NSW leaders civil to each other but poles apart on debt

The second leaders debate of the election campaign had NSW Premier Dominic Perrotett and Labor leader Chris Minns sparring over tolls, education, privatisation and crime.

Opposition Leader Chris Minns and NSW Premier Dominic Perrottet shake hands before their debate. Picture: NCA Newswire / Gaye Gerard

NSW Labor leader Chris Minns says the state government’s mega-infrastructure spend could lead to a “debt and deficit spiral”, although he faced accusations from Premier Dominic Perrottet that his approach to governing would see projects imperative to the state’s future binned.

The second leaders debate of the election campaign had the two sparring over tolls, education, privatisation and crime, with much of the clash revolving around the sustainability of the government’s asset recycling.

With the cash rate reaching its highest point in 11 years, Mr Minns said once the government’s extra $50bn of infrastructure promises was factored in, the cost of servicing the state’s historic net debt would reach nearly $2bn per annum, eclipsing the amount spent on the NSW Police Force.

“It would be grossly reckless if you were the government of today to rack up the largest debt the state has ever seen in its entire history; close to 20 or over 20 per cent of GSP in gross debt will have to be paid off by future generations of NSW taxpayers,” Mr Minns said on 7News.

Mr Perrottet once again ruled out privatising any further public assets if re-elected, leading Mr Minns to question how the Coalition would pay for these infrastructure projects without sliding further into the red.

“And then say I’m going to put another $50bn on top of that. That’s how you get into a debt and deficit spiral … I don’t believe it’s sustainable,” he said.

“That’s one of the leading reasons why the Premier, with his infrastructure black hole, is likely to sell assets rather than go to that level of debt.”

Mr Perrottet accused Labor of having a “black hole” in its budget, saying Mr Minns’s comments demonstrated more transport infrastructure projects would be cancelled if he were elected, stalling the state’s economic growth.

“That’s families across NSW, who have opportunity and prosperity because of our public investment in infrastructure that is all at risk under Labor, because expenses will spiral out of control, and those investments can’t be made, just like we saw when they were last in office,” he said.

Mr Perrottet said the state’s net debt position – at around $180bn over four years – was “very strong”, representing only 6 per cent of revenue, and further expenditure on social infrastructure was fundamental to meet demand.

In an earlier exchange in the rather civilised debate, Mr Perrottet insisted the construction of major motorways through Sydney had been “game-changers”, saying “we’ve got to keep building, we can’t stop”.

Pressed on how each leader would address sliding educational outcomes, Mr Minns underlined the deteriorating rankings in NSW, while Mr Perrottet said the government had “decluttered the curriculum”, refocusing children on the basics.

Neither leader was willing to put a number on how many additional police officers were needed to confront rising crime rates, particularly in the state’s west, with Mr Perrottet saying there were challenges in recruiting frontline staff, whether that was police, nurses or teachers.

Mr Minns said the state’s public sector wage policy – with annual growth capped at 3 per cent plus an additional 0.5 per cent for productivity – was hamstringing recruitment efforts.