ID :
204946
Fri, 09/02/2011 - 16:52
Auther :
Shortlink :
https://oananews.org//node/204946
The shortlink copeid
Baird promises to get tough in the budget
If you believe the horror stories of NSW Treasurer Mike Baird, next week's state budget could rival the thrills and spills of the slasher films The Texas Chainsaw Massacre and Friday the 13th.
Ever since the March state election, the treasurer has been readying taxpayers with talk of a tough budget, state finances "utterly out of control", deficits stretching out across the forward estimates, and cuts across the board.
Speaking to AAP on the eve of the budget, Mr Baird again painted a bleak picture of NSW's bottom line, saying it presented the five-month-old O'Farrell government with "an incredible challenge".
"You can't have a clearer description than without any government action there is a row of deficits, more than $5 billion worth of deficits from now out to 2014-15, and at that same time we have global economic events that are putting downward pressure on revenues," Mr Baird said on Friday.
"Falling revenues, a budget that is not sustainable, would be a challenge for any treasurer or any government, and that's what we face."
Just days after the state election in March, the treasurer and Premier Barry O'Farrell expressed outrage at what they said was a $4.5 billion black hole left by Labor, a claim which soon soared to $5.2 billion after the blowout in the solar bonus scheme.
The slide began in December last year, when then-Labor treasurer Eric Roozendaal handed down the budget half-year review.
According to an April report by acting Treasury secretary Michael Lambert, in the six months between the budget and the half-year review the state's finances deteriorated by $2.245 billion from the forward estimates.
Treasury advice for March had the state's finances slumping by a further $1.933 billion, Mr Lambert said.
The recent global economic downturn has further depressed the bottom line by "hundreds of millions of dollars", with the financial turmoil battering GST receipts, as well as revenue from stamp duty and payroll tax, Mr Baird said.
The government has tightly guarded the details of Tuesday's budget, resisting the time-honoured practice of pre-budget leaks.
Mr Baird wouldn't reveal the theme for Tuesday's announcement but was confident "it will resonate with NSW when we reveal it on Tuesday".
"I don't want cute lines or snappy phrases," he said.
"This budget is about hard work. It's the hard work required to get out finances back into shape so that we can get on and do what the people of NSW want, and that is to improve these services and build the infrastructure.
"Ultimately if you control your budget then you do have the capacity to actually improve services and that is our intent, to put more frontline workers into place, to help improve those services, and to have the funds to get on and build the infrastructure, of which NSW is so far behind."
While refusing to outline the budget details before Tuesday, Mr Baird admitted "there's no doubt that there are decisions within the budget that are tough".
"But I think the important point is that this is a strong budget, which is exactly what is required in this climate," he said.
"There needs to be a restoration of confidence, confidence that the government is in control of its finances, is one that has the capacity to absorb economic and fiscal shocks as they emerge, and at the same time, focusing in on what needs to be done for the people of NSW."
But he disputed opposition and union claims that the quality of public services would be eroded by the expected fiscal tightening.
"I can guarantee after this budget, NSW will have a much greater capacity to deliver improved services and catch up on the infrastructure backlog that was left behind," Mr Baird said.
"We are not going to bow to their scare campaigns that are being run by the leader of the opposition or anyone else."
The state opposition is also talking of a horror budget, but for different reasons.
Labor has long disputed the existence of the $5.2 billion budget black hole, accusing the government of spinning the state's finances as an excuse for unnecessary public service cuts.
Opposition Leader John Robertson, who in July made the wild claim that 80,000 public-sector jobs were in the firing line, called for more spending, not less, saying it was the best cure for the tough economic times.
"Next week's budget is an opportunity for the premier to send a strong signal by investing in jobs and public services for NSW," Mr Robertson said this week.
"In tough economic times, the most important thing the government must do is support jobs - so that mums and dads can pay their bills and meet the monthly mortgage repayments.
"Instead we've seen threats of a so-called horror budget."
Unions are planning a rally of more than 20,000 public servants on Thursday - two days after the budget - in expectation the government will take the axe to jobs and services.
On Friday, Unions NSW released research by BIS Shrapnel, which described the $5.2 billion black hole as "more emotive than real" and said cuts would hurt services and the economy.
"There is not a lot of fat in the system," the report said.
"The government should ensure that any cuts to departmental budgets don't impact on the provision of services."
BIS Shrapnel also questioned Mr Baird's gloomy portrait of the budget position, saying the NSW economy would "do much better over the next five years" than the past decade, due to a buoyant construction sector and improved export volumes.
Unions NSW secretary Mark Lennon said the report backed his claims the government was confecting a budget crisis to justify cuts.
"It seems to us that the state's finances are in shape, we still have a Triple A rating," Mr Lennon said.
"The issue about the alleged budget black hole has been dispelled."
The government's supporters are also pressuring Mr Baird over the budget, saying it is now the time to give financial grunt to its reform agenda.
The NSW Business Chamber, a vocal backer of reforms such as the public-sector wage cap and the establishment of the new advisory body Infrastructure NSW, said such changes needed to be "backed up by a strong budget".
