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Friday 14 November 2008

It is honestly almost impossible to know where to start this blog. The hysteria that we have seen in the past few days in Macquarie Street is unprecedented in my 40 odd years of watching political events and that is probably why they have knocked a "once in a century" financial crisis off the front page of the newspapers.  
 
So it is not surprising that people everywhere are asking where has it all gone wrong? The interesting thing about this question is the look that people give when they ask is very much one of pain. Almost a 'please help me it hurts'. So let's give it a shot!
 
I think that the finances are a good starting point. The simple truth on this matter is that the crisis has been coming for a considerable period. The main problem (if you can exclude announcing infrastructure that is not costed nor delivered) is that expense growth has been running faster revenue growth for as long as you can remember. Just using the past 4 years as an example, we have seen revenue rise by an average of 5.4% and expenses at the same time have risen by 6.5%. In real terms this means we have gone backwards by about $450 million a year. In a sober thought, if expense growth had matched revenue growth during this period the budget this year would be $1.8 billion better off. Heavens! It gets worse though... if this was extended to the 13 years that NSW Labor has been in government, then we would have about $6 billion a year (not a one off) more to invest in schools, roads, public transport and health.
 
This problem becomes clear for all to see when revenues come under pressure from an economic slowdown. Oops did anyone mention sub-prime? So with the financial crisis upon us, revenues have all but stopped and expenses after more than a decade of ill-discipline are still running like the roadrunner. Result? A mini-budget that leads us on a dash for cash and punches a hole in every family budget.
 
Now I know that I have lost some with the financial glaze but stay strong, as I think the biggest problem that this State has suffered is a government that is willing to put marginal seat funding before a "statewide" policy. Barack Obama spoke, in delivering hope for a depressed nation, that he would pursue a "United" States of America and no longer wanted Washington to consider the country as a collection of blue and red states. These words resonate here in NSW. As we have waited for the building of much need statewide infrastructure and public transport, funds have been diverted towards those seats that were electorally important. In Manly we can only wonder why this Government cuts JetCat services, increases ferry fares and introduces a congestion tax while people in Parramatta can travel on the M4 for free and have their RiverCat reinstated despite being less reliable, and costing more to maintain than the JetCats.
 
Look in this I am not saying that I would not fight for a disproportionate amount of funding for Manly - as I would! However every local MP must balance local needs with the long-term interests of the State. I think every reasoned person in Manly would listen and likely respond to a Government that said we are in tough times and all of us have to pitch in. However the legitimacy of such claims are lost in the swirl of cynicism that rightly follows years of shameless pork barrelling, or in our case the opposite like ignoring matters such as the Spit corridor which in the State Government's own documents reveal it is the "slowest corridor" in Sydney. I also acknowledge that the focus on marginal seats has been pursued by both side of politics so I am not pretending we are the bastions of the moral high ground on this.
 
However, in order for NSW to be returned to the leading State in this country it has to stop. I for one would not want to be part of a government that looked after one part of Sydney to help our re-election but, left the rest to rot. There is a simple lesson that I learnt recently and that is we should always support good principles and good policy, and if we do that the politics (read elections) will take care of themselves. I think there is something in that!!
 
Cheers
Mike
 

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Comments (5)
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The Big Picture
I think I have raised this issue before and I can certainly agree that this state is in one of the most difficult political/financial times I have ever seen and I am 53. What annoys me the most is that we pay SOOOOOOOO much to public servants to also manage large sections of the state governments business. The appear to be grossly overpaid, in relation to the private sector and underworked. My daughter recently applied for a job in the state public service after working for 6 years in the private sector she was stunned by receiving and extra 18 thousand dollars pa for doing the same job she was doing in private enterprise, she has been given less than half the case load she was expected to manage in the private sector and by the way double the sick leave. Multiply this by how ever many public servants we have running this state. I pose the question does the minister run the SRA or does he have a raft of senior public servants running the system. I think we have a culture of overpaying our public servants and having or accepting low expectations of them to work productively and efficiently. Whilst I'm disappointed by this government I am outraged that many ( not all) of our public sector employees have grown into very FAT LAZY CATS. I won and operate a small buisness that employs about 20 people. Unfortunately no matter how hard i try I can't match the governement employees conditions and pay rates and my employees work very hard trying to eaqrn enough margin to keep funding our tax system.
Posted by: James Delaney at 15-11-2008 09:12
St Matthew's Manly
It should not be forgotten in your Manly Matters that St Matthew\'s Manly has a new senior minister in Bruce Clarke. 
We all wish him well.
Posted by: Peter Clouston at 15-11-2008 09:27
burn, baby, burn
Now even the Rural Fire Service is joining in the push to eliminate the people of the northern beaches. Starting the hazard burnoff in such explosive conditions as existed on Thurs and Fri seemed inordinately insensitive to those who remember 1979, 1994, etc. Luckily the weather gods brought rain behind the winds. 
J-Alice HOFLER, Casey\'s human benefactor
Posted by: J-Alice HOFLER at 15-11-2008 10:11
Well Put Mike...........
Thank you Mike for making sense of this mess we are all in, it is good to see a politician seeing the pain and hearing the crying out for help. Barack Obama is a good man in my view and the much needed light America needs now, and we in our part of the world need more people like you Mike who puts people first and politics second.
Posted by: Debra Arena at 15-11-2008 14:41
Is this the Government NSW voted for
Did anyone in NSW actually vote for the Government that is currenlty running this state? Not only a different leader but most of cabinet - how can that happen without someone saying it's time we vote again.  
 
2011 is a long way off.
Posted by: Roger lloyd at 20-11-2008 21:24
 

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