The Senate has agreed to the Coalition proposal for an inquiry into the difficulties small businesses continue to face in accessing adequate and affordable finance.

The Nationals Member for Riverina, Kay Hull, said the Coalition has listened carefully to the widespread concern in the small business community.

“I am more than aware of the struggle small business owners in the Riverina are facing in trying to access adequate finance,” Mrs. Hull said.

A recent survey undertaken for the Council of Small Business of Australia (COSBOA) confirmed that the cost and availability of finance is the top concern of small to medium Australian enterprise.

“From speaking to many local businesses in the Riverina, I know access to adequate and affordable finance is a major concern,” Mrs. Hull said.

The Senate inquiry will enable the financing challenges faced by small businesses to be highlighted, with possible ways of addressing this obstacle to economic recovery and jobs growth to be examined.

If small business is to play its part in driving economic recovery and jobs growth, timely access to finance on reasonable terms is an important pre-condition.

Mrs Hull said small business survival and success is crucial to the economic security of the Riverina, and the sustainable recovery of Australia’s economic and employment prospect.

Mrs Hull said she encouraged the small business community to make submissions to the inquiry through the Senate Economics References Committee, who will report by 30 June 2010.

Specific aspects of the Senate inquiry that will be proposed by the Opposition include:

(i)     the costs, terms and conditions of finance and changes to lending policies and practices affecting small businesses;

(ii)    the importance of reasonable access to funding to support small business expansion and the sector’s contribution to employment growth and economic recovery;

(iii)   the state of competition in small business lending and the impact of the Government’s banking guarantees;

(iv)    opportunities and obstacles to other forms of financing e.g. equity to support small business ‘start ups’, liquidity, growth and expansion;

(v)     policies, practices and strategies to enhance access to small business finance that exist in other countries; and

(vi)    any other related matters.

Submissions should be received by 31 March 2010. Further information is available at www.aph.gov.au/Senate/Committee/economics_ctte/index.htm or by calling 02 6277 3540.

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