5 years ago
SMALL BUSINESSES FEEL PRESSURE AS UTE SALES DOWN
BRENDAN O’CONNOR MP
New data highlights that small businesses are continuing to struggle under the Morrison Government.
According to latest manufacturer-supplied VFACTS figures, the sale of light commercial ute vehicles has dropped 11 per cent in the month of October. Nearly 10,000 fewer utes were sold this year compared to 2018. This comes as new car sales fell for the 19th consecutive month.
The decline in ute sales has direct links to small businesses, as the ute is the traditional car of many tradies who use their car as a business asset.
It is no wonder that with weak consumption driven by stagnant wages, and a floundering economy that small businesses are showing signs of pressure.
The latest data follows the latest retail trade figures from the ABS which show retail volumes are actually going backwards, recording their worst annual result since the 1990s recession.
It also comes after the Reserve Bank downgraded its expectations for economic growth for the third time in six months.
Australians are struggling, weak consumption is being driven by stagnant wages, household debt is at record highs, almost two million Australians are looking for work or for more work.
With low wage growth comes weak demand for the goods and services provided by small businesses, but the Liberals have no plan to turn things around.
It is increasingly clear the Morrison Government takes small business for granted.
They have failed to act on the issue of dodgy director phoenixing, which could be costing tradies, small business and the economy around $14.5 million per day.
Small businesses require prompt payments to help manage cash flow and to grow, particularly when access to finance is tight, and yet the government has been silent on the issue of ‘reverse factoring’ arrangements used by large businesses to obscure unreasonable extended payment times to small businesses.
Labor will continue to hold the Government to account to ensure small businesses are not left exposed by this Government failing to manage the economy.
According to latest manufacturer-supplied VFACTS figures, the sale of light commercial ute vehicles has dropped 11 per cent in the month of October. Nearly 10,000 fewer utes were sold this year compared to 2018. This comes as new car sales fell for the 19th consecutive month.
The decline in ute sales has direct links to small businesses, as the ute is the traditional car of many tradies who use their car as a business asset.
It is no wonder that with weak consumption driven by stagnant wages, and a floundering economy that small businesses are showing signs of pressure.
The latest data follows the latest retail trade figures from the ABS which show retail volumes are actually going backwards, recording their worst annual result since the 1990s recession.
It also comes after the Reserve Bank downgraded its expectations for economic growth for the third time in six months.
Australians are struggling, weak consumption is being driven by stagnant wages, household debt is at record highs, almost two million Australians are looking for work or for more work.
With low wage growth comes weak demand for the goods and services provided by small businesses, but the Liberals have no plan to turn things around.
It is increasingly clear the Morrison Government takes small business for granted.
They have failed to act on the issue of dodgy director phoenixing, which could be costing tradies, small business and the economy around $14.5 million per day.
Small businesses require prompt payments to help manage cash flow and to grow, particularly when access to finance is tight, and yet the government has been silent on the issue of ‘reverse factoring’ arrangements used by large businesses to obscure unreasonable extended payment times to small businesses.
Labor will continue to hold the Government to account to ensure small businesses are not left exposed by this Government failing to manage the economy.