NSW budget in Penrith: Decline in growth fears for the west

THE state budget will probably hamper employment growth in western Sydney, the University of Western Sydney’s associate professor of economics and finance, Kevin Daly, said.
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He said manufacturing, which employed large numbers of people in western Sydney, had little in the budget to look forward to.

“There are pockets of increased capital expenditure around infrastructure, such as the South West Rail Link, and the doubling of the first-home owner grant for new houses,” Professor Daly said.

“But the state government is taking a conservative approach; keeping expenditure down in the face of what is an Australia-wide concern about the European crisis.”

He said NSW’s economic growth was already forecast to decline by 0.5 per cent.

“Western Sydney is the manufacturing engine of NSW and lower growth is going to affect employment,” Professor Daly said.

He said the increased home-owner grant would make home ownership more affordable to more people.

He also said that the increased related construction would provide some employment.

“But in attracting employers and new manufacturing activity to western Sydney, the government should look at Queensland and South Australia, where they provide incentives to employers,” Professor Daly said.

He cited, in particular, the Queensland government’s campaign to encourage Chinese investment in mining and manufacturing, including tax concessions.

“However, the NSW budget gives little in terms of manufacturing-related activity,” Professor Daly said.

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