Chamber chief Stephen Cartwright called for spiralling expenses to be brought under control and for the government to commit funding to major infrastructure projects such as the Sydney's North West Rail link.
"We want this to be a foundational budget for the next decade," he said.
Ever since the March state election, the treasurer has been readying taxpayers with talk of a tough budget, state finances "utterly out of control", deficits stretching out across the forward estimates, and cuts across the board.
Speaking to AAP on the eve of the budget, Mr Baird again painted a bleak picture of NSW's bottom line, saying it presented the five-month-old O'Farrell government with "an incredible challenge".
"You can't have a clearer description than without any government action there is a row of deficits, more than $5 billion worth of deficits from now out to 2014-15, and at that same time we have global economic events that are putting downward pressure on revenues," Mr Baird said on Friday.
"Falling revenues, a budget that is not sustainable, would be a challenge for any treasurer or any government, and that's what we face."
Just days after the state election in March, the treasurer and Premier Barry O'Farrell expressed outrage at what they said was a $4.5 billion black hole left by Labor, a claim which soon soared to $5.2 billion after the blowout in the solar bonus scheme.
The slide began in December last year, when then-Labor treasurer Eric Roozendaal handed down the budget half-year review.
According to an April report by acting Treasury secretary Michael Lambert, in the six months between the budget and the half-year review the state's finances deteriorated by $2.245 billion from the forward estimates.
Treasury advice for March had the state's finances slumping by a further $1.933 billion, Mr Lambert said.
The recent global economic downturn has further depressed the bottom line by "hundreds of millions of dollars", with the financial turmoil battering GST receipts, as well as revenue from stamp duty and payroll tax, Mr Baird said.
The government has tightly guarded the details of Tuesday's budget, resisting the time-honoured practice of pre-budget leaks.
Mr Baird wouldn't reveal the theme for Tuesday's announcement but was confident "it will resonate with NSW when we reveal it on Tuesday".
"I don't want cute lines or snappy phrases," he said.
"This budget is about hard work. It's the hard work required to get out finances back into shape so that we can get on and do what the people of NSW want, and that is to improve these services and build the infrastructure.
"Ultimately if you control your budget then you do have the capacity to actually improve services and that is our intent, to put more frontline workers into place, to help improve those services, and to have the funds to get on and build the infrastructure, of which NSW is so far behind."
While refusing to outline the budget details before Tuesday, Mr Baird admitted "there's no doubt that there are decisions within the budget that are tough".
"But I think the important point is that this is a strong budget, which is exactly what is required in this climate," he said.
"There needs to be a restoration of confidence, confidence that the government is in control of its finances, is one that has the capacity to absorb economic and fiscal shocks as they emerge, and at the same time, focusing in on what needs to be done for the people of NSW."
But he disputed opposition and union claims that the quality of public services would be eroded by the expected fiscal tightening.
"I can guarantee after this budget, NSW will have a much greater capacity to deliver improved services and catch up on the infrastructure backlog that was left behind," Mr Baird said.
"We are not going to bow to their scare campaigns that are being run by the leader of the opposition or anyone else."
The state opposition is also talking of a horror budget, but for different reasons.
Labor has long disputed the existence of the $5.2 billion budget black hole, accusing the government of spinning the state's finances as an excuse for unnecessary public service cuts.
Opposition Leader John Robertson, who in July made the wild claim that 80,000 public-sector jobs were in the firing line, called for more spending, not less, saying it was the best cure for the tough economic times.
"Next week's budget is an opportunity for the premier to send a strong signal by investing in jobs and public services for NSW," Mr Robertson said this week.
"In tough economic times, the most important thing the government must do is support jobs - so that mums and dads can pay their bills and meet the monthly mortgage repayments.
"Instead we've seen threats of a so-called horror budget."
Unions are planning a rally of more than 20,000 public servants on Thursday - two days after the budget - in expectation the government will take the axe to jobs and services.
On Friday, Unions NSW released research by BIS Shrapnel, which described the $5.2 billion black hole as "more emotive than real" and said cuts would hurt services and the economy.
"There is not a lot of fat in the system," the report said.
"The government should ensure that any cuts to departmental budgets don't impact on the provision of services."
BIS Shrapnel also questioned Mr Baird's gloomy portrait of the budget position, saying the NSW economy would "do much better over the next five years" than the past decade, due to a buoyant construction sector and improved export volumes.
Unions NSW secretary Mark Lennon said the report backed his claims the government was confecting a budget crisis to justify cuts.
"It seems to us that the state's finances are in shape, we still have a Triple A rating," Mr Lennon said.
"The issue about the alleged budget black hole has been dispelled."
The government's supporters are also pressuring Mr Baird over the budget, saying it is now the time to give financial grunt to its reform agenda.
The NSW Business Chamber, a vocal backer of reforms such as the public-sector wage cap and the establishment of the new advisory body Infrastructure NSW, said such changes needed to be "backed up by a strong budget".
Chamber chief Stephen Cartwright called for spiralling expenses to be brought under control and for the government to commit funding to major infrastructure projects such as the Sydney's North West Rail link.
"We want this to be a foundational budget for the next decade," he said.
