Debate resumed from 28 June 2007.

Ms CARMEL TEBBUTT (Marrickville) [10.47 a.m.]: I am proud to be a member of a Labor Government that so comprehensively delivers on the commitments we made to the electorate prior to the March election. The 2007-08 budget is a clear demonstration of the Iemma Government's commitment to investing in infrastructure along with the expansion and improvement of vital public services, including increased funding for health, community services, disabilities, housing and emergency services. It achieves all of this in an environment of high interest rates, the ongoing effects of the drought and the refusal of the Federal Government to return to New South Wales its fair share of funds from the goods and services tax. I congratulate the Treasurer on his budget.

I am particularly pleased to see increases in funding for front-line agencies that are providing the services on which so many in our community rely. It is the reality of our Federal-State funding arrangements that, while the States have responsibility for so many of the services essential for a healthy cohesive society, much of the revenue-raising capacity rests with the Federal Government. This makes the achievements of this State budget all the more impressive. The 29 per cent increase in capital expenditure to $12.5 billion in the 2007-08 financial year will directly and indirectly support 156,000 jobs. As the Treasurer has said, this is more than $34 million invested in infrastructure every single day. Almost $50 billion is committed to infrastructure over the next four years. A modest increase in debt from 4.8 per cent of gross State product to 9.3 per cent by 2011 will see State debt remain consistent with our triple-A credit rating, while recognising a role for debt in investing in projects that will benefit future generations.

My electorate of Marrickville benefits greatly from this budget. The $1.3 million allocated for the easy-access upgrade of Newtown station is one of the local highlights of the budget. People in my electorate have campaigned long and had for greater accessibility at Newtown station, an older station with many steps. It is a struggle for people with a disability, parents with prams and old people alike to access. Funding for planning was allocated in the previous State budget to make Newtown accessible. The $1.3 million allocation in the 2007-08 budget is part of $43 million that is being spent on easy-access upgrades and it will enable work to commence this year. I congratulate the Newtown Neighbourhood Centre and its coordinator, Lisa Burns, on their hard work in drawing attention to the need for Newtown station to be made accessible.

Roads in my electorate will be improved, with $2.2 million allocated to Marrickville in the 2007-08 budget for road safety, road network maintenance, and traffic and transport initiatives. This includes the installation of traffic signals at the intersection of Sydenham Road and Centennial Avenue, Marrickville, pedestrian fencing along parts of Enmore Road, and the investigation of pinch-point corridors on Parramatta Road.

The 2007-08 Transport budget will see State Transit receive $281.3 million. This includes $63.4 million for new lower-emission compressed natural gas and Euro 5 diesel buses for Sydney and Newcastle. In addition, $34.1 million is allocated for the Leichhardt depot to make it Australia's first all-green bus depot. The residents of the inner west, who have a strong commitment to environmental sustainability, will welcome this.

The Climate Change Fund—promised during the election and the first instalment delivered in this budget—is a clear demonstration of the Iemma Government's commitment to addressing climate change. The impact of climate change is one of the most pressing issues confronting not only New South Wales but also the rest of the world. Many residents of Marrickville have expressed to me their concern and desire for action. The Climate Change Fund will provide incentives to businesses and families for practical measures to preserve water and energy and to reduce New South Wales greenhouse gas emissions. I also welcome the $5 million allocation for satellite imagery. Such high-tech monitoring will make it harder for people to get away with illegal land clearing.

The 2007-08 budget recognises the importance of quality public services in supporting strong and cohesive communities. The New South Wales Health budget will increase by 7.1 per cent to $12.5 billion. Health expenditure is now 28 per cent of the State budget. This year will see an increased focus on early intervention and prevention. There is also a most welcome 11 per cent increase in mental health spending, which in this budget will exceed $1 billion for the first time. I draw particular attention to a $16 million boost to mental health services and research for young people through a partnership with the Brain and Mind Research Institute. In addition, $10 million will be spent on the construction of the youth mental health clinical research facility at Camperdown. A further $6 million will support both the research facility and two associated services for young people in Camperdown and Redfern-Waterloo. Research shows that 75 per cent of mental health problems develop before the age of 25. It is critical to focus on the early phase of mental illness and to maximise the chance of helping young people back to school, back into education and training or back into the workforce.

I had the opportunity to see firsthand the benefit of our Health funding when I toured Royal Prince Alfred Hospital facilities with the Minister for Health. This highly respected tertiary hospital in my electorate of Marrickville will receive $6.7 million to continue its upgrade. Families in the inner west will benefit from a $1.8 billion investment in southwest Sydney health services that will include new neonatal intensive care services and support for eating disorder services at Royal Prince Alfred Hospital. The new neonatal intensive care cot at Royal Prince Alfred Hospital will offer the highest level of hospital care with one-to-one nursing care 24 hours a day. The Royal Prince Alfred Hospital will also benefit from a neonatal flexicot, which will be on standby with a team of specialist nurses to boost services, most often for multiple births. When we visited the Royal Prince Alfred Hospital I was amazed to see the fantastic work these dedicated professionals do and the tiny babies they support. The record investment in health services will help address the increasing pressures on the health system, including an aging population, increasing consumer expectations and technological change.

The 2007-08 budget allocated record funding of $11.2 billion for education and training in New South Wales. Schools in Marrickville will welcome the Government's continued commitment to public education and providing quality learning environments for students and teachers. I am particularly pleased that $157.8 million has been allocated for the Connecting Our Classrooms initiative. This will provide all public schools in Marrickville with an interactive whiteboard and videoconferencing facilities by 2011. These facilities offer enormous opportunities for schools to interact with each other and to share resources. At the same time $81.6 million has been provided over four years for literacy and numeracy initiatives in the early years of schooling. This includes the introduction of consistent literacy and numeracy assessments to all kindergarten students in government schools. This is one of the most important initiatives in this year's budget.

Children start school with a variety of prior-to-school experiences, whether from preschool, long day care or staying at home with their parents. An assessment in kindergarten of where students are at with their literacy and numeracy skills will facilitate teachers being able to tailor a program to an individual student's needs. It will set our youngest students on the right path to learn these critical foundation skills. It builds on the Government's commitment in the previous term to lower class sizes in the early years. There will be 200 additional reading recovery teachers over four years to support those students who need extra assistance with literacy. I saw the Reading Recovery Program in action on a recent visit to Australia Street Infants School at Newtown with the Premier and the Minister for Education and Training.

The budget also provides a record $531 million to build and enhance school facilities for information technology. Marrickville schools will benefit from $1.5 million worth of projects. I visited Newtown High School of the Performing Arts to inspect the new performance workshop, classroom and storage space. The school will receive funding as part of this program of works. Other schools to benefit include Dulwich Hill Public School, which will receive funding to upgrade its grounds and playing fields; Darlington Public School, which will receive funding to upgrade lighting; and Fort Street High School, which will receive an electrical upgrade. Dulwich High School of Visual Arts and Design will receive funding for the provision of a pedestrian walkway and security fencing around the oval. Maintenance projects worth $342,886 are taking place in nine local schools, including painting at Fort Street High School and Marrickville West Public School, carpeting at Lewisham Public School, Newtown Public School and Marrickville West Public School and ground works at Darlington Public School. I know that teachers, parents and students alike will warmly welcome these improvements to our local schools.

The Government has also recognised the needs of the most vulnerable and marginalised members of the community in this budget. It will invest $1.9 million of the 2007-08 social housing budget to provide housing for those most in need in the Marrickville electorate. Almost $900,000 will be spent to convert a block of old, outdated bed-sit units in Dulwich Hill into new one-bedroom community housing properties, and more than $1 million is allocated for capital improvements to existing public and community housing stock, including upgrading kitchens, installing energy-efficient facilities and modifying homes for people with a disability.

The continued expansion of the budget of the Department of Community Services as part of a five-year reform plan delivers on the Government's commitment to improve family support, child protection and out-of-home care services. The Department of Community Services supports some of the most vulnerable families in the State. The issues its caseworkers and other staff deal with are complex, difficult and often extremely traumatic. Major initiatives in 2007-08 include $24.4 million for child protection and early intervention caseworkers and associated professional support staff. This will further improve the quality and timeliness of responses to reports of children at risk of harm. There is also $65.5 million for out-of-home care. This will support extra caseworkers and improve placement options and services for children and young people who cannot live at home.

The Government has also recognised the needs of people with a disability and their carers with another significant increase in funding. Families, carers and disability advocacy groups will welcome that this week, which is Carers Week. Like most members in this House I find some of the most emotional issues I deal with in my electorate involve families caring for a loved one with a disability. The Stronger Together strategy is a historic reshaping and expansion of disability services in New South Wales. New therapy places, more respite support, increased supported accommodation and post-school program places will mean that people with a disability and their families and carers will get the support they need. Funding for home and community care transport services in my electorate, including $383,653 for the South Sydney Community Transport group and $175,163 for the Central Sydney Community Transport Group, will provide community transport services to assist the frail aged and younger people with a disability and their carers.

I welcome this budget and the support it will provide to the people of Marrickville and the people of New South Wales. In the recent election campaign the Government made a very clear commitment to continue to strengthen services in New South Wales—and that is exactly what this budget does. We recognise that a strong, successful and cohesive society is dependent on the Government providing a sound economic framework that supports investment and jobs, its pursuit of sustainable policies that conserve and protect our environment, and its delivery of quality services to provide opportunities for all. This budget does all this—and more. I commend it to the House.

