Key State industries threatened

Increasing interest rates, rising fuel prices and GST-related cash flow problems are threatening WA’s key industries.

That is according to accounting firm RSM Cameron’s business investigation and recovery principal, Neil Cribb who said businesses in the transport sector, earthmoving industries, mining services sector and the housing and associated industries were at risk.

The bad summer harvest which is expected to bring in more than $1 billion less than last year will also put regional businesses under pressure.

“Continued survival for a number of businesses in these sectors will depend on good management of critical issues such as increasing costs and short term cash flows,” Mr Cribb said.

“In the transport sector, where oil prices have pushed fuel prices skywards and the cost of imported spare parts is increasing because of the poor performance of the Australian dollar, net profit margins could be reduced by almost half – unless business operators act quickly to increase freight charges.”