Australian Newsagency Blog

A blog on issues affecting Australia's newsagents, media and small business generally.

Economic stimulus bypasses the engine

Mark Fletcher
November 27th, 2008 · 3 Comments

The Federal Government’s focus at the top and bottom ends of the economy in the face of the current economic challenges misses an opportunity to work on small business efficiency and sustainability.

While giving pensioners and others in need $10 billion cash to spend will help is important, I would like to see money invested in businesses.  Just as farmers need to invest in drought-proofing their properties, we need to invest in recession proofing our businesses.   The burst from the $10 billion will not focus business owner attention on sustained change in their businesses.

Big project infrastructure spending is good too but it does not focus in more important infrastructure – business efficiency, particularly small business where the majority of Australians work.

I would prefer to see the Federal Government introduce an investment allowance for and rapid depreciation of appropriate capital expenditure – expenditure which improves business efficiency.  This would be far more useful for the Australian economy than yet another multi billion dollar handout to the auto industry.

I would also prefer to see the government make real and immediate progress on cutting business paperwork so that we can cut real operational costs, fixing the broadband mess once and for all so that we can become competitive in online based business and in communication,

At the newsagency level, I would like to see the government fund research into the impact of deregulation on newsagents and their families.  I suspect that such research will show that contracts which newsagents signed at the time of deregulation have made their businesses worse off today than in 1999.  This is a government matter because the government drove the deregulation agenda.  Newsagents need to be able to charge a fair fee for the service they offer.

Finally, I would like to see the Government stop competing with the private sector – get out of retail, sell off the 860 government owned post offices or get the post office out of looking more and more like a newsagency.

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Category: Newsagency challenges

3 responses so far ↓

  • 1 Dennis // Nov 27, 2008 at 8:42 AM

    Mark the question is WHAT will ‘small’ business spend their money on if the Gvt gave them some?

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  • 2 Michael // Nov 27, 2008 at 11:23 AM

    I’d love to see the report into the effect of deregulation. If things continue the way they are going post offices will be selling lotto tickets, then you’ve got newsagents, 7-11, post offices and convenience stores all looking the same, selling closely the same thing.

    The way I see it degregulation has blurred a lot of our identities. I really would like to see a report on it.

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  • 3 Mark // Nov 27, 2008 at 12:10 PM

    Dennis,

    The list I see is: shopfit, shop refresh – new signage etc, new green vehicles, staff training, new computer system (yes I am conflicted), other new equipment (photocopier, fax etc). Business improvement investment.

    Mark

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