Mr JONATHAN O'DEA (Davidson) [11.00 a.m.]: In speaking to the budget estimates and related papers for 2007-08, I point out it is becoming increasingly apparent that the conservation of our environment is vital to sustaining our economy and community life—something that the people who live in the Davidson electorate are vitally interested in, and, as such, initially in this budget-related speech I will focus on the environment, but, being mindful of my background, I will also make some business-related comments and highlight some specific wishes of my electorate in other portfolio areas.

If the Government were genuine about the environment and if it operated with integrity, it would have put the desalination plant on hold and honoured its previously promised trigger of a 30 per cent dam level before committing to proceed with an expanded plant at a time when dam levels are at approximately 55 per cent capacity. Without proper debate the Government has decided to double the capacity of the environmentally destructive desalination plant, asserting that it is cost effective. However, by doubling the capacity, it will use far more energy, which will involve far more direct financial and indirect environmental costs.

Where are the disclosures from the Government on how many extra tonnes of greenhouse gases will pollute the air, and on how energy guzzling the whole plant's operation will be? Where is the true cost disclosed? What is the opportunity cost? Imagine how much large-scale stormwater harvesting and water-recycling infrastructure could be built with the money to be spent on the desalination plant at a cost of more than $1.8 billion. The higher use of electricity resulting from desalinating water and increased populations will mean a general need for additional power station capacity. The environment will continue to suffer from the burning of more fossil fuels as credits generated from increasing alternative energy production need to be used to cover the effects of the desalination plant.

We should better follow sustainable planning policies and sounder environmental practices. An environmental economics approach should have been attempted as part of the budget process to place a clear value on environmentally sensitive initiatives of this type. The same can be said for other recent measures including the biofuels legislation and legislation aimed at curbing pollution. We should be aware of the benefits and costs of such initiatives. It is pleasing to see that at least the Federal Government takes a more prudent approach to the setting of climate change targets with a commitment to properly model the consequences of promised action. Now there's an idea for the State Government to implement!

Although it is difficult to do so properly, the Government should at least attempt to quantify environmental proposals in terms that most people understand—dollars. The Coalition has always done the hard things best but the current New South Wales Government should at least try. It is pleasing to see the Government's adoption of policies that earlier had been put forward by the New South Wales Opposition in relation to increased rainwater tank rebates and incentives for solar power. However it is strange that the Government allocated new specific funds for a new climate change area while cutting specific funds for the Aboriginal portfolio. While we all know that climate change has been a popular media topic, especially in the past year, the obvious reality is that the budget was formulated prior to recent media coverage of controversies over Aboriginal communities.

Clearly this Labor Government thought climate change was worthy of special budget public relations spin as part of the budget process, but that Aboriginal affairs and the Aboriginal portfolio were not worthy. Unfortunately this Government appears to continually focus on developing spin and reacting to perceived public opinion rather than proactively providing real leadership with substance. Believe me, the educated people of Davidson generally see through the Government's cynical political stunts. It was therefore not surprising at the March State election that the Liberal Party enjoyed a solid swing to it in Davidson and northern Sydney generally. The Liberal Party is focused on doing what is right, not what might be simply politically expedient in the light of current media attention.

Another important environmental issue is the Government's takeover of planning powers on many specific sites and its bullying of councils, such as the Ku-ring-gai council in my electorate, as they consider rezoning for increased development and housing density. This extra development will put considerable and somewhat inappropriate pressure on the environment in the electorate of Davidson, which contains areas of high heritage and conservation value as well as trees that provide valuable environmental lungs for Sydney. Higher density housing also creates greater pressure on sewage and garbage disposal and more energy consumption through the greater use of electricity and gas: thus air equality will suffer. The push for higher density urban consolidation housing areas also results in increased road use, fuel consumption and pressure on existing recreational areas.

High- and medium-density housing development and business accommodation creates pressure on existing infrastructure. The need to upgrade power grids, sewerage treatment plants, the laying of extra water and sewerage pipes, new roads and traffic management plans all take time and money to meet the increased population demands. I recognise the need for development in Ku-ring-gai and other areas. However, I ask: Where are the extra funds in this budget for a reinvestment in the necessary infrastructure in Davidson and in northern Sydney generally? There is precious little.

This Government has patted itself on the back for budget announcements on new physical infrastructure that has been distortedly allocated to the electorates it holds. However, what of the social infrastructure? The flow-on effects of overdevelopment include negative impacts on natural resources, such as air quality, deteriorating lifestyles for existing residents, increased social decay, shortages of open space, increased crime, and an unsustainable strain on the local environment. Increasingly the people of Davidson are learning this.

As part of a series of self-indulgent and arrogant congratulatory messages to itself, the Government has trumpeted its undoubted election success and alleged achievements. When it suits the Premier he is even prepared to admit that he has been part of the current Government for more than 12 years. One such time is when he is speaking about national parks. Yes, it is a good thing that the number of national parks has increased significantly under Labor. However, how many trees and how much parkland has actually been transferred from private to public ownership as opposed to simply being protected by gazettal?

One small but significant opportunity to transfer a valuable patch of environmental treasure to public ownership is at 102 Rosedale Road in St Ives. I have asked the Government to make a financial contribution to purchasing this land that adjoins the last substantial patch of blue gum high forest in Sydney. The whole area has been recognised as having heritage significance. A contribution from the New South Wales Government could be joined with contributions from local community donors, the local council and the Federal Government to build a fund for purchasing the land through ongoing negotiations with the owners, thus ensuring public ownership of the land. This is a chance for the Government to make a significant difference and demonstrate a real commitment to both the environment and the people of northern Sydney that Labor so often ignores.

Furthermore, I would properly acknowledge the contribution. Indeed, I now graciously acknowledge the budget funding for the easy access project at Lindfield train station, which has been welcomed particularly by elderly residents, parents with prams and disabled students from the nearby Cromehurst Special School. Many residents in my electorate run their own businesses or are business leaders in the New South Wales economy. They often look beyond their own backyards to policy that is good for the whole of New South Wales and its economic wellbeing. The New South Wales Government is fortunate that the national economy is so strong and that employment growth has been so healthy across Australia, in large part due to ongoing workplace reform.

The New South Wales budget projects that there will be $2.3 billion extra revenue next year and $4.5 billion in additional revenue over four years. But the Government has refused to provide taxation relief for New South Wales businesses, which pay the highest rates of taxation in Australia. The New South Wales payroll tax rate is the highest in Australia and the Government is increasing its reliance on this tax, with collections projected to increase by 29 per cent over the coming four years. Cutting New South Wales payroll tax by 0.25 per cent, from 6 per cent to 5.75 per cent, would cost only about $249 million per year. Such a cut would be responsible and affordable and would assist in reducing the unemployment rate in New South Wales, which remains high relative to that in other major States.

In my inaugural speech in this place I commended the Government for the 2006 State Plan as being a step in the right direction, particularly as it attempted to introduce improved businesslike practices to government. I also indicated that I looked forward to monitoring progress against the plan. It is therefore with considerable disappointment that I must point out that until recently the State Plan public website home page contained no updates of progress made against plan targets for three of the five broad measurement areas identified in the plan. These were updated for the first time on the website only last week—some 10 months after the State Plan's introduction. These areas relate to rights, respect and responsibility; growing prosperity across New South Wales; and fairness and opportunity.

The people of Davidson are not overly demanding but we do not want to be ignored by Labor. In health, we look forward to the timely delivery of the new Frenchs Forest hospital, as promised. Unfortunately, this project is already running behind schedule and has an uncertain budget—like so many other government projects that are promised but either not delivered on time or not delivered at all. In education, we look forward to the whole school maintenance budget actually being spent on State public schools. We look forward to improved space-to-student ratios in our overcrowded primary schools, such as those at Roseville and East Lindfield. We also look forward to improved recreational facilities for stretched secondary schools such as Killara High. As more and more residences are forced onto the North Shore, where is the planning for a commensurate increase in educational resources to cater for the additional population?

In law and order, while local police do a wonderful job, we need more police resources to be dedicated to Davidson and surrounding areas, especially to help address the growing graffiti problem. In transport, we look forward to a real, demonstrated commitment to public transport and to the Government's seriously considering the regional proposals put forward by all northern peninsula members. These proposals include intersection upgrades, improved bus services and increased park-and-ride facilities. In relation to trains, like so many others who catch the train regularly, I want to see reliable rolling stock and the new carriages that were promised delivered on time. We are getting neither. I am also dismayed to see that the 2007-08 budget has cut operating expenses for transport services. This can only contribute to continuing or worsening problems on the North Shore rail line and elsewhere, and will make it harder to introduce bus services after 8.00 p.m. to needy areas such as Belrose.

Finally, I would like to see the New South Wales Government dedicate more resources and make greater efforts through relevant forums to achieve better intergovernmental cooperation. The public quite reasonably expects greater progress, with each level of government clearly accepting accountability and responsibility for relevant portfolios. This is a challenge that should be addressed as a matter of higher priority and urgency. I agree with calls by the New South Wales Business Chamber for an intergovernmental convention to be held in 2008—a year with no State or Federal elections—in order to progress this matter significantly. In any budget it is important to spend wisely and effectively within relevant allocations without wasting valuable resources. Likewise, in a speech such as this it is important to speak effectively within the 20 minutes allocated. I hope that my words are not wasted on the Government and I note that I have delivered them with a surplus of more than five minutes under budget.

