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Thurs 21 May - The failure by the State Labor Government to take the tough decisions to improve Sydney’s ferry service will be another nail in the coffin for the state’s credit rating, said Shadow Treasurer Mike Baird said today.
“It’s very concerning reports today the Rees Government’s plans to overhaul the service, including involving private sector involvement, are being shelved,” Mr Baird said.
“These are exactly the type of expenditure concerns the ratings agencies have raised in determining the future of the state’s AAA rating,” he said.
“They are looking to see whether the Rees Government has the ability to ‘re-jig their spending like they’re planning’.(1)
“Unfortunately it appears they don’t, and the people of NSW will pay the cost of this incompetence. Abandoning the reform of the ferry service could cost the state $1 billion over the next 10 years. That doesn’t even take into account the hundreds of millions of dollars in additional funding costs to the state if the AAA rating is lost.
“This is at a time when Treasurer Roozendaal is warning of the financial pressures on the upcoming State Budget which is likely to reveal a multi-billion dollar deficit.
“I have seen a direct example of how services can be improved with the Manly Fast Ferry.
The Rees Government abandoned the people in Manly, but with people power we had a new service, run by a private operator which has delivered a 100 percent on time service and is still saving taxpayers $7 million a year. This is just the tip of the iceberg of what could be achieved.
“Just as significantly, a back-down on Sydney Ferries reinforces the already negative perception in the business community towards investing in NSW.
“Ironically, yesterday the State Labor Government revealed that it wanted to secure private sector finance for the Rozelle Metro. Today they closed the doors on investment in state services.
“Businesses won’t invest if they fear the Rees Labor Government will change its mind on projects and give in to the union’s bullying at every turn.
“Unfortunately, that lost investment, means lost jobs for NSW,” Mr Baird said.
(1) Standard & Poors, Brendan Flynn, The Australian, 25 Feb 09
Media Contact: Wendy Black 0418 532 534
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