The Federal Government has announced a $10.4 billion Economic Security Strategy to strengthen the Australian economy in the face of the worst global financial crisis since the Great Depression. Prime Minister Kevin Rudd announced the strategy on Monday with five key measures:

• $4.8 billion for an immediate down payment on long term pension reform
• $3.9 billion in support payments for low and middle income families
• $1.5 billion investment to help first home buyers purchase a home
• $187 million to create 56,000 new training places in 2008-09
• Accelerate the implementation of the Government's three nation building funds and bring forward, the commencement of investment in nation building projects to 2009

This strategy will be entirely funded from the budget.  Treasury has advised the Budget will remain in surplus after these measures.

The government will publish a full budget update in the mid-year economic and fiscal outlook within a month. For further information view the Prime Minister's media release.

In addition to the Economic Security Strategy, Prime Minister Kevin Rudd has announced three further measures to address deteriorating financial market conditions. The Federal Government has:

• guaranteed all deposits of Australian banks, building societies and credit unions and Australian subsidiaries of foreign-owned banks for a period of three years
• guaranteed wholesale term funding of Australian incorporated banks and other authorised deposit-taking institutions (ADIs)
• directed the Australian Office of Financial Management to purchase an additional $4 billion in Residential Mortgage Back Securities.

The guarantee of deposits in Australian institutions has been legislated as part of the Financial Claims Scheme (FCS) and will remain uncapped for the next three years, at which point this position will be reviewed.

The guarantee on eligible wholesale borrowing will be made in return for a fee in respect of eligible non-deposit debt obligations of eligible institutions. This interim measure will enable Australian institutions to raise funds in current tight conditions and is designed to restore confidence in credit markets.

For further information view the Prime Minister's media release.

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The St.George Bank – Commerce Queensland Pulse Survey of Business Conditions is expected to confirm a significant deterioration in business confidence when the results are released on Monday 27 October.

The survey will provide the first indication of the effect the current global market turmoil is having on Queensland business confidence and business operations.

The survey has also focused on infrastructure (both hard and soft) and the degree to which the availability, standard and cost constrained business.

Full statewide and regional results will available on Tuesday 28 October from the Commerce Queensland website. For further information contact Sarah Kearney at skearney@commerceqld.com.au.

Commerce Queensland has provided a submission to the Henry Review of Taxes, highlighting the need to cut payroll tax from 4.75 per cent to 4.5 per cent to stimulate growth in the state’s economy.

Queensland businesses have believe taxes imposed on business need to reflect the economic imperative of Australia remaining internationally competitive, should not impede job growth and should encourage investment 

The Review aims to create a tax structure that positions Australia to deal with the demographic, social, economic and environmental challenges of the 21st century and enhance Australia's economic and social outcomes.

This review will encompass all Federal Government and state taxes, except the GST and will be conducted in several stages with a final report to be provided to the Treasurer by the end of 2009.

• To view the submission, please visit the Commerce Queensland website.

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Commerce Queensland has called on the Federal Government to align 457 Minimum Salary Levels (MSL) and conditions with the levels prescribed in Federal industrial relations legislation.

In a response to the three-part Deegan Subclass 457 Integrity Review Commerce Queensland has also urged the Department of Immigration and Citizenship (DIAC) to address acute low-skilled labour shortages with targeted short-term programs.

The review process covers three issue papers on the Subclass 457 visa arrangements:

• Minimum Salary Level and Labour Agreements
• English Language requirements and Occupational Health and Safety issues
• Integrity and Exploitation issues.

For further information or for a copy of Commerce Queensland's responses please contact Jillian Fairbrother at jfairbrother@commerceqld.com.au.

Commerce Queensland has expressed support for the objectives and new approach to the governance of the national training system outlined in the Skills Australia Future Governance of the National Vocational Education and Training System paper.

In a response to the discussion paper, Commerce Queensland is supportive of the unified national vision outlined with industry positioned at the centre of the education and training system.

Commerce Queensland has advocated:

• the development of an industry led demand driven system that will ensure the skills needs of industry influence the system
• the quality of the vocational education system, can only be measured in terms of how it meets the needs of Australian workers and Australian enterprises
• a system that maintains a degree of flexibility in its governance so as to recognise and accommodate the regional needs and differing challenges and issues which face the separate regions, sectors and industries across Australia.

For further information or a copy of the submission please contact Megan Lewis at mlewis@commerceqld.com.au.

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Commerce Queensland has prepared a draft response to Infrastructure Australia's discussion paper on the national priority list for energy, transport, communications and water assets as part of the Building Australia Fund worth $20 billion.

Infrastructure Australia will hand down its final report to the Council of Australian Governments (CoAG) in March 2009.
 
For further information please contact Nick Behrens at nbehrens@commerceqld.com.au.

Commerce Queensland recently provided a response to the draft Environmental Protection Policies (Air, Noise and Water).

These policies will influence the management of air, noise and water quality across Queensland. Commerce Queensland has some concerns about the policies as currently drafted. In particular, we are concerned that the noise Environmental Protection Policy may inadvertently restrict some activities of business and industry and that certain aspects of the three policies may initially create some confusion and uncertainty.

Commerce Queensland will continue to work constructively with the Environmental Protection Agency to resolve these concerns. For further information contact Sarah Kearney at skearney@commerceqld.com.au.

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