Turnbull welcomes inquiry into cost and availability of finance for Small Business

Malcolm Turnbull has welcomed a Senate decision for an inquiry into the Access for Small Business to Finance. The Senate Inquiry will examine the difficulties the small business community continues to face in receiving access to affordable and adequate finance.

‘I have spoken to thousands of small businesses both locally and around Australia and I encourage them to make a submission to the inquiry. Finance is the oxygen needed to support small business which is the engine room of the Australian economy,’ Malcolm Turnbull said.

A recent survey undertaken for the Council of Small Business of Australia (COSBOA) confirmed that the cost and availability of finance is the top concern of small to medium Australian enterprise.

‘If small business is to play its part in driving economic recovery and jobs growth, timely access to finance on reasonable terms is an important pre-condition.

‘Restricted access to finance risks impeding growth, investment and expansion plans and undermines the employment-generating potential of the small business sector’, Malcolm said

The impact of the Government’s bungled handling of the bank deposit guarantee on second-tier lenders is still being felt and has resulted in limited competition and choice for small business finance.

The Rudd Labor Government remains indifferent to small business.  In contrast the Coalition recognises that small business survival and success is crucial to our prosperity and a secure and sustainable recovery.

The inquiry’s terms of reference and information on how to make a submission can be found at:

www.aph.gov.au/Senate/committee/economics_ctte/small_business_10/index.htm

Submissions should be received by 31 March 2010. The reporting date is 30 June 2010.