The real test of the State Government’s mini-budget will be how the government delivers on its promises to turn around the budget and restore NSW as the place to do business, according to the state’s peak business organisation, the NSW Business Chamber.

“NSW is in a state of decay. The economy is not in good shape, so a dose of medicine now may save the state from radical surgery in the future”, said NSW Business Chamber CEO Kevin MacDonald.

“But while the government has committed to honour the promised cuts to payroll tax, business will be dismayed at the hikes announced to land tax, road tolls, parking levies, non-recycled waste, CTP insurance, coal levies and other business taxes.

“Now is not the time to hit employers with higher taxes to fund shortfalls in the Budget.

 “With unemployment rising and the economy in reverse tough action is needed to restore NSW as the nation’s premier state. Time is running out for the government to deliver.

 “The dramatic decline in the state’s fortunes cannot be blamed entirely on the international financial turmoil. While the size of the deficit is disappointing, it’s critical the government delivers on returning the budget to the black next year.

 “Business needs a confidence boost at the moment and, in some instances, what’s been delivered will make it harder for business owners and operators to make ends meet.

“Measures to restrain public sector wages and cut waste within government are welcome and business will be watching closely to ensure these promises are delivered.”

Mr MacDonald said the business community welcomed the announcements of the rationalisation of budget dependent agencies but said the real test would be on the delivery by the NSW Government of these efficiency savings.

Mr MacDonald further stated that regional NSW was being raided by the NSW Government to cover its budget shortfall.

“The government must reverse its planned cuts to funding for the upgrade of the Pacific Highway.

“Fixing the Pacific Highway is not just a moral issue to stop the road carnage, it’s also an economic issue. The highway is a handbrake on the local economy; it creates transport bottlenecks and scares away investment and job creation.

“Upgrading the road to dual carriageway will create additional capacity for cargo transport and make the road safer for travelling families at the same time. It’s a win-win.

“Likewise, while residents in Western Sydney are not surprised to see the North-West Metro scrapped, there’s still no solution to the transport infrastructure problems facing the growing Sydney basin.

“Continued investment in infrastructure is critical. Better transport infrastructure means commuters can get to and from work faster, and makes it more efficient for the state’s hard working business operators to get their job done.”

Mini-Budget leaves Western Sydney out in the cold 

The Western Sydney business community has expressed its disappointment with the NSW mini-budget as lacking a vision for the future of Western Sydney with over $13 billion in transport projects scrapped to cover the budget shortfall.

Western Sydney infrastructure projects scrapped in the mini- budget include the North West Metro ($12 billion), South West Rail Link ($1.4 billion) and the Vineyard-Schofields rail duplication ($200 million).  There are also question marks as to the future of the M4 East and the F3 to M2 link.

“Western Sydney has been raided to cover the NSW Government’s budget shortfall,” said Paul Brennan, President of NSW Business Chamber Western Sydney.

“Western Sydney is the economic powerhouse of the NSW economy.  Scrapping infrastructure projects in Western Sydney is short sighted and will cost the NSW economy in the longer term.

Mr Brennan said that he was disappointed a “Western Sydney” Premier did not recognise the importance of delivering infrastructure outside of the Sydney CBD.

Last month, NSW Business Chamber Western Sydney submitted its infrastructure priorities for Western Sydney to the Federal Government’s infrastructure body, Infrastructure Australia.

“The Western Sydney business community has outlined its priorities for Western Sydney and will be increasing our attention on the Federal Government to deliver for the residents and businesses of Western Sydney because the NSW Government clearly can’t,” said Mr Brennan.

BizNews Highlights

• Owners of vacant and derelict buildings may soon face higher council fines and penalties. Local Government Association (LGA) delegates voted to ask the NSW Government to increase penalties and empower them to deal with vacant, derelict buildings that fall into despair, are defaced, or inhabited by squatters.

• While the High Court's judgement on Civic Place is not expected before next February, Council's CEO Dr Robert Lang has indicated negotiations were already under way with developer Grocon to start work on those parts of the Civic Place site which the council already owns. These include existing council chambers and administration offices, the library and a car park.

