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101006 -Importance of State Election Highlighted |
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Wednesday, 06 October 2010 |
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Importance of State Election
Highlighted
The importance of the
NSW State election next March has been thrown into stark relief by the decision
of the two independents currently propping up the minority Labor government
crossing the floor to vote with the "opposition". On a minor amendment only but
it shows just how fragile the federal government arrangement is; too fragile
for a reform agenda and reform, for business, means relief. Without reforms to
the tax system and a host of unwieldy compliance issues, small business in
particular will continue to be hamstrung in their efforts to achieve productivity
and profitability.
Therefore, the State
election in March becomes even more critical than usual. While the State
government cannot make changes to federal legislation, it can bring in a number
of forms of legislation that can alleviate impediments to business as well as
providing a stimulus of its own to urban and regional economies. Transport
springs to mind but then so does the one piece of legislation that has
characterised the often poor judgement of this series of Labor governments -
the punitive poker machine tax. The vital licenced club industry in NSW has
been struggling and shrinking in both size and community investment as this
draconian impost has drastically reduced profits and the ability to invest and
endow.
Both parties have it
in their power to reduce the tax to a level that restores the clubs' liquidity
and stimulates regional community spending and employment. It's that simple;
reduce this tax and everyone benefits. It is far better that this money remain
in the industry and its communities than having it rest in government coffers
for "strategic" spending.
We shall see if the
parties have learned from the reproach they received at the federal election.
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