Wednesday, 1 May 2024

Public Accounts and Estimates Committee

Report on the 2023–24 Budget Estimates

Chris CREWTHER (Mornington) (11:09): I rise to speak on the 2023–24 budget estimates report, which is topical given the budget is being delivered next week. Last year’s horror budget meant Victorians already facing massive cost-of-living pressures were hit with even more costs. Why? Because the state Labor government cannot manage money. Looking back, Labor cut 25 per cent from the roads budget despite the terrible condition of our roads, ripped $2.4 billion from the TAC and introduced the schools tax, an increased land tax, the COVID levy and more. On this levy, James, an electrician in my electorate, said, ‘For the working people and multiple dwelling owners, regardless of mortgage or circumstances being considered, to cover the shortfall is simply unfair, wrong and to me unacceptable.’

On the schools tax, Labour were especially going to hit parents and students at Balcombe Grammar School in my electorate but backtracked on the threshold after much protest by parents, me and others. On land tax, many mum-and-dad investors, often with only one rental, are now selling such properties, which are not always returning to be rentals. That is then pushing up rental costs.

Labor committed to the white elephant $216 billion Suburban Rail Loop, expanding rail services to places that already have it, while not supporting the less than $1 billion Baxter rail project, which would have delivered electrified rail to places that do not have it, including our local uni and hospital. This contributed to the Albanese federal government ripping the $225 million that I secured in 2018 from this project and from our region altogether. We have no rail services in my electorate, and 82 per cent of the peninsula has no access to public transport.

With Labor’s debt meaning taxpayers are paying over $15 million in interest each day, Labor also did not fund much-needed redevelopments at schools like Mornington Park Primary and Mount Eliza Secondary; community sport redevelopments such as at Emil Madsen Reserve or Mornington baseball, soccer and basketball facilities; and local environmental initiatives like fixing local beach erosion or saving the decommissioned Mount Eliza reservoir. Now Victorians are bracing themselves for another nightmare budget. Labor’s Treasurer says:

There will have to be hard decisions in this budget, and there will be …

This comes as Victoria’s debt has blown out to be more than $126 billion, with ratings agency S&P warning that Victoria is on track to be almost double this number by 2027. This would increase our taxpayer interest bill to more than $33 million a day.

It has also been speculated that Labor is considering major cuts for arts, sporting groups and government agencies, as well as in the education, major project, health and other spaces. Many local projects risk being scrapped, as we have already seen in the past. For example, many enraged locals approached my office – and I attended a public meeting on this – after Labor withdrew around $1.7 million for repair and remediation works related to the Mount Martha landslip in September 2020. Storms and heavy rain caused a landslip on a slope above The Esplanade between Ellerina and Bradford roads, dislodging 30 tonnes of material and vegetation. As the landslip occurred over both shire- and state-owned land, both committed to 50 per cent each for repairs, yet following the acceptance of a tender in 2023 the Labor government withdrew their commitment of their 50 per cent share due to funding cutbacks, meaning the project could not go ahead. Ever since, I have been advocating for local residents who were blindsided by this decision, with the landslip disrupting their lives and meaning deteriorated road access, confusing signage, lack of parking, safety concerns, devaluation and more. I call on the state Labor government to reinstate these funds. Unfortunately more local projects like this risk being scrapped in next week’s budget because this government does not know how to manage money and wastes money on project blowouts, not having the Comm Games, the white elephant Suburban Rail Loop and more.

Another issue is cost-shifting to councils. Despite the state government being in significant debt, they should not be trying to cost-shift to councils due to their own budget mismanagement. For example, while the taxpayer-paid three- and four-year-old kinder provides a benefit to parents, the state Labor government have not matched that with sufficient funds to upgrade local early childhood facilities to cope with increased demand in enrolments, expecting councils to do so when they do not have sufficient funds themselves. For example, Leslie Moorhead Preschool have written to me about their concerns on this issue in the last week. Cost-shifting is also influencing councils to make detrimental revenue-raising decisions, like with our shire originally putting the Harry Potter light and sound show in the middle of the Briars wildlife sanctuary, which fortunately was moved; introducing their disastrous online-only paid parking trial at Mornington Pier and elsewhere; and now proposing a 3.3 ‍per cent development levy on new builds. These measures are highly detrimental but reflective of the Labor government, who cannot manage a budget.