Dr ANDREW McDONALD (Macquarie Fields) [11.15 a.m.]: This is an exciting budget for our children. Premier Iemma must have been a paediatrician in a previous life because he is committed to building a future for them, as are all members on this side of the House. I will highlight three themes in my speech today. The first is that this budget is about meeting our commitments. Unlike John Howard, this Government does not have core and non-core promises. We are open for business through building infrastructure and by improving services for the families who depend on us. This budget meets the Government's election commitment to improve and expand public services through responsible financial management. We have achieved this aim despite the goods and services tax rip-off by the Federal Government, the drought, petrol price hikes and interest rate rises. I have forgotten the current rate. Is it 6.25 per cent or 6.5 per cent, Jonathan?

Mr Jonathan O'Dea: It is 6.5 per cent, Andrew.

Dr ANDREW McDONALD: I thank the member for Davidson. Like others, I sometimes have trouble remembering the number. The budget surplus was $444 million in the 2006-07 financial year, which is our eleventh successive surplus, and a surplus of $376 million is projected for the 2007-08 financial year. The Government is spending record amounts on infrastructure. Some $12.5 billion will be spent in 2007-08, which equates to $1,800 for every man, woman and child in New South Wales. That is the highest rate of infrastructure spending in New South Wales history, and a 28.8 per cent increase on the $9.7 billion spent in 2006-07. It is also part of a $50 billion plan over four years, which is a 56 per cent increase on the $32 billion spent in the previous four years. We are committed to spending money on building infrastructure for our people.

We are expanding front-line services in areas such as health, which now constitutes 28 per cent of the State budget—an increase from 24 per cent 10 years ago. We have achieved this growth even though the Federal Government is running dead on hospital funding. At least Mother Ignatius taught Tony Abbott to be honest, because he has admitted that the Federal Government is running dead on expenditure for our hospitals.

Mr Jonathan O'Dea: Tell us about Frenchs Forest hospital.

Dr ANDREW McDONALD: As I said, the Government's infrastructure spending equates to $1,800 for every man, woman and child in New South Wales. Most welcome is the focus on prevention and early intervention. The member for Davidson will not need a hospital if he looks after himself. He can maintain his good health through prevention and early intervention. The future of health may not lie within hospitals but outside them. The member for Davidson knows that because he takes care of himself.

Statewide eyesight screening for preschoolers is very important. As we all know, the time to screen for vision is in preschool because some vision loss may be retrievable if picked up before a child starts school. Very impressive is the investment in breast screening: a total of $7,284,000 in this year's budget. As members know, breast cancer is the most common form of cancer in women. Very exciting is the Healthy at Home Program that helps the healthy stay out of hospital. As I have said, the future for the health care of our people will be much more out of hospital than ever before.

Liverpool Hospital stage two will continue. As part of a $392 redevelopment plan, $22.5 million will be allocated to a major redevelopment of the hospital. The plans are very exciting and I recommend them to all to examine. My own road to Damascus came when I was part of a planning committee for Liverpool Hospital and I saw the plans, which are very exciting, and I knew that only a Iemma Labor Government would ever deliver these facilities for our people. I was in Liverpool Hospital last week, as I am most weeks. It is incredibly busy, as members know. We have a wonderful bunch of staff in Liverpool and Campbelltown emergency departments. At this time more than ever they need our support as a Parliament rather than criticism. The emergency departments are under pressure for multiple reasons such as the greying of Australia and increasing demand. The staff who work in the emergency departments do a great job and deserve support, not criticism. This $22.5 million will be of enormous benefit to the hardworking staff of our emergency departments.

When I was campaigning I would often say that it was teachers and nurses who elected the Iemma Labor Government. They knew their jobs were secure, but they could see the effect of the 20,000 job cuts on their already stretched workplace. My electorate would have entered a time of limbo in which there was no new infrastructure if the Iemma Labor Government had not been elected. An example of this is the allocation of $14.4 million to new ambulance stations, including $1,350,000 for Liverpool ambulance station in this year's budget. Something that this Government does very well is to provide mental health services. Since Morris Iemma became Premier the mental health budget has increased by 23 per cent. This year the mental health budget has increased by 11 per cent. We are incredibly lucky that Mr Lynch, who is a passionate advocate for improving mental health services, is the Minister for Health (Mental Health).

I move from health to the next big ticket item, education, which is now 23 per cent of the budget—$10.6 billion—an increase of 4.9 per cent. An allocation of $82 million will increase the number of reading recovery teachers because, as we all know, reading at an early age is absolutely vital. Time lost in the early years is often never regained. Labor supports those who need help at any age. Some $50 million has been committed for school sport, including an $8 million sport package to combat obesity. Like many of the Labor members of Parliament, I rode my bicycle to work today. I did not see any Liberal members of Parliament. Obesity is a major public health problem and we all have a responsibility to combat it by modelling what we do. Macquarie Fields Technical and Further Education college will receive new sport and recreational facilities.

Casula Public School will receive a new hall, which will consist of an open area, raised platform, chair store and disabled toilet facilities. The hall will support a number of core and out-of-hours activities including dance, drama, music, public speaking, performances, assemblies and exhibitions. It will also provide an opportunity for community use out of school hours. I visited Casula Public School last week and I pay tribute to the wonderful human beings who teach there. They are the most impressive, committed and fun group of people that I have met for some time. I was incredibly honoured to be able to have lunch with them. They are really pleased about the new hall, which is part of a $280 million Building Better Schools initiative. The Connected Classrooms Program, which focuses on the use of videoconferencing and interactive whiteboards, will receive an allocation of $119 million. I have visited some of our schools in the area that have interactive whiteboards. The member for Davidson would have seen them. They are great. A new generation: we are dinosaurs. Hoxton Park Public School is due to be finished in 2009, which is very exciting for our people.

Moving to transport, the Government is undertaking the biggest ever expansion of rail transport in our State's history with expenditure of $5.8 billion in transport over the next 12 months, much of which will be for the development of the south-west rail corridor. I was at Glenfield station last week with Minister Watkins. We inspected the station and looked at the new areas that will be developed by the Labor Government. Page 5-73 of Budget Paper No. 4 reveals that $19 million has been allocated from this budget for investigation and planning of this wonderful service, which is due to be opened in 2012. Part of this will be a new commuter car park.

The south-west rail corridor will open up the area for future housing development. It is incredibly exciting. Our people will also benefit from the 626 new carriages: six-car trains will become eight-car trains. The staff at Glenfield station are wonderful people and I pay tribute especially to Robert Najdovski, who is the stationmaster at Glenfield. He is a committed professional. His staff are friendly and helpful. They are the quiet achievers for our people who commute every day from Glenfield. The Community Services budget has increased by 11.6 per cent—I am always saying "increase" rather than "decrease" because that is what we do on our side of politics. The implementation of the $1.3 billion Stronger Together package will continue in 2007-08.

The electorate share of the road infrastructure is $37.6 million, which includes $5 million allocated to widening Cowpasture Road to four lanes from Camden Valley Way to Main Street, which is part of $10 million being spent on Cowpasture Road; $4 million for planning and preconstruction work to widen Camden Valley Way to four lanes between Cowpasture and Bernera roads; $400,000 for planning Camden Valley Way future widening from Cowpasture to Narellan roads, which will further open the corridor for housing development; $19 million to continue the widening to four lanes of the northbound carriageway of the F5 Hume Highway between Brooks Road and Camden Valley Way, which is part of a $30 million project; and $6 million for planning and preconstruction work to widen Hoxton Park Road to four lanes between Banks Road and Cowpasture Road, which is part of $12 million being spent on Hoxton Park Road in 2007-08.

I have talked about budget improvements in Health, Education, Transport, Community Services and Roads, but before I finish I will talk about Housing. The budget has allocated $7.7 million for new and upgraded public housing. An example of this is the innovative, environmentally sound plans recently announced by the Minister for Housing, Mr Matt Brown, for housing in the electorate, including building 150 brand new homes for seniors and an aged-care facility for 120 people in my electorate. This is part of expenditure of $614 million in the housing policy area, an increase of $75 million.

But wait, there's more! There have also been tax cuts to boost the property and business sectors. Land tax has been reduced by 6 per cent, from 1.7 per cent to 1.6 per cent, and the threshold has been indexed. There has been a reduction in mortgage duty, saving about $2,000 on a $500,000 mortgage. This is added to the recent reduction in State Government charges, which will help the housing affordability crisis that many young families must live with. Yesterday's Daily Telegraph had the photograph of a young family alongside an article about the Federal election. That family does not want enormous tax cuts; it wants services. This budget is all about providing services for our people.

The member for Davidson is a fine young man and will soon be a shadow Minister. When he is old he will realise, as will the member for Port Stephens, that the "catch and kill your own" philosophy does not work. That is why there are State Labor governments across Australia. The people of Australia will acknowledge that "catch and kill your own" and "I'm alright, Jack" philosophies do not work. We must provide services for our people. The $17 billion that John Howard is swimming in should have been given to our people already. It is disgraceful that he is able to sit on it and then allocate it to marginal electorates in the six weeks prior to the election. It will be the way he is remembered by history. The State budget is excellent, and I commend it to the House.

