Mr GERARD MARTIN (Bathurst) [12.30 p.m.]: I move:

That this House recognises the State Government's proactive stance in working with the Federal Government to develop job stimulus programs to offset the impacts of the world economic downturn.

Twelve months ago today I gave notice of this motion. I am pleased to be able to say today that the progress has been great. The action of the Federal Government at the time, supported by the State Government, earmarked Australia around the world as the country that best resisted the global financial crisis. Of course, the global financial crisis was perpetrated by a pretty dodgy world merchant banking system that was motivated by greed—into which some members opposite probably have insight. The motion recognises the important work of the New South Wales and Commonwealth governments to support jobs and businesses in the face of the global downturn. To some extent in this State we have been the victims of our own success.

Australia is one of the few developed countries that is growing. We have not suffered chaos like Greece or other European countries, such as Spain and Portugal. Many people, including those opposite, take for granted that we have not suffered the downturn and fiscal upheaval that has beset many nations. Australia's success at avoiding recession has been attributed to it being the lucky country. No-one is prepared to acknowledge the crucial role that the New South Wales and Commonwealth governments played in helping Australia to avoid recession. When the full scale of the global financial crisis became clear, the New South Wales and Commonwealth governments acted in partnership—that is the key word—to provide certainty and economic stimulus.

In October 2008 the Commonwealth Government announced $10.4 million in measures to stimulate the economy—payments to pensioners and families to support consumer demand. Of course, in turn this supported the retail sector, and, as the Parliamentary Secretary knows, by definition this supported jobs and prevented a downturn. Following this first package from the Commonwealth Government was the $42 billion Nation Building and Jobs Plan. This massive Commonwealth investment has been essential in supporting jobs and avoiding recession. It would not have been successful without the New South Wales Government taking a proactive stance in implementing the Commonwealth investments, unlike the State Coalition governments and the Federal Opposition that said the plan would not work, it could not do it and that took the conservative fiscal line.

Indeed, this State and Federal Government partnership is evident in our historic investments in social housing—an issue important to this side of the House. Coming from Bathurst, I recognised years ago the vision of Prime Minister Ben Chifley in establishing public housing with government support—another great Labor initiative. The Commonwealth Government has provided $1.9 billion to deliver approximately 6,000 social housing units around the State. These are excellent, architect-designed dwellings. In addition, New South Wales is investing $1 billion of its own money to deliver an additional 3,000 dwellings. This represents the biggest investment in social housing in Australia's history, providing a total of 9,000 homes for the people most in need and enabling the building sector to maintain investment and employment. This is an investment in the future. It will provide homes for our ageing population yet has the immediate benefit of building jobs now.

At the end of March this year more than $718 million was injected into the construction industry. An estimated 7,200 equivalent full-time jobs have been supported by this investment over two years. These jobs would not have existed if the Coalition in this House and in Canberra had had their way. Our investment in social housing is complemented by our investment in schools. Again, the New South Wales and Commonwealth governments are working in partnership with the Commonwealth's Building the Education Revolution program, which is investing $3.4 billion in New South Wales schools and complements our own $2 billion Building Better Schools program and $150 million Principles Priority Building program. When combined, those programs represent an historic massive investment in education in this State, including the private sector. This investment supports employment right now while building first-class jobs for the future.

In addition to the measures introduced by the Commonwealth Government to support jobs, in the 2009-10 budget the New South Wales Government decided to introduce a number of targeted initiatives aimed at stimulating the State's economy in challenging economic conditions. These initiatives include, but are not limited to, the Local Infrastructure Fund, which is a $200 million fund that provides interest-free loans to councils to bring forward investment in local infrastructure. A number of councils in my electorate have taken advantage of that funding. The Community Building Partnership is another State Government initiative, providing $35 million for local infrastructure across New South Wales in partnership with local community groups and sporting organisations to deliver community facilities and, importantly, to support local jobs.

Every member in this House would be familiar with these projects in their electorates as the funds received under this program have enabled many community groups to make practical improvements. In the Bathurst electorate approximately $425,000 has been allocated to 25 diverse groups. Oberon Council received $50,000 to further develop its community centre and Ilford, which is a small village between Lithgow and Mudgee, received more than $30,000 to improve its hall, which is that rural village's social centre. Yetholme, another important village of which you would be aware, Mr Assistant-Speaker, as you travel the Great Western Highway to the great city of Bathurst, received $30,000 to upgrade its hall, which provides many amenities for local people. Bathurst Touch Football Association received money for its clubhouse. Portland Pensioners, who meet in a building that has seen better years, received $30,000 to upgrade the building, as have the Lithgow Red Cross and the Wallerawang Christian Women's Association. The Carcoar Anglican congregation received money to restore the roof of the historic Anglican church, which is one of the first churches built west of the Blue Mountains.

