Business welcomes $42billion stimulus

By Staff Writer

A leading business group has welcomed the $42 billion Nation Building and Jobs Plan announced yesterday but stressed that the State and Territory Governments must follow the Federal Government’s lead.

Business Council of Australia (BCA) chief executive Katie Lahey, said the Rudd Government has acted quickly and responsibly to limit the impact of the global recession on Australia.

“In the face of a rapidly deteriorating global downturn, this is a government that stands ready to act,” Ms Lahey said.

“The package delivers a substantial economic stimulus that should have an immediate and welcome impact on demand.”

Ms Lahey said the states and territories must follow the lead of the federal government and the BCA strongly endorsed the government’s intentions to withdraw funding from state and territory governments that seek to offset additional federal spending.

“Our budget submission called for a coordinated response by all levels of government if Australia is to avoid the worst aspects of the global recession,” Ms Lahey said. 

“It’s time for the states and territories to publicly declare how their policies will support the efforts of the federal government in tackling this economic emergency.

Key elements of the Rudd Government’s $42 billion Nation Building and Jobs Plan include:

• $14.7b for schools refurbishment – $200,000 each

• $6.6b to build 20,000 new homes

• $3.9b to insulate 2.7m homes

• $890m for road repairs and infrastructure

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