Minister for Small Business Senator Nick Sherry has shown how out of touch he is with the challenges of running a small business saying business owners will have to figure out for themselves how to deal with price hikes brought about by the carbon tax.

Minister Sherry told the Senate Economics Legislation Committee that small businesses will face increasing power bills, but they will be expected to work out for themselves how best to cope.

“I think that is for the small business to determine in consultation with the particular firm or individual that they consult in this area. That’s for them to determine,” the minister said.

“There is an increase in power costs, there is no doubt about that.”

Senator Ryan questioned the minister on the need for a $40 million Energy Efficiency Information Grants program when it is not going to provide a single dollar to assist small businesses facing not only a carbon tax, but a challenging business climate.

“There is nothing in this program that is going to help a small business adjust to rising costs,” Senator Ryan said.

“Having spoken to many small businesses, their capacity to reduce their power bill and improve their energy efficiency measures is simply not possible without serious capital investment.”

Small businesses comprise 96 per cent of all Australian businesses and employ 5.1 million according to COSBOA, but Senator Sherry is doing nothing to help them face a carbon tax future.

“This is a tax which makes life harder for small business, a $40 million fund that tells them life is getting harder, and a Minster who tells them to deal with it on their own.” Senator Ryan said.