NSW Shadow Treasurer Mike Baird said today the Rudd Labor Government’s tax review has made no progress in reforming Federal-State finances.

“Mr Rudd has talked about the need to address the Federal-State vertical fiscal imbalance, but in true Labor fashion, he’s failed to follow through,” Mr Baird said.

“It again shows the NSW Labor Government’s inability to negotiate a good deal from Canberra,” he said.

“Mr Rudd has signed up to Kristina Keneally’s ‘lights, camera, no action’ script.

“Mr Rudd’s announcement today is not reform, it’s tinkering at the edges.

“The NSW Liberals & Nationals always welcome lower taxes, but this appears offset by Labor’s new resources tax.

“We are very concerned about the potential impact of the resource tax on the economic interests of NSW, particularly in the Hunter.

“This super tax has the potential to hold back the State’s economy, particularly if it makes NSW mining assets less internationally competitive.

"There is no doubt that the largest mining companies in the world will be looking at their Australian and NSW investments in a different light today. The question we need to understand is where does this tax put the cost competitiveness of our mining assets?

“Mining employs thousands of people across NSW and we would be concerned about anything that puts those jobs at risk.

“The modelling of these assets should be released so we can see first-hand if this new tax means international boards will begin diverting investment to regions such as South America, South Africa or even Europe.

“Unemployment in NSW is already the highest the country, governments at both levels need to do all they can to grow jobs, not tax them,” Mr Baird said.

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