Shadow Minister Media Releases
Labor Government Must Protect Small Business From High Electricity Prices (12/03/2009)
Shadow Minister for Small Business, Don Page MP, called on the State Labor Government to intervene on behalf of NSW businesses in relation to the proposed 20% increase to electricity costs recommended by IPART.
Mr Page called on the Government to reject this recommendation to save small businesses and the people who work in them.
“Small businesses cannot afford these price hikes in the current economic climate,” Mr Page said.
Small Business is a huge employer. If NSW Labor is seriously interested in jobs, this is their chance to show it.
A KPMG report last year showed that regional businesses are paying up to 51% and up to $100,000 more than their city counterparts for their electricity costs.
“If the Labor Government chooses to implement IPART’s recommendation of a 20% increase this will cripple many small businesses, especially in regional and rural areas,” Mr Page said.
The most recent Sensis Business Index reported that NSW small to medium sized businesses had the lowest rate of business confidence of any State or Territory in Australia. The Index also showed that NSW small to medium businesses are the least profitable.
“NSW Labor Government cannot continue to drive small business into the ground,” Mr Page said.
“These price increases have been recommended due to Labor’s incompetence and neglect by not investing in electricity infrastructure and increased capacity,” he said.
“The New South Wales Labor Government should also be doing more to encourage alternative energy production into the grid.
“Instead, now New South Wales businesses and residents are being asked to pay for the Labor Government’s years of neglect and lack of foresight,” he said.
Unemployment is continuing to climb in New South Wales with the February figures showing that NSW unemployment rate went from 5.5% to 5.8% in February.
“If this NSW Labor Government is serious about supporting the economy of New South Wales they must give small businesses a reprieve from this IPART recommendation. There is certainly no requirement of Government to implement it,” Mr Page said.
“An increase of this magnitude to business running costs will be the straw that breaks the camels back for many small businesses.”
