Australia: Queensland Suffered Severity of Global Financial Crisis

                       
Queensland business owners were the most severely savaged in Australia by the Global Financial Crisis (GFC) according to a survey released today.

More than a half (56%) said they had been “adversely affected”. It was the highest ratio of any Australian state and more than double a number of states.

The national survey of 5000 companies was sponsored by leading international accounting firm, MGI, which ecialises in the family and privately-owned business sector.

MGI Brisbane Managing Partner, Grant Field, said that the survey shows that transport, primary production, construction and manufacturing sectors were the worst effected.

“They are the backbone of our state’s economy”, he said.

Mr. Field said that while half of all business owners responded by cutting costs, Queensland business owners also took the knife to payroll costs with about 25 per cent retrenching staff – significantly more than other states.

“This was widespread in the recreation and construction industries,” he said.

“More than 35 per cent of Queensland businesses deferred hiring staff – again more than most other states.

“Surprisingly the retail sector was least affected with less than 10 per cent retrenching staff. This was most likely the effect of the government stimulus package.” he said.

Today’s research results are part of the MGI Australian Family and Private Business Survey, which was undertaken by RMIT University. The researchers undertaking the current study are Professor Kosmas Smyrnios and Mr Lucio Dana. The full report will be available mid year.

Mr. Field said the survey showed that banks had been “reasonably supportive” in Queensland but not to the level of the others states.

For further information including state and industry comparisons:

Grant Field
MGI Brisbane
Level 1
200 Mary Street
Brisbane 4000
Tel: 07 3002 4800
Email: gfield@mgibris.com.au 

Professor Kosmas Smyrnios
School of Management
RMIT University
Building 108
Level 13
329 Bourke St
Melbourne 3000
Tel: 03 9925 1633
Email: kosmas.smyrnios@rmit.edu.au

2010-03-08