NO ONE LEFT TO BLAME – STATE LABOR MUST PERFORM

Wednesday 28^th November 2007

The Rev Fred Nile, Leader of the Christian Democratic Party, has, in the wake of the recent Federal Election, drawn attention to the ‘change in political landscape’ and asked State leaders if NSW can now expect appropriate treatment when it comes to funding. “For several years now, the State Labor Government has engaged in a blame game with the former Federal Government, especially over the distribution of GST revenue.  In the wake of the recent Federal Election, the Australian Labor Party find themselves in a new political landscape and will, by necessity, be forced `to adopt a new approach as there is no one left to blame but themselves. Both Federal and State bodies must now work together for the greater good of the people of NSW”, Rev Fred Nile stated.

Rev Fred Nile recently raised the issue of GST during question time in State Parliament, to which the Treasurer stated that the new Federal Government will look at “restoring bilateral funding to New South Wales”.

Reverend the Hon. FRED NILE: My question without notice is directed to the Treasurer. Is it a fact that New South Wales does not receive its full GST payment commensurate with the size of the population who pay the GST? What urgent steps are you taking with the new Rudd-Gillard Federal Government to ensure New South Wales receives a just and equitable proportion of GST income?

The Hon. Melinda Pavey: Remember, no gloating.

The Hon. MICHAEL COSTA: I am not gloating at all, but I can say that I have spoken to Wayne Swan, the incoming Federal Treasurer, who has indicated that as a first priority he will sit down with me as New South Wales Treasurer to discuss funding to the States. As we know over the last 11 years New South Wales has been well and truly—and an appropriate word that comes to mind starts with an "S", but I won't use it—disadvantaged by the Federal Government.

The Hon. Duncan Gay: Supported?

The Hon. MICHAEL COSTA: No. If the member wants to know, as well as an "S" the word also has a "C" and an "R" and an "E" and a "W" in it. New South Wales has been disadvantaged because of under-funding by the former Federal Government. That disadvantage has taken two forms. The first is the issue of GST per capita grants. The second is that a significant amount of funding to the States is received on a bilateral basis, for example relating to health care and housing agreements. In fact just before the last State election the Commonwealth advised that it intended to take $300 million from the bilateral agreement on housing. That was an absolute disgrace. The election of the Rudd Federal Government could not come soon enough for the people of New South Wales. As a result, all those bilateral agreements will now be revisited, and we will be arguing for a return to proper funding of basic services in New South Wales.

I am pleased to say that in my conversation with him, Wayne Swan has indicated that he and the Rudd Government understands our problem. Mr Swan sympathises with New South Wales and is prepared to sit down and look at restoring bilateral funding to New South Wales. That will clearly reward the public of New South Wales for voting Labor on the weekend. That one comment by Wayne Swan confirmed that the New South Wales public did the right thing by getting rid of the horrible Howard-Costello Government. We all know that Peter Costello did not have the ticker to stay around. He has decided to run off to the private sector; he thinks he is going to be a $10 million man. But given that he took credit for things he never achieved, is it any wonder that no lesser authority than Jeff Kennett said the following about him:

This one announcement says more about the character of the man than his 11 years as Treasurer of this country.

Jeff Kennett has nailed Peter Costello for what he is—a bloke who wants everything on a platter, a bloke who takes credit for other's work and a bloke who plays politics with funding arrangements for fundamental services. Peter Costello left because the people of Australia comprehensively rejected him as a prime ministerial candidate. I repeat what Kevin Rudd said to our side of politics:

We have a lot of work to do. So we should all have a strong cup of tea..