Go out and spend, say retailers

    by: Lanai Vasek
    From: The Australian
    May 09, 2012


RETAILERS have urged Australians to go out and spend their budget handouts, but fear that uncertainty over the carbon tax will see the cash saved or used to pay off bills.   :-?

Wayne Swan declined to offer any guidance to families on how to spend the cash as he hit the airwaves to spruik the benefits of his fifth federal budget, unveiled last night.

“It's not up to me to determine or advise people what they should do with their income,” Mr Swan told ABC Radio.

“I think Australians generally spend their money responsibly and I'm sure they will on this occasion.”

Australian Retail Association president Roger Gillespie said the struggling sector hoped the payments would be spent in shops.

“All retailers would love to see it spent in the retail sector,” he said.

“It would be great for retailers and also the Australian economy to see the money continuing to circulate locally.


“But I think in all reality it won't happen. People aren't confident to spend their money. There is still a lot of fear in the community, especially given the full impact of carbon tax is still uncertain.”   ::)

Mr Swan last night unveiled boosts of up to $600 a year for around 1.5 million households on family tax benefit A, on top of cash payments of up to $820 for each high school student and $410 for each primary school-age child.

Welfare recipients will also get an extra $350 for couples and $210 for singles from 2013, as announced in the budget.

Consumer advocate group CHOICE said the bulk of the extra cash would be used to combat rising household costs. 

“We've been asking consumers who are eligible for the extra money what it is that they are going to spend money on and they are all telling us bills and more bills,” CHOICE spokeswoman Ingrid Just told The Australian Online.   :(

“It's all going to go on immediate expenses, electricity bills, car registration, some on groceries and a few people are telling us they are going to put it into their savings.”   :(

However Ms Just said if the immediate cash was spent on bills it could mean that there was more room to spend in the retail sector further down the track.

“I think what's happening is unlike previous decade we are now moving back to a normal spending habits,” she said.

“We save some and we spend some. Fifteen years ago we were spending in a very different way.”   :-?








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Comments on this story

    anthony of Brisbane Posted at 2:55 PM Today

        There has to be more to life than just spending? This idea that people should prop up shops by continually spending all the time has come to pass. Frugality is the new black and I can't see it changing for quite awhile, if ever, as folks worry more & more about their financial security. Labor governments frighten the bejesus out of me and judging by the opinion polls, they frighten 3/4 of the population. People won't be too keen to spend their hard earned money under these conditions. We have to be personally, financially responsible while the Labor government isn't. Sorry shop keepers, but you are on your own.

    DD Casson of Douglas Posted at 2:26 PM Today

        Spend what? My bank balance last week (until payday) was -$0.24. Any handout will be spent on cost of living long before I see it. Sorry retailers fight your own battles.

    Aussiemike of Adelaide Posted at 2:02 PM Today

        Have retailers thought that we may not need anymore goods. I have 4 TV sets in a house of 3 people. I have 23 t shirts and 16 business shirts, a spare room full of disused furniture, plus 4 or 5 computers. I am just middle class not rich. What I need is time. Sorry but I am not going to rush out and spend exept maybe on holidays and resturants.

Yes, yes its all very well to say go out and spend, like a drunken sailor, buy did ya cut your prices?.  Like we told you to.  Well did ya?.   :(

wrote on May 9^th, 2012 at 9:22pm:

Yes, yes its all very well to say go out and spend, like a drunken sailor, buy did ya cut your prices?.  Like we told you to.  Well did ya?.   :(

Talking about cutting prices crook. K Mart have, drastically and they are still in business. Good move? maybe.

I have a feeling since they belong to the Wesfarmers Group, the other shops might be making up the gap. There's the odd special at Coles that you pay for with other products, but you won't get cheapies at Target or Officeworks, top dollar.

Ultimately the shopfront will close and the products will be sold market style with no fancy overheads. Bye bye retail rentals ha ha.

wrote on May 9^th, 2012 at 9:22pm:

Yes, yes its all very well to say go out and spend, like a drunken sailor, buy did ya cut your prices?.  Like we told you to.  Well did ya?.   :(

The problem so many retailers are having is coming to terms with reality. The market is not there and will not be there now for a very long time. The world has had to start learning a very big lesson about credit. Credit is what the retail sector lived on in the boom and it is what killed the goose. We were fortunate not to have big government credit but personal debt and company debt was out of control when the GFC hit. The public have settled into a cycle of debt reduction now and that will continue. Retail needs to give us a reason to spend not try and sprook more of the cheap rubbish with huge margins that they flogged of to us on 24% credit during the boom. Did you see Jerry Harvey is offering 500 days interest free. Yep no interest in paying it back at all Jerry, you have to do much better than that.

Once the money is in the pockets of the voters its their money. the govt no longer have any control over it.

SOB

And only spend the money on Australian made goods. That means JB Hifi and Harvey Norman are off limits unless you need another matress :D LOL