against people nationally to win that $140 million project. To successfully win a contract like that shows that it can compete on a national scale. We sell ourselves short if we do not value small businesses, because those small businesses can develop into what George Kypreos has done with Nace Engineering.

During the election campaign I was very pleased to be able to announce, with the now Minister for Small Business, Independent Contractors and the Service Economy, Dr Craig Emerson, that the Macarthur Business Enterprise Centre would receive $1.4 million over a four-year period—$350,000 a year—in ongoing funding to provide a one-stop shop for small businesses in the Macarthur-Liverpool region. I am pleased to report that this commitment has been fulfilled and the Macarthur BEC is now receiving that funding. The small business community in Campbelltown had been vocal in their call for a one-stop shop approach to business advice—including advice on setting up a business and regulations and legal advice. This one-stop shop in Macarthur—an outer metropolitan area of Sydney—will provide advice to people who want to start or to develop their small businesses.

Bruce Hanrahan, a good friend and long-time resident of the area, is the chairman of the BEC—and the chair of many local charities, too, I might add—and he does a sterling job of building up business confidence in our region. When I discussed the use of the grant with the vice-chairman, Tim Bryant, he said that he was very keen to have the opportunity to invest in small businesses within the whole region—not focusing simply on Campbelltown. His view was that the funding would allow the BEC to deliver key business services to local small businesses, including providing small businesses with the opportunity to learn more about doing business and to seek specific advice that is relevant to their business and the future of their business. The funding provided to the BEC will enable the BEC to strengthen and expand their capacity to help small business debutantes in their existing operations, including, as I indicated, in the Liverpool region.

Liverpool, as you are aware, Mr Deputy Speaker Scott, operates very clearly as another area of Sydney. I am very honoured to represent not only the people of Campbelltown but also the people of Liverpool. Harry Hunt, President of the Liverpool Chamber of Commerce and Industry, indicated that he was thrilled about the funding opportunity for the BEC. He said that for the first time the Macarthur BEC will now be able to promote and help expand small business in the Liverpool region by providing invaluable business information such as legal, tax, accounting and marketing advice to those who ask for it. That comes from a very successful business entity within the Liverpool region. He sees the role of his organisation, the Liverpool Chamber of Commerce and Industry, as being similar to that of the Macarthur BEC: to help develop businesses. When we develop businesses we create jobs. I am currently working with Mr David Waudby, the CEO of the Macarthur BEC, and his team— (Time expired)

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