• The NSW Government has more than doubled (from $950 to $2000 a year) the cost of off-street parking spaces in Sydney's CBD, Milsons Point and North Sydney prompting commercial operators to say they would pass the charges on to customers. There are believed to be more than 70,000 car spaces affected. The levy for spaces in the business areas of Parramatta, Bondi Junction, Chatswood and St Leonards will increase from $470 to $710 a year. The hikes are expected to increase annual government revenue by $58 million. NSW Treasurer Eric Roozendaal said yesterday that the levies would help discourage congestion.

• Parramatta's free shuttle bus service The Loop has proved so popular it chalked up its 100,000th traveller last Friday. The Loop has carried an average 10,000 passengers every week since launching on August 29, Parramatta Lord Mayor Tony Issa said. “Council is delighted with the community response to the Loop,” Cr Issa said. But fellow Liberal councillor John Chedid backed calls by Parramatta Chamber of Commerce president Roman Dechnicz to extend the service further north and south. He also wants the Loop to operate on Sunday to attract visitors.

• Council will commission a report to comment on meeting the State Government's 40-day processing time for Development Applications and set itself the goal of being the most efficient Metropolitan Council in NSW in processing Development Applications (see last week City Hill Parramatta ranked 8th slowest behind Ashfield).

• Council will prepare a comprehensive list of items requiring support from WSROC. This list to include but not limited to lobbying for a resident company for Riverside Theatres, an Art Gallery that is not dependent on Council funds and the ongoing support that Council was led to expect it would be reasonable to receive from the Transport Department for the Loop bus service.

• More than 600 people celebrated the start of Riverbeats (Saturday 8 Novembers) by casting a fishing line into Parramatta River as part of the 3rd annual Carp Fish Out.  Eels, mullet and a turtle were caught but no carp! Riverbeats continues until 23 November, with artwork – Sculpture Projects in the RiverCity - on exhibition along the riverfront during that time.

VIEWPOINT

Small business is the engine of business activity in Australia 

Small business has often been referred to as the “Engine Room of Business Activity in Australia” and yet rather than protecting small business, both State and Federal Governments far too often do very little in this regard.

For years we have been told that the Trades Practices Act was there to protect small business from large monopolies. What a joke this has become. 

Graham Samuels, Chairman of the ACCC, has come to the conclusion that neither of our two largest grocery chains have any case to answer.

Discount vouchers continue to be issued by the grocery chains with the net result that other grocery lines become more expensive. The cost of petrol should be far less than it is but here again nothing or very little is done to bring the petrol companies into account.

Now we come to the commercial rents charged by landlords in large shopping centres.

The large grocery chains and larger retail outlets pay a mere pittance in rent compared to the rent charged to small business owners.

There are instances where small business owners have had their rents increased by over 150 per cent and yet our toothless lion, the Trade Practices Commission, sits on its hands and does nothing. Why?

We were once told that this was the land of opportunity, where, if you were prepared to work hard in your own business you would succeed.  Why has all this changed?

Remember – without an engine, you cannot move.  Small business is that engine, so where to now?

***Upcoming Events

RIVERBEATS, the annual three-week cultural showcase devoted to celebrating Parramatta, began on Friday.
Now in its third year, Riverbeats features a fishing competition, cutting-edge art and sculpture, multimedia presentations, live music, the annual Thai water festival, Loy Krathong, and Riverbeats Live. Parramatta will be awash with colour until Sunday 23 November, when the festival ends.

The Commuter Challenge from November 17-28 is calling on all regular car drivers to Parramatta city centre to walk, cycle or take the bus or train to work.

Business After Five
Tuesday 2 December
Parramatta Advertiser
Cost: Members and Guests $20.00
Non Members $40.00

Business Helping Hands
Aussie Christmas BBQ for the Homeless
Thursday 11 December
11.30 am
Meals Plus
Parramatta Mission
Macquarie St, Parramatta

Contact Parramatta Chamber on 9683 6655 or info@parramattachamber.com.au for more information or for an invitation to attend.

Platinum Supporter:
Suncorp

Major Supporters:
Parramatta City Council
Snap Printing
GWP Magazine