Infrastructure: Government Performance – Grievance Speech delivered in Parliament 28 November 2012
Mr Pallas (Tarneit) — It gives me pleasure to speak in the grievance debate. I suppose it would go without saying that I cannot leave the Treasurer’s comments without at least reflecting upon his hypocrisy. Let us not forget what the Treasurer said about TAFE when he was the shadow Treasurer in 2009:
There is something wrong with a government that raises fees for training at a time of rising unemployment when many people are seeking new training to enter or re-enter the workforce but have less resources to do so
Here we go! Members could not have a more transparent demonstration of the hypocrisy of the Treasurer, who is now leaving the chamber in shame. He has been shamed out of this place for a good reason.
We know this is a government that is so obsessed with its economic performance that it has failed to perform substantially and economically for Victorians. I grieve for the disastrous state of infrastructure planning and delivery in the state of Victoria. I grieve for our state’s lost opportunities. I grieve for the jobs lost in the building and construction industry in this state due to the culpably negligent management of this lethargic, inactive, incompetent and do-nothing government. The Baillieu government is not just working against the interest of Victorians; it is not working at all when it comes to cogently argued and clearly presented infrastructure pipelines that industry can appreciate and plan for. We see government members are intent on commentary and criticism of the past and the circumstances they find themselves in or any other factors they believe can exculpate them from the increasingly apparent realisation that hardworking Victorians are coming to — that is, that in relation to infrastructure delivery things are getting worse not better because of this government.
This disappointing government and our phantom Premier, who is otherwise known as a political ghost who walks, is nowhere to be seen, particularly when those hardworking Victorians who are struggling expect his help.
Instead they are met with an arrogant indifference to their plight. I grieve for 18 per cent of the construction industry workforce or the 48 200 construction workers who, according to the Australian Bureau of Statistics, have lost their jobs in the last nine months and for the 95 building companies which went into liquidation or voluntary administration in the first six months of this year.
The single biggest cause of the decline in activity and employment in Victoria’s building and construction industry has been the withdrawal of government investment. One key action that Victorians would expect from this government to improve our quality of life and boost our state’s productivity would be investment in high quality infrastructure that improves our lives and also make our economy perform better.
I grieve for Victorians who have had to settle for a second-rate, sloppy, lazy, arrogant and partisan government that has failed to recognise that investing in infrastructure will not only boost productivity but also improve our quality of life. Instead Victorians have seen our infrastructure pipeline turned off and replaced with an infrastructure pipedream. A public works phantasmagoria has replaced practical, rational and coherent projects, transparently identified, prioritised and delivered as part of a coherent, publicly enunciated infrastructure plan. I grieve for Victorians because opportunities are being lost.
We were told before the last election by the now Minister for Roads and Minister for Public Transport that the coalition had no plans for the construction of cemetery link, the connection between the Eastern Freeway and the Tullamarine Freeway. Instead the minister told the Victorian people on ABC 774 on 19 November that the coalition had big plans for public transport.
The Doncaster, Rowville, Avalon and Melbourne Airport railway lines were nominated. The development of this policy position does nothing more than demonstrate that this government has simply grabbed the latest headline in an effort to say, ‘We are doing something’. But it lacks the credibility and capacity for coherent delivery of policy that has been prioritised to demonstrate and deliver the wellbeing of Victorians.
We have been told this morning by the Treasurer of the state that as soon as a business case for cemetery link is complete he is keen to get on with it. It would probably have been a good idea to have that business case well and truly available to him before he committed to the project. How much does it cost — —
Mr Ryan — A bit like the pipeline!
Mr Pallas – A bit like the pipeline, says the Deputy Premier.
There is only one difference: this is a $15 billion commitment. Let me put it another way. There is now more infrastructure being spent on and committed to without business cases in place than the state of Victoria invested in roads and public transport in 10 years. And who is going to miss out? The Deputy Premier’s constituency, because if you take that money and you misapply it, then country Victoria will be the big losers. The Deputy Premier should not doubt that when Victorians realise that the roads in country Victoria are falling apart the misapplied priorities of this government will be to blame.
The distorted priorities, the non-existent plans, the poorly thought through project commitments and lack of a credible pipeline of projects all serve to demonstrate that Victoria deserves better. It deserves a government that is prepared to work hard to make the case for investment, not one that rips up strategy after strategy because they were developed by the previous government.
Think about it. We had the nation’s only integrated freight strategy; we had the nation’s only integrated transport and planning strategy. They all disappeared. It is quite within the fiat of a new government to come along and simply say, ‘We have better plans’. But you do not replace existing plans with an abyss. That is what Victorians have seen over the last two years. That is what Victorians have seen as a consequence of the creation of this uncertainty in the building and construction industry. They sit back and wonder where the next jobs are coming from, not at the phantasmagoria of infrastructure that is mooted but which will never effectively deliver for Victorians.
