Live from the Small Business Summit

 In the last issue of the magazine we complained that small business didn't have the ear of government.

To prove us wrong . . . perhaps, several hundred small business owners have gathered at the Brisbane Convention and Exhibition Centre for a summit with Prime Minister Kevin Rudd, Treasurer Wayne Swan, Small Business Minister Craig Emerson and industry representatives on the global financial crisis.

12:50pm: COSBOA deputy chair Richard Brooks kicks off with some stats on the size of the small business sector. He stresses that small business owners "have arms and legs and think like individuals" and that it's important for government to treat them this way. He closes with a plea to put aside party politics and work together.

1:08pm: Prime minister Kevin Rudd stresses the role small business play in strengthening the economy.

“If small busineses are held back, the economy is held back,” he says. “Running a small business is a tough job, I know that from experience… No government policy will make running a business easy, but I believe we can make it less hard.”

He proposes a guarantee for the federal government to pay all contracts with small businesses up to $1 million within 30 days, or allow them to charge interest. He also proposes a range of measures to make it easier for small businesses to access government contracts.

The prime minister commits an additional $4 million to fund business enterprise centres, to help get information out to small businesses.

1:14pm: First question comes from COSBOA and is directed at the banks. Representatives of the Australian Bankers' Association and NAB discuss what banks are doing to help small business. Fairly large amount of self-promotion

1:22pm: Second question is from a restaurant owner and lasts about three minutes, covering s a range of topics including infrastructure spending, income support, GST and tax deductibility of business expenses. The prime minister answers the easy questions and delegates the GST and tax questions to Craig Emerson and Wayne Swan.

Craig Emerson describes a range of initiatives to simplify the GST, such as BAS Easy.

Wayne Swan says we should wait for the effects of the stimulus from the government's recent spending announcements but won't commit to increased deductibility for business expenses.

1:35pm: A small business owner in the audience says very small businesses, those around five people, are not well represented.

The prime minister says "the microbusinesses of today are the small businesses of tomorrow". He stresses that the availability of credit is the most important issue to ensure the survival of small businesses.

Small business minister Emerson says organisations like COSBOA and Commerce Queensland represent a large number of very small businesses. Of the 1.9 small businesses in Australia, 1.2 million are home-based businesses or independent contractors. He stresses the importance of the small business advisory centres to help out those small businesses and local grassroots business representatives.

1:45pm: Small business owner in the audience says banks are not doing all they can do, especially since they are still very profitable. He says exporters should make hay while the exchange rate is low.

The prime minister encourages representatives of the audience member's banks to speak to him after the event.

1:47pm: Prime minister says he intends to stick around and answer questions for as long needed. Lots of banter between PM, treasurer and small business minister.

1:49pm: Owner of a biotechnology company complains about the lack of venture capital funding in Australia, which is even further diminshed as a result of the global financial crisis.

Prime minister says the government will respond to the Cutler review about the best ways to incentivise innovation. Craig Emerson says the service economy plays a very important role in innovation.

2:00pm: Another restauraunt owner in the audience suggests the government could relax the requirements of the 457 visa programme to allow skilled migrants from overseas who don't speak English very well.

The PM is very positive about immigration but says he can't answer the English language part of the question right away

2:10pm: Audience member asks why some financial institutions are covered by the government guarantee and some aren't. Won't this encourage people to take their money out of 'unsafe' investments to 'safe' banks?

Kevin Rudd says the guarantee covers all the financial institutions regulated by the Australian Prudential Regulatory Authority - banks, building societies and credit unions. This is part of a calm, measured and methodical approach to strengthening the economy.

2:15pm: Bakery owner in the audience calls for a code of conduct for landlords, for instance, not to raise rents more than the Consumer Price Index. Larger landlords such as shopping centres, which have large investments from superannuation funds, tend to raise rents one or two percent higher than the CPI every year, he says.

Craig Emerson says the Productivity Commission's recent report into retail tenancies covers many of those issues. He says retail rents are on the agenda for the next Coalition of Australian Governments meeting.

2:21pm: Craig Emerson reiterates the importance of the proposed changes to the way government contracts are tendered out. He says they way they have worked until now meant that small businesses had to take all the risk. But if the government can make it easier, this will be a significant boost to the small business sector.

2:25pm: A question that doesn't seem entirely about small business, from a representative of carers for people with disabilities, who says his organisation is overwhelmed by red tape from federal and state governments.

Kevin Rudd says "we get this problem" of overlap between commonwealth and state regulation and compliance, and the government is committed to fixing this for disability carers and small businesses.

2:27pm: The prime minister is wrapping things up. He says the job of the government is to do everything it can to provide a basis for confidence into the future and stability of the financial system. He suggests talking to COSBOA and Commerce Queensland for an ongoing dialogue with the government.

2:28pm: Craig Emerson says 548 people attendeed at very short notice... So that's it from our live coverage.

RELATED ARTICLES

• Who speaks for the forgotten people?