Vic: Vic govt spruiks economic action plan

AAP General News (Australia)
04-14-2004
Vic: Vic govt spruiks economic action plan

By Nick Lenaghan, State Political Correspondent

MELBOURNE, April 14 AAP - Victorian business is hoping for cuts to payroll tax and
WorkCover premiums when the state government lays out its inaugural economic statement
next week.

Government support for a new convention centre and deepening of the Port Phillip channel
are also high on the private sector's wish list.

Treasurer John Brumby today began spruiking the action plan - a first for the state
- but remain tight-lipped on detail.

"It'll contain measures which cut costs for business, drive new infrastructure and
build on our strengths in terms of export opportunities," Mr Brumby said.

The government's role was to boost business and investment as the state economy faced
challenges from a stronger Australian dollar, higher interest rates and China's emergence
as a major competitor, Mr Brumby said.

"We'll be doing that by funding infrastructure projects, cutting costs for business
and building a more competitive Victorian economy," he said.

While the treasurer kept mum on the plan's content, peak business groups and the state
opposition had plenty of suggestions.

Victorian Employers Chamber of Commerce and Industry (VECCI) spokesman Christopher
James called for a reduction in payroll tax across the board.

Mr James said Victoria should aim to have the most competitive payroll tax regime in
Australia by 2006.

The cost of Workcover premiums was also a "major issue" for Victorian business, he said.

The government should allocate some funding toward the Port Phillip Channel deeping
project - estimated to cost $400 million - in the upcoming budget, he said.

Victoria was slipping behind in the conference market and needed state funds to build
a 5,000-seat convention centre, Mr James said.

The Australian Industry Group, which represents many manufacturers, has also called
for payroll tax relief.

And the treasurer's opposite number, Robert Clark, asked for less spin and more action
in the government's action plan.

Mr Clark questioned why a separate economic statement was being made just weeks before
the May 4 state Budget.

"If the statement fails to make specific and definite commitments, Victorians will
be entitled to conclude that it is just a smokescreen to distract attention from a looming
painful May state Budget," he said.

Mr Clark blamed the government for undermining the Victorian economy and said despite
its claims the state was "slipping badly" compared with the rest of Australia.

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KEYWORD: ECONOMIC NIGHTLEAD

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