The May 2004 State Budget must keep up the positive momentum generated by the April Economic Statement, says VECCI.

"Philosophically, the April Economic Statement was a positive recognition that a healthy business sector has the potential to increase the welfare of the entire community," says VECCI Chief Executive Officer, Mr Neil Coulson.

"It was also cognisant of moderating state economic conditions and the fact that measures were needed to provide a boost to confidence, investment and jobs growth.

"The tone of the Economic Statement, with its express aims of cutting business costs and reducing red tape, stands in stark contrast to NSW where taxes on business were recently increased.

"However, the challenge going forward will be to maintain the solid momentum provided by the Statement.

"The Premier has not ruled out tax rises ahead of the Budget - VECCI would oppose any new taxes or increases in any existing taxes or charges on business, as well as any actions that tinker with the existing taxation system purely to maximise revenue, for example base broadening measures. Such a measure appeared in the May 2003 State Budget, when the payroll tax exemption for apprentices and trainees was abolished, at a cost to the business community of $60 million per annum.

"Ahead of the upcoming State and Federal Budgets, VECCI will also continue to push for the speedy progression of vital infrastructure projects, including: standardisation of rail freight gauges; major road projects such as the Calder Highway duplication and the Shepparton, Deer Park, Pakenham and Geelong bypasses; and further investment in water-saving irrigation infrastructure.

"We would also expect the Victorian Government to use the Budget to confirm funding for vital infrastructure initiatives announced in the Economic Statement, such as channel deepening and the Convention Centre, and ensure they are progressed in a timely fashion.

"While the WorkCover premiums cuts are welcome, increased regulatory imposts in the areas of WorkCover and occupational health and safety, and the associated `enforcement' focus, should have regard to Victoria's already high workplace safety standards and its current status as a globally attractive and competitive investment destination. The recently released Maxwell Review of Victoria's Occupational Health and Safety legislation is now open for public comment - it is hoped that the Government's response to this report is measured and does not contradict the good work of the Economic Statement.

"Finally and most importantly, given recent warnings by the Auditor General, it is important that the 2004/05 State Budget restrain recurrent expenditure and deliver healthy operating surpluses over the forward period.

"It must not be forgotten that our ongoing Triple A credit rating is crucial to our efforts as a State to maintain business and investor confidence," says Mr Coulson.

For all media enquiries, please contact:
VECCI Strategic Communications
Ph:      (03) 8662 5226
email: media@vecci.org.au