Industry bodies are concerned over Prime Minister Malcolm Turnbull’s decision to omit the small business portfolio from cabinet.
The prime minister announced his ministry for the new parliament on Monday, stripping Kelly O’Dwyer of the small business portfolio and making it a non-cabinet position in the hands of Nationals MP Michael McCormack.
O’Dwyer, formerly known as the assistant treasurer, have been renamed as minister for revenue and financial services.
Turnbull and his senior ministers have defended the change, saying everyone in government has a role to defend small business.
The Council of Small Business of Australia (COSBOA) welcomed the announcement, but stressed concern that the small business portfolio has moved from cabinet.
“Mr McCormack has the confidence of the sector, however we are disappointed the portfolio has moved from cabinet and we will be seeking answers to why this has happened,” said Peter Strong CEO of COSBOA.
“Small business is powerful, employing around five million Australians and driving the country’s economy, so why has the portfolio moved? What’s happened and what pressures have caused this, perhaps big businesses and unions, are in play?
“In our opinion this is a step backwards for small business,” he said.
Australian Retailers Association head Russell Zimmerman agreed that omitting the role “does not augur well” given its important role within the economy.
“The exclusion of small business, at a point when the economy needs business the most, is a step backwards,” he said.
“We can only hope that Mr McCormack is able to make the voice of small business heard.”
The newest member of cabinet, National senator Matt Canavan, said many members of the coalition have small business backgrounds.
“It will remain a priority for all of us,” he told ABC television.
Trade Minister Steve Ciobo said he’d always made helping small business a core focus of his role.
He said there was still a cabinet minister with responsibility for the area – Treasurer Scott Morrison – as part of a larger portfolio.
“No one could question the strength of commitment of this government to Australia’s small businesses,” he told Sky News.