Another important measure the State Government introduced was the Housing Construction Acceleration Plan. This plan has encouraged the construction of new dwellings by providing a 50 per cent reduction in stamp duty on purchases of newly constructed dwellings worth up to $600,000 for those who are not first home buyers. This represents a saving of up to $11,245 for each new dwelling—certainly a great stimulus. Initially, the plan was to operate until 31 December 2009, but the State Government recognised its success and Premier Keneally has extended its operation to 30 June this year. To date, 3,300 New South Wales home buyers, investors and empty nesters have taken advantage of the scheme by purchasing newly constructed properties worth more than $1.4 million—a most impressive figure. The scheme has put more than $25 million worth of stamp duty back into people's pockets. More importantly, it has stimulated $1 billion worth of job-supporting construction activity—jobs for builders, plumbers, architects and more.

This is yet another example of a cooperative partnership. We have seen examples of a cooperative working relationship between the State Government and the Federal Government and between the State Government and private sector organisations. The New South Wales Government supports the creation of jobs through the Western Sydney and Regional New South Wales Employment Fund. To secure jobs in the regions, which is very important, the Government will make an investment of $19 million over two years. Some of the benefit from that policy will go to my electorate of Bathurst. Jobs have also been supported through the Major Investment Attraction Scheme, which is a $70 million investment that is designed to attract major investment to New South Wales, and the State is beginning to reap the benefits. The Government has introduced practical measures that complement the Commonwealth Government's stimulus measures to support jobs, and they are producing results. The New South Wales Government's economic stimulus measures have been so successful that the New South Wales economy is now leading the nation.

Data released by the Australian Bureau of Statistics as recently as last week shows that seasonally adjusted retail sales in New South Wales increased by 1.2 per cent in March whereas the national average was just 0.3 per cent, Victoria recorded a slight reduction, and Queensland's figure decreased by 0.5 per cent. That underlines how well the New South Wales economy is performing and how well it is recovering from the effects of the global financial crisis. The Government has achieved that by acting positively, investing in construction and jobs, and working collaboratively with the Federal Government—instead of bagging the Federal Government, as members opposite do.

Mr MIKE BAIRD (Manly) [12.40 p.m.]: It is incredible timing for the Government to move a motion about jobs stimulus programs. I imagine that when the member for Bathurst rose this morning and was enjoying his Vegemite on toast, he was very excited about the motion and about being able to proclaim all the wonders of jobs, employment and economic correction that the State has achieved. Unfortunately, at 11.31 this morning he might have been a little disappointed to discover that the State's employment rate again has gone backwards. In fact, the highest increase in unemployment of any government in Australia is attributed to New South Wales. New South Wales has the highest rate of unemployment of any mainland State. Let us forget the rhetoric and examine the statistics that have been released today.

The statistics I will cite do not represent a one-off increase in unemployment. To be fair, it is not right to take a one-off statistic and say that this is cogent evidence of a long-term trend. It is not. The better approach is to examine the long-term trends to arrive at an informed conclusion about the success of a government's policies. The current Labor Government should feel nothing but shame. In 54 of the past 55 months, the State's unemployment rate has been higher than the national average. That is the truth. I will deal with that in greater detail later. The member for Bathurst is very eager to talk about merchant bankers. I think we all remember that he was an accountant for a mining company.

Mr Gerard Martin: I was not.

Mr MIKE BAIRD: He was not an accountant?

Mr Gerard Martin: I was, but I worked as a human resources and industrial relations officer.

Mr MIKE BAIRD: So he was an accountant. The member for Bathurst has just admitted that he was an accountant. As we all know, accountants were chiefly responsible for the financial engineering that resulted in the Enron financial disaster. The member for Bathurst is part of a profession whose financial engineering brought about outcomes such as Enron, so the member for Bathurst is personally responsible for what happened to Enron! I really think he should take a good hard look at his career.

Mr Gerard Martin: Ha, ha.

Mr MIKE BAIRD: That is the type of argument he runs. Notwithstanding the Enron experience of the member for Bathurst, I will move on. The member for Bathurst moving a motion about the Federal Government's economic stimulus policy and the State Government's response to it is beyond belief. I will begin my analysis by examining the performance of the Federal Government. We are in the middle of a Federal budget that was released on Tuesday. It was partly a boring, tradesman-like budget, but at the heart of it is a tax grab that is being questioned not only by stakeholders in the mining industry but generally throughout the world. It is recognised as evidence not only that the Federal Labor Government is not taking economic management seriously but also that it could be jeopardising the future prosperity of Australia.

