Wednesday, 30 October 2024

Public Accounts and Estimates Committee

Report on the 2023–24 Budget Estimates

David SOUTHWICK (Caulfield) (10:46): I rise to make some comments on the budget estimates report 2023–23. One of the key jobs of any government is managing money, and we know that that it is a real problem for the Allan Labor government. As we have said many, many times, Labor cannot manage money, and every Victorian is paying the price. It is reminiscent of a movie that is quite famous, one that I rather like, Jerry Maguire. I am remembering that scene with Tom Cruise, who had a whole stable of footballers that he looked after and had a really successful business, but unfortunately overnight that was run into the ground and he only had one footballer that he managed. That footballer just kept saying to Jerry Maguire, ‘Show me the money. Show me the money.’ Unfortunately there is not much money left in Victoria, because this government have squandered it all, and what is even worse is they are very, very secretive when it comes to where the money is. That is why the announcement today by John Pesutto and the team is to ensure we get budget transparency so that we actually know where the money is and what money is left. In this particular report it talks about debt, and I know many of the members on the other side are actually a bit unfamiliar about that when it comes to debt and spending. We all probably have our credit cards about due to pay. Well, the credit card debt is through the roof in terms of what the Allan Labor government has left Victoria. In these findings the committee talks about debt and it talks about ballooning debt. In fact by 2027–28 there will be $188 billion worth of debt which needs to be paid down, and that is why having transparency, having budget honesty and having a plan for Victoria’s future and also tracking money in terms of what is being spent is so important.

The budget estimates go through tracking money but unfortunately not very well. That is why the kind of reform that we are proposing, as part of our announcement today from a Liberal–National government, would be about ensuring that the kinds of things that we see in these budgets would be transparent in terms of having a tracker to be able to see the money – the kinds of things in these findings that talk about all of the major projects that have blown out by $40 billion. At the moment within the budget, within the framework of the budget, we have something called contingency, which is just pretty much meant to be there as contingency for emergencies. But at the moment it is a $76 billion black hole – money that is just available there in case you need it. But we do not know what that money is going to be spent on. We know the Suburban Rail Loop had $34.5 billion budgeted. We know that is going be at least $40 billion. That has not been accounted for in this particular budget or the estimates. There is a blowout of 20-plus per cent.

How is that going to be paid? Through the contingency, through the magic pudding?

This particular report talks about federal support of major projects – Commonwealth-supported projects. Again, the Suburban Rail Loop has had the federal government walk away and take $11.5 billion off the table. The project is not funded, yet the government want to proceed. That is why we have real problems with the credit rating agencies like Standard & Poor’s, S & P, which are watching what we are doing, because we need to ensure – and the Treasurer is at the table now – that these projects are managed properly. We need to make sure they are managed properly because the contingency fund of $76 billion, that magic pudding – we want to know where that is going to be spent. Victorian taxpayers need to know what money is going to be spent and not what money is going to be wasted.

Forty billion dollars of blowouts, no idea in terms of where the detail is – we are seeing debt at record level with no ability to pay that down, and that is why we are talking today about a debt cap, because we have got to wrestle down the debt. Why? Because Victorians pay; because when you have debt, you have an interest bill. That interest bill then has to be paid. Who pays the interest bill? We all pay the interest bill. It is not something where just the Treasurer and the Premier sit there and say, ‘No worries; it’s our money.’ And that has been the problem with the Allan Labor government – they think it is their own money. They forget it is taxpayers money. The blowout, the waste and the mismanagement are all typical of a Labor government that cannot manage money, and Victorians pay the price, and unfortunately we are seeing it on everything – hospitals, schools, roads, infrastructure. Everything is blown out. Housing is blown out because this government is financially corrupt and bankrupt.