Jim Chalmers dismisses Daniel Andrews’ plea for budget bailout as pressure mounts

Dan Andrews has hit out at a news outlet that suggested he was lobbying the Commonwealth for more federal money, as Treasurer Jim Chalmers hosed down hope of a budget bailout for Victoria.

Daniel Andrews has taken aim at a news outlet that suggested he was locked in talks with Prime Minister Anthony Albanese about the need for more federal money for Victoria.

The Australian Financial Review, owned by Nine Newspapers, this week reported that the Premier was lobbying the Commonwealth for more support, claiming the state was ripped off for almost a decade under the former Coalition government.

It comes after Treasurer Jim Chalmers hosed down any hope of a budget bailout for Victoria, saying the federal budget was also “under pressure”.

Dr Chalmers on Tuesday refused to promise any special treatment for Victoria, adding many states and territories were facing similarly challenging times

“The combined pressure of increasing borrowing costs on $1 trillion of Liberal debt, combined with the costs of the NDIS, the health system, aged care, defence and in other areas is putting immense pressure on our budget,” Dr Chalmers said.

“So what we do is we work in a cooperative and collaborative way with Victoria, and with the other states and territories as well, to make sure that we are methodically working through these challenges in our Budget, (and) that we’re funding and providing the services that the people we represent need and deserve.”

Dr Chalmers said several funding agreements with states and territories were up for renegotiation over the course of the next year.

“We will work with the Labor states and the government of Tasmania to make sure that we’re doing what we can,” he said.

Treasurer Jim Chalmers says Victoria will not be given special treatment come May. Picture: Gary Ramage

But Mr Andrews on Thursday hit out at the newspaper’s story, labelling it “ridiculous”.

“I’ve seen some of the most amazing reporting that I’ve seen for a while actually,” he said.

Mr Andrews said he had responded to a question from an Australian Financial Review reporter during an all-in press conference last Thursday.

“I was asked a question by the Fin Review ... It wasn’t really a question, it was a statement,” he said.

“It was put to me by our dear friends at the Financial Review ... that Scott Morrison had ripped us off for nine years. And I simply agreed with that. What’s new about that?

“We have been dudded by Liberal National federal governments for the best part of a decade. I’m not going to be quiet about that.

“That’s not new. I don’t care what colour the federal government is. I will always advocate for more.

“How that’s then become some other story is beyond me, it’s beyond me. This is the trouble you get into when you agree with the Financial Review.

They put it to me that we’ve been ripped off. I simply agree with that. And now you’ve all spent a week writing about it. It doesn’t make any sense to me. It’s ridiculous.”

Mary-Anne Thomas has refused to confirm whether her Department would push ahead with plans to slash 10 per cent of the workforce, Picture: Valeriu Campan

The Andrews government has repeatedly warned of the need to pay down debt, with the Herald Sun last month revealing a looming 10 per cent cut to the public service.

Victorian Health Minister Mary-Anne Thomas, however, has ruled out any cuts to frontline healthcare in the upcoming state budget.

But Ms Thomas on Tuesday refused to confirm whether her Department would push ahead with plans to slash 10 per cent of the workforce, or if some healthcare programs were at risk of losing funding.

She also declined to confirm whether some community health programs would continue to be propped up with funding, but said frontline services were not at any risk of losing money.

She added that there would be no cuts to frontline roles, including nurses and paramedics.

“We will not be cutting frontline healthcare at all. That has never been what our government has done,” she said.

“Like Victorians right around the state, we’ve got our own budget challenges. Victorians expect us to care for their state budget the same way that they care for their household budget and that is by looking at all of our expenditure and making sure that it is meeting the needs.

“There are budget conversations under way and I’m not in a position to make any comments further on those other than to say that Victorians will continue to see record investment into healthcare.

“The healthcare of Victorians is utmost in our minds when we are making budget decisions.

“The budget is still being developed and I’m not privy to the decisions ... but what I can be very clear about is that healthcare is a top priority for our government, and we know that we need to continue to invest.

Georgie Crozier says the state’s health system cannot afford any cuts. Picture: Nicki Connolly

“All of our election commitments will be delivered and we will continue to deliver the healthcare services that Victorians need and expect.”

Opposition treasury spokesman Angus Taylor said the May 9 budget would be a crucial test of the Albanese government’s fiscal responsibility.

Mr Taylor said it was important that essential services were funded appropriately. But the Andrews’ government needed to explain to Victorians “why they can’t fund them themselves”.

“Prime Minister Anthony Albanese will have to explain to Australians in every other state why they should pay for Victorian Labor’s decisions,” he said.

“The government must be clear that no state will be worse off to pay for a state Labor government’s financial mismanagement.”

Opposition health spokeswoman Georgie Crozier said the state’s embattled health system couldn’t afford any cuts.

“The minister needs to rule out these cuts so that no Victorian, patient or their family, will be worse off,” she said.

“This is a horror budget. There is no money. They have spent and wasted so much of the Victorian taxpayer’s money and now they have to cut services and that is going to impact on the delivery of healthcare services.

“This is not the time to cut the health budget when there are so many Victorians and their families that are desperately in need of healthcare delivery.”