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Mr THOMAS GEORGE (Lismore) [10.47 a.m.]: I am often asked why I ever entered politics. I always answer, "Out of frustration." I am frustrated about what happens to businesses in country and regional areas. It is embarrassing for me to read this document, but I want to place it on record. It is from Allister Parker's Plastering, and it states:
We have an internal linings company based in Lismore, Northern NSW. We as a small business have always found it difficult to compete against QLD contractors due to the differences in NSW Worker's Compensation and Payroll Tax, examples as follows.
Allister Parker's Plastering set out details of its quotation for the building of the Ballina hospital, a New South Wales Government contract. His quotation price was $208,088. The successful tender in the amount of $191,440 from a Queensland company $13,277 less. The workers compensation and payroll tax charges for the Queensland company were $4,530.The Lismore company's quote for internal linings at the Lismore police station was $716,840. It missed the job again. Why? The variance in the two taxes: $27,835 more for the New South Wales contractor.
The New South Wales quotation for the mental health unit at Lismore Base Hospital was $1,958,000; the successful tenderer bid $1,890,000. The variation in charges between the New South Wales and Queensland bidders was $67,000. The quotation from the New South Wales company for the Tweed Heads Hospital was $340,000. Again the successful tenderer was a Queensland company at a price of $325,000. The variance in charges on that contract was $15,665. The New South Wales company often loses business even for plastering a house at a cost of about $3,000 because the payroll tax component is about $600. They are being priced out of the market by competitors from Queensland. New South Wales Government charges are defeating the efforts of businesspeople in this State.
Time after time the Government claims that it is cutting workers compensation charges. It also claims that it is reducing every other tax. I put on record that the workers compensation paid by this company last year was 13 per cent or $1,055,000. This week the company got the bill for this year's premium and there is no difference—again the rate is 13 per cent. The Queensland rate is 3.8 per cent. Where are these businesses to go? Rod Cunningham, the estimator, and Allister Parker visited me. Allister Parker asked, "Where do I take my business? Will I be forced to operate from Queensland to compete for New South Wales contracts because I am losing business? How do I keep my men employed in Lismore? I am not successful in getting contracts in New South Wales, especially government contracts, because the charges in this State are making my quotes higher. The Government should assist me to maintain employment in Lismore and be successful. I can run my business but when these charges are taken out of my hands how am I to continue in a responsible manner to employ just on 50 people when I am not being successful in obtaining contracts?"
Allister Parker does not want any help, but he certainly does not want to be penalised because he is operating on this side of the border when people from over the border are getting every assistance to compete against New South Wales businesses because of the Iemma Government's payroll tax and workers compensation charges. This is a disgrace and it needs to be fixed up. [Time expired.]