SMALL BUSINESS lose on Submarine.

Small business is set to lose badly due to not awarding the contract to Japan.

The competitive tender process focused only on one thing sound in the tender process. No weight was given to Military alliance or economic benefit.

Japan have been humiliated by the process resulting in them issuing a comment that they deeply regret Australia’s decision. At risk is 15.2 Billion in exports we sent to Japan last year, this compares with 0.757 Billion sent to France.

Small business lives of this business directly and indirectly on the business created by these exports and Japan represents about 16% of exports. Our small business have lived off Japans demand for Coal, Iron Ore and Beef for a long time. Newcastle and Lithgow support lots of small business.

Japan will reconsider this relationship.

Japan believe there submarines have a sound advantage but Australia didn’t ask the right questions. The Prime Minister seems to have abdicated himself from the decision, might I add the leader of the opposition has been AWOL.

In simple terms supply and demand issues were ignored in the decision and we can’t be sure that sound issues were completely correct anyway.

By Terry Murphy Simple Economics for general comment.