Budget is big on debt, small on ideas: CLP

The Opposition Leader, Terry Mills, has attacked the Government’s budget as “big on debt and small on ideas” during his budget reply speech in Parliament today.

The Government yesterday unveiled a record $5.1 billion budget, with a deficit of $268 million – $94 million more than it forecast last year.

The Government’s net debt, which includes its superannuation liability, stands at about $900 million, and is forecast to rise to about $1.6 billion by 2014.

Mr Mills said the Government has misled the public by claiming that more spending means conditions are improving.

“We are told of a record spend in health, a record budget for education, more money for law and order,” he said.

“We’ve heard it again and again.

“Yet Territorians wait longer in hospital emergency departments; Territorians have the poorest performing education system in the country.”

He said the Government’s projected net debt has unnecessarily saddled every man, woman and child in the Territory with about $7000 of debt each.

During his speech, Mr Mills made a number of announcements about how the Country Liberals would tackle issues affecting Territorians if his party was in government.

He said tenants with mental, alcohol and behavioural problems are making public housing a nightmare for their neighbours.

He said a CLP government would spend $25 million establishing a public housing site for such tenants.

“The current systemic tolerance of people misbehaving in public housing must end,” he said.

“Our … housing policy would shift these families into a newly-constructed emergency housing and provide them with professional help and support to help them deal with these profound social problems.”

He also promised an early education literacy and numeracy panel, a series of prison farms and to reduce the number of Government spin doctors.

The Chief Minister, Paul Henderson, challenged Mr Mills to say how he would cut the Government’s spending to bring the budget out of deficit.

“Step up to the plate and show some courage of your convictions and actually say which programs you would cut, how many people you would sack.”

Ballarat on track for Melbourne link

Ballarat will get a direct rail line to Melbourne as part of the Regional Rail Link being funded through the Victorian budget, which was announced yesterday.

A total of $4.3 billion has been allocated to the Regional Rail Link, which is the single biggest project in the state budget.

The project will create stand-alone tracks to Melbourne from Bendigo, Geelong and Ballarat.

Ballarat council’s chief executive, Anthony Schink, says the investment is needed to help Ballarat cope with population growth.

“The intention of linking the regional centres with Melbourne is clearly a recognition of the growth that we are experiencing,” he said.

Mr Schink says the line will help to make the fast-train service even quicker.

“What we’ve seen is investment in the fast train, investment in improving the infrastructure to get people to and from Melbourne quicker,” he said.

“But the blockage has always been the lack of dedicated lines when the trains hit the metro system.”

The budget also includes $2 million for intersection upgrades on the Ballarat to Buninyong Road at Mt Clear.

Health boost

Coleraine hospital in the state’s south-west has been secured in the budget and a new $25.2 million will be built in the town.

The Western District Health Service will contribute a further $600,000.

The health service’s chief executive, Jim Fletcher, says the hospital will include 10 new acute patient beds, 29 residential beds and a community health clinic.

“The tight-knit community will be over the moon with respect to this announcement,” he said.

“It is a great boost for Coleraine and what it does is ensure that they will have a health presence in their township for 50 years and beyond.”

Two western Victorian primary schools have also had their futures secured in the budget.

The Halls Gap and Woady Yaloak primary schools are two of six that will share in $10.5 million.

Woady Yaloak’s principal, Alan Campbell, says the money will help redevelop the ageing Smythesdale campus.

“In recent years the nature of teaching has changed – we’re much more flexible in the way we use space as part of our teaching methodology now,” he said.

“By adding these modern teaching spaces we’ll be able to provide a much more invigorating learning experience for our kids.”

A new police station at Daylesford has been allocated $2 million.

Highway loses out

But the Colac-Otway Council is shocked the budget contained no funding to upgrade the western section of the Princes Highway.

The G21 group of south-west Victorian councils had asked the Government to upgrade and duplicate the highway from Geelong to the South Australian border.

The budget included funding to upgrade the highway’s Gippsland section.

The Colac-Otway Mayor, Lyn Russell, says she expected the western part would be included.

“We were hoping it would be in this budget and we’ll be asking the question why it isn’t,” she said.

“It’s a very important transport link and we do need it.

“It’s not only for safety but the road has deteriorated over the years and so we’ll need to look at it and we’ll need to know why it wasn’t funded.”

Goulburn Murray schools share in budget spend

Goulburn Murray region schools were the biggest winners in yesterday’s Victorian budget.

The Victorian Government announced $230 million for school buildings and equipment in the budget.

It includes $1.5 million to rebuild the Toolamba Primary School which was badly damaged by fire in February.

There is funding to keep the Tawonga Primary School open and improvements to those at Euroa, Mansfield, Mount Beauty, Myrtleford and Tallygaroopna.

Visitor facilities at the Mount Buffalo chalet will also be improved and an Indigenous dance academy will be established in Mooroopna.

A total of $2 million will be spent planning the future needs of courts including those at Shepparton and Wangaratta.

The Government will also commit $136 million for fire and emergency services.

But Dr Harry Hemley from the Australian Medical Association says there is no mention of funding in the state budget for the Albury-Wodonga Health Service.

He says the Victorian Government is required to contribute its share of money to running the health service.

Dr Hemley says the Government also needs to better plan for growing demand on health services into the future.

“We’re growing at 100,000 people a year, we need to have a plan and how we’re going to address that growth,” he said.

“In the plan you would have things like the Albury-Wodonga cross border arrangement and all of the small hospitals and how they’re going to fit into it.