Mr DARYL MAGUIRE (Wagga Wagga) [11.33 a.m.]: Let me say at the outset that I have sat through a number of budget presentations in this place. My goodness, how the language in the Treasurer's delivery does not change! And it does not change for many reasons, particularly the New South Wales divide, the old Sydney, Newcastle, Wollongong. Countless speakers have prattled on about what they have achieved for their electorates and how a Labor government is delivering for the people. They are trying to con their constituents. An analysis of the budget and what the Treasurer is trying to achieve shows that the Treasurer is pulling the wool over the eyes of Labor members because many problems and the difficulties being experienced by rural communities were not mentioned in the budget.

It is several months since the Treasurer delivered his budget and I shall refer to some developments that have occurred. I had planned to raise a number of issues in the lead-up to this debate, but as time has moved on some of the issues have been addressed, thankfully, by the Federal Government, which has heard the call and the crying of people in rural and regional New South Wales who feel that they have been neglected. I shall give an example of why the people in regional and rural New South Wales feel that they have been neglected by the Government in this budget. There was a thing called the State Plan, which was conjured up, developed, by the Government. Members know about it, and speakers have referred to it. However, not $1 in the budget was attached to the State Plan.

The biggest insult in the delivery of the State Plan was the reference to "regional" in the document. Indeed, in his speech the Lieutenant-Governor suggested that regional New South Wales ended at Penrith. Several documents we have read regard Penrith as being "regional". The important cities, those great cities that everyone in regional New South Wales knows and loves—Albury, Wagga Wagga, Dubbo and Tamworth—are great centres with terrific communities. However, they did not feature in the Lieutenant-Governor's speech; importantly, they did not feature significantly in the State Plan. As I said, there are many issues I wanted to raise, but I shall focus particularly on health. Health has been on the tip of everyone's tongue for many, many years. In that regard, I highlight that in the budget no extra money was allocated for the delivery of important infrastructure, on which the electorate of Wagga Wagga depends.

The State Government allocated some money. Indeed, Government members will spruik that the Government is spending record amounts of money on health, et cetera. However, the fundamental problem is that our region desperately needs a new base hospital to deliver health services and to help the staff who work tirelessly on our behalf in our region—the doctors, nurses and clinicians employed in the health system. There is nothing more important in the delivery of health services at present than the provision of bricks and mortar for the Wagga Wagga region to enable the physicians, specialists and those who work in the system to operate in an ergonomic fashion and to deliver economies so that some of the difficulties I have pointed out in previous speeches in this place, and that other members have pointed out, can be addressed.

In the Treasurer's presentation there was no money to ensure that the capital works program identified for the Riverina and the Wagga Wagga region could continue. The community has participated in the consultation phase of the program; I understand that some $400,000 has been expended. That funding was courtesy of the then Minister for Health, Craig Knowles, who identified that the region desperately needed a new base hospital. However, the Government has not allocated any funding to enable that process to continue. What was needed in the Treasurer's speech was a commitment to build the base hospital. It has been suggested that the cost would be $270 million to $280 million. The longer it is delayed, of course, the price will escalate: today's brick will cost more tomorrow, we all know that.

In its procrastination in failing to identify and earmark vital important capital works funding, the Government has ensured that Wagga Wagga Base Hospital, when it is completed, will cost more than estimated. There was no reference to that in the budget. The community was looking desperately for an announcement by the Treasurer that the work could progress to the procurement stage and bring forward the capital works contracts. Instead it received a promise from the Minister for Health that construction of the hospital would begin in 2010 or 2012. That date could have been brought forward to 2008-09.

I turn now to health facilities for Tumut, a large growing regional town. The community of Tumut has advocated strongly for a new hospital—not a base hospital—to service the growing community and the developing timber industry, which creates enormous growth in job opportunities and creates challenges to infrastructure. As industry grows, so, sadly, will the number of industrial and road accidents, which are inevitably followed by trauma. The Treasurer did not mention any development for Tumut in the budget. Why? Because the Tumut community has had the wool pulled over it eyes about its position on the priority list. Bureaucrats and others repeatedly told the Tumut community that it was high on the priority list for a new hospital. But when it came to the State Plan—the plan that Labor Party members referred to as being the whiz-bang panacea to all of our problems without a dollar attached to it—Tumut was not on it; it had mysteriously disappeared off the priority list.

Why is that so? How can an entire community be led to believe that it is high on a priority list, that its hospital was in need of replacement, and services then be reassessed as adequate and the proposal dropped off the priority list, the State Plan? Batlow is the neighbouring town to Tumut. It has battled hard for a new multipurpose service building. That is being constructed, and we are grateful for that, but it took seven long years for that to happen. Every bureaucratic obstacle was placed in its way, but it is now emerging and the community will enjoy the benefits that service will bring. However, Tumut has been left hanging. The provision of a new hospital has been ignored, and Tumut has been ignored in the budget. That is not good enough!

I turn now to the provision of roads and infrastructure. As I said earlier, the development of the timber industry will place enormous pressure on infrastructure, whether it be the provision of water, health services, accommodation, housing and related services, the subdivision of land or, importantly, the provision of roads. Those services will bear the heaviest brunt of the development of the timber industry. Last week I visited the Visy mill in the Tumut region in company with the Deputy Prime Minister, Mark Vaile, and the Special Minister of State, Gary Nairn. That mill is an amazing development and is a great credit to the developing industry there.

Visy is about to embark on stage two, which will cost nearly $500 million. If Visy is to compete in the market and deliver its product safely, it needs decent roads. Last week the Deputy Prime Minister announced $11 million for the Gocup Road, the main arterial road from Tumut to Gundagai. Elected officials and industry representatives are working cooperatively to achieve that upgrade with an assurance that the local communities will be able to travel safely along the road and that industry will be able to get its products to and from the Visy mill and other destinations. That $11 million is appreciated and there are no strings attached. When the Deputy Prime Minister made that announcement he said that industry was contributing $2.5 million to that road. I have been advised that another $11 million is needed and the Government, the Treasurer and the Minister for Roads know about that. But what was provided in the budget? There is not a dollar. There is not even an announcement that that important infrastructure is to be funded.

Yesterday questions were raised in another place seeking a commitment from the Minister for Roads to fund the Gocup Road. His response was that he wanted industry to make a contribution. I repeat: industry committed $2.5 million when the original announcement was made, along with the Federal Government's much-appreciated $11 million. The Treasurer should have made a commitment in the budget to fund that road, but he did not. I call on him to do so within the next few days, because it is important that the upgrade take place. As with the Tumut hospital there has been absolute disappointment by the local community. They cannot be blamed for being frustrated with the State Labor Government; they have been upset by the treatment that they have received. In the Treasurer's presentation of the budget, many figures seemed astronomical. Communities questioned the real distribution of funds, and rightly so. Communities questioned the outcomes delivered in regional areas and why we seem to have an endless battle to get what we regard as our fair share.

I turn now to branch rail lines, another example of neglect and a wanton disregard by the State Labor Government for the opinions and needs of communities. Branch lines are important to regional communities because in good times—and I acknowledge that we are suffering the worst drought in our written history—grain lines are important. Again, there is a lack of commitment in the budget to ensuring that important infrastructure is funded to enable goods to get to market at a lesser cost and that greenhouse gases are reduced. To move a tonne of grain by road from Wagga Wagga to the port of Melbourne costs $7: to move it by rail costs $1. Moving it by rail, of course, would reduce greenhouse gas emissions enormously. In his Speech the Treasurer gave no real commitment to funding branch lines.

I turn now to town water and sewerage programs. If ever there were a policy that a government needed to embrace for the delivery of services, it is the policy relating to the provision of town water and sewerage programs. To ensure that water returned to the environment, or recycled water, was of acceptable quality, towns would traditionally receive about 50 per cent of funding to implement new sewage treatment works from the State Government. That funding has now been reduced to about 11 per cent. That is outrageous at a time when Australia is experiencing the worst drought in its written history. Water providers and councils are unable to complete or extend the important capital works network to drought proof our nation because of lack of funds from the State Government.

We do not have to look far to establish that there is a lack of funding across a number of portfolios. Libraries are another area that has been neglected in the budget. Public libraries provide important facilities and services in this State but they are suffering because the State Government reduced their funding in real terms. Education is the greatest gift that can be given to anyone and providing facilities for people to educate themselves is important, but very little in the State budget has been allocated to libraries. They are all complaining that funds are being squeezed from their grasp and they have to find alternative ways of providing services or they have to cut back the services that are being provided.

Wagga Wagga council got together with other councils—it tends to deal with what is called the inland forum—from the great cities of Dubbo, Tamworth and Wagga Wagga. Every quarter it calls upon a loose alliance and it meets regularly to discuss issues. Some of the issues that I have referred to in this place are similar to the issues that are discussed in those towns. Law and order is another problem that is being faced by rural communities. They do not have enough police on their streets. The community of Batlow petitioned for more police but there are no increased budgets for rural communities and the Treasurer made no announcement about additional funding in his Budget Speech. I do not think the Treasurer knows that these rural communities exist and, if he does, I wonder whether he cares.

