Vic: Big projects expected to dominate Vic plan

AAP General News (Australia)
04-19-2004
Vic: Big projects expected to dominate Vic plan

By Nick Lenaghan, State Political Correspondent

MELBOURNE, April 19 AAP - Big projects - a 5,000-seat convention centre and Port Phillip
Bay channel deepening - are expected to top the Victorian government's economic statement
tomorrow.

But cuts to payroll tax and land tax appear less likely to be among the measures announced.

The state government has been busy spruiking its action plan for business while remaining
coy, publicly at least, about the detail.

Coming two weeks ahead of the May Budget, the plan aims to cut business costs and red
tape and boost investment in the state economy.

Treasurer John Brumby continued the hints today after telling reporters the plan offered
initiatives to cut business costs and for public infrastructure.

"All in all I would describe tomorrow's statement as a bold plan, a positive plan and
one which will generate significant new investment and jobs for Victorians," he said.

Asked about government support for the channel deepening project Mr Brumby agreed "there
will be some initiatives tomorrow which will support and promote that development."

"The projects which will be announced tomorrow will be of benefit right across Victoria.

"If you improve the efficiency of the port, that's got benefits not just to businesses
in Melbourne but huge benefits to exporters right across the state."

Last week it was reported the plan would cut the WorkCover levy for business.

Today the treasurer appeared less favourable to reducing payroll tax - a long-held
desire for the exporters particularly.

"We've cut payroll tax already ... we've got the second lowest payroll tax rate in
Australia, it's been a good effort but I'm not going to preempt the statement," Mr Brumby
said.

The plan is also expected to offer support for a 5,000-seat convention centre to put
Melbourne back in the conference market.

But Mr Brumby kept mum on how the projects would be funded while insisting there would
be no increase in state debt and the state would continue bringing in a surplus annually.

Big business is upbeat about the shape of plan - or as much has it as been revealed
in hints and leaks so far.

Australian Industry Group Victorian director Tim Piper said the infrastructure projects
and the cut to Workcover levy were positive for business.

And while he agreed it was unlikely business would get a payroll tax reduction, Mr
Piper still held out for a break for exporters.

"Exporters are hurting in Victoria at the moment and if there was some assistance (that)
could be given there we'd like to see it," he said.

Opposition Leader Robert Doyle also said he wanted "to be proud" of tomorrow's announcement
but feared it "just another media stunt".

"All of this teasing that's going on, all of this building up the announcement, it
better be an announcement of substance and an announcement of worth," he said.

AAP nl/dk/lb/bwl c

KEYWORD: ECONOMIC

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