SA – weakest business conditions, fastest growing CPI, lowest wage growth
Feb 22, 2012
Hon Iain Evans MP
Shadow Treasurer
SA – weakest business conditions, fastest growing CPI, lowest wage growth
Ten years of a State Labor Government and South Australia has nothing to show but the weakest business conditions and fastest CPI growth.
NAB has today released its SME Business Survey for the December 2011 quarter which shows that South Australian business conditions remain the weakest of all states.
Further statistics released today by the ABS show that South Australia experienced just a 3.3 per cent growth in wages in 2011 – the lowest growth of all states.
This follows last month’s CommSec report which showed that consumer prices were the fastest growing in the nation.
Households are getting squeezed at both ends - increased costs through higher taxes and the fastest growing CPI (cost of living increases) and lowest wage growth. This triple whammy means households have less spare money to spend, meaning they spend less, which in turn drives down business confidence.
Under Labor, State taxes have gone up at nearly two and a half times the rate of inflation, while property taxes have gone up by almost four times the rate of inflation.
“All South Australians, both businesses and households alike, are feeling the impact of this high-taxing, high-spending Weatherill Labor Government,” Shadow Treasurer Iain Evans said.
“Businesses are struggling to operate under Labor’s uncompetitive tax regime and big increases in the cost of living, combined with other big increases in Government charges, have put the squeeze on household spending.
“After a decade of Labor mess, Treasurer Snelling needs to explain to all South Australians why this Labor Government has failed to provide a competitive tax regime in which businesses can operate and households can live.
“Households and businesses are feeling the direct impact of the Weatherill Government’s budget mess. Despite being the highest taxing Government in Australia, they are running a budget deficit this year of $367 million, and after selling the South East Forests and the Lotteries Commission, State debt is increasing from $8 billion to over $11 billion,” Mr Evans said.