TED BAILLIEU MUST RULE OUT SELL OFF OF STATE ASSETS

TED BAILLIEU MUST RULE OUT SELL OFF OF STATE ASSETS

Posted on 29. Apr, 2011 in News

The chief author of the review of state finances has now admitted that the true ramifications of his recommendations include massive cuts to public services or a fire sale of the state’s assets, Shadow Treasurer Tim Holding said today.

“If this review is adopted Victorians will face higher taxes, a fire sale of our state assets or a massive reduction in basic services such as health, education and community safety,” Mr Holding said.

“If the Government accepts the recommendations of the Vertigan Report they would have to slash $2 billion annually out of the Victorian budget.

“They’ve ruled out raising taxes. They can only do it by slashing thousands of jobs or by selling off Victoria’s assets – our hospitals, our prisons, our water supplies.

“All of this is based on an obsession to have zero debt each decade.

“This is an absurd policy goal which would force the current generation of Victorians to pay the full cost of infrastructure this decade. The cost of infrastructure should be shared just as the benefits will be by future generations.

“Kim Wells must immediately rule out these draconian and undeliverable recommendations.

“Or he must identify which assets will be sold, which public servants sacked or which taxes will be raised.”

Mr Holding said respected economist Saul Eslake said the Baillieu Government’s plan for zero state debt was concerning.

“Mr Eslake said this policy plan ‘would appear to be a recipe for underspending on infrastructure with the same consequences that Sydney now faces’,” he said.

“The truth is the Baillieu Government inherited a AAA-rated budget, with a strong operating surplus over each of the next four years.

“Kim Wells must come out from hiding, come clean with Victorians and tell them whether he will ignore the report, slash services or sell our assets.”

Comments are closed.