Friday, January 13, 2006

Happy New Year - NSW Finances Going Backwards Fast

Welcome to January 2006.

Back at my Council desk rolling up the sleeves after a refreshing New Year's break in Queensland. I trust all eCouncillor readers are similarly re-energised for 2006 !

I thought you might be interested in the Media Statement below issued by one of the hardest working State Liberals, Peta Seaton MP, Assistant Shadow Treasurer. Peta highlights what we all are hearing from businesses around the State and country - that NSW is losing the investment race against Queensland and Victoria. That because of the laziness, high taxation and lack of reform from the NSW Labor government business is moving investment to other states.

As your Liberal Councillor on the City of Sydney I hear this message all the time as Lord Mayor Clover Moore and the NSW Government put the hand break on business growth in Sydney.

If you would like to receive Peta's very regular media statements then send her a note via this email link.


13 January 2006


Labor’s addiction to irresponsible ‘tax and spend’ policies has produced some of the worst economic results to date on Morris Iemma’s watch, underlining why bank experts have dubbed NSW ‘The State of Disappointment’ and questioned Labor’s ‘economic competence’, said Assistant Shadow Treasurer Peta Seaton.

‘ANZ commentators were right on the money with their assessments’, said Ms Seaton, referring to yesterday’s comments in an ANZ Bank publication comparing different states’ economic performance.

Ms Seaton said today’s ABS ‘Australian Economic Indicators’ (Cat 1350.0) shows further decline in NSW’s economic performance recorded in September-November 2005, in the months after Morris Iemma took the top job.

‘On building approvals alone, (Table 9.7) Queensland and Victoria attracted $900 million more investment in construction than NSW – amounting to thousands of jobs and supply opportunities outside our state’, said Ms Seaton. Queensland and Victoria between them built 5,000 more homes than NSW in the 2004-05 period.

‘These statistics are a measure of the families and businesses who are struggling in NSW to get value from their investments, and find new opportunities, because of the impact of ten years of high state taxes and wasteful Labor spending’, she said.

‘Labor’s economic vandalism has resulted in;
- NSW unemployment being higher (5.3%) than the national rate (5.1%) in November 2005
- a 20% decline in the value of residential building approvals
- a decline in the registration of new motor vehicles
- decline in state final demand, now lower than the national rate and falling by 0.8%, while the national rate has grown.

‘We all know that Sydney and NSW produces some of the smartest and hardest working businesses, and that we compete hard against other states and the world.

‘The lazy NSW Labor Government has coasted on the back of the success of hard working businesses and families, and now is eating into the hand that fed it and dragging NSW down a black hole because of its own lack of economic discipline’, she said.

‘Since Morris Iemma became Premier, things have got worse with around $700m of new state taxes and charges since he took the top job, all of which continues to force job seekers, homebuyers and businesses to look at other states with more competitive prices and taxes.

Ms Seaton said the ABS Building Approvals figures showed an alarming difference between construction activity between NSW and competitor states, as a result of NSW lack of competitiveness.

‘Queensland built more homes overall than NSW in 2004-05, despite the fact that NSW is a larger state. This shows the rate at which Queensland and Victoria attracting new residents and investments, compared with NSW with its high property and business taxes, and bloated sluggish planning approval system’.

ABS/ Building approvals 2004-5 (Table 9.7)

Number of approvals
$ Value of approvals
Difference with NSW ($)
Difference with NSW (numbers)
$7.5 bill

$8.0 bill
$500 mill
4,570 homes

$7.9 bill
$ 400 mill
542 homes

$900 mill
5,112 homes

‘Every additional home built in Queensland and Victoria is an opportunity lost for NSW, and translates to fewer jobs and job opportunities for NSW job seekers and families.

‘The lack of business confidence and activity in NSW can be traced back to Labor’s greedy tax grab on the property sector when it was going strongly, with the vendor tax being a near-death blow for the sector which was naturally slowing.

‘Additional Labor state taxes (payroll tax and land tax extensions) since Morris Iemma was installed as Premier has kept the building and investment sector in the doldrums, which significantly accounts for our high unemployment rate’, she said.

‘No wonder bank experts have labelled NSW ‘the State of Disappointment’, when our once great State has been damaged by Labor’s tax and spend addiction’.

Peta Seaton MPMember for Southern HighlandsAssistant Shadow TreasurerShadow Minister for Reform of GovernmentShadow Minister for the Illawarra

Phone: 0248 613 623 Bowral OfficeFax: 0248 613 546Phone: 029 230 2261 Parliament HouseFax: 029 230 3355

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