[Greens-Media] NSW mini-budget nasties unnecessary and dangerous

[John Kaye]

NSW mini-budget nasties unnecessary and dangerous
 
Media release: 31 October 2008
 
Treasurer Eric Roozendaal's push for spending cuts and an assets fire
sale is based on discredited economic theories. It risks pushing NSW
into a longer and deeper recession, according to Greens NSW MP John
Kaye.
 
Commenting on a story on page 1 of today's Sydney Morning Herald
(‘Labor's $1.3 billion budget gamble'), Dr Kaye said: "The Rees
government's slavish obedience to the credit rating agencies will bring
even further hardship to low and middle income households. 
 
"It is driving the state to the brink of a protected recession.
 
"Cutting spending at a time when the state's economy is struggling will
have disastrous consequences. 
 
"Instead the Treasurer should use the government's ability to borrow
and invest in important rail infrastructure projects and renewable
energy developments. 
 
"Not only will spending create jobs and breathe some life back into the
economy, but it will ensure that the state emerges as soon as possible 
from the global downturn with new sustainable industries and a
twenty-first century transport system.
 
"Borrowing to build infrastructure that will earn a healthy economic
return is a good sense investment in the future and a powerful tool for
maintaining employment.
 
"Selling public assets like NSW lotteries, the electricity retailers
and the waste disposal agency might create the illusion of a balanced
budget. However, in reality it is nothing but robbing from the future.
 
"Treasurer Roozendaal is captured by nineteenth century economic
thinking and deeply conservative Treasury officials who cannot see
beyond the AAA rating.
 
"Premier Rees should seize control of next Tuesday's mini-budget. 
 
"He should break free of the outdated slash-and-burn mentality and show
real leadership by expanding spending," Dr Kaye said. 
 
For more information: John Kaye 0407 195 455 
 
 
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John Kaye
Greens member of the NSW Parliament
phone: (02) 9230 2668
fax: (02) 9230 2586
mobile: 0407 195 455
email: john.kaye at parliament.nsw.gov.au
web: www.johnkaye.org.au
 
mail: Parliament House, Macquarie St, Sydney NSW 2000