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Campaign Update26 February 2010 The billboard that Queensland banned delivers a better GST deal for NSW NSW Business Chamber has claimed a victory in its campaign to get a better deal for NSW in the distribution of GST revenue. The Commonwealth Grants Commission (CGC) has altered its original draft GST distribution proposal from taking $400 million from NSW in 2010-11 down to $100 million. Thank you to everyone who has supported the campaign to get a better deal for NSW. 8 February 2010 The billboard that Queensland banned can’t be stopped! The billboard that Queensland banned “Welcome to Queensland…. Subsidised by the taxpayers of NSW” is now a postcard landing on the desk of Federal Treasurer, Wayne Swan, and the desks of 329 other Queensland and NSW MPs as NSW Business Chamber ramps up the campaign to protect the NSW budget from a $2 billion raid by the Commonwealth Grants Commission. Thousands of postcards have been sent to parliamentarians, business leaders, community groups and media as a way of highlighting the Commonwealth Grants Commission plans to cut $2 billion from the NSW Budget over the next three years. Thousands of emails have also been sent to NSW Business Chamber members throughout NSW asking them to contact Wayne Swan and get him to stop the Commonwealth Grants Commission. About the CampaignWhy has Queensland tried to ban this billboard?NSW Business Chamber's attempt to have this billboard image erected near Brisbane Airport was rejected on the basis that the billboard would "offend" sensitive Queenslanders. This billboard is the next step in a campaign by NSW Business Chamber to spark community debate about getting a fairer deal for NSW in the distribution of GST revenue. NSW Business Chamber previously joined with the NSW Government and other community groups in an open letter to the Commonwealth Grants Commission arguing the case for NSW. Why is NSW Business Chamber running this campaign?Over the past ten years, NSW has cross-subsidised the other Australian States (excluding Victoria) by approximately $15 billion. While we recognise the need to support weaker economies like South Australia, Tasmania and the Northern Territory there cannot be any justification for supporting the prosperous states/territories of Queensland, Western Australia and the ACT.
Source: NSW Submission on CGC 2010 Review Draft Report
What's changed?The Commonwealth Grants Commission (CGC), an independent body that recommends to the Federal Government how to distribute GST revenue between the States, has proposed a change in the GST formula that will take another $2 billion from NSW to give to the other States. The CGC has proposed changing the GST formula to ensure that each state has "an equal per capita stock of infrastructure at the end of each year." This means that each State is expected to spend the same amount per person on infrastructure each year. The problem with this proposal is that it fails to take into account the higher cost of delivering infrastructure in large density cities like Sydney in comparison to Brisbane or Perth. The Commission believes that the cost of building a new road or train line in Brisbane or Hobart should cost the same as in Sydney. Sydney's future infrastructure needs like, road, rail tunnels and bridges are more expensive to build and maintain than roads in sparely populated centres. This means that States like resource-rich Queensland get to "double dip" - getting the GST benefit from a growing population and more money for infrastructure as NSW is penalised for having a higher "per capita" cost for infrastructure. Examples of NSW getting a bad deal from the new GST agreement
How can I get involved?You can help support our campaign by sending the following text in an email to the Federal Treasurer, Wayne Swan. Email: Wayne.Swan.MP@aph.gov.au [Outlook users can click on the email address for a prepared email] Subject: Commonwealth Grants Commission plan to strip NSW of $2 billion Dear Treasurer I write to express my concern about the plan by the Commonwealth Grants Commission to take $2 billion from NSW. NSW has given the other States $15 billion over the past decade. While I can understand the need to support weaker economies like South Australia, Tasmania and the Northern Territory there cannot be any justification for supporting the prosperous states/territories of Queensland, Western Australia and the ACT. Under the proposal, the Commission wants to take $527 million off NSW for spending too much on infrastructure and $242 million because we don’t have enough cars on our roads! This is madness and completely out of touch with the demands on NSW services. The resulting $2 billion impact on NSW is simply unacceptable. I call on you to reject any proposal by the Commonwealth Grants Commission that will strip NSW of $2 billion in funding. I look forward to receiving your response on this matter. Yours sincerely
More informationMedia Releases
The billboard that Queensland banned delivers a better GST deal for NSW (26 Feb 2010) Documents NSW open letter to Grants Commission [PDF] |
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