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Tax boom wasted by states
By Mike Steketee
November 13, 2004
CAPITAL spending by governments on hospitals, schools, railways and electricity has sunk to record lows, despite strong economic growth producing soaring revenues from stamp duties and the GST.
The fall, revealed in Australian Bureau of Statistics figures released yesterday, means Australians will have to cope with substandard infrastructure for years before services improve.
The states are using the money to reduce debt but also to fund large pay increases for public sector employees.
The jump in nurses' and teachers' salaries alone will cost NSW taxpayers an estimated $500million this financial year, as the Government offered significantly more generous pay rises than other states. And the Carr Government also faces turmoil as railway workers demand a 25 per cent pay rise.







, against your imagined BF left wing majority.

