31 August 2011
Mr MORRIS (Mornington) — It is a pleasure to have the opportunity to make some further comments about part 1 of the Public Accounts and Estimates Committee (PAEC) report into the estimates hearings for the 2011–12 budgetary year.
I made some preliminary comments about this report on 1 June when I talked about the general structure of the report, its background, the process for the hearings and in particular the substantial editorial changes that have been made to the report.
Today I want to concentrate on some of the key issues raised as part of estimates process, and if time permits, I will also talk about some of the budgetary pressures that will confront the state and the Victorian community over the next four or so years.
The government came to office with an agenda for openness and accountability, and I think it was very reassuring to see that commitment reflected during the budgetary process in the work done in presentations to the estimates. The presentation of the estimates is a work in progress that has been ongoing for many years.
I have no doubt that it is a process supported by members on both sides of this house. Even if perhaps at times it is not supported by the executive, I believe it is a process in which we are all striving for improved understanding and clarity with regard to both the estimates process and the budget papers themselves.
With the change of government there have inevitably been changes to the structure of the document, as of course there have been changes in terms of the new government’s priorities. Some programs have been discontinued and some have been varied.
Significant cost pressures arise from both the revenue and expenditure sides of the budget, and there are also public sector wage pressures with which we need to deal every four years or so.
There have been a significant number of cost overruns and what appears to be a substantial deterioration in economic conditions; there is certainly a substantial slowing in the rate of economic growth. In their own way all of these factors create pressures. In terms of pressure, perhaps the single most significant item is a substantial reduction in the state’s share of the goods and services tax.
Some of the key themes in the budget reflect both the changes and pressures. There is an emphasis on strengthening Victoria’s finances, on boosting the state economy, on the flood response, which was entirely unanticipated but has been incredibly costly in both human and financial terms, and we are all aware of cost of living pressures.
There are the challenges of community safety, of rebuilding the public transport system, of promoting continued growth and prosperity in regional and country Victoria, of improving the health and hospital systems, and of maintaining a credible emphasis on education and skills, which is a very important part of what we do as a state.
We also have an emphasis on supporting local communities and on integrity in government.
I commend the Treasurer and his department on their work in presenting this budget. I am sure that the work undertaken so far is but a precursor for improvements in budgets to come.
The document is a valuable summary of government initiatives, and I commend it to members.
Legislative Assembly 31 August 2011
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