Wednesday, 1 May 2024

Economic policy

Brad ROWSWELL (Sandringham) (14:08): My question is to the Treasurer. According to former senior federal Treasury economist Stephen Anthony, Victoria’s shocking debt position has resulted in funding for essential services being cut. This means:

Potholes can’t get filled, emergency departments can’t afford clean linen, primary schools can’t fix heaters ‍…

Why do Victorians who rely on these essential services have to suffer because Labor cannot manage money?

Tim PALLAS (Werribee – Treasurer, Minister for Industrial Relations, Minister for Economic Growth) (14:09): I thank the member for his question. I would make the point that this government was there when Victorians needed it most. We were there and we used our balance sheet to support Victorian businesses and Victorian families, and we never let them down. We were there investing in keeping businesses whole. We were there making sure that families were safe and secure during the trepidations of the pandemic. We made the investment where it mattered. We heard from those opposite during the height of the pandemic what they would have done. We heard them say, ‘Balance your budget. Don’t go into deficit.’ We preferred to use our balance sheet to protect the wellbeing of Victorians. You would have rated your balance sheet above their interests.

Members interjecting.

The SPEAKER: The member for Evelyn is warned.

Tim PALLAS: Let us cast our minds to what that would have meant to those families, what that would have meant to businesses. It would have effectively laid them exposed and laid waste to the trepidations of a once-in-a-century pandemic. As opposed to those opposite, who –

John Pesutto: On a point of order, Speaker, on relevance, the question referred to potholes, emergency departments and primary schools. Can you direct the Treasurer to answer the question.

The SPEAKER: The Treasurer was being relevant to the question that was asked.

Tim PALLAS: The only potholes we see here are in the integrity of those opposite.

John Pesutto interjected.

The SPEAKER: The Leader of the Opposition will come to order.

Tim PALLAS: In the last budget we provided $3.6 billion over a 10-year period to provide for road maintenance and upgrades. That is what this government does – 10 years worth of vision and effort. On top of that we put literally billions of dollars into immediate emergency support for flooding and damage to roads as a consequence of flooding. So this is a government that votes with its feet and rates the wellbeing of the Victorian public first and foremost. Those opposite can play politics. They can prognosticate about what they would do. We know what they would do. We have seen their form. We know how they behave. They are into cuts and calamities and catastrophes for the Victorian people. They are quite frankly never capable of demonstrating that they have a vision for the future.

Members interjecting.

The SPEAKER: Leader of the Opposition, I will call you for a point of order, but I ask you not to interject across the table in that manner.

John Pesutto: On a point of order, Speaker, can you please direct the Treasurer to answer the question.

The SPEAKER: The Treasurer will come back to answering the question.

Tim PALLAS: The Victorian commitment to maintaining and managing the challenges that we confront as a consequence of the massive investment we made in the Victorian community continues. We are the only jurisdiction in the nation that has a budget repair strategy post pandemic, the only government that has reported progress against those four steps, the only government who will again report and continue to demonstrate that we are managing the budget and the challenges of the post-pandemic environment with not only alacrity but a focused eye on the wellbeing of the Victorian people.

Brad ROWSWELL (Sandringham) (14:13): Global ratings agency S&P has warned the rising cost of meeting Victoria’s debt obligations is crowding out other public spending, saying:

Deficit states –

like Victoria –

will borrow merely to meet interest outlays, creating a vicious feedback loop.

Will the Treasurer admit that Labor’s gross financial mismanagement means cuts to essential services and infrastructure?

The SPEAKER: I call the Treasurer to respond. I ask for members not to interject while the Treasurer is on his feet.

Tim PALLAS (Werribee – Treasurer, Minister for Industrial Relations, Minister for Economic Growth) (14:14): Certainly with regard to essential services for Victorians, the answer is a clear and emphatic no. I normally would hide behind ‘Wait for the budget on budget day’, but we remain committed to providing the vital services that the people of Victoria need and deserve. With regard to infrastructure I have been very clear. We are building about $24 billion worth of infrastructure per year at the moment, close to $200 billion worth of infrastructure in commencing and continuing projects. We will continue to invest in the future of Victorians today and tomorrow. But as a government we recognise that that level of expenditure is crowding out private sector investment, and we will moderate it over time in order to provide the private sector with the opportunity to build the housing that you so viciously oppose.