The Rudd Government has failed small business says Shadow Small Business Minister Steven Ciobo, as new research reveals the number of SMEs going into administration climbed in May.
Latest figures from the Australian Securities and Investments Commission show that 829 companies went into administration in May – a six percent jump on the same time last year, with insolvency experts warning SMEs will be the hardest hit by a climate of tough lending conditions.
Mr Ciobo said the figures were further proof that Labor had failed the small business sector.
“Labor’s May Budget failed to help small business cash flow… and failed to act on insolvency reform that would help Australia’s 2.4 million small businesses.”
Ciobo said the small business sector holds the key to economic recovery, yet the Rudd Government have largely ignored the needs of small business.
The Opposition has called for urgent reform to insolvency laws which would help small businesses restructure and rehabilitate, rather than be sent down the route of liquidation.
“We need fairer rules to deal with troubled businesses,” Ciobo said. “Reform in this area, particularly in these tougher times, could save thousands of jobs that would otherwise be axed.”
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