USU Says Hand Over the GST Billions

Date: 22 February 2006

The United Services Union, representing over 30,000 local government workers across NSW, is calling for the $3 billion in GST revenue being ripped off NSW taxpayers to be returned so that it can be used to provide adequate infrastructure such as roads and health services.

The USU's Policy Planning Committee supports the Governor of the Reserve Bank, Ian Macfarlane's recent comments that "taking money from NSW to fund booming states like Queensland was illogical and would worsen this state's economic predicament."

"When the Reserve Bank Governor makes comments like that it is time for all politicians to sit up and take notice," said USU Executive President Michael Want. "Right across NSW we have regional communities struggling to maintain services and improve infrastructure due to lack of funds. These communities are paying GST which is supplementing wealthy states like WA and Queensland and we're saying enough is enough."

The USU is calling on all Federal and State Parliamentarians and Local Government Councillors to support the union's call to return all the GST collected by the Federal Government from taxpayers in NSW back to NSW.

"Once that part of the campaign is successful we will be calling on the NSW Government to allocate at least one third of the $3 billion directly to support Local Government," said Michael Want.

The Union will be running a public awareness campaign and cites findings in the Independent Study commissioned by the Local Government Association of NSW, which shows that:

o Councils require $14.6 billion over the next 15 years for asset replacement over and above maintenance requirements, double the rate of current expenditure;

o There is an annual infrastructure spending gap of up to $600 million replacement cost;

o There is an Infrastructure backlog of $6.3 billion, or 13 per cent of total asset value.

According to Michael Want these figures confirm the union's call for a substantial financial commitment to local government. "While NSW continues to be robbed of $3 billion per year it will be difficult to address this funding crisis," he said.

The USU will also be calling on Unions NSW to support the call for the return of the missing billions. "Why should NSW Taxpayers continue to suffer from poor infrastructure and services because of the Howard Government's policy of siphoning the GST to booming states like Queensland and Western Australian?"

For further information contact USU Executive President Michael Want on (02) 9265 8211 or 0409 128 164.

For further information

Contact:	Michael Want
Union:	United Services Union
Phone:	(02) 9265 8211
Email:	united@usu.org.au
WWW:	http://www.usu.org.au

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