I do not intend to cite the opinions of a list of political identities to support my analysis. Instead I will quote the Wall Street Journal. The member for Bathurst moved the motion because he was very happy to talk about jobs. The member for Bathurst would know the Wall Street Journal very well from his accountant days at Enron. I would be interested to know the feedback the member for Bathurst is receiving from his constituency, especially the mining interests in his electorate and farther afield in the Hunter region. The Wall Street Journal has stated in relation to the mining tax grab:

This economic thinking runs counter to everything that made Australia rich over the last three decades: namely, the embrace of competition ... which rewards high risk with high returns. Setting up a mining company is not akin to opening a restaurant. Companies invest billions of dollars in exploration, build infrastructure to bring their products to a port, and then have to compete in a global marketplace and deal with volatile prices for their goods. As Rio Tinto recently discovered, the political risks of selling to countries like China are high, too.

Mr Kerry Hickey: Point of order: I ask that the member for Manly be directed to confine his remarks to the motion. What he is saying has nothing to do with the motion. The motion is about job stimulus programs to offset the financial crisis.

ACTING-SPEAKER (Mr Wayne Merton): Order! I do not uphold the point of order. The topic of the motion is wide ranging.

Mr MIKE BAIRD: The article goes on to state:

Given that record, it's hard to have faith that the [Rudd Government's] announcement is about "fairness" as much as it's about plugging fiscal holes that the government itself created. It doesn't hurt to whip up populist sentiment against big corporations in an election year, either.

I do not think anyone would argue against paying a fair share of taxes; that is not questionable. Most people think that mining companies should. Big corporations must pay their taxes. But the issue here is: How competitive is our industry going to be on a global basis? In New South Wales, what will be the impact on jobs, future employment and future investment as a result of the tax, especially on workers in the Bathurst electorate? I would be interested to hear the comments of the member for Bathurst in relation to the mining tax.

Mr David Harris: They are happy with their superannuation.

Mr MIKE BAIRD: Members opposite cannot deny that the Federal Government's mining tax and its impact on jobs will become evident in the next few years, should it win the next Federal election and should the mining tax be imposed. There is real concern that the mining tax will cut jobs and cut investment in this nation, and the Federal Government will be held accountable for that. So much for the Federal Government; I turn now to discuss the economic management of the State Government.

We all have views on the State Labor Government, but it is pretty clear what CommSec thinks of the Government's economic performance. There are eight key indicators that CommSec examines: economic growth, retail spending, equipment investment, unemployment or jobs, construction work, population growth, housing finance and dwelling commencements. CommSec's comment is that New South Wales continues to bring up the rear of the States and Territories in economic rankings. In terms of economic growth, CommSec states, "NSW still occupies the bottom ranking of the economic performance table."

In relation to jobs, CommSec states that New South Wales is equal worst in the country and is above the New South Wales decade average of 5.4 per cent unemployment. Today's figures indicate that unemployment has increased to 5.8 per cent. In other words, 10,000 people in this State lost their jobs in the past month alone. For the member for Bathurst to move a motion and debate employment in the face of those statistics is almost beyond belief. CommSec states in relation to the commencement of dwellings:

NSW remains [again] at the other end of the leader-board. Dwelling starts are almost 24 per cent below decade averages.

In relation to its view of the implications and outlook of the State's economy, CommSec states:

NSW is anchored firmly at the bottom of the table and there is a fair gap to bridge with seventh position ... [a key] risk is that workers will be drawn away to the resource states.

As we move forward, I think that everyone will understand that the New South Wales Government has failed. It has failed in economic performance in terms of growth, unemployment and job creation, which is what the motion is supposed to be about. Recently the Premier stated on the ABC News, "New South Wales is back where it should be, leading the nation's economic recovery."

Mr Kerry Hickey: It took you seven minutes to get to that.

Mr MIKE BAIRD: Yeah, yeah.

ACTING-SPEAKER (Mr Wayne Merton): Order! The member for Manly has the call. He does not need the encouragement or assistance of the member for Cessnock.

Mr MIKE BAIRD: Just quietly, I do not think the Premier will repeat those comments today. The Premier went on to state:

I am proud to say that New South Wales is leading the nation's recovery from the global economic downturn.

How will that sit with unemployment increasing from 5.4 per cent to 5.8 per cent today?

Mr Anthony Roberts: How much would the increase have been if the mining tax had been implemented earlier?

Mr MIKE BAIRD: I will tell you how much the increase would be. The trend is evident. Government members cannot argue against the trend. The Government has failed. It has failed jobs, investment and the economy. If Government members are looking for a way forward—and I am happy to oblige—they really should support the Opposition's Jobs Action Plan.

ACTING-SPEAKER (Mr Wayne Merton): Order! The member for Manly has the call. He will be heard in silence. He extended that courtesy to the member for Bathurst.