God help us if it were to come to pass that this infrastructure was committed to without a transparent public debate around its merits. But apparently all of that — its cost, its business case — has been passed by the wayside because, ‘We expect governments at the state and federal levels to apply billions of dollars to it even without the case being made’. I grieve for a state let down by its partisan, visionless, lazy government which does not work hard for hardworking Victorians. I am proud, however, of the substantial efforts that state Labor, under the leadership of the Leader of the Opposition, has made to show this government exactly what could be done if it wanted to get serious about jobs and investment.
In regard to real infrastructure projects, the Baillieu government is effectively turning off the infrastructure investment tap. An infrastructure gap is emerging that will hurt our state’s ability to maintain our quality of life and productivity. Do not take just my word for it. The Public Accounts and Estimates Committee no less revealed in its 2012-13 estimates report that the
2014-15 financial year’s net direct investment is forecast to fall below depreciation. So the next time the Treasurer gets up in this place and talks about record investment on infrastructure we will ask him to turn to the members of his party who contributed to that PAEC report and said that the investment going on in this state does not even keep pace with the depreciation of our asset base.
Labor believes that our infrastructure priorities must endure beyond a single electoral cycle or the duration of any one government. That can only occur where a substantial process is put in place of argument, justification, demonstration of need and benefit, and, more importantly, why a prioritised project stands head and shoulders above others.
If Victorians do not get the opportunity to have that debate, if we simply take our government at its word that these things are most important, then we abrogate our responsibility as members in this place to be assured that that money is being put to the best effect for all Victorians, and not just because it is a pet project of some particular minister or a thought bubble that occurred in the absence of anything substantial happening.
Victorians need to be reassured that projects are the result of careful consideration, that alternatives are properly considered and that the most urgent priorities are accorded the highest priority.
Victorians need a body such as Infrastructure Victoria, with responsibility for providing independent and transparent advice to ensure that key projects are prioritised and given relevant priority, not the shambolic approach that we hear day in, day out of a government adrift, bereft of vision or values and without purpose largely because it came to this place without any idea about what it meant to actually govern.
Victorian Labor believes Infrastructure Victoria should be established to ensure that the government and the Victorian public are provided with specialist, properly considered, transparent advice on infrastructure priorities, their cost and the benefits of particular proposals. To achieve this Victorians should be able to identify, through Infrastructure Victoria, the state’s current and future needs and its state and nationally significant priorities.
Infrastructure priority lists should be developed to prioritise Victoria’s infrastructure needs, evaluate proposals for enhancements to Victoria’s significant infrastructure, provide advice to government on impediments to infrastructure delivery, develop and publish research on the economic and social benefits of particular projects, provide advice to government on appropriate funding and financing models for infrastructure and, of course, coordinate submissions from the state and its agencies to the Australian government and other bodies.
This proposal is welcomed by Engineers Australia. This move will provide much certainty to the thousands of people employed in the delivery of major infrastructure projects across the country. It is welcomed by infrastructure partners. Essentially it is a proposal that is welcomed by the Victorian Employers Chamber of Commerce and Industry.
Time after time we have seen key stakeholders form the view that we need an independent, rational process of project assessment and delivery.
Mr Ryan — Why didn’t you do it?
Dr Napthine — Why didn’t you do it for 11 years?
Mr Pallas — I hear from across the table, ‘Why didn’t you do it?’. The problems that confront every government are of the time they are in. Infrastructure Australia was created only in the last four years. When have we seen these bodies develop? They have been delivered over the last 12 months at state levels, and it is critically important that those opposite get on board and abandon their project sophistry and phantasmagoria. The Victorian Auditor-General’s analysis of our debt — a debt that those opposite created — is that it grew by 31.9 per cent or $73.3 billion in total.
That is $17.7 billion of new debt created by those opposite. Let me put that another way: that is $3187 of debt created for every Victorian in the last budget year of those hopeless administrators because they cannot manage money. It is a total of $48.5 million extra debt per day.
Honourable members interjecting.
Mr Pallas — Do you want to hear about desal? Forty-eight and a half million dollars in debt constitutes 24 desalination plants. That is the debt those opposite have run up in one year — 24 desalination plants’ worth. Hopeless! But it gets worse. This is what the Auditor-General had to say:
- … in areas that the state can directly control, there were also negative trends. These require attention to improve the state’s financial outcomes.
But we will not see it. There is set to be growth of $12.4 billion in 2015-16. Hopeless, I agree, for Victoria.