Speaking in Nowra on Wednesday after meeting with business operators and Shoalhaven City Council staff and councillors, Mr Baird said while the levy was designed to help reduce the amount of waste going into landfill, it had been diverted into general revenue through “Labor Party sleight of hand”.

That contributed to the levy’s spiralling level, according to Shoalhaven deputy mayor Gareth Ward, who pointed out the levy was $8 per tonne 1998/99, had jumped to $52.40 per tonne in 2009/10, and was expected to reach 132.21 per tonne by 2015/16.

“This has a major impact on our ratepayers,” Cr Ward said.

“That has become another way of the government grabbing revenue for whatever it wants,” Mr Baird added.

While Mr Baird could not promise to axe the levy, he said he would ensure all money collected would go back into initiatives that reduced the pressure on dwindling landfill areas.

He also spoke about reducing the burden on business, saying the tax regime in NSW had made the state’s businesses uncompetitive.

“Doing business in NSW is very, very difficult,” he said, blaming higher tax rates than in key rival states Victoria and Queensland.

“We will make payroll tax competitive with our competitor states,” Mr Baird pledged.

More policies about making it easier for people in business to do business would be released in the lead-up to next year’s state election, Mr Baird promised.

However he said the focus on business would go beyond policies.

“We’ll be telling every public servant to look at what they are doing, and ask themselves ‘How does this policy make doing business in NSW easier?” Mr Baird said.

“We’ve got to get confidence back into the state.”

He also laughed at suggestions he could be leading the Coalition into the election in March 2011.

“I give you this 100 per cent, that in March 2011 Barry O’Farrell will lead us to the election, with a very good chance of unseating the Labor Party,” Mr Baird said.

“I am looking forward to being Treasurer in a government led by Barry O’Farrell.”

He “100 per cent” ruled out making a challenge for the party leadership, saying any rumours of a possible change were just Labor Party attempts to create the perception of divisions within the Coalition.