State business confidence plunges under long-term Labor
LNP Deputy-Leader Lawrence Springborg said the release of the Commonwealth Bank CCIQ Pulse Survey of Business Conditions* for the June Quarter 2010 underlined the deepening failure of long-term Labor to provide any base for business confidence.
“This is the fourth report this week* that says we’re in trouble,” Mr Springborg said.
“Business confidence has crashed in Queensland with the Pulse Survey’s Economic Outlook Index falling to 46 (on a scale of 1 to 100) and is now at its lowest level for three years.
“And when you look at how the Bligh Labor Government has attacked Queensland businesses with its raft of higher taxes and charges it’s a wonder confidence isn’t lower.”
Mr Springborg said the report’s key finding that ‘more than ever, business and consumer confidence and economic and political uncertainty have a profound impact on the performance of our economy’ told its own story.
“On top of soaring business input costs including electricity, water, vehicle registration charges, fuel tax and every government compliance fee imaginable, we’ve had to contend with Labor’s resource super tax fiasco, that’s still not fixed, the backroom stabbing of a Prime Minister and the paybacks and leaks of a Federal Cabinet and government in chaos.”
Mr Springborg said business and consumer confidence could only be lifted through lower taxes and charges and most importantly, through certainty – certainty of government policy and strong leadership.
“The Commonwealth Bank CCIQ survey shows a dramatic fall of over 12 index points to 46.7 …which essentially means the outlook is poor and that means there’s little prospect of businesses investing in plant and equipment (slumping to 37.4) and hiring staff.
“Queensland desperately needs a stable government that will control spending, put a lid on borrowing, and do everything in its power to support business and particularly small business.
“Instead of setting prudent spending levels, we’re heading deeper and deeper into the woods with Anna Bligh and Treasurer Andrew Fraser who keep denying there’s any problem when report after report tells a completely different story.”
*PDF of CBA CCIQ Pulse Survey of Business Conditions attached above
**CommSec, Westpac and Access Economics reports all found business and economic activity has slumped
