NSW Liberal Leader Peter Debnam said today Morris Iemma wants to get his hands on a state-based GST so he can increase it to 15%.

"The community would shudder at the thought of Morris Iemma, Michael Costa, Joe Tripodi and John Della Bosca getting their hands on the GST," Mr Debnam said.

"This is clearly a NSW Labor plan to increase the rate to 15%," he said.  

"A state-based GST could be increased at the whim of Morris Iemma, Joe Tripodi, Michael Costa and John Della Bosca.

"With the GST administered by the Federal Government and agreed to by all Australia states, it has checks and balances requiring all the states and the Australian Government to agree before it can be increased beyond 10%.  

"If Morris Iemma thinks he can get the other Labor Premiers to agree to hand the GST administration to individual states, then why can't he get Peter Beattie to agree to give our money back – the $750 million that NSW donates to Queensland every year.

"It's clear that Morris Iemma's real agenda is to get his hands on the GST so he can increase the rate to 15%.  

"Labor just can't help themselves; they always think the way out of any difficulty is more and more tax.

"Morris Iemma and Michael Costa have already plunged the state into deficit, seen economic growth stall at zero, and levy the highest state taxes in Australia. They've presided over the collapse of the housing sector and starved frontline services of badly needed resources to fatten the bloated bureaucracy.  

"Morris Iemma and Michael Costa have failed as Premier and Treasurer, as have their colleagues Carl Scully, Joe Tripodi, Frank Sartor, John Della Bosca, and Eddie Obeid over Labor's 12 years of Government.

"The people of NSW deserve higher standards, better services and balanced budgets," Mr Debnam said.