By Tom Rabe
NSW Premier Dominic Perrottet says borrowing cash and privatising state-owned assets is the key to funding the state’s $110 billion infrastructure pipeline, warning that major transport projects risk being cancelled by a future Labor government.
Perrottet on Monday attacked the NSW opposition’s economic credentials and cast doubt over Labor’s capacity to continue financing the state’s major projects without a set wages cap.
However, the premier also breathed new life into speculation his government will sell off more assets to fund road and rail projects by insisting that asset recycling was a core component of financing big builds.
NSW Premier Dominic Perrottet and Treasurer Matt Kean on Monday.Credit: Dominic Lorrimer
“What we have is a long-term economic strategy to keep NSW moving forward that has been our approach, it’s a balanced approach to financial management in our state, a combination of affordable and sustainable debt position, asset recycling, lower taxes,” Perrottet said.
“That ensures the budget remains in a strong position, and we can continue to invest in the things that matter to people across our state.”
Asked whether he would borrow the money required to finance public transport projects, including future Metro rail, Perrottet said the government would use a “combination” of methods, before adding he had no plans to privatise more assets.
Perrottet also dismissed suggestions he and Treasurer Matt Kean were at odds on any potential sale of Sydney Water as “semantic word games”.
While Kean last week unequivocally ruled out the sale of Sydney Water, which is expected to generate $355 million for the government next financial year, Perrottet instead said he had “no plans” to sell it, but refused to rule it out.
Perrottet said the government would make an investment decision on how to finance more Metro rail projects at a later date.
“There has been asset recycling that we’ve undertaken that’s enabled us to continue to build that infrastructure over our time in government,” he said. “We make those decisions at the point in time where those investment points arise.”
The government on Monday sought to frame its election message around its financial management, warning a Labor government could blow an $8 billion hole in the budget if a cap on wages was removed and public sector pay was pegged to inflation.
Labor has come under increasing pressure to outline the details of its public sector wages policy after vowing to scrap the 3 per cent wages cap imposed by the government.
Opposition treasury spokesman Daniel Mookhey has said any wages increase above 3 per cent would be paid for with savings or efficiencies. On Monday, Mookhey said the government was “frothing” over a fictional policy by suggesting wages would rise at the pace of inflation under a Labor government.
“It’s an act of desperation from a 12-year-old government that is designed to distract from the immense shortage of critical workers hitting our schools, our hospitals and our other essential services,” he said.
Labor leader Chris Minns said: “I don’t know what they’re modelling, but it’s not Labor policy.”
Perrottet said capping government worker pay at 3 per cent was integral to the strong financial management of the state, despite families across the state suffering through a cost of living crisis.
“Is this the debate you want to be having? It’s the debate we have to have, because if you don’t have that strong financial management, if you don’t have that cap in place, there are real consequences,” he said.
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