Published Sunday, 09 November, 2008 at 09:00 AM
Minister for Tourism, Regional Development and Industry
The Honourable Desley Boyle
Minister calls on big banks to pass on rate relief to small business
Minister for Tourism, Regional Development and Industry Desley Boyle has called on banks to pass on much needed interest rate relief to Queensland small businesses.
Ms Boyle said the Bank of Queensland had so far been the only bank to provide half decent cuts to small business loans and overdrafts.
She said the Bank of Queensland had reduced its rates on business loans and lines of credit by up to .5% and on business overdrafts and debtor finance by up to .4%.
“Only one other major bank has reduced its variable business lending rate by .2%, while business interest rates by the great bulk of banks haven’t budged.
“It’s lean times for many small to medium business operators at the moment.
“Small businesses are the forgotten victims of the global economic crisis.
“From the Cape to Coolangatta, from local fish and chip shops to tourism operators their message to me has been clear – they need support and rate relief.
“As households cut back on spending, the effects are felt at the cash registers in local shopping centres, in tradesmen’s pockets and cafés and restaurants.
“The big banks need to play fair and not take advantage of small businesses, most of whom don’t have the same bargaining power with them as a bigger business or major corporation.”
Ms Boyle said households were receiving well-deserved relief with three bank interest rate cuts totalling on average 1.65% since September, but many small businesses were family owned and operated and were struggling.
“More than 95% of all businesses in Australia are small businesses,” Ms Boyle said.
“They’re still waiting for their interest rate cuts.
“I’m calling on the bank to not be short-sighted but to look beyond the current financial situation and provide small business with the support and reassurance it deserves.
“Small business forms the backbone of our economy and the banks need to step up here, do the right thing and stop putting the squeeze on the little guy.
“While business lending can be complex and rates can vary depending upon individual business circumstances one thing is common to all – they deserve their interest rates to come down - just as has been the case for every householder with a mortgage.
“I congratulate the Bank of Queensland for making the first decent move in this direction and call on the rest to follow suit.”
Ends
Media contact: 3225 1005 or 0419 025 326
9 November 2008
Ms Boyle said the Bank of Queensland had so far been the only bank to provide half decent cuts to small business loans and overdrafts.
She said the Bank of Queensland had reduced its rates on business loans and lines of credit by up to .5% and on business overdrafts and debtor finance by up to .4%.
“Only one other major bank has reduced its variable business lending rate by .2%, while business interest rates by the great bulk of banks haven’t budged.
“It’s lean times for many small to medium business operators at the moment.
“Small businesses are the forgotten victims of the global economic crisis.
“From the Cape to Coolangatta, from local fish and chip shops to tourism operators their message to me has been clear – they need support and rate relief.
“As households cut back on spending, the effects are felt at the cash registers in local shopping centres, in tradesmen’s pockets and cafés and restaurants.
“The big banks need to play fair and not take advantage of small businesses, most of whom don’t have the same bargaining power with them as a bigger business or major corporation.”
Ms Boyle said households were receiving well-deserved relief with three bank interest rate cuts totalling on average 1.65% since September, but many small businesses were family owned and operated and were struggling.
“More than 95% of all businesses in Australia are small businesses,” Ms Boyle said.
“They’re still waiting for their interest rate cuts.
“I’m calling on the bank to not be short-sighted but to look beyond the current financial situation and provide small business with the support and reassurance it deserves.
“Small business forms the backbone of our economy and the banks need to step up here, do the right thing and stop putting the squeeze on the little guy.
“While business lending can be complex and rates can vary depending upon individual business circumstances one thing is common to all – they deserve their interest rates to come down - just as has been the case for every householder with a mortgage.
“I congratulate the Bank of Queensland for making the first decent move in this direction and call on the rest to follow suit.”
Ends
Media contact: 3225 1005 or 0419 025 326
9 November 2008