When the Deputy Prime Minister announced that $11 million would be allocated to upgrade Gocup Road I said, "When was the last time a Minister for Roads visited Tumut to look first-hand at the challenges being faced by a local council?" The Government crowed loudly about the delivery of its mental health services. Wagga Wagga is fundraising and developing Sunflower House at the community's cost. It provides an important service for people who have suffered mental illness and need support in the community to get well, reintegrate, regain their living skills and assimilate. For two years we have been trying desperately to get much-needed funding for mental health. There is no mention of funding in the budget, except for a global figure.

One would have thought that, as a result of the funding being allocated by the Federal Government for mental health services, the Treasurer would have been prompted to make an announcement to at least match the $735,000 being provided by the Federal Government for additional mental health services, but not a dollar has been allocated by the State Government, which is appalling. The Treasurer should hang his head in shame. Sunflower House will be opened, courtesy of the Federal Government, with not a dollar being provided by the State Government. I wish I had more time as I could talk for hours on many other issues, but I conclude by stating that this budget is very disappointing.

Ms LYLEA McMAHON (Shellharbour) [11.53 p.m.]: I am proud and honoured to be part of the Iemma Labor Government. The recent New South Wales budget provided good news for the electorate of Shellharbour. Reference has been made in the debate to the Government's lack of funding. Last Thursday the Australian Financial Review quoted a study by a Macquarie Bank economist who said:

State funding from the Federal Government is at its lowest level as a percentage of GDP than it has been at any time in the last 30 years (including the GST).

Starving the States of resources is penalising local residents.

I refer to local residents in the Shellharbour electorate. In stark contrast to the funding provided by the Federal Government, this budget delivers and consolidates Labor's credibility on economic growth and fiscal responsibility, coupled with a commitment to provide the services on which the hardworking families of New South Wales rely. The content of this year's budget serves to highlight the continuing strength of the New South Wales economy and the sound economic principles that the Government has put in place and that have worked to ensure prosperity, not only for the present but also for years to come. Funding for significant investment in vital infrastructure is one of the hallmarks of this year's budget.

I am delighted that the Shellharbour electorate is to receive its share of these resources. The region is set to receive $9.7 million for key health infrastructure projects with mental health being a big winner: $7.1 million has been allocated to this vital area. Removing the stigma associated with mental health and improving mental health services has been, and continues to be, a key priority for the Iemma Government and for me. That is why the Government has committed to an 11 per cent increase in mental health funding, with $4.9 million for non-acute mental health services for Shellharbour Hospital and $580,000 to be spent this financial year as part of $2.8 million in upgrades to Shellharbour Hospital's mental health child and adolescent in-patient unit.

Local residents in the Shellharbour electorate met the commitment made by the New South Wales Government prior to the March election to upgrade the Princes Highway to dual carriageway between Oak Flats and Dunmore with strong support and enthusiasm. Completion of this integral section of road infrastructure will result in the end of lengthy traffic congestion in this area, especially on weekends and during school holidays, as both local residents and holidaymakers from across the State travel to see the many wonderful destinations along the New South Wales South Coast. I am pleased to announce that work has already commenced since the election on completing this important section of road.

I welcome the allocation of $45 million in this year's budget to continue work on this project. In addition, $30,000 has been provided for safety improvements to the traffic signals at the intersection of Shellharbour Road and Veronica Street, Warilla. This is in addition to $500,000 that has been allocated for a smart queuing system that was recently installed at the intersection of Princes Highway and Illawarra Highway in the Shellharbour electorate. The smart queuing system is designed to detect when queues build up at the roundabout and assist traffic to move through that intersection, again reducing traffic congestion during those peak periods of school holidays and long weekends as commuters travel south.

The unfortunate weather events of recent times remind us all of the wonderful work that is carried out by State Emergency Service workers. These incredible individuals ply their trade under the most extreme and demanding conditions and exercise their tremendous skill and bravery in the protection of life and the property of the citizens of New South Wales. In recognising the vital service provided by our emergency service workers, this budget included a record $831 million in funding for emergency services. The operational capacity of local emergency services in Shellharbour is set to receive a boost, with $35,000 being allocated to assist the Shellharbour State Emergency Service unit with the cost of purchasing an emergency response vehicle that will significantly assist them in their efforts. This will help to ensure that the region's emergency workers and volunteers receive the resources they need so they can continue to deliver the same high level of help and protection during times of distress and natural disaster.

The Iemma Government has an excellent record of outstanding achievement in strengthening the resources of the New South Wales Police Force. Police numbers throughout the State have reached historically high levels, helping to reduce and keep static the incidence of many forms of crime. In the Shellharbour electorate recent statistics show that incidents of crime are remaining either stable or decreasing: decreases of 22.45 per cent in break and enter a dwelling, 23.9 per cent in motor vehicle theft, 10 per cent in stealing from a retail store, and 25.3 per cent in stealing from a dwelling. These are all great results from the Lake Illawarra area command, which benefited from a commitment during the election to increase police numbers by 22. The budget allocated $600,000 to commence designing and planning the Lake Illawarra area command headquarters as well as providing $100,000 for a mobile police station. I am proud to say that the mobile station already has been delivered and has been in use within the electorate. The Iemma Government continues to strengthen police resources throughout the Shellharbour electorate.

Providing shelter for the most vulnerable in our community is a commitment the Iemma Labor Government is delivering on, with $5.1 million being allocated to increasing public housing stock in my electorate. This is in addition to $650,000 provided to Southern Youth and Family Services to purchase two two-bedroom houses for youth who are homeless or at risk of becoming homeless, $31,704 for the Illawarra community transport program for people disadvantaged by physical or geographical factors, and $20,660 for the Illawarra Home and Community Care Service, which provides transport to assist frail, aged and younger people with disabilities, and their carers.

This Government's sound financial management and strong balance sheet meant that it could increase spending on vital community services. The Iemma Government's record investment is creating and sustaining local jobs and improving the economic strength of the local area. The Iemma Government has invested significantly in education and training. I congratulate the Government on its record budget for education and training in the Shellharbour electorate and on recognising the importance of the growing nature of the area. I also congratulate the teachers and staff in the Shellharbour electorate on their continued hard work to ensure local students are supported in reaching their full potential.

The Shellharbour region is growing rapidly and is expected by 2031 to increase by 47,000 residents—many living in West Dapto, where I live. The people of my electorate look to this Government to ensure that adequate education and training are available to allow them to prosper and to seize opportunities. In this year's State budget, as in previous years, the Government is delivering for the people of the Illawarra. During the past 12 years the Government has made public education and training, along with health, a top priority of funding. Each year has seen ever-increasing funding for public education: this year is no exception. Once again we have a record education and training budget—$11.2 billion, which is significantly up on last year's $10.7 billion.

Once again, public schools, TAFEs and communities of the Shellharbour electorate are the beneficiaries of increased funding for our strong education and training programs. The budget this year will result in a number of projects being undertaken in school upgrades and extra maintenance in the Shellharbour area. The Iemma Government will invest more than $531,000 in local schools in the Shellharbour area with Balarang Public School and Oak Flats Public School having their toilets upgraded, the Barrack Heights Public School canteen being upgraded, Lake Illawarra High School receiving upgrades to its windows and the provision of ball screens, Mount Warrigal Public School having its early intervention unit facilities and the preschool kitchen upgraded, and Warilla High School having its covered walkways upgraded. These works are in addition to maintenance works on the floors at Dapto High School and security fencing for Mount Warrigal Public School.

Schools are in constant need of modernisation and repair. This funding is proof of the Iemma Government's commitment to providing our students with the facilities they need. The State budget includes a record $873 million for the construction and enhancement of educational facilities across this State. With the average age of schools in New South Wales about 30 years, the Iemma Labor Government continues to work with schools to modernise facilities such as canteens and libraries so that they can keep pace with the changing demands of schooling in the twenty-first century. There is always work to be done at schools to upgrade facilities. The Iemma Labor Government is committed to constantly ensuring that the maintenance work is undertaken. The Iemma Government is investing more than $700,000 per day on maintenance to ensure schools and TAFEs are safe and efficient places for teaching and learning.

Since coming to office the Government has increased the New South Wales education and training budget by 87 per cent to $11.2 billion. The Iemma Government is committed to providing quality learning facilities in our schools, which is vital if our students are to continue to perform at the highest level. That is why we continue to provide record capital investment to upgrade and maintain schools across the State, as we have done over the past five years. Major upgrades at schools and TAFE colleges in the Shellharbour electorate that have already been undertaken in the past five years include those to Lake Illawarra South Public School, Oak Flats Public School and Shellharbour TAFE. These upgrades are in addition to the new Flinders and Dapto public schools. Dapto Public School, which abuts my back fence, provides excellent educational facilities to about 700 young children. It is a well respected school and in my experience in working with the local community it is certainly one to which many parents prefer to send their children.

In 2006-07 the Iemma Government provided more than $214 million for school maintenance. The Government is committed to maintaining our schools as places of safety. They are already the safest places to be and we are determined that they will remain that way. Another program introduced by the Iemma Government is security fencing. A number of schools in the Shellharbour electorate now have security fencing. These include Kanahooka High School, Dapto High School, Warilla High School, Lake Illawarra High School and Oak Flats High School. Security fencing works well in our public schools. It deters unauthorised and undetected entry. It saves the taxpayers of New South Wales thousands of dollars in repairs and clean-up bills.

