“Tonight’s Federal Budget is good news for NSW, and Morris Iemma has finally run out of excuses on the appalling state of NSW services, competitiveness and infrastructure”, said NSW Opposition Leader Peter Debnam.

“NSW is swimming in windfall GST, while continuing to squander its own finances with dangerous overspending of taxpayers’ dollars through entrenched economic mismanagement,” said Mr Debnam.

“Morris Iemma has nowhere left to hide and no-one left to blame for the poor state of health services, transport, police numbers, and school facilities, with revelations in the Federal Government Budget that NSW will receive GST windfall revenues of $2.4 billion over the next four years, starting with a GST windfall of $160 million in the 06-07 financial year.

“Any failures in NSW services are squarely Morris Iemma’s responsibility”, said Mr Debnam.

Mr Debnam called on the Iemma Government to direct the GST windfall to essential front line services and tax cuts, to kick start the failing NSW economy and improve the outlook for business and homebuyers.

NSW is set to receive more GST money than the Guaranteed Minimum Amount, for every year for the next four years, as follows:

“Tonight’s Federal Budget provides a clear contrast between the Howard Government’s strong economic management – and Labor’s NSW economic vandalism,” Mr Debnam said.

“The Iemma Government has dragged the chain on the abolition of ‘hidden taxes’ - coming last amongst other states in its timetable to give tax relief to people taking out mortgages, and leasing or hiring business and other equipment,” he said.

“Along with other high NSW state taxes, Labor has created insurmountable obstacles for many businesses who can no longer compete with neighbouring states, and caused residents and investors to leave NSW.

“The Howard Government has demonstrated what can be achieved with the dividends of responsible economic management, including;

- an underlying cash surplus of $10.8 billion
- personal tax cuts
- business tax cuts
- superannuation tax cuts

Mr Debnam also commended initiatives to benefit NSW families and businesses including:

- a roads funding boost which will see around 1 billion dollars made available for Pacific Highway and Hume Highway upgrades, plus more money for local roads
- a funding boost for rail infrastructure upgrades

Mr Debnam said he was also pleased to see additional Mental Health spending of $1.9 billion over five years.