States to crack down on investment poaching

24/8/03
Western Australia is to sign an investment co-operation agreement with other States and Territories to prevent cross-border 'poaching' of businesses and events.
Treasurer Eric Ripper said the move was aimed at stamping out the practice of Governments offering financial incentives to lure companies - or events - from one State to another.
Mr Ripper said all States and Territories - except Queensland - had agreed to co-operate.
"When it comes to attracting new investment from overseas to our States and Territories we will all fight tooth and nail, but simply poaching a business or an event from over the border does nothing for the national economy and short changes taxpayers," he said.
Mr Ripper said the States believed that, rather than offering financial incentives for relocation, a better investment would be to create a competitive business climate.
"I'm disappointed that Queensland doesn't yet see the merit in stamping out this economically inefficient practice in the interests of their taxpayers," he said.
The Treasurer said a South Australian Government decision in 2000 to offer financial incentives to whitegoods manufacturer Email to move from Victoria was an example of the practice targeted by the agreement.
"Email simply shifted 650 jobs across the border, with no new jobs or national economic benefit," he said.
Similarly, the Victorian Government 'poached' the Heineken Golf Classic in 2000.
Treasurer's office: 9222 8788