NSW Election 2023: Budget office slams Liberal Party over Labor funding claims

Parliament’s powerful budget office has slammed the Liberal Party over its ‘misrepresentation’ that Labor will cut more than $2bn from the WestInvest Fund.

Parliament’s powerful budget office has slammed the Liberal Party over a “misrepresentation” of one of Labor’s key election commitments.

It came after the Liberal Party published ads on social media declaring “Labor have cut more than $2 billion from the WestInvest Fund” — with the claim sourced to the independent Parliamentary Budget Office (PBO).

In a statement, the PBO said Labor will not “cut” funding from WestInvest, but will reallocate funds from some projects that have already been announced.

The PBO said Labor’s commitments “will require changes involving some previously announced projects”.

The PBO costs both major party’s election commitments, and is independent from either party.

BREAKING: @ChrisMinnsMP and @NSWLabor will cut more than $2 billion of vital Western Sydney infrastructure. What will voting Labor cost you? #NSWPol#NSWVotes2023pic.twitter.com/vBtaQbdShh

— NSWLiberalHQ (@nswliberalhq) March 20, 2023

Treasurer Matt Kean has also accused Labor of cutting funding to WestInvest.

Earlier, Labor Leader Chris Minns refused to say whether he would scrap any projects that had already been announced by the Coalition.

“That’s their election promises for this election campaign,” Mr Minns said.

“We’re bringing our own policy list and our own priorities, particularly for Western Sydney.

“Our priority is health, and in particular the physical infrastructure for hospitals in Western Sydney.”

The PBO said: “To state the fund would be cut is a misrepresentation.

“The ALP’s proposals would mean a reallocation of priorities within WestInvest, not a cut to the fund.

“It is also a misrepresentation for the Liberal Party to quote the PBO as the source of this claim.

Treasurer Matt Kean. Picture: NCA NewsWire / David Swift

“The PBO contacted the Liberal Party at 1.45pm on 22 March 2023 suggesting the misrepresentation be corrected.

“The PBO has not received advice from the Liberal Party that a correction will be issued,.

The Liberal Party has not backed down from its claims.

In a statement, a spokesman said: “The Parliamentary Budget Office has confirmed that in order for Labor to fund their election commitments they would need to discontinue, change timing, or alter the scope of projects that have been announced and committed to be funded from WestInvest.

“Only the Liberals will deliver the vital infrastructure Western Sydney needs.”

BUDGET OFFICE REBUKES LIBS ‘MISREPRESENTATION’ OF COSTINGS

The NSW Liberal Party have been forced into a costly step-down after it was confirmed they “misrepresented” official costings in claims made about Labor “defunding” WestInvest, and their nurses pay policy, the Parliamentary Budget Office has confirmed.

PBO’s officer Stephen Bartos confirmed to NewsLocal that claims made by Treasurer Matt Kean and the NSW Liberals that “Labor have cut more than $2 billion from the WestInvest Fund” was a “misrepresentation”.

“One of the pieces of material says ‘Labor have cut more than $2 billion from the WestInvest Fund’,” Mr Bartos said, noting the source on that material was listed as the PBO.

“The PBO has not made that statement – the $2 billion number is not one that could reasonably be derived from PBO costings.”

The PBO called out claims by the Liberals it had stated Labor would cut billions from WestInvest. Picture: NSW Liberals

Mr Bartos confirmed the PBO had provided “explanatory information on this to the Treasurer and his staff” and understood Mr Kean’s comments would be “clarified”.

The PBO raised concern around claims made by the Liberal Party that a Labor government would defund WestInvest as well as their policy on Restart, a regional NSW fund.

“(Under our procedures) People will be offered an opportunity to correct a misrepresentation within 48 hours,” Mr Bartos explained.

“The PBO has contacted the Liberal Party to offer them that opportunity.”

The social media posts that the PBO have raised concern with were authorised by Liberal director Chris Stone and published by the party.

The PBO refuted NSW Liberals social-media posts claiming Labor had cut billions from the WestInvest fund, alongside a three-page press release from Mr Kean’s office which said “the PBO makes it clear Labor cannot be trusted to deliver what communities have worked hard to secure”.

Don't let NSW stall under Labor. Stop Labor's cuts, just #Vote1Liberal this Saturday.#NSWpol#NSWvotespic.twitter.com/B3KYQdZ80Z

— Liberal Party NSW (@LiberalNSW) March 21, 2023

However, claims that Labor would “defund” WestInvest were rebuked by the PBO.

“As shown in the costings published by the PBO, Labor has made a number of election promises that apply funds from WestInvest – the money required can be found from WestInvest without affecting the budget bottom line,” Mr Bartos said.

“What these policies will mean, however, is a change of priorities – some projects announced by the government in the past would be replaced by the projects that Labor has identified as their priorities.”

On Wednesday, Mr Kean also clarified referencing the PBO in comments about Labor’s nursing pay policy but stopped short of a full redaction, saying he “wasn’t suggesting” the PBO commented on Labor’s nursing policy.

“I also want to take this opportunity to clarify that yesterday I commented on Labor’s bungled PBO costings, which are going to blow a big black hole in the budget,” he said.

“(On Labor’s nurses policy) I quote the PBO that it may compromise safe staffing levels, and also that Labor wouldn’t be able to pay for the promised paramedics.

NSW Labor shadow Treasurer Daniel Mookhey Picture: Chris Pavlich

“I want to make it very clear I wasn’t suggesting the PBO said that, who did say it was NSW Health.”

A spokeswoman for the Treasurer said “at no stage did Mr Bartos ask the Treasurer to clarify any comments on WestInvest.”

Labor’s NSW shadow Treasurer Daniel Mookhey called the “misrepresentation” of Labor’s policy and the PBO’s costings a “humiliating backdown”.

“Matt Kean owes an apology to every essential worker within the healthcare system about his election budget costing mistruths,” he said.

“His humiliating backdown is further proof that he is not across the details and will say anything, and spend anything, to stay in power at an election.”

A NSW Liberal Party spokesman rejected the PBO’s claim it misrepresented Labor’s budget costings.

“These projects have been announced and committed to by the government,” he said. “The Shadow Treasurer has confirmed that this funding would be used for different projects and this is clearly set out on the PBO website.

“The projects Labor have confirmed they will cut, totalling more than $2B, will deprive Western Sydney communities of vital infrastructure and amenities.

“Only the Liberal Government has the strong economic management and the long term plan needed to keep NSW moving forward.”