ID :
205556
Tue, 09/06/2011 - 15:06
Auther :
Shortlink :
https://oananews.org//node/205556
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NSW budget sets ambitious savings target
SYDNEY (AAP)- Sept. 6 - The NSW government has set itself an ambitious $8 billion savings target, cut 5000 jobs and curbed stamp duty exemptions in a tough first budget.
Treasurer Mike Baird's budget failed to live up to its horror billing, despite Tuesday's rhetoric of "stark" state finances and the "dark economic path" left to him by the former Labor government.
However, unions and the state opposition are already up in arms over some of the tough savings measures designed to rescue the state from a massive budget deficit totalling $5.319 billion over the next four years.
Top of the list of savings are 5000 voluntary redundancies in the public service, while billions more will be saved through procurement changes, the public-sector wage cap and a whole-of-government efficiency drive.
Mr Baird also put NSW on a collision course with the federal government by announcing the state would increase mining royalties to cover the impact of the federal carbon tax.
NSW will raise $944 million over four years by raising mining royalties, which the federal government will have to pay back to miners under its minerals resource rent tax (MRRT).
"I make no excuses for asking Canberra to contribute to the cost of the carbon tax to this state," Mr Baird told reporters at a post-budget briefing in Sydney.
In the only measure likely to cause the government any political pain, stamp duty exemptions for first-home buyers will be restricted from next year to newly built homes.
Mr Baird said the change would tackle the "critical issue" of the undersupply of housing.
Business groups such as the NSW Business Chamber, the NRMA and Urban Taskforce applauded the budget.
"This is a strong budget that tackles unnecessary expenses growth, cuts bureaucracy and invests heavily in much-needed infrastructure," NSW Business Chamber CEO Stephen Cartwright said in a statement.
Unions NSW and the Labor opposition criticised the 5000 job cuts - which will be pursued through voluntary redundancies - saying they would increase the workload of frontline workers such police, teachers and nurses.
"This is not a victimless crime, cutting 5000 jobs - this is going to impact on the people of NSW," Labor leader John Robertson said.
"We've got a government which is running up costs, increasing taxes, cutting services, slashing jobs and running NSW into a deficit of $700 million in the very first year."
"I'm very happy to stand up to Canberra on that issue."
While forecasting a budget deficit of $718 million in 2011/12, Mr Baird said the savings program would help return the budget to surplus in the following three years.
"We have come today and we've looked the people of NSW in the eye and say we've done what we can to trim our cloth to get our expenses under control," he said.
"We've done what we can so we can actually start to improve the services you've been crying out for and the infrastructure you need.
"Today is not a day that I come and hand out chocolates and champagne.
"Today is a day that I demonstrate to the people of NSW that this government is prepared to do the hard work needed, make some of the tough decisions needed, to get this state back moving again."
Mr Baird said the government had the "appetite" to meet the savings target, after ratings agency Standard & Poor's (S&P) said the measures were "ambitious and may be difficult to achieve".
"Anybody who thinks we don't have the appetite for it ... we're determined to do it, and we will do it," he said.
Tuesday's budget was a mix of cuts and new spending, including billions more for health, transport infrastructure and education.
Mr Baird announced plans to lease out Sydney's Port Botany to raise between $1.8 and $2.2 billion, some of which will help meet obligations to match $750 million in federal funding for the Pacific Highway.
About 4000 new police, nurses and teachers will be hired, partly offsetting the 5000 public-sector job cuts.
Treasurer Mike Baird's budget failed to live up to its horror billing, despite Tuesday's rhetoric of "stark" state finances and the "dark economic path" left to him by the former Labor government.
However, unions and the state opposition are already up in arms over some of the tough savings measures designed to rescue the state from a massive budget deficit totalling $5.319 billion over the next four years.
Top of the list of savings are 5000 voluntary redundancies in the public service, while billions more will be saved through procurement changes, the public-sector wage cap and a whole-of-government efficiency drive.
Mr Baird also put NSW on a collision course with the federal government by announcing the state would increase mining royalties to cover the impact of the federal carbon tax.
NSW will raise $944 million over four years by raising mining royalties, which the federal government will have to pay back to miners under its minerals resource rent tax (MRRT).
"I make no excuses for asking Canberra to contribute to the cost of the carbon tax to this state," Mr Baird told reporters at a post-budget briefing in Sydney.
In the only measure likely to cause the government any political pain, stamp duty exemptions for first-home buyers will be restricted from next year to newly built homes.
Mr Baird said the change would tackle the "critical issue" of the undersupply of housing.
Business groups such as the NSW Business Chamber, the NRMA and Urban Taskforce applauded the budget.
"This is a strong budget that tackles unnecessary expenses growth, cuts bureaucracy and invests heavily in much-needed infrastructure," NSW Business Chamber CEO Stephen Cartwright said in a statement.
Unions NSW and the Labor opposition criticised the 5000 job cuts - which will be pursued through voluntary redundancies - saying they would increase the workload of frontline workers such police, teachers and nurses.
"This is not a victimless crime, cutting 5000 jobs - this is going to impact on the people of NSW," Labor leader John Robertson said.
"We've got a government which is running up costs, increasing taxes, cutting services, slashing jobs and running NSW into a deficit of $700 million in the very first year."
"I'm very happy to stand up to Canberra on that issue."
While forecasting a budget deficit of $718 million in 2011/12, Mr Baird said the savings program would help return the budget to surplus in the following three years.
"We have come today and we've looked the people of NSW in the eye and say we've done what we can to trim our cloth to get our expenses under control," he said.
"We've done what we can so we can actually start to improve the services you've been crying out for and the infrastructure you need.
"Today is not a day that I come and hand out chocolates and champagne.
"Today is a day that I demonstrate to the people of NSW that this government is prepared to do the hard work needed, make some of the tough decisions needed, to get this state back moving again."
Mr Baird said the government had the "appetite" to meet the savings target, after ratings agency Standard & Poor's (S&P) said the measures were "ambitious and may be difficult to achieve".
"Anybody who thinks we don't have the appetite for it ... we're determined to do it, and we will do it," he said.
Tuesday's budget was a mix of cuts and new spending, including billions more for health, transport infrastructure and education.
Mr Baird announced plans to lease out Sydney's Port Botany to raise between $1.8 and $2.2 billion, some of which will help meet obligations to match $750 million in federal funding for the Pacific Highway.
About 4000 new police, nurses and teachers will be hired, partly offsetting the 5000 public-sector job cuts.
