Business 'kickstart' plan - NSW IR system should go

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Business 'kickstart' plan - NSW IR system should go

A major business organisation has called on the NSW Government to refer its IR powers to the Commonwealth, abolish sections of the bureaucracy, cut payments such as the back to school allowance and toll cashback schemes - and even privatise the Parliamentary dining rooms - in a bid to ‘kickstart’ the NSW economy.

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A major business organisation has called on the NSW Government to refer its IR powers to the Commonwealth, abolish sections of the bureaucracy, cut payments such as the back to school allowance and toll cashback schemes - and even privatise the Parliamentary dining rooms - in a bid to ‘kickstart’ the NSW economy.

Australian Business Ltd (ABL) today announced its ‘Kickstart NSW’ scheme to revitalise economic growth in the State.

 

NSW economy faltering

ABL says after a decade of rising employment, Budget surpluses and strong economic growth, the economy of NSW has started to falter.

‘The NSW Budget is moving into deficit, the NSW economy is contracting and NSW has become a dead weight on national economic growth,’ it says.

‘NSW has the highest unemployment rate on mainland Australia with an unemployment rate of 5.5% compared to the national average of 5.1%.’

Amongst the remedies it suggests are (all savings are for 2007-08):

  • Abolish the public service unattached list (public servants with no duties) - saving $17.9m
  • Abolish the Office of Women - $2.4m
  • Privatise Parliamentary dining rooms - $0.8m
  • Refer IR to the Commonwealth - $28.8m
  • Abolish Privacy Commission - $1m
  • Abolish back to school allowance - $56m
  • Abolish Commission for Children and Young People - $6.6m
  • Abolish M4/M5 cashback scheme - $95m
  • Reduce admin costs and increase efficiency at the Department of Ageing, Disability and Homecare - $121.4m
  • Reform mandatory reporting regime of DOCS - $63.4m
'Onerous' taxes and charges

ABL says it is no coincidence that NSW has the most onerous employment taxes and charges in Australia.

‘NSW Government expenditure has grown too fast,’ it says. ‘Since 2002/03 NSW Government
expenditure has grown by $6.3 billion or 18.4%3.’

 

Kickstart will reduce expenditure

To prepare the Kickstart NSW report ABL brought together a team of consultants, former public servants and economists to assess the expenditure performance and efficiency of the NSW
Government.

It says that, if adopted, the Kickstart NSW plan will over the next three years:

  • reduce expenditure by $1.4 billion;
  • improve cost recovery of Government service by $500 million;
  • provide an additional investment of $1.6 billion in better services created through
    efficiency gains;
  • reduce employment taxes in NSW to those of neighbouring states – cutting
    Payroll Tax to 5.25% by 2008/09;
  • return the NSW Budget to balance; and
  • preserve NSW’s Triple A credit rating.

Kickstart NSW submission

Related

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