Vic: Business gives thumbs up to govt action plan

AAP General News (Australia)
04-20-2004
Vic: Business gives thumbs up to govt action plan

MELBOURNE, April 20 AAP - Victorian business enthusiastically welcomed government plans
to cut land tax and WorkCover levies announced today.

The cuts, along with support for projects to build a new convention centre and improve
the Port of Melbourne, were outlined under the government's economic statement released
today.

Under the plan, land tax - paid by business and investors on their properties - will
be cut progressively over the next five years, saving more than $1 billion.

A WorkCover premiums cut of 10 per cent will save an estimated $180 million per year
over the same period.

Victorian Employers Chamber of Commerce and Industry chief executive Neil Coulson said
the statement would be well received by business.

"This package will go a long way to serving business interest into the future, restoring
confidence going forward and should set the scene for further investment growth in the
state," he said.

Mr Coulson said the plan had answered VECCI's call to the government to invest in infrastructure
by fast tracking the Port Phillip Bay channel deepening, reduce business costs and attract
international interest through a new convention centre.

The plan also offered another salve to business through new emergency powers legislation
to deal with industrial disputes.

Under the legislation, the government will have the power to impose wages and conditions
under an interim resolution.

The powers can only be used where an essential service or industry, or a vital state
project, is threatened or affected by industrial action.

Mr Coulson said the new powers would reassure investors.

"Those that have invested heavily in this state will have that protected in the form
of these new emergency services powers," he said.

Australian Industry Group Victorian director Tim Piper also described the cost cutting
as "good news" for Victoria and predicted the emergency powers would reduce industrial
disruption.

Mr Piper gave the Bracks Labor government the ultimate accolade: "This government has
shown that it is pro-business and this a pro-business budget."

"You've seen the reductions in the taxes, you've seen the money that's going to be
spent in the economy and I think what we are recognising is the need for business to be
supported by any government."

Nevertheless Mr Piper said he hoped the government would announce more support for
industry and business skills in the May budget.

"What many industries are finding at the moment is that we simply don't have enough
skills in the state to deal with the need that we have."

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KEYWORD: ECONOMIC BUSINESS

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