A case study of 12 schools over two years shows a 75 per cent reduction in vandalism in the first year after security fence installation and a further 66 per cent reduction in the second year. The investment made by the New South Wales Government in education in the Shellharbour electorate has been reflected in the increased number of parents enrolling their children in public school kindergartens. Shellharbour Public School has received an increase of 21 kindergarten enrolments. The increased enrolments at the Shellharbour Public School reflect increasingly that parents are choosing to send their children to public schools. That is attributable to the excellent class size reduction strategy, the building better schools strategy and the increased focus on literacy and numeracy—all supported by increased spending of 4.9 per cent on education in this budget.

I have outlined just a few examples of the benefits of this budget and past budgets to the Illawarra. In every aspect the budget builds for the future of the Illawarra and the rest of the State. I am proud to be part of the Iemma Labor Government. I am proud of the State budget and the benefits that the New South Wales State budget confers on the Shellharbour electorate. The budget delivers and consolidates Labor's credibility on economic growth and fiscal responsibility, and demonstrates the Government's commitment to providing services upon which hardworking New South Wales families rely. It also demonstrates the strength of the New South Wales economy and the sound economic principles, recognised by commentators outside this State, applied by the Government. The Iemma Labor Government will continue to work to ensure prosperity not only for now but for years to come. I commend the budget: it reflects the Government's investment in vital infrastructure for this State that will generate jobs and continue to ensure the vibrant health of the New South Wales economy.

In conclusion, I again draw to the attention of the House some of the key features of the budget. In relation to mental health services, $9.7 million will be spent on four key projects. In the Shellharbour electorate the Government has invested in a child and adolescent mental health inpatient unit and the provision of acute mental health services at the Shellharbour Hospital. The Government has also invested in improved roads with projects such as the missing link from Oak Flats to Dunmore already under construction. The budget also reflects the Government's commitment to the provision of adequate emergency services and increased funding for education. I also remind the House of the Government's commitment to funding a strengthening of the New South Wales Police Force. I take this opportunity to commend the good work being done by this State's police force in the Lake Illawarra Local Area Command. I commend the budget to the House.

Mr THOMAS GEORGE (Lismore) [12.13 p.m.]: It is with pleasure that I join in debate on the budget estimates and related papers for 2007-08. In common with every other member's electorate, for the Lismore electorate the most important part of the budget is health. Because I always give credit when it is due, I inform the House that the mental health unit in Lismore is finally underway. If the weather remains dry, we expect it will be completed in March next year as stage one of the total redevelopment of the Lismore Base Hospital. The mental health unit will address a great need in Lismore and surrounding districts served by the North Coast Area Health Service. The unit is certainly long overdue and should have been completed before now. However, apparently due to circumstances beyond everyone's control, under the revised schedule it is due to be completed by next March—and at least that is something for which the Federal Government cannot be blamed!

Another major concern for people in the Lismore electorate has been the provision of a radiotherapy unit. The need was recognised officially in 2004 by Minister Frank Sartor and the Federal Government's Minister for Health and Ageing, the Hon. Tony Abbott, when both Ministers visited Lismore to jointly announce funding of $8 million each and a commencement date of 2007. In fairness to both Ministers, I acknowledge that construction of the radiotherapy unit cannot commence until the mental health unit has been completed. However, community concern persists that the non-committal attitude of the New South Wales Government will result in continued delay in delivery of the radiotherapy service, despite efforts by the Federal Government to commit to a firm start-up date for the Northern Rivers area served by the North Coast Area Health Service.

The North Coast Area Health Service seems to have established a pattern of ignoring the needs of the Lismore electorate and surrounding districts. I am concerned not only about health decisions generally but about matters associated with the radiotherapy unit. As a result of continual delays in delivering the long-promised radiotherapy and cancer treatment unit in Lismore more than 800 cancer sufferers are being forced to travel to Queensland for treatment. Cancer sometimes involves severe treatment and it is unfair in the twenty-first century that patients and their families continually are being forced to travel across the border. What is even worse, I have received reports of patients who elect not to undertake treatment because they cannot face the excessive travel demands, costs and other stresses associated with treatment.

With great fanfare, the Government announced improvements to the Isolated Patients Travel and Accommodation Assistance Scheme by a reduction in the distance criterion for eligibility to 100 kilometres. What a tremendous effort! I draw to the attention of the House the plight of a lady who lives in the Lismore electorate, Margaret Goodwin of Kyogle. When she first discovered that she had to travel out of the area for treatment she obtained a form to apply for assistance. It clearly stated that $40 would be deducted for a management fee. She estimated that she would need to undertake 21 treatments and calculated the cost on the basis of an allowance of 15¢ per kilometre over 200 kilometres, making a total of $630. She decided to pay for the cost of the trips in one go and later apply for assistance after the 21 trips for treatment had been completed.

She expected that she would receive a total amount less $40 for the management fee. But no: a $40 management fee is deducted for each trip. Instead of receiving assistance she may receive a bill for $200. That illustrates the service dished out to cancer sufferers in country areas by a scheme that is supposed to assist people in their time of need, during periods of distress, and during a phase of their lives when they certainly need comforting. But it does nothing of the kind. Instead of receiving assistance this lady has been told that she may well receive a bill. I do not understand how the system works because my constituent may receive no money. She calls the Lismore office continually to find out what is happening with the account but cannot get a satisfactory answer. They simply say, "It's in the system; just wait and you'll be told." It appears as though my constituent will be charged $40 a trip, which makes a total charge of $800. But she is entitled to only $600 remuneration.

The local community is still waiting for a start-up date for construction of a new radiotherapy unit. This is a Federal-State initiative, but the State Government is holding up the work. I assure members that the community at large continues to vent its frustration at this delay at meetings organised by the Regional Community Watch. Its head, Marshall Fittler, has been holding meetings throughout the area and generating support for the new unit. The resource distribution formula also creates problems for my electorate. In 2007-08 the North Coast Area Health Service will receive just 7 per cent of projected resources, which is well below its expected target share of 7.6 per cent. Members might think a 0.06 per cent shortfall is not much but in fact it is $58 million. The Government must address that ongoing problem in country and regional areas. The community has been working hard to achieve the commencement of stage three of the redevelopment at Lismore Base Hospital.

I am concerned about the future of Murwillumbah hospital and the threat to cut services in that area. I led a deputation from the Murwillumbah District Hospital Support Committee to see the Minister for Health. Committee members gave her a submission and are looking forward to receiving a response. I also record my concern about the future role of St Vincent's Private Hospital in Lismore, which is owned by the Catholic diocese. How will it fit in with future health service provision in the Northern Rivers? St Vincent's hospital always supported the old Northern Rivers Area Health Service. I assure the House that health specialists relocated to our area because they had the opportunity to work at St Vincent's. They would not have come to the electorate simply to work at Lismore Base Hospital. It was claimed in this place yesterday that the Federal Government has done nothing to support hospitals in New South Wales. But it is thanks to the Federal Government that there are multipurpose services at Kyogle and Nimbin. There would be no hospital today without that support.

There are about 75 government and many non-government schools in my electorate. During the recent State election campaign Labor promised Wyrallah Road Public School that it would get a new hall. Parents and students are still waiting—and they remind me of that promise every time they see me. I pay tribute to Wilson Park School at Wyrallah Road, which is a special school that shares resources with Wyrallah Road Public School. It is a great set-up but the school communities desperately need a new hall. On wet days the kids huddle under an open-sided structure that allows the wind and rain to come in. They certainly deserve a hall. I have been trying to visit schools in the new part of my electorate around Murwillumbah, and will achieve my goal in the next few weeks. Every school I visit requires some form of support from the State Government.

Preschools provide a major service to the community. But the funding for preschools in New South Wales leaves a lot to be desired. Small, local community preschools act as stepping stones to the local public school, and the Government must consider increasing their funding. The preschool association was very pleased with the Opposition's promise of additional resources for preschools. However, the association's pleas appear to have fallen on deaf ears as far as the Government is concerned. Preschools offer valuable support to our public schools and they need government support.

Turning to roads, my electorate is one of the few on the North Coast that the Pacific Highway does not run through. But east-west road connections are vital to the Northern Rivers from both industry and tourism perspectives. I have made many submissions about the section known as the Woodenbong to Legume road. It is a continuation of the Summerland Way that runs through to Brisbane and further north to Warwick and Toowoomba. Although it is a council road it needs Federal and State funding to upgrade it to handle the many semitrailers that use it. I am particularly concerned for the safety of children in the school buses that are forced to share the road with heavy vehicles.

I continue to believe the Summerland Way could take heavy transport off the Pacific Highway between Grafton and Brisbane. We should consider the option east of Mount Lindsay, which would give the New South Wales and Queensland governments the opportunity to get trucks off the Pacific Highway between Grafton and Brisbane and away from the coast. I call on the Roads and Traffic Authority to continue to pursue that option. Kyogle needs a bypass road. The Bruxner Highway is another vital east-west connection between the Pacific Highway at Ballina and Tenterfield and beyond. But there are only two passing lanes on 100 kilometres of road between Lismore and Tenterfield, and it is certainly no joy following trucks up the range.

I pay tribute to the police in my electorate. The other day I had the privilege of inspecting the new police station at Lismore, which I presume will open in the next six months. I consulted the records and discovered that the past four members to represent Lismore called for the construction of a new police station. I hope that it will happen in my time. I pay tribute to the persistence and work of the community and the police. The new station will be home to the Richmond area command. Like everywhere else, we need extra police. Murwillumbah has problems not having a 24-hour-seven-day-a-week police station.

