Danny PerksPeople are tightening their pockets while employers are “struggling” to meet wage pressure and Dubbo’s small businesses are suffering for it, according to a local butcher.
The United Retail Federation said small business retailers were on “struggle street” after suffering dramatically due to increased cost of living pressures.
Triple A Meats business owner Danny Perks said that was “most definitely” the case in Dubbo.
“It’s not good,” Mr Perks said.
“The main problem is retail spending is down. People are being a lot more frugal with their money for whatever reason, there’s probably hundreds of reasons. Fuel is up, interest rates are up?”
United Retail Federation president Scott Driscoll said small businesses were in a “terminal state”.
“…Small business and retailers have been smashed with historic lows in consumer confidence, historic highs in wage pressures and unrealistic industrial relations changes that have caused widespread job cuts and business closures.”
It comes just three months after Mark Crutcher of Crutcher’s IGA in South Dubbo said the town would be hit hard this financial year with unemployment and inflation.
Mr Crutcher at the time said the Federal Government’s Fair Work Act introduced from July 1 would put increased pressure on small businesses with penalty rate changes among other things being detrimental to the stability of small businesses.
Mr Crutcher said employees deserved a minimum wage increase but there was “no commonsense” in the changes enforced by the Fair Work Act which would either lead to businesses having to reduce staff numbers or increase the cost of their goods.
Mr Perks told the Daily Liberal the Act was “a load of rubbish”.
He also said the strain of lower consumer spending coupled with increased wage pressures were bad enough but this financial year they also had to now contend with increases to superannuation payments.
“We’ve got to find the extra money from somewhere,” he said.
“We’re already struggling now we’re going to have a bigger struggle.”
This story Administrator ready to work first appeared on Nanjing Night Net.