If NSW Treasurer Eric Roozendaal’s first budget (and NSW Labor’s 15th) confirms anything at all, it’s that NSW public finance is at the mercy of the property market.
The fiscal picture is a $1.3 billion deficit for the current year, $900 million for 2009-2010 and a surplus next in sight during 2011-12 on the back of a projected recovery in stamp duty receipts.
Three stimulatory measures are directed at driving property activity. One is for existing home-owners — a halving of stamp duty for home sales under $600K until December 31 (but since homes under $500K already have no stamp duty, this is a narrowly-target fillip). Another is a $3000 bonus to first home buyers for newly-constructed homes. Finally, there’s $200 million of interest-free loans to local councils to fund infrastructure projects.
There’s also $2.7 billion for a proposed new CBD metro (NSW citizens have lost count of the number of major infrastructure projects this government has announced and then rescinded). But almost all the new infrastructure money in this budget comes from a $5 billion transfer payment out of Federal funds from phone-a-friend Kevin Rudd.
Apart from these property-dependent maneuvers, there is one glimmer of actual governance taking place, in a proposal to create 13 super-ministries from the current melange of over 150 NSW government agencies.
However, restructuring seems to be this government’s #1 activity. Friends of mine in the NSW service have been through no less than 8 departmental mergers and de-mergers since 1996. Perhaps Roozendaal is hoping for a stationery-led recovery?
He who depends on stationery
is likely to remain stationary
Howsoever one may push the envelope, yet it remains stationery.
-FDB
Howsoever one thinks outside the square, it remains rectangular.
If the Envelope be Pushed and Will not Move, I Claim its Masse must be Vast, as my Analysis of Motions Terrestrial and Heavenly Doth Attest.
(Forget the Apple, ’twas but a Pretty Story to Staunch a Bore)
The restructuring this govt has undertaken over the last 15 odd years is ludicrous.
Dept of Urban Affairs and Planning -> Planning NSW -> Dept Industry, Planning and Natural Resources -> Department of Planning, that’s just where the planning department has been lately.
challenge: see who can come up with the longest NSW govt departmental chain over the duration since the ALP has been in power in NSW.
Steve, I’ll check with my friend. I think he can beat that one…
…But the fact that the Dept. of Planning has been through bi-annual name changes says it all, really!
Pft, the Feds have the States beat. Since the 1990s:
Dept. of Immigration and Ethnic Affairs –> Dept. of Immigration / Dept of Ethnic Affairs –> Dept. of Immigration and Multicultural Affairs –> Dept. of Immigration, Multiculturalism, and Indigenous Affairs –> Department of Families, Community Services and Indigenous Affairs –> Department of Immigration and Citizenship.
And let’s not start on responsibility for CES/Centrelink.
Conservation and Land Management to then become Dept of Lands, Water Resources, to then become the Dept of Land and Water to then reverse to Dept of Lands and Dept of Water and Energy, not to be confused by the Dept of Environment and Climate Change.
That was the one I was trying to remember, Pablo – thanks!
Oh God, not another restructure…fine if it works but we’ll (again) have to change a bunch of customer records or they won’t pay the bills. One of my customers even has magnetic letter sets so he can change the name out the front of the building without needing screws/etc
A bit scary how dependent they are on property…if that bubble ever bursts we’ll be lucky if there’s any money left to pay for a single surgeon…
Er, wasn’t it a housing bubble that started this big mess?
Gold star to Carbonsink!
Oh don’t be silly carbonsink, it was a housing bubble in the USA, not here. Our banks are the best in the world, because the Treasurer made sure their regulation was improved several years ago. So we’re just fine. Housing here has never been over-priced. It’s solid bricks and mortar we’re talking. Yes, I’ll take increments of $10,000 now. You’ll have to signal more clearly if you’re still bidding, Sir.
Anyway, as I was explaining, the Treasurer – the Very Lion of the Asian Financial Crisis – has firewalled our economy, and as he is now in the 13th highly successful year of his very fine stewardship of all matters financial, you may rest assured….
What?
WHAT???!!!!!?????