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| State of the economy |
| Thursday, 03 June 2010 | ||||||
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Mr MIKE BAIRD (Manly) [3.52 p.m.]: Talk about leading with one's chin! It is quite amazing that Government members want to talk about the Government's economic record. I move:
condemns the Treasurer and the State Government for failing to meet their growth and budget forecasts for the past 10 years. As we move towards budget week the important point is the Government's failure to meet economic and employment forecasts. The economic performance of this Government is nothing but a sad and sorry tale. I am pleased that the member for Fairfield is in the Chamber because, of all members of the Government, he alone is interested in reform. Unfortunately, he no longer plays any significant role, except for selecting Premiers. He should be following his policy interests because no other Government member has any interest in policy. That is part, but not all, of the reason—there are many factors I could list—that we in New South Wales find ourselves in such a sorry state. Figures released yesterday showed there was an improvement in demand, but the member for Shellharbour failed to disaggregate two factors during her speech on the State's economy. Over the past 12 months the Federal Government's economic stimulus expenditure both insulated the State's economy against a severe downturn and ensured that future generations will bear the burden of an extraordinarily heavy deficit. There was no disaggregation in the speech of the member for Shellharbour of the impact of low interest rates on the economy. When those factors are taken out of the equation, it raises the question: What has the State Government done to improve the State's economy? The State's economy resembles a Mother Hubbard experience—there is nothing in the cupboard. Furthermore, nothing has been delivered by the Government to support the State's economy. The State's current economic climate is an appalling indictment of the Government. The member for Shellharbour intended to condemn the Opposition for producing forecasts about the State's economic performance and economic downturns, but the time allotted for her speech expired. Obviously, that was not the main focus of her speech. I can understand that because the Opposition's argument was based on the Government's GST revenue windfall, which the Government is trying to hide. The Government will be the beneficiary of a GST revenue windfall and that will bolster its budget. The question is what the Government will do with it. The Government probably already has spent most of it. The Opposition's economic forecast projected that growth under the old formula would have been the same as the growth rate of the previous two years, which is 7 per cent. Government members became quite excited about that during their speeches—ignoring the fact that the Opposition used the Government's estimates and forecasts of growth rates over the past year—but what they were unable to dispute was everything else. I have a graph that shows some great economic downturns, which I am sure the member for Shellharbour will be interested in. I would be happy to table the graph, if that is what is desired. Ms Lylea McMahon: No. Mr MIKE BAIRD: The graph shows the economic growth of the State from 1995 to 2010. It is not hard to see the trend. The member for Fairfield can see the little part that is coloured red, which represents New South Wales, whereas the entire rest of the country is in the black. The member for Fairfield has got it. He is nodding his head in acknowledgement. Mr Brad Hazzard: But he is the only one who gets it. Mr MIKE BAIRD: He gets it. Ms Lylea McMahon: Point of order: I draw attention to the member's use of props. ASSISTANT-SPEAKER (Mr Grant McBride): Order! The member for Manly knows that he cannot use a prop. He has not tabled the graph. Mr MIKE BAIRD: I am very happy to table the graph. The economic performance of this Government is obviously dismal. Whatever way Government members want to cut it, they cannot spin their way out of the State's economic performance over the past 15 years. Irrespective of how or what they try, the facts will remain. In desperation they grab statistics of just one economic quarter, which in large measure has been bolstered by the Federal Government mortgaging the future of our children with a huge deficit, the effect of which will eventually impact on the State's economy. Part of the Federal Government's strategy makes sense, but combined with the lowest interest rates on record and high retail spending, New South Wales is experiencing a small economic blip. But that is not the point. The Government is responsible for the State's economy, reform, making the State competitive, restoring confidence, reducing regulation and making savings. I cannot wait to see the savings that the Government produces in the budget. Mr Joseph Tripodi: We have a great record on that. Mr MIKE BAIRD: The member for Fairfield is smiling because he knows that, contrary to the forecast for next year, the Government will not get down to 2.1 per cent, but that is entirely his Government's responsibility. The Opposition remains very concerned that budget forecasts do not materialise. It is not surprising that the forecast growth of the economy is not achieved. The trends are reflected in the graph, as members opposite can see. Ms Lylea McMahon: Point of order: Again the member for Manly is relying on props instead of debating the motion. ASSISTANT-SPEAKER (Mr Grant McBride): Order! I remind the member for Manly that he cannot use a prop. He will desist from doing so. Mr MIKE BAIRD: For 10 years there has been a huge gap between forecasts of economic growth and the actual results. Not surprisingly, the State has underperformed at every level. Everyone in the State should have a close look at the forecasts that are part of next week's budget. The Government has a long history of underperformance. Obviously, the Opposition will not believe budget projections, and the facts support the Opposition's position. As the member for Shellharbour so clearly has shown, the Government finds it very difficult to discuss economic trends. Another factor that shows the Government's poor performance is the increase in unemployment rates. I will not show the graph because it upsets the member for Shellharbour. However, for five years New South Wales has had the second-highest rates of unemployment of all the Australian States. Currently we are at the tail end of employment statistics across all Australian States. Government members cannot dispute the facts, though they try. They use spin instead of addressing the issues. The culture should dictate that the Government confront economic issues head-on. The Government should be asking itself what it will do across all economic parameters to make the economy of New South Wales competitive and to attract investment, give confidence to businesses and start to create real jobs, instead of jobs that have been created by infrastructure spending. But, no, the Government is all about spin, grabbing at figures on quarterly indexes and grasping small sets of statistics to justify its economic performance. The truth is that the Government is not performing strongly in economic management. This State has the highest costs of doing business. Surely I do not have to show the graph showing that trend. The statistics were not disputed last week by the Treasurer when they were produced to counter his press release. A small or medium enterprise with 60 employees pays the highest business costs in Australia—$170,000 in New South Wales compared with $150,000 in South Australia. To take the State's economy forward the Government must become competitive. The Government should create real jobs, which is what the Opposition commits to in its jobs action plan. Quite frankly, everything that is done by this Government is nothing short of embarrassing. In every instance, such as the mini-budget and the Government's lack of action at a critical time in the global financial crisis, the Government has let the economy lapse into ruin. The Government's record over the past 15 years speaks for itself. Add to: Write Comment
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