“That’s what I mean when I say we need a vision for the future – we need a plan for the future.”

Meanwhile, regional police stations have been granted $10 million for improvements, including money to buy land for a new police station in Echuca.

Campaspe Mayor Peter Williams says it has been a long time coming.

“It is very much a run-down facility and it’s undersized and it certainly doesn’t deliver what the police need to deliver – best quality service,” he said.

“It’s exciting that they’ve identified they’re going to purchase land to build the new station and we hope that that will now roll on to a new police station in the next few years.”

The Liberal Member for Benambra, Bill Tilley, says he is disappointed no money has been allocated to expand the Wodonga police station, which is overcrowded.

“We’ve heard the former chief commissioner of police talking about how she’s been working with this Government about the extensions for the Wodonga police station,” he said.

“[But] no certainty and no time line has been given or any money has been committed to Wodonga police station.”

Hospitals unhappy with budget snub

North-west Victorian hospitals say they are disappointed what they say were modest requests for upgrading work were ignored in the state budget.

The focus of the regional health budget was on Bendigo, which is getting a new $450 million hospital.

But there was none of the new money requested for improvement work at Mildura, Swan Hill, Edenhope and Warracknabeal.

The Mildura Base Hospital chief executive, Dane Huxley, says he asked for less than $5 million.

“There’s been no infrastructure development at this hospital since it opened in 2000, so that’s really 10 years with nothing happening at all and we felt that we had a very good case for modest enhancements to the building in the emergency department, the maternity unit and the mental health unit,” he said.

WA Budget deeper in red

New figures show the state budget remains hundreds of millions of dollars in the red.

An $11 million operating deficit was recorded for January but for the seven months to the end of January the budget was $270 million dollars in deficit.

Government expenses for January were up 15 per cent compared to the same time last year.

Expenses overall are up 13.6 per cent for the seven months to January

The Shadow Treasurer Ben Wyatt has seized on the figures.

“It’s time to rein in this expense growth so that Western Australians won’t be hit with further electricity charges and further cuts in front line services, he said.

However, the Treasurer Troy Buswell has defended the figures and believes the Government is still on track to deliver a small surplus this financial year.

“We need to take out some of the extraordinary expenses that will flow through the state’s books largely associated with the Commonwealth stimulus package and other grants passed on through our books, underlying expense growth at eight per cent which is a significant improvement on the last couple of years and a step in the right direction.”

Darling hits the rich, sets UK election stage

The British government has set the stage for a looming election with a budget promising a 2.5 billion pound ($4 billion) package to boost growth, higher taxes for the rich and lower borrowing than predicted just three months ago.

Given a record deficit that has spooked markets and threatened the country’s debt rating, big giveaways were off the agenda.

But finance minister Alistair Darling still found some concessions, including cutting house purchase duty for first-time buyers.

Mr Darling laid claim to an economic recovery that he says his Conservative opponents would crush.

“The recovery has begun. Unemployment is falling and borrowing is better than expected,” he told parliament.

“The choice before the country now is whether to support those whose policies will suffocate our recovery.”

After 13 years out of power, the Conservatives remain ahead in opinion polls but their lead has shrunk markedly in recent weeks.

Most polls now point to a hung parliament, a nightmare scenario for markets which fear it could leave a minority government without the clout to make the unpopular spending cuts needed to bring down record public debt.

Labour says it will halve the deficit in four years, but fiscal tightening will only start next year as the recovery remains too fragile.

But opposition leader David Cameron says that is too late. He says he would act this year.

“They are just going to carry on spending, carry on borrowing and carry on failing,” he said.

“The biggest risk to our recovery is five more years of this prime minister.

“We need a credible plan to deal with Britain’s record debts, starting now.”

Targeting the rich

As well as moving to lower borrowing, Mr Darling also found some measures to target the better off.

The move is likely to play well with Labour’s core vote in the run-up to an expected May 6 election.

Mr Darling says he will scrap duty on house purchases of less than 250,000 pounds ($408,000) for first-time buyers but pay for that with a 1 percentage point rise in duty to 5 per cent for houses worth more than 1 million pounds ($1.6 million).

“Those who have benefited the most from the strong growth in incomes in past years should now pay their fair share of tax,” he said.

Lower debt

Mr Darling says he was able to revise down his forecasts for the budget deficit in the current and next fiscal year.

In 2010/11, borrowing is expected to come in at 163 billion pounds ($267 billion), 13 billion pounds ($21 billion) lower than previously forecast.

Future years have also been revised down.

Downward revisions to borrowing had been widely expected by analysts.

Not only has unemployment in Britain risen less steeply than expected, equity and oil prices have rebounded faster, meaning government spending has been slightly lower and revenues higher than previously feared.

-Reuters

Treasurer called on to explain election promises

The State Opposition wants the Treasurer Troy Buswell to explain the fate of what it says are $80 million of election promises.

The Opposition Leader Eric Ripper says a number of key items in the areas of law and order, education and health appear to have been deferred.

They include $34 million for teachers’ enterprise bargaining funding, $6 million for a hospital nurses support fund and $3.5 million for the WA suicide prevention strategy.

He says the Treasurer should say when these promises will be delivered.

“At the very least the Treasurer needs to explain it to the parliament and the public,” he said.

“There may be explanations but the treasurer so far has refused to give those explanations.”

The Treasurer Troy Buswell could not be contacted for comment.