Water bills down in state awash with cash

THE Napthine government is set to raid its own multi-billion-dollar budget surpluses to maximise its chances of winning in November.

THE Napthine government is set to raid its own multi-billion-dollar budget surpluses to maximise its chances of winning the November 29 election.

Ministers are demanding that the government fund more initiatives with “new’’ money between now and the election, despite the $27 billion binge on infrastructure in last Tuesday’s state budget.

Premier Denis Napthine yesterday opened the door to additional new spending in the election campaign, stating that while the broad government spending had been set in the budget there was capacity for further commitments.

The Australian understands that senior ministers are backing a strategy to avoid a repeat of the 1999 election, when Jeff Kennett lost and left behind a huge surplus that was then spent by Labor.

The government is most vulnerable on health and education and will be under intense pressure to deliver even more on law-and-order spending and cost-of-living policies.

Dr Napthine yesterday detailed another cost-of-living initiative: a $100-a-year water bill reduction for Melbourne consumers, worth about $400 over the life of the policy to each household.

This policy is aimed directly at Labor’s discredited desalination plant, which is unused after heavy rain rendered it useless.

Victorian Treasurer Michael O’Brien last week delivered surpluses worth $11 billion over the forward estimates but stressed the money was needed to underpin the infrastructure spend.

Dr Napthine indicated yesterday there would be an opportunity for further new spending this year, adding weight to ministerial demands for the surpluses to be used to help win a second term.

“There may be an opportunity for additional expenditure if required,’’ the Premier said.

Victoria is still more than six months away from an election but in full campaigning mode.

Labor and the Coalition are making at least one election announcement a day.

The government has started swamping weekend television with ads on the transport and health sectors.