Coalition set for win in New South Wales election: Midday Roundup

Both sides of politics are gearing up for tomorrow’s election in New South Wales, although analysts are expecting a landslide Coalition win with leader Barry O’Farrell expected to take office.

The Coalition has hung some of its strategy on winning support from small businesses, with shadow treasurer Mike Baird promising to review a payroll tax cut if it wins tomorrow.

That Coalition win is looking increasingly likely, with a new Newspoll published today showing primary support for the Coalition is at 50%, well above Labor’s 23%. On a two-party preferred basis, the Liberal-National parties are beating the ALP by 64% to 36%.

The election comes after weeks of tense battles between both sides.

The Coalition has promised to improve the budget’s bottom line by $11 million over the next four years, including saving $2.6 billion by deferring the Parramatta to Epping rail link.

It has also promised to merge the company’s three electricity distribution companies, along with a pledge from O’Farrell to begin work on the M4 East or M5 duplication in the Government’s first term.

It has also said it will start a “Restart New South Wales” fund to pay for road projects and other infrastructure repairs, with funds to be brought in from the leasing of Sydney’s desalination plant.

Last month, Baird promised some relief for small businesses, saying a Coalition government would review the current payroll tax.

“Businesses in this state are penalised for operating in our boundaries,” Baird said during the debate. “Payroll tax is a rate that we will look at it.”

Both O’Farrell and Labor leader Kristine Keneally have embarked on whirlwind tours in the last couple of days, visiting suburbs and towns to convince the undecided.

Keneally has said voters need to “take a hard look at what Mr O’Farrell is saying, because he’s not telling you what he will do”.

However, despite the last-minute campaign, analysts expect a landslide Coalition win, picking up over 70 seats in the process. Labor is expected to win just 14, a new Galaxy poll has revealed.

While 35% of the survey’s respondents believe Labor’s mismanagement will cause their demise.

BHP outlines new spending strategy

Mining giant BHP Billiton has outlined a new spending strategy, saying it will devote $US9.5 billion in capital investment to expand Australian iron ore and coal operations.

The investments will be dedicated to the Pilbara, Bowen Basin and Hunter Valley projects.

BHP also commented on the recent move by the Government to concede on some elements of the resources tax, with royalties to be repaid by the government.

“We reached a framework agreement with the Government quite awhile back and our assumption was that agreement was going to be respected. So we continue to operate and invest on that premise,” BHP ferrous and coal chief Marcus Randolph told a media briefing in response to the change.

Shares higher on Wall Street gains

The Australian sharemarket has opened higher this morning following a strong night on Wall Street, where investors are expecting good financial results from corporates.

The benchmark S&P/ASX200 index was up 28 points or 0.6% to 4727.7 at 11.50 AEST, while the Australian dollar gained significant ground overnight to $US1.02, although it has since dropped to $US1.01.

AMP shares gained 1.13% to $5.38, while ANZ rose 0.26% to $23.35. Westpac gained 0.94% to $23.64 as NAB rose 0.32% to $24.88.

On Wall Street, stocks gained due to investors expecting some strong financial reports. The Dow Jones Industrial Average gained 84 points or 0.7% to 12,170.56.

NBN deadline granted extension

The National Broadband Network Company has been granted permission to extend the construction time needed to complete the project.

NBN said last year it may intend to push the June 2018 deadline back to December 2010, with the Senate agreeing.

“The build has expanded,” communications minister Stephen Conroy has told the Senate.

Fitch cuts Portugal rating

Fitch has cut Portugal’s credit rating, citing risk to the country’s finances after the Government failed to solidify measures to improve the country’s fiscal standing, prompting the Prime Minister’s resignation.

“Given the lack of improvement in financing conditions, Fitch no longer assumes Portugal can maintain affordable market access this year under its baseline scenario,” Fitch’s analyst Douglas Renwick said in a statement.