31 February 2009
The development industry today said it would be irresponsible for there to be any further cut in capital works spending in response to a reported blow out in the NSW government budget deficit to $2 billion.
It doesnt make sense to balance the books if it means the states economy is murdered in the process, Mr Gadiel said.
Access Economics says that NSW is in a recession.
Mr Gadiel said in the three months from September to November 2008, home approvals were 47 per cent below their historical level for the same time period.
As current projects are completed, weve had grave fears that there simply wouldnt be enough work to employ tens of thousands of construction workers and tradespeople, he said.
For every $1 million spent in construction, 27 jobs are created in the economy.
Budget measures to kick-start the economy should be retained such as reduction in development levies.
Governments around the world are embracing deficits in an effort to minimise the impact of the economic slow down. NSW should be no exception.
The Urban Taskforce is a property development industry group, representing Australias most prominent property developers and equity financiers.