Mr THOMAS GEORGE (Lismore) [5.43 p.m.]: I raise an issue I have continually pursued in this House and have sought to have addressed by the Government, without success. Now that New South Wales is experiencing negative economic growth on the back of the Government's disastrous mini-budget, and that the Premier and his Government have demonstrated they have no plan to protect New South Wales jobs and businesses, I again place on record the alarming fact that it is still much cheaper to do business in Queensland than in northern New South Wales.

The Premier continues to speak about what he is doing with payroll tax in this State. Last year the Government said reforms to payroll tax would be fully phased in by January 2011. However, New South Wales payroll tax will still be 5.5 per cent with a threshold of about $700,000, compared with today's Queensland payroll tax rate of 4.75 per cent with a $1 million threshold. This probably does not mean much to a lot of people. However, to many employers who are competing against their counterparts over the border, it means that a Northern Rivers business with a $900,000 wages bill will pay $54,000 this year and $49,500 in 2011. In contrast, a similar size business in Queensland with exactly the same payroll pays nothing. Yet the New South Wales Government continually says it is doing something with payroll tax.

We need to provide support to businesses that need support in these tough economic times. The result is that Queensland contractors come into New South Wales, quote against New South Wales contractors, and get the jobs. This is extremely damaging to the communities of the North Coast, and especially to contractors who are competing with those across the border. I have records, which I sent to the former Treasurer, showing that builders in the Lismore and Murwillumbah areas have lost New South Wales Government jobs, which have been afforded to Queensland companies. The reason for that is the extra payroll tax and extra cost of workers compensation in this State. What is the Government's plan to combat the problem of payroll tax? Labor simply does not have a plan. I call on the Government to support the Coalition's proposal of cutting payroll tax by 15 per cent. The small business people and tradespeople in this State, particularly in cross-border areas, are simply not able to compete with their counterparts across the border in Queensland.

When we ask ourselves why this has happened, there is one simple answer: there is no support for New South Wales companies. In one of his answers today the Premier gave a self-glowing report about how he has attracted a $90 million movie to New South Wales. The Premier was able to do that through a payroll tax subsidy. Why do new businesses receive the subsidy yet the employers of this State who have supported the State for a number of years do not receive any relief? It is appalling that the Government does not support existing businesses. Too often when governments come to office they want to help new businesses get started but at the same time they forget the businesses that have operated year in and year out supplying employment to people within this State.

Business owners in my electorate of Lismore should not be penalised for choosing to be based there and do business in New South Wales. They need encouragement—and they certainly have not been getting any from the New South Wales Labor Government. Although the Government does not have a plan to deal with the loss of business in this State, the Opposition does. I call on the Government to support the Coalition's proposal of reducing New South Wales payroll tax by 15 per cent, to provide some relief to employers who have operated their businesses in northern New South Wales and cannot continue to compete against their counterparts across the border, who have better payroll tax conditions. It is a disgrace that the Government does not answer their plea.

Mr PHIL KOPERBERG (Blue Mountains—Parliamentary Secretary) [5.48 p.m.]: I remind the member for Lismore, whose comments I respect considerably, that 90 per cent of small businesses in New South Wales pay no payroll tax whatsoever. As an encouragement to existing businesses, they are exempt from the payroll tax provisions.