ID :
205325
Mon, 09/05/2011 - 14:04
Auther :
Shortlink :
http://m.oananews.org//node/205325
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NSW budget won't please all: Baird
SYDNEY (AAP) - 05 Sept. - NSW Treasurer Mike Baird has promised his first budget will usher the laggard state into a "new era" but at a cost.
Not all of its tougher measures will be met "with universal acclaim", he admits.
Speaking on the eve of the state budget, which Premier Barry O'Farrell has confirmed will include a deficit for the first time in five years, Mr Baird said it would draw a line in the sand "that says it's about time we got NSW moving".
"It's about time we improved our services, and it's about time we built the infrastructure the state's been talking about, but has never delivered," Mr Baird told reporters in Sydney.
"Tomorrow we outline a strategy that protects the finances, builds the infrastructure, and returns confidence back to NSW.
"We're excited about what tomorrow brings and certainly it is hard work. It is not going to turn the state around in one budget. But the first major step is going to be taken tomorrow."
Tuesday's budget is expected to contain massive cuts to jobs and services, with the government grappling with what it says is a $5.2 billion black hole and declining GST, payroll tax and stamp duty revenues.
Mr Baird admitted the as yet undisclosed "tough" budget measures were unlikely to please all taxpayers - but argued the pain was necessary to fix the state's underperforming economy.
"The budget that comes out tomorrow is going to show one thing for NSW and that is a state government that is in control of its finances," Mr Baird said.
"There is no doubt that there are some measures within the budget that won't be met with universal acclaim, that is in the long-term interest of NSW."
Mr O'Farrell defended plans to run a deficit, without giving details of its size, after News Ltd reported the state would sink $1 billion into the red this financial year to pay for transport infrastructure.
News of the transport spending follows Sunday's announcement that $1.082 billion will be spent on a health capital works program in 2011/12, and $4.7 billion over the next four years, which the government says is a 50 per cent increase on the past four years.
Cuts to the state bureaucracy will fund a promise to hire 4000 more police, nurses and teachers, some media have also reported.
The 2011/12 deficit will be only the second in 15 years but Mr O'Farrell said any debt the state incurred would be "responsible".
"We've said we will ensure that we will put in place the economic infrastructure that guarantees the future of the state," Mr O'Farrell told Fairfax Radio on Monday morning.
"Most people buy their house, not with cash, but through a bank loan, and as long as you know at the end of the day you can afford the repayment, that the asset is going to be worth more in the long run than it was when you bought it, that is a responsible decision."
The opposition accused the premier of economic vandalism by taking the state's finances into the red and of endangering NSW's triple-A credit rating.
Going into deficit was a "mind-boggling breach of faith", Opposition Leader John Robertson said.
"It is the mother of all backflips, from a man who said he was going to be fiscally responsible, to see the state of NSW facing job cuts and now a $1 billion deficit," Mr Robertson said.
Unions on Monday launched an advertising campaign aimed at debunking the government's claim of a $5.2 billion black hole.
An advertisement in several newspapers on Monday read "the only black hole in NSW is Barry O'Farrell's credibility".
The Australian Industry Group (Ai Group) called for the budget to include tax reform and cuts to red tape, and to provide greater infrastructure and skills investment.
"(Tuesday's) NSW Budget is a prime opportunity for the government to make some difficult yet necessary decisions to address the state's underperformance," Ai Group NSW director Mark Goodsell said in a statement.
Not all of its tougher measures will be met "with universal acclaim", he admits.
Speaking on the eve of the state budget, which Premier Barry O'Farrell has confirmed will include a deficit for the first time in five years, Mr Baird said it would draw a line in the sand "that says it's about time we got NSW moving".
"It's about time we improved our services, and it's about time we built the infrastructure the state's been talking about, but has never delivered," Mr Baird told reporters in Sydney.
"Tomorrow we outline a strategy that protects the finances, builds the infrastructure, and returns confidence back to NSW.
"We're excited about what tomorrow brings and certainly it is hard work. It is not going to turn the state around in one budget. But the first major step is going to be taken tomorrow."
Tuesday's budget is expected to contain massive cuts to jobs and services, with the government grappling with what it says is a $5.2 billion black hole and declining GST, payroll tax and stamp duty revenues.
Mr Baird admitted the as yet undisclosed "tough" budget measures were unlikely to please all taxpayers - but argued the pain was necessary to fix the state's underperforming economy.
"The budget that comes out tomorrow is going to show one thing for NSW and that is a state government that is in control of its finances," Mr Baird said.
"There is no doubt that there are some measures within the budget that won't be met with universal acclaim, that is in the long-term interest of NSW."
Mr O'Farrell defended plans to run a deficit, without giving details of its size, after News Ltd reported the state would sink $1 billion into the red this financial year to pay for transport infrastructure.
News of the transport spending follows Sunday's announcement that $1.082 billion will be spent on a health capital works program in 2011/12, and $4.7 billion over the next four years, which the government says is a 50 per cent increase on the past four years.
Cuts to the state bureaucracy will fund a promise to hire 4000 more police, nurses and teachers, some media have also reported.
The 2011/12 deficit will be only the second in 15 years but Mr O'Farrell said any debt the state incurred would be "responsible".
"We've said we will ensure that we will put in place the economic infrastructure that guarantees the future of the state," Mr O'Farrell told Fairfax Radio on Monday morning.
"Most people buy their house, not with cash, but through a bank loan, and as long as you know at the end of the day you can afford the repayment, that the asset is going to be worth more in the long run than it was when you bought it, that is a responsible decision."
The opposition accused the premier of economic vandalism by taking the state's finances into the red and of endangering NSW's triple-A credit rating.
Going into deficit was a "mind-boggling breach of faith", Opposition Leader John Robertson said.
"It is the mother of all backflips, from a man who said he was going to be fiscally responsible, to see the state of NSW facing job cuts and now a $1 billion deficit," Mr Robertson said.
Unions on Monday launched an advertising campaign aimed at debunking the government's claim of a $5.2 billion black hole.
An advertisement in several newspapers on Monday read "the only black hole in NSW is Barry O'Farrell's credibility".
The Australian Industry Group (Ai Group) called for the budget to include tax reform and cuts to red tape, and to provide greater infrastructure and skills investment.
"(Tuesday's) NSW Budget is a prime opportunity for the government to make some difficult yet necessary decisions to address the state's underperformance," Ai Group NSW director Mark Goodsell said in a statement.
