Louise Staley blasts Andrews government over Victorian budget blowout

The state government has been accused of using the coronavirus pandemic to run up enormous debt.

Shannon Deery

2 min read

November 26, 2020 - 2:19PM

Daniel Andrews has 'turned to dubious sources' to fund public projects

Victoria

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Shadow treasurer Louise Staley has slammed the state government’s projected record debt bill and project cost blow outs.

This week’s state budget forecast net debt to climb to $154 billion by 2024 with the government to record consecutive deficits until then.

In her budget reply speech to parliament Ms Staley said on Thursday the government had failed to properly outline a plan for economic recovery.

She said on four key budget measures — return to surplus, debt, the taxation burden and Victoria’s AAA credit rating — the government had failed Victorians.

And she called on the government’s two-year target of creating 200,000 new jobs to be boosted warning it would leave the state with stubborn unemployment and high youth unemployment.

Melbourne’s Metro Tunnel project’s original costing was $11bn with it’s latest estimate at $13bn, resulting in a $2bn blowout. Picture: Alex Coppel

“Labor’s mismanagement will leave scars on the Victorian economy for generations,” she said.

“As a result, potential investors are flocking to New South Wales intending to invest their capital in a state where the government provides competent leadership.”

Ms Staley said the government was hiding behind the coronavirus pandemic to excuse running up more debt than any other state.

“Before COVID, Victoria was already almost doubling debt to $40.3 billion in only 12 months, the budget was bleeding in deficit, and the quarterly Treasury releases said it had been in deficit since July 2019,” she said.

“Like other Victorians, I support spending that aids recovery. But what I don’t support is Labor spending on its mates and pet projects.

“I don’t support the cover of COVID recovery to hide the billions of dollars already wasted on cost overruns, redesigns, and project mismanagement.

“Any additional debt taken on needs to be for recovery and not eaten up in the project mismanagement waste we have seen to date.”

Level crossing removals’ original costing was $6bn with the latest estimate at $8.3bn resulting in a blowout of $2.3bn.

Sources close to the government have detailed blowouts of $6.45 billion on just 10 of the state’s major projects, with Treasurer Tim Pallas flagging potential cost and timing overruns on key infrastructure works.

Information about the progress of major projects was left out of this year’s state budget for the first time in years.

“Rather than account for the waste, mismanagement and profligacy of Major Projects, the Treasurer hid this information from Victorians,” Ms Staley said.

Daniel Andrews said the key information was left out of the budget after Department of Treasury and Finance buerecrats advised they were unable to prepare it in time.

Instead it would be included in next year’s May budget, he said.

“The next budget is not very far away. This pandemic’s not over.

“When Treasury and Finance are able put together a detailed, comprehensive and meaningful assessment of what the COVID-19 impacts on those projects have been, they will,” he said.