Government financial management – Matter of Public Importance – Delivered in Parliament 18 Sept 2013
Mr Pallas (Tarneit) — It gives me pleasure and somewhat of a degree of disappointment to have to stand to speak in opposition to this matter. You would have thought that on a day when this government’s support hangs by a thread, when support for this government hangs in the balance on the vote of the member for Frankston and when the jobs of 300 workers at Avalon Airport hang in the balance this government would have had one skerrick of introspection about its performance. You would have thought that the members of this government would have considered that perhaps it was time they lived up to their rhetoric and got on with the job rather than getting on with the bluff and bluster and the university-style debating tactics that go on in this place.
For far too long members of this government have demonstrated that they really do not understand that you have to manage both an economy and a community. They have no heart for the community and no stomach for real economic management, which is about growing the state. Let us not forget that in the Public Accounts and Estimates Committee report this government admits that its own election commitments have blown out by 36 per cent. That is a pretty amazing indictment of its own inability to manage; in three short years the costs have blown out by 36 per cent. That is hopeless. Talk about not being able to manage money!
Government members have no vision and no capacity to get on with the job of delivering infrastructure and jobs for this state.
You have to wonder who told the Treasurer it would be a good idea to come in and pat himself on the back on a day like this — on a day when the government and the unelected Premier of this state hang by a thread on the support of the rorting member for Frankston — —
The DEPUTY SPEAKER — Order! I ask the member to withdraw the word he has just used.
Mr Pallas — I withdraw. Here we are, in a situation where the Treasurer was told it was a good idea to come into this place and pat himself on the back.
It is about revisiting his university-style days to bleat semicoherently about the government’s capacity to manage money and for sound financial management, but there is no demonstration of it in the figures that surround this state at the moment. It is little wonder, really. You would have thought that the man who so obsequiously sat at the knee of Peter Costello as his second-best adviser would have looked at the facts before he let his ego and his self-congratulatory skills get out of hand. Perhaps it went without saying. Perhaps the glasses and the schoolboy haircut made him seem like was a whiz-kid. I think that is why the Premier chose him and promoted him — a decision he would no doubt regret now. At least the Minister for Police and Emergency Services knew not to draw attention to himself while he was flailing around incompetently in the Treasury portfolio.
The current Treasurer seeks an audience for his failure, and he has one, but it is not in this chamber; it is in Victoria.
It is in the people who are looking for a job and vision from this government, and all they hear from government members is how good they are. It is not so good. I fear that the Victorian economy and indeed the Victorian people will not be able to withstand much more of the vandalism inflicted upon them by this government. It is not really a laughing matter. This is a government that likes to bleat from the back bench that it is getting on with the job. The only job it is getting on with is on the Victorian people, who voted for something other than this. In fact the Victorian people got goods not fit for purpose, because this is a government not fit for purpose. It does not even match its own rhetoric.
Let us look at unemployment. This government has added 31 900 more Victorians to the rank of the unemployed. You did not hear much from the Treasurer about that today. The unemployment rate in our state now sits at 5.7 per cent, almost one-third higher than when the previous government was in power.
The current government allowed our workforce participation rate to fall to 64.9 per cent, meaning that 30 000 Victorians have given up looking for a job. That is how hopeless this government is when it comes to managing the economy. Perhaps more alarming is that the government has watched insecure and part-time employment form an even greater part of our economy. This government has turned its back on security of employment, turned its back on participation in the workforce and turned its back on the fact that it has presided over an unemployment rate that is one-third higher than it was. Government members think it is something to be proud of; that is the sad thing.
Of the few jobs the Napthine government has created, over 86 per cent of them are part time. Government members have ignored the jobs crisis in Victoria, standing by blithely while workers have been laid off right across the state. On a day when 300 workers see their jobs at risk, this government wants to congratulate itself on its economic management.
An economy is where people live and work. The fact that the blind arrogance of this government is so consuming of itself that it cannot even look to get on with the job of actually governing properly, responsibly and in the interests of Victoria demonstrates exactly how much bluff, bluster and incompetence pervades the Treasury benches.
While in opposition the Minister for Police and Emergency Services condemned the Labor government. He said:
- Victoria’s budget is being kept afloat by the taxes, fees and charges that are imposed on hardworking Victorians and by ever-higher levels of debt.
However, since coming to government the coalition has increased the duty on new car purchases from 2.5 per cent to 3 per cent. It has increased and expanded the congestion levy on car parks by 37 per cent, taking another $183 million in revenue. It also increased disability accommodation fees by 50 per cent but very quickly had to backflip on that one. It increased the value of penalty units under the Monetary Units Act 2004 by 21 per cent, bringing in another $296 million in fine revenue.