Ms Tanya Gadiel: Did you say thank you for that police station?

Mr THOMAS GEORGE: Yes, I did the other day. The member for Parramatta was involved in that too.

Ms Tanya Gadiel: I know.

Mr THOMAS GEORGE: I am sorry, I did not recognise the Parliamentary Secretary in the chair, the member for Parramatta, who was involved in that decision. Murwillumbah does have problems. Members of the Murwillumbah community continually approach me with after-hours problems. It is something that we should continue to work on. We all talk about our major centres, but from Lismore to the Queensland border isolated areas have one-man police stations, and they do a tremendous job. I pay tribute to Constable Mick Chaffey, who is based at Woodenbong. What he does as a policeman in that community is what community policing is all about: he is an example to every other police officer. I know that he is held in high regard not only by the community but also by his fellow officers. He has received awards. I am very proud that he is in the Lismore electorate.

I pay tribute to the State Emergency Service, the Volunteer Rescue Association, the Rural Fire Service and all the emergency services in my area, and the volunteers. As indicated in this House yesterday, recently my area was devastated by storms. The State Emergency Service headquarters opened in Lismore just two months ago and I know that the controller, Lindsay Matterson, was very pleased to have the opportunity to try out his new unit. The Federal Government and the State Government supported the new emergency service unit, which is across the road from the Northern Region Westpac Lifesaver Rescue Helicopter Service.

Yesterday in the other place, the Hon. Duncan Gay, shadow Minister for Roads, asked the Minister for Roads, the Hon. Eric Roozendaal, about the victims of the Lismore storms having their cars assessed by insurance assessors. Once an insurance assessor says that a vehicle is a write-off it is immediately deregistered, so "Here's a taxi voucher, go home". It is only for cosmetic reasons that the vehicles are written off, not mechanical reasons. The Minister was asked whether there was any way that we could have a stay of proceedings for up to one month to give people the opportunity to go home and find another vehicle—and get paid out for the other one. When the Hon. Duncan Gay raised this question, the Treasurer of New South Wales, the Hon. Michael Costa, said it was a dumb question. I was dumbfounded by his response! I say to the Treasurer of New South Wales that it was not a dumb question. [Extension of time agreed to.]

The Treasurer's response is an insult to the people of Lismore. I hope he apologises to the people of Lismore today because they need support. A gentleman rang me last Friday—or his boss did—who was provided with a company vehicle. He lives in Tweed Heads but works in Lismore. He was told, "Sorry, your vehicle has been written off. It is deregistered." How was he to get home? His wife had to come all the way from Tweed Heads to pick him up. That is not on. It is not a dumb question, Mr Costa. Fix it. All we want is some recognition for the people who are doing it a bit tough. If the vehicles were written off for mechanical reasons I would agree that they should be deregistered, but we should at least give people the opportunity to get themselves and their families in a position to handle what they have to do each day.

I turn now to support for our counselling and support services, such as St Vincent de Paul, Red Cross, Salvation Army, Lifeline, Anglicare—the list goes on. I do not know if other members have had this issue raised with them, but recently Frances Berg and Barbara McGrauther, representing the Catholic Church, came to see me. They visit people in hospital but, under the current privacy laws, they cannot be told whether the people they visit are Roman Catholic, Anglican, Thomas George or whatever. These volunteers try to provide comfort to others. A lot of people in hospital do not get visitors at all.

I wonder if there is any way that, when admitted as a hospital patient, you could be asked to provide your name and your religion. If you do not want to include it then you have the right to say no, but surely commonsense can prevail under these privacy laws and people could be asked that question. You are asked everything else when booked into hospital, so another question is not going to hurt. Such information may give community workers on behalf of their organisations, whether it be the Salvation Army, Red Cross or whatever, the opportunity to provide comfort and support to people in hospital. I just wonder whether there is any way around that. Another issue was brought to my attention recently by Anglicare North Coast, which covers Murwillumbah Financial Counselling Service and the Lismore and District Financial Counselling Service. The counselling services cover from Coffs Harbour to the Tweed. It sent me a letter regarding counselling services within that area, which reads:

Whilst all services are pleased to have received funding to continue this service, we are very disappointed with the level of funding approved for the next 3 years.

The letter was written to Ms Linda Burney, Minister for Fair Trading, Minister for Youth, and Minister for Volunteering.

The recent press release about the level of funding gave the impression that services had received an increase of 15% in funding which has raised a level of increased local expectation of what can be provided at a time when the services are contemplating a reduction of service delivery.

The implications for service delivery, staff morale and continuity of service are profound.

The areas covered by these services have major issues that deeply impact on the lives of our clients and staff. Many of the areas of high need identified in the Vinson report fall within this region. The region has major housing, transport, employment, service access and healthcare issues.

They were disappointed because they were geared up thinking they were going to get extra funding. They have explained it very well in the letter to the Minister and I know that they are looking forward to her reply to their concerns. Hopefully the Minister will view this with softness and be able to help Anglicare, and all the other organisations in the area that need financial support to provide counselling. They do a mighty job for a lot of people.

I cannot let this opportunity pass without raising cross-border issues again. I have written to the Treasurer about Allister Parker, who is a plasterer in Lismore. He tendered for a job at the Ballina District Hospital, which is a New South Wales Government job; the Lismore police station, a New South Wales Government job; Lismore Base Hospital mental health unit, a New South Wales government job; and Tweed Heads hospital, a New South Wales Government job. He lost all of those tenders to a Queensland contractor. In each case the variance was the cheaper payroll tax and cheaper workers compensation in Queensland, which gave the Queensland contractor an advantage over the New South Wales contractor getting a New South Wales Government job. Employers in New South Wales pay higher payroll tax and workers compensation premiums than their Queensland counterparts. By our calculations, the difference over and above the Queensland charges was the difference by which he lost the contract. We should continue to pursue that issue in this House, and while I am here I will continue to do so.

Another issue is that of higher road weight limits in Queensland. The Northern Co-operative Meat Company Limited is within 70 kilometres of the Queensland border. In Queensland, only 70 kilometres from New South Wales, companies can load 25 tonnes on a 40-feet container; New South Wales companies can load only 22.5 tonnes on a 40-feet container. Containers loaded in New South Wales transported over those 70 kilometres and put on a ship are 2.5 tonnes lighter, which means that New South Wales companies pay higher freight costs around the world than their Queensland counterparts only 70 kilometres away. That is a disgrace. We need to address the problem. For years, the Northern Co-operative Meat Company has been making representations about this matter, but to no avail.

The final issue was raised only recently. We know that New South Wales companies bring in workers from overseas. That is great. The Lismore diesel mechanic service in Lismore continually takes on apprentices. However, as soon as the apprentices are qualified they go to the mines, where they get a tremendous wage. Who can blame them? Young people today want to travel, so they go to the mines. Merv Bryant decided to get a couple of mechanics from overseas. Overseas workers soon realise that it will cost them nearly $5,000 per child, or close to $15,000 for three children, to have them educated in New South Wales Government schools. I believe that one of the mechanics is considering taking a job in Queensland because it does not cost that much to educate children in Queensland. Queensland welcomes children into its schools.

Mr Kerry Hickey: It's the GST.

Mr THOMAS GEORGE: The member for Cessnock says that it is a GST problem. It is not a GST problem; it is a New South Wales Government problem. It is all right for the member to interject.

ACTING-SPEAKER (Mr Wayne Merton): Order! The member for Lismore has the call.

Mr THOMAS GEORGE: It is a problem and we need to face it. We have written to the Minister asking him to waive the school fees, after he was quoted in the press as saying that people can apply to have them waived. So we wait. The Treasurer does not want people to go to Queensland because it means that less tax is paid in New South Wales. I know the Treasurer will support the fees being waived. Another issue is the inability to access 000 services along the Queensland border. That is simply another problem we face in the cross-border area, and I will continue to pursue that. As for daylight saving, recently a truck driver told me that trucks load out of Queensland an hour later but must be in Sydney an hour earlier. That means that truck drivers travelling between Brisbane and Sydney lose an hour, which creates a safety issue, especially with the number of trucks on our roads, and truck drivers travelling from Sydney to Brisbane have the same problem. I look forward to continuing to represent my electorate.

Mr FRANK TERENZINI (Maitland) [12.43 p.m.]: On 24 March last people went to the polls and elected a Iemma Labor Government, and in doing so elected a Labor government for a record fourth term, placing their faith in Labor. Labor, in its post-election budget, has repaid that trust and delivered. In the time the member for Lakemba has been the Premier numerous policy initiatives have been taken, with many long-overdue announcements made in areas such as disabilities, mental health, business regulatory reform, water recycling, drought proofing, health capital spending, national parks, law reform and record police numbers, to mention a few.

The budget handed down by the Treasurer delivers on our commitments and delivers to the people of New South Wales. There are three main characteristics about this budget in simple economic terms: a surplus, record spending on infrastructure and tax cuts. It would be the envy of any Treasurer to be able to say that he or she delivered a budget with these three characteristics existing simultaneously and maintained a triple-A credit rating. The true mark of a good budget is sustainability and balance. Without doubt, the budget has been a success as it has been praised by organisations statewide. Members opposite are unable to put together any credible policy; they simply seek to oppose, and oppose always. As the Treasurer said, the budget brings affordable, responsible and deliverable commitments. A Coalition government would not improve front-line services; it would cut front-line services. This Government will not cut front-line services.

