Labor struggles to understand retail figures
12/01/12
Shadow Small Business Minister Bruce Billson has questioned whether the Gillard Government has the knowledge and ability to manage the economy after claiming that “retail is strong” despite the evidence being to the contrary.
In addition to claiming that retail was strong, Labor MP Deb O'Neill also said on Sky News AM Agenda this morning that “fears for the future are definitely being overturned by great spending in the retail sector.”
“Even though we wish things were better, these claims of a strong retail sector are just wrong and misleading,” Mr Billson said.
“The last 12 months has been one of the biggest for insolvencies in the retail sector yet Labor tries to make out everything is ok.
“The Gillard Government obviously didn’t get the memo that during the 11 months to September, there were a record 9,718 companies across Australia entering external administration.”
Mr Billson said the latest figures from the ABS show that retail spending did not increase in seasonally adjusted terms between October and November 2011 and that it actually contracted in Victoria (-1.1 per cent) and the ACT (-1.9 per cent).
“I can only assume Labor also didn’t look at the retail figures released earlier in the week that showed retail spending was flat and even contracted in some parts of the country,” Mr Billson said.
“Nearly half a percent was wiped off consumer discretionary shares after the poor retail figures were announced, yet we’ve got a Gillard Government MP running around saying retail is strong.
“You have to wonder about the Government’s credibility when Comsec’s chief economist Craig James describes the retail sector as “a bit of a minefield at present.”
Mr Billson said the Gillard Government needed to reduce the red-tape burdens placed in the way of small business to allow them to grow and prosper.
“Labor has its head stuck in the sand while the economy and small businesses continue to struggle,” Mr Billson said.
“Its time the Government took notice of the current economic conditions and poor business sentiment and made life easier for small business.
“The Coalition is committed to slashing the regulatory burden on business that’s why we’ve formed a taskforce to identify a billion dollars worth of red-tape savings.”