This is a government that said it was against introducing new taxes and then introduced the freight infrastructure charge. It is a government that has introduced a fire services property levy which has quite obnoxious and unfair implications for many small business multiple property owners in this state.
In this financial year this government will collect a record $48.3 billion in revenue. Today the state government takes an average of $753 more in revenue from every Victorian taxpayer than it did in 2010. Let us remember that figure because we will be talking about it long and loud. This is from a government that said it was going to reduce the tax burden — in fact it has massively increased it.
The government has slashed $695 million from the education budget. It has stripped $12 million in a year from the funding for Victorian certificate of applied learning coordinators. It has scrapped the $300 School Start bonus from 100 000 families in this state who desperately needed it. It has abandoned the Victorian Schools Plan, which would have seen every Victorian school rebuilt, renovated or extended by 2016-17. It has scrapped 200 teaching and learning coaches, 45 literacy experts and 15 specialists for Koori students.
It has backflipped on its commitments to make Victorian teachers the highest paid in the nation. However, why should Victorians have believed the coalition in the first place? It has scrapped the Young Readers program. It has taken $10 million from the School Improvement Fund, which was promised prior to the election, and put it on the never-never list.
The coalition government has scrapped the apprentice completion bonus, which supports employers of 14 000 young apprentices. This is outrageous, yet government members have the audacity to come into this place and congratulate themselves on their economic management. Economic management is about people, which is what those opposite seem to have forgotten. Economic management is about giving people the means and opportunity to better themselves. To hit apprentices in such a cruel and uncaring way is a demonstration of this government’s sociopathic tendencies.
This government has slashed $1.2 billion in TAFE funding, leading to campus closures and a massive discontinuation of services. However, worse than that the discontinuation of courses means the discontinuation of young people’s hopes and aspirations for the future.
The coalition government has cut $826 million from health. As the latest statistics will show, a crisis is unfolding in health. There has been a failure to meet targets for elective surgery for category 2 patients. Only 61 per cent of patients are treated within 90 days. There has been a failure to meet the target for elective surgery category 3 patients, which was that these patients be treated within 365 days. There have also been blockages in emergency departments, with 40 per cent of Victorian hospitals unable to meet or accept patients arriving by ambulance in the required time.
This is a sign of crisis from a government so obsessed with itself, so consumed with its narcissistic pursuit of economic purity, that it has undermined the opportunities of the people of Victoria. In the 12 months to 31 March 2013, 2323 people waited longer than 24 hours and 3159 mental health patients waited for more than 8 hours to be transferred from an emergency department to a bed. This is a government that thinks it is doing a good job, but I can tell members the number of its victims is mounting because it is a government whose arrogance and ignorance are on display today in equal measure.
This government promised Victorians to get Victoria moving again. It said that all of the service improvements would be delivered without pushing up debt and without increasing taxes. That was its election promise. State final demand growth, a key indicator of overall growth, has plummeted from an average growth of 3.9 per cent under Labor to 1.35 per cent. Our retail sector has been brought to the brink of collapse by this government.
In the entire time the government has been in office, retail turnover has grown 3.1 per cent, which is less than half of the national average. Private infrastructure investment has fallen by almost $900 million, which is a 16 per cent drop. Government supported apprenticeships have fallen by 12 100. Debt has increased from $8 billion in 2010 to $15.2 billion today — and in the forward estimates it is planned to reach $25.1 billion. That is this government’s sound financial management — a debt-tripling government. These are the people who think they can manage money. They could not manage a chook raffle!
The Treasurer claimed in March this year that we have a record level of infrastructure investment this year. In fact, between 2010 and 2012 capital investment by Victorian state and local governments fell by $1 billion — a 9 per cent decrease. Almost 70 per cent of government capital investment since 2011-12 has been money allocated by the previous government. It is called a capital long tail. Between December 2010 and June 2013 we have seen private capital investment in Victoria fall by over almost $900 million. Since coming to office, this government has slashed new infrastructure investment from $3.9 billion in 2009-10 to $825 million in 2013-14. This is even when you count the government’s ‘game-changing’ dud tunnel.
From a peak of over $7 billion, or 2.2 per cent, of gross state product under Labor, infrastructure investment is now falling, or should I say fading, away under this government. The vital projects that were initiated under the last government are gradually being completed, and this government is being seen for what it is: threadbare, visionless and vacuous.
But government members remain very self-congratulatory. Perhaps this is not really surprising. I do not know of anyone who took the government seriously when it boasted about its ‘record investment in infrastructure’. That is why those opposite decided to waste $8 billion on a dud tunnel. Business certainly did not take them seriously. When he was in opposition the Minister for Roads did not take this seriously, and he has been shown for the fraud that he is — the man who promised he would not build the tunnel but did. This is a sign of missed opportunities.