Economy and development focus of NSW election race

After eight years of responsible, progressive government, which has guided the NSW economy from the doldrums to strong growth, Premier Gladys Berejiklian and the NSW Coalition need to ask themselves why they are line ball with Labor in the polls, struggling to ward off minority government. Nineteen days from the March 23 election, as voters begin to engage in earnest, economic management and infrastructure development are major issues.

At the start of the first full week of campaigning, Ms Berejiklian promised $6.4 billion over the next four years for the Metro West rail project, which would cut travel time from the city to Parramatta to 20 minutes, with trains running every two minutes. It was a much needed effort to engage with voters on transport congestion and slow commuting times. Labor has promised $8bn for the project, which is the type of productive infrastructure Australia’s largest city needs. Since becoming Opposition Leader in November last year, Michael Daley has engaged well with voters, creating an impression that Labor has taken their everyday concerns, especially about transport, on board. He has also tapped into concerns about the costs of knocking down and rebuilding the Sydney Football Stadium and refurbishing the Olympic stadium.

As voters weigh up the parties’ ability to deliver, they should look carefully at the politicians’ spending plans, including the opposition’s promise to scrap the Coalition’s public sector wage growth cap. The cap, which has limited annual public sector pay increases to 2.5 per cent since 2011, would save the government a further $5.8bn over the next four years. Labor wants to return power over public sector wages to the NSW Industrial Relations Commission. From 1998 to 2011 under Labor, the commission oversaw pay rises of more than 4.2 per cent on average. As Adam Creighton reports today, ratings agency S&P, which returned NSW’s AAA credit rating to “stable” from “negative” in September, has warned against relaxing the focus on spending control.

Despite the importance of electing the government of Australia’s largest state and economic engine room, the public has appeared largely disengaged in the election process until now. Ms Berejiklian appears intent on a “small target’’ approach and the Coalition will undoubtedly direct plenty of negative advertising towards Labor, reminding voters of years of chaotic and sometimes incompetent rule. But the 50-50 two-party preferred outcome in the most recent Newspoll suggests Ms Berejiklian needs to be more assertive in selling what should be a strong message. At a time when many Australians feel disgruntled about the political process and low wages growth, with many households feeling they are missing out on their share of the nation’s prosperity, a proactive approach becomes more important.

Writing today, former NSW Labor premier Bob Carr put his finger on one of the major irritants for many Sydney voters — the light rail system to run from George Street in the CBD through the inner city to Randwick in Sydney’s east. The project is over budget, unfinished and the subject of legal action. Voters have had enough of protracted disruptions; nearby businesses have suffered, some have gone broke. Many of the problems are symptomatic of growth.

Overall, Ms Berejiklian and her government have a strong story to tell. After eight years, unemployment is at a 40-year low of 4.3 per cent, the budget is well in the black, business investment and retail spending are strong. It’s too early for an “it’s time factor’’. But the parties are line ball. Now that the campaign is up and running, the leaders must engage in constructive debate about growth and jobs, service delivery, infrastructure and planning. Such a campaign, centred on the issues that matter to voters, will ensure that the ultimate winners from the campaign will be the people of NSW.