Message from Kim

2009-10 STATE BUDGET UPDATE

The Victorian Liberal Nationals Coalition 2009-10 State Budget Summary

Main Points:

'House of Cards' Budget - full of assumptions which could crumble at any time
A high taxing, high spending, high debt Labor Budget of old
Surplus of $165 million - only due to $2.8 billion in Federal funds bailout
$31.3 billion of total public sector net debt in 2013 - $6,000 for every Victorian
Interest bill will increase by $800 million to $2.2 billion in 2013 - taking money away from the delivery of vital services
Unemployment of 7.75 per cent in 2010 - 200,000+ Victorians will be unemployed

Labor's 2009-10 State Budget is a 'house of cards' - based on a whole range of assumptions and can fall apart just with an increase in unemployment, higher debt levels, a failure of costings or a blowout in any of the costings.
A high taxing, high spending, high debt Labor Budget of old bringing back painful memories of Victoria's darkest days of the Cain-Kirner era.
This Budget was supposed to be about securing jobs, but 200,000 Victorians will wind up unemployed.
It is a bad news budget for our children who will be left to pay a $31 billion debt legacy by Labor.
Funded on the 'never never' leaving our children to pay for it.
The interest bill on this debt will now soar to an expected $2.2 billion in 2012-13 far above the $1.8 billion per year previously budgeted by the Government and further erode the ability to deliver basic services.
The phoney surplus of $165 million in 2009-10 has only been created after a huge injection of capital grants from the Federal Government, up from an estimated $459 million in the most recent Budget Update to $2.8 billion in 2009-10.
Despite Labor's decade of opportunity, the question that Victorians are asking is where has all our money gone? What do we have to show for it?
The State Labor Government has benefited enormously from:
record payroll tax revenues of more than $30 billion in total since 1999.
land tax that has increased 227 per cent or more than three-fold from $378 million in 1998-99 to a forecast $1.237 billion this financial year with total land tax revenues collected since 1999 approaching $8 billion.
stamp duty on land transfers that has increased by 270 per cent since 1998-99 from $1 billion to just over $3.7 billion in 2007-08. Over the next four years an additional $14.1 billion in stamp duty revenues from land transfers will be received.
Up to $714 in additional taxes and charges in the areas of gas, power, water, transport, taxis, local government rates, vehicle registration and public housing rents will be levied by the Government on Victorians this year, clawing back much of Federal Labor's financial assistance payments.
Labor has had 10 years of record taxes and revenue totaling more than $300 billion to build desperately needed infrastructure and provide basic services.
But our infrastructure continues to fall apart and our regions have been seriously neglected.
The 2009-10 State Budget should have been about:
assisting businesses to invest and maintain and create jobs;
announcing infrastructure projects with funding explicitly designed to assist Victorian businesses to be competitive;
eliminating government waste, mismanagement and self promotion programs; and
ensuring debt funding of infrastructure is transparent, there is a rate of return over the life of the project which is realistic and that there is a transparent repayment plan of associated debt.
On all counts, the Brumby State Labor Government has failed Victorians.
The Victorian Liberal Nationals Coalition is committed to:
Cutting the cost of doing business in Victoria;
Supporting Victorian businesses to ensure future investment and job creation;
Managing Victoria's economy efficiently by effectively using taxpayer funds and eliminating waste;
Investing in, and growing Victoria's infrastructure in order to provide for greater efficiencies and productivity for manufacturers and businesses;
Strongly supporting the principle of freedom of association in all workplaces;
No longer tolerating violence on our streets, and providing the necessary frontline police resources to make our communities safer;
Introducing tougher sentencing for violent crimes and crimes against children;
Ensuring that corruption in Victoria is uncovered and offenders severely punished;
Implementing a code of conduct for government ministers which includes honesty and accepting responsibility;
Leading the nation in literacy and numeracy amongst Victorian students;
Supporting and fostering volunteerism in our communities and promote the benefits to young Victorians;
Ensuring Victoria has a world class health service with fair access for all; and
Ensuring sensible and responsible management of the Victorian environment.

Kim Wells Signature
Kim Wells MP
Member For Scoresby

News Feature - House Of Cards Budget - Shadow Treasurer Kim Wells State Budget Reply Speech

On Tuesday, 5 May, the Treasurer presented the State Government's Budget for the 2009-10 financial year.
Given the difficult economic circumstances Victoria is currently facing, this year's Budget is fundamentally critical for the future of our State.

However, this and future generations will be burdened by the failures, financial mismanagement and massive debt legacy unleashed by the Brumby Labor Government in this Budget.

Lenders Undermines Brumby Jobs Boast

John Brumby's claim that the 2009-10 State Budget will create 35,000 new jobs has been severely undermined by his own Treasurer, Shadow Treasurer Kim Wells said today.

Responding to questions by Victorian Liberal Nationals Coalition Legislative Council Members during Parliamentary discussion of the Budget yesterday, John Lenders stated that: " ... this budget secures 35,000 jobs that otherwise would not be secured" (Source: Hansard, Legislative Council, 25 June 2009).

"John Lenders' statement totally contradicts the Premier's claims which were repeated again this week that the 35,000 jobs in question were 'new jobs'," Mr Wells said.

Labor’s Lack Of Consultation Makes Duties Amendment Bill A Shambles

Labor's seriously flawed Duties Amendment Bill, finally passed in the Legislative Council this afternoon despite continued opposition by the Victorian Liberal Nationals Coalition, proves again that the arrogant Brumby Government is unwilling to properly consult on legislation which has major negative implications for many Victorians, Shadow Treasurer Kim Wells said today.

Victorian Treasurer Unable To Explain The Difference Between Gross And Net

Victorian Treasurer John Lenders' scant understanding of the Victorian Budget was exposed and on display in Parliament today according to Shadow Treasurer Kim Wells.

At question time today Mr Lenders was asked about a scathing article in today's Australian Financial Review by the former New South Wales Auditor-General Tony Harris but the Treasurer could not answer a single question on the subject.

Victorians Suffer While Brumby Boasts

ABS Labour Force Statistics for May reveal the Victorian unemployment rate has jumped from 5.7 per cent to 5.9 per cent, the second-highest unemployment rate in the nation.

The figures also reveal nearly 17,000 full-time jobs lost in May, as well as almost 30,000 more unemployed Victorians since January.

Victorians have also suffered more than 90 per cent of all the jobs lost in Australia since January which - on top of the fact that Victoria was the only state to lose jobs last year - paints an alarming picture for Victorian workers.

Victorian Economy Goes Nowhere Under Labor

- Grim news for jobs
- Victoria records zero yearly growth in demand
- Demand growth second lowest of all states

Today's ABS national accounts data show Victoria's final demand was stagnant, with zero growth for the year to March 2009, the second-lowest of all states.

And for the March quarter, Victoria's final demand went backwards by 2.1 per cent, more than double the national decline of 1.0 per cent.

"John Brumby is directly responsible for the Victorian economy going nowhere over the past year," Shadow Treasurer Kim Wells said today.