Page 2166 - Week 10 - Thursday, 26 October 1989
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Territory as far as the employment of people is concerned. My colleague Mr Kaine has pointed out that the ACT already faces significantly higher average labour costs compared to the States. The costs in the ACT for labour rose by 13.4 per cent last year whilst New South Wales costs, with which we compete very directly, rose by only 8.6 per cent in the same period. The 1987-88 average costs per employer in the ACT were $27,275 compared to the national average which was only $23,980.
I go back to the Trends publication. It says here:
These danger signals -
the signals I referred to before -
highlight the need to diversify the ACT economic base - that need is greater than ever.
Now, what does this Government do about that; what is it doing?
Mr Kaine: Jacks up payroll tax.
MR HUMPHRIES: It jacks up payroll tax; that is right. It imposes additional burdens at the very time - if this publication I have just quoted from has any credibility - when it should be removing burdens, when it should be relieving burdens. The Government should be creating a competitive environment for business in this Territory. Instead, it is slugging business for more. It is absolutely the wrong direction to be taking. The Government should be heading north, and in fact is heading south.
Clearly, a sensible government policy would be to relieve tax burdens, to make business in the ACT attractive. But what does this most recent budget do, this wonderful first Follett budget? It hits business with an extra $40m per annum in taxes and other charges.
Ms Follett: Where did you get that from?
MR HUMPHRIES: Look at your budget document and you will see it is all there. We will be happy to show you all the last, grizzly details of that $40m, Minister. One example is land tax. Land tax is principally a tax on business in this Territory.
Mrs Nolan: Do not forget they are giving $1.35m to business.
MR HUMPHRIES: Yes, of course; I am so sorry. After taking $40m from business, they are giving back their $1.35m to business. I am sure business will be on its knees with gratitude to the Government for that wonderful benefit! But let us look on the other hand at what the Government is still doing. (Extension of time granted)
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