Monday, June 6, 2011

Barry grabs the money first

Sounds like a good idea to me:


NSW Premier Barry O'Farrell ... playing hardball with the federal government. Picture: Brad Hunter Source: The Australian

PREMIER Barry O'Farrell has threatened to punish the federal government by increasing state mining royalties if it fails to help fund the North West Rail Link and other infrastructure.

Increasing royalties would hurt the federal Budget because, under the super profits mining tax deal, any increase in state tax on mining leads to the federal government taking an equal amount less in royalties.

A similar move by West Australian Premier Colin Barnett stripped $2 billion from the federal Budget.

Any increase in NSW royalties would put Treasurer Wayne Swan's $3.5 billion surplus for 2012-13 at risk.

"We reserve the right to consider all measures in the budget," State Treasurer Mike Baird said yesterday.

"Our desire is to have a constructive relationship with the federal government but, we will make no apologies for standing up for NSW.".....

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