The Illawarra Business Chamber has rejected comments by Minister David Campbell this week as disappointing and out of touch with the challenges facing Illawarra businesses at present given rising costs and uncertain economic outlook.

IBC President Mr Les Dion said that given the higher cost pressures facing local businesses including fuel prices and higher interest rates, comments from Minister Campbell that the region's youth unemployment could be addressed if only Illawarra business owners would employ more young people are simplistic and disappointing.

Minister Campbell’s comments also fly in the face of yesterday’s job figures from the ABS which show employment actually fell by 17,000 people in NSW in the last month on the back of the current economic conditions, he said.

Whilst welcoming the recent announced cuts to Payroll Tax, these were recognition that NSW businesses are doing it tough in comparison to other states.

“Modelling undertaken by the NSW Business Chamber for the recent NSW IPART review demonstrated that a 12 person business in NSW pays $25,600 in state taxes compared to $2,600 for a similar sized business in Brisbane, he said.”

“The Illawarra has one of the highest levels of unemployment in NSW at 8.6%. Clearly there is more at work here than just business taxes.”

Mr Dion said that the reductions in Payroll Tax do not take effect until the 1 January 2009 and it won’t be until 1 January 2011 until the rate reaches it final level of 5.5%.

“Cuts in Payroll Tax and workers compensation premiums are a good start but our state competitors are still ahead of us. NSW businesses have been operating in an uncompetitive environment compared to our interstate competitors in Queensland that have a payroll tax rate of 4.75% and Victoria at 4.95%.”

“Illawarra Business Chamber’s campaign to cut Payroll Tax will provide some Illawarra businesses currently paying Payroll Tax with some breathing space to continue to operate their businesses and maintain their staff levels in what is now a choppy economic environment.”

“We do acknowledge there will be some larger employers in the region who will benefit more significantly from these cuts and may as a result be in a position to employ additional staff.

“However, the bigger picture is about having an overall environment in the Illawarra favourable to employment growth, and a significant part of this is ensuring we also have adequate investment in the regions infrastructure,” said Les Dion, President of Illawarra Business Chamber.

“The Government has just released a $140 billion State Infrastructure Strategy which contains no new infrastructure projects of significance for the Illawarra.”

“If Minister Campbell is serious about job creation in the Illawarra, he needs to help us secure more Government infrastructure investment to stimulate the local economy. Moving forward on projects such as the F6 extension and Maldon-Dombarton freight line would contribute to the growth of the Illawarra economy and put locals in jobs”.

Mr Dion said that the IBC stand ready to work with Government, Unions and other business groups to look at addressing the Youth Unemployment situation in the Illawarra.

For further information please contact:
Les Dion, President on 0418 422 792 or Mark Grimson on 4229 4722 or 0409 155240