The surplus is $376 million; spending is $12.5 billion this financial year, extending to just under $50 billion over the next four years; and we have tax cuts of $343 million, or $2.6 billion over four years. The groundwork has been set for a term of government that will deliver for New South Wales. All of this is in the context of an ongoing GST rip-off by the Federal Coalition Government. The situation is not helped by Opposition members who time and time again refuse to stand up to their Federal mates in Canberra. Not only do we see that with the GST; we see it with industrial relations and the health and dental care systems. All of this is in the context of the worst drought in living memory that has cut crop production by about 70 per cent, rising interest rates, stifling recovery of the housing market, and increasing petrol prices.

We must not look at the budget in isolation. The budget builds on past achievements. The Government has cut 15 taxes, reduced payroll tax, provided an incentive scheme, made land tax concessions, built on previous record spending on infrastructure of $27 million a day, provided a record intake of police numbers, and provided trade schools and after-hours general practitioner clinics. To put that in context, this budget builds on our great initiatives of providing services to people and sets the groundwork for future record spending on capital works. I am proud and privileged to speak as the member for Maitland. Maitland is part of the great Hunter region. Indeed, it is the economic engine room of the Hunter Valley.

I am proud and privileged to recognise the attention and recognition given to my area in the budget. In my travels in my electorate during the campaign and since I have been the member, I have no doubt that the number one priority is health. People tell me that in a growing area where we have road congestion—a sign of a growing population—they are prepared to wait in traffic until the third river crossing is completed but they are not prepared to wait for good health care services. Maitland is growing at a rate of 2.3 per cent; the national average is about 1.3 per cent. We are introducing 1,500 people per year into Maitland, so it is very much a growing population. Growing pains are evident but people make it clear that health is their number one priority.

The budget ensures that Maitland will continue to get health care services of the highest quality. Maitland is a growing and ageing population. Services must keep up with growth, and services at Maitland Hospital will do just that. Already, we have a new dialysis unit and a new electrocardiogram machine, and we have a leading cardiologist who will use modern equipment to diagnose heart disease.

Maitland Hospital recently recorded an 8.8 per cent increase in emergency department attendances. Each month almost 3,000 people attend the Maitland Hospital emergency department. It has recorded a 9.3 per cent increase in admissions to hospital via the emergency department, with 565 admissions recorded in March alone. No patient has waited longer than 12 months for elective surgery and the overall waiting list has reduced by 107 patients, or 16 per cent. There has been a 5.7 per cent increase in separations from hospital in the year to date, with in excess of 11,300 separations recorded. Amongst all that, the staff, the nurses and the doctors at Maitland Hospital work very hard, to the extent that all five triage categories were met in March, and they continue to be met. That is a sign of the great work done by the staff, doctors, nurses and administration staff at Maitland Hospital.

The Minister for Health recently announced that 1,800 beds had been provided over the last three years and 350 beds will be provided for in this year's Health budget, a $12.5 billion budget that continues to grow. An amount of $2.3 million has been allocated to reduce waiting lists. It is a shame that we have had no support from the Opposition in standing up to the Federal Government on dental health care, among other issues. For example, a hospital in my area adjoins the building that houses the Hunter Imaging Group, which has a magnetic resonance imaging [MRI] scanner. The scanner does not have a Federal Government licence, so the people who use it cannot claim the benefits from Medicare. Therefore, people drive past it to use a licensed scanner in Newcastle.

Maitland is the fastest growing area in the Hunter Valley and I have been at pains time and time again, calling on the Federal Government via its local representative, the Federal member for Paterson, to license that scanner. But I have heard nothing: complete inaction. I would have thought that the current Federal election campaign would have spurred the Federal member for Paterson into action to get a licensed magnetic resonance imaging scanner for Maitland; but obviously that has not been the case. I have no doubt that the voters in Paterson will definitely take that into account.

Initiatives in this year's budget include $6 million for the third Hunter River crossing, which will take 5,000 cars from the centre of Maitland and divert them through East Maitland; $1.3 million for the heritage Morpeth Bridge that continues to serve the people of Morpeth and display its character; $960,000 for the Dunmore Bridge; $765,000 for the New England Highway upgrade; $350,000 for black spots in the New England Highway area; and $108,000 for school crossings. Again, it is a shame that the Federal Government has not committed to funding the F3 link road from Seahampton to Branxton. The State Government has put its money on the table and has undertaken to provide the money as needed. Again, we have heard nothing from the Federal Government or from the Federal member for Paterson in that regard—instead, we hear empty rhetoric. The bypass will reduce traffic congestion in and around Maitland, and it is a shame that it has not occurred already.

I turn now to education. I am happy to say that we have a new trade school in Maitland TAFE that caters for our youth. Students in high school will be able to form school-based apprenticeships by attending TAFE to learn a trade. That is another great initiative of the Iemma Government: 15 trade schools in New South Wales with a record $256 million in recurrent funding allocated for schools and TAFE college maintenance, with $1 billion over the next four years.

Regarding the police budget, I am happy that the initiatives by the Iemma Government will greatly help the Maitland area. To serve the people of New South Wales a special task force will be allocated to cater for the increase in domestic violence incidents. Unfortunately, Maitland has one of the highest numbers of incidents of domestic violence. The task force will travel throughout New South Wales, attending hot spots and making sure that incidents of domestic violence are reduced and that the offenders are punished accordingly.

Another great initiative is the Police in Schools Program. Young kids in our schools need to learn that police officers are there to help them. Police will visit our schools and, in conjunction with the principals, will develop programs to teach our school students that police officers are their friends. Students will learn the right thing to do and the culture in our high school will change to make sure that they grow up to respect police officers and to do the right thing. Another great initiative is the $700,000 set aside for a new police station at Raymond Terrace, a long-awaited announcement that is very welcomed by the people of Raymond Terrace. My electorate includes part of Raymond Terrace, so that initiative is good news. A total of $13 million will be spent on the new police station in time. In addition, $90.2 million has been allocated for 10 mobile police stations, three of which will be used in the Hunter. That initiative will greatly relieve the work of staff in the police stations and will improve their response times in chasing offenders.

The Iemma Government is continuing with its preparatory work on the Tillegra Dam. I have received no opposition to this initiative from my constituents, except for a small number who, understandably, are worried about their particular circumstances. No-one in my electorate will dispute or oppose a drought-proofing measure in the Hunter, given that the population will increase by approximately 160,000 people. That is a welcome announcement: a great initiative that will result in the construction of the $330 million Tillegra Dam with 450 billion litres to drought proof the Hunter Valley.

Regarding emergency services, during the recent flood at Maitland we acknowledged the value of our State Emergency Service workers. The Morpeth Fire Station has received a new fire engine worth $350,000. Maitland has received an emergency response vehicle worth $35,5000. A flood boat, complete with outboard motor and trailer worth $27,100, has been provided to the Maitland emergency service.

Ageing and Disability Services have been allocated $300,000 for fit-out costs for clients with challenging behaviour. Recently I attended the opening of a group home in Thornton that caters for five residents with disabilities. Another $350,000 has been allocated for an upgrade of respite care services. That all relates to the great Stronger Together initiative, with $1.3 billion allocated over five years, including $1 billion for community inclusion by people with disabilities. An amount of $242 million has been allocated for a fairer and clearer way to access those services and $83 million has been allocated for children with disabilities. Again, I am happy to advise that the last of the 14 new rail cars for the Maitland to Newcastle line has been provided. Those beautiful, clean, air-conditioned rail cars involved an investment of $102 million to serve the people of Maitland.

All those across-the-board initiatives show that the Iemma Labor Government is committed to groundbreaking initiatives. The hallmark is innovative initiatives in disabilities, mental health, business reform and infrastructure spending. They are responsible, achievable outcomes that do not jeopardise the Government's triple-A credit rating. This is a reformist Government that continues to move ahead and make sure that the people of New South Wales are served well. Government members are used to hearing negative remarks from Opposition members. They are doing their job well as they oppose everything. I referred earlier to the goods and services tax, to the magnetic resonance imaging scanner, and also to the dental health system that was abandoned when the Howard Government came into office. I continually ask myself: Why do Opposition members not ensure that we get our fair share of the goods and services tax revenue, because there is an objective and clear rip-off by the Federal Government?

Why is that issue not dealt with? It costs every New South Wales family more than $800 a year, but Opposition members are doing nothing about it. All they do is whinge and whine. We do they not stand up to their Federal colleagues? Why can I not get a licence for a magnetic resonance imaging scanner in Maitland, which has a growth rate of 2 per cent? The Federal Government must fulfil its constitutional responsibilities and take care of people's teeth. These issues are holding back New South Wales and it is being ripped off. If it were not for the Iemma Labor Government New South Wales would be in dire straits. It is a good thing that the Liberal-Nationals Coalition was not voted into office at the last election.

Debate adjourned motion by Ms Tanya Gadiel and set down as an order of the day for a later hour.

[Acting-Speaker (Mr Thomas George) left the chair at 1.01 p.m. The House resumed at 2.15 p.m.]