Last week brought some positive news for the national economy and to a lesser extent NSW. We saw that Australia was now the only major economy that grew last year and NSW after two quarters of negative growth returned into positive territory (although it was growth lower than all but one other State).

It appeared to me that the hollow men saw this as an opportunity to take centre stage last week and with trumpets sounding and cymbals clanging they told all that the world was good again and in NSW we should thank the State Government for its work.

I don't want to just criticise the State Government but, now is not the time to claim victory. It was graphically demonstrated to me yesterday when visiting three businesses in Wollongong, Campbelltown and Blacktown. These businesses represented their fellow businesses in manufacturing, distribution and retail industries with all explaining that conditions are "tougher than they have ever been".

Whatever small movements in economic statistics suggest, the truth is the coal face continues to struggle. I was particularly moved by the owners of the Wollongong business (Elizabeth and Melissa) who recently had to lay off a large number of staff... Elizabeth told me that she continues to monitor all of them to see if they have secured another job. The sobering statistic in this is that of the 46 she had to let go, only 2 had found another job... She was visibly moved at this thought.

It is another reason I will continue to argue for an immediate one-off 15 percent reduction in payroll tax to help businesses keep staff rather then be forced to lay them off. This is even more important in areas of high unemployment where we have proposed an additional 5 percent cut apply.

This is in stark contrast to the State Labor Government which to date has refused to acknowledge the challenges the NSW economy is facing. Indeed the centrepiece of the Budget dubbed "a major economic stimulus" the stamp duty concession for newly constructed homes has to date only provided $2.8 million in relief or 0.0007 percent of total stamp duty revenue.

With this sort of approach there is no doubt NSW will limp out of recession and retain its place at the bottom of the economic heap. My sense is that the community wants us to again lead the pack and until the Government gets out to meet with businesses themselves the hollow men should be working on helping, not promoting, a recovery that is yet to come.

Write Comment

Please keep the topic of messages relevant to the subject of the article. Personal verbal attacks will be deleted. Please don't use comments to plug your web site. Such material will be removed.
Name:
E-mail
Subject:
Comment:
Code:*

Comments (4)