Mr MIKE BAIRD: The Opposition's Jobs Action Plan is a very good plan. It is detailed and supported by economic modelling, and it is open to the Government to adopt it. If the Government supports the next 100,000 jobs that are created being given a payroll tax rebate—and that is the Coalition's commitment, should we win the election next March—in essence most jobs will be payroll tax free. The proposal has been benchmarked at the average rate. For the year in which that rebate is provided, there will be a huge incentive for industry to employ. The way to start the State's economic turnaround is to get off the back of businesses and support small, medium and large businesses. The Government should say to business, "Do you know what? If you go out and back yourselves and if you put a job on, for this year we will give you a rebate that will take away payroll tax." That sort of approach works. This plan is built on nothing but economic facts.

Modelling suggests that, should a Labor Government adopt our plan, the unemployment rate would drop by 0.3 per cent. So rather than having an unemployment rate of 5.8 per cent today, the rate would be back at 5.5 per cent, which is much more in tune with the national average. That is what the Labor Government should do. Not only do we endorse the plan; it is a positive, practical plan that should be endorsed by a Labor Government. Stephen Halmarick, the head of Investment Markets Research and a respected economist in the city, said that this is:

a very positive initiative designed to provide a targeted boost to job creation that should help ensure that NSW is able to increase jobs in an expected growing national economy.

On Monday I visited Moorebank, where I met with Michael Simonetta, the Chief Executive Officer of Perfection Fresh, which also has the fantastic food lovers' market at Moorebank. He supports the plan. He said that if the plan were in place he would be able to take on employees immediately. That is one way the Government could start to grow the economy. The last endorsement I am happy to put on the table is that of the member for Kiama, who is not in the Chamber. It was terrific to see this in his local paper. He told the Kiama Independent:

I agree that a payroll rebate would create more jobs.

The member for Kiama has not done many sensible things, but he endorsed our Jobs Action Plan. Our number one referee is the member for Kiama. The Labor Government needs to support businesses, get jobs back and stop giving us spin. [Time expired.]

Mr KERRY HICKEY (Cessnock) [12.50 p.m.]: This motion has been cleverly crafted by the member for Bathurst, who is an extremely wonderful member who is concerned about his electorate and the impact of the global meltdown on his electorate. The motion states:

That this House recognises the State Government's proactive stance in working with the Federal Government to develop job stimulus programs to offset the impacts of the world economic downturn.

I have been in this House since 1999, and before the Rudd Government was elected the Commonwealth did not work with the New South Wales Labor Government in any way, shape or form. The Howard Government did all it could to cut back on funding and to hurt New South Wales. Now we have a Federal Government that is working with the New South Wales Government to develop our economy. The previous speaker, the new wave for Manly, said that this Government was bad. Under this Government, job advertisements in New South Wales have increased by 14 per cent. We are leading the country in job advertisements. The New South Wales Government has supported jobs in the face of the global economic downturn by delivering major initiatives that complement the Commonwealth's economic stimulus package.

The Cessnock electorate has new school infrastructure, better hospital systems and new public transport infrastructure. The F3 is being extended, with $200 million in funding from this Government. I have been talking about the F3 extension in this House since 1999. It took the Rudd Labor Government to see the benefit of the F3 extension and to give it a tick. For 10 years the Howard Government did not put 1¢ towards that project. My colleague the Federal member for Hunter, Joel Fitzgibbon, is happy about the $1.2 billion F3 extension project. Rail infrastructure is being built in the community, with railway lines from Branxton to Singleton being duplicated. That duplication will enable more coal to be transported to the Port of Newcastle, where we have built a new coal loader, adding to mining jobs in the Hunter.

Cessnock is deriving benefits from the State Government's Community Building Partnership program. Endeavour Industries is working to provide more community housing for the disabled sector in the community; it has received $45,000 for that community program. The Edgeworth soccer club is using the funding to upgrade its soccer grounds; it is employing people and earthmovers, which is adding to the social outlets of that community. Kurri Kurri leagues club is building new scoreboards and providing a new hall that the community can rent of an evening. Not only is that socially beneficial to that community; it is creating jobs for carpenters, plumbers and architects. Everyone is benefiting from that money.

It is great to see this State moving forward in a positive manner, as is the Federal Government. The Howard Government did not move forward in a positive manner. Payroll tax relief is being rolled out in the State. Payroll tax relief is being provided in the Cessnock electorate and the Hunter Economic Zone to encourage businesses to locate there. The New South Wales Government has cut payroll tax. This means that 90 per cent of New South Wales businesses do not pay payroll tax. On 1 July this year payroll tax will be cut from 5.75 per cent to 5.65 per cent, and from 1 July next year it will be further cut to 5.5 per cent. The package of payroll tax changes since 2008-09 will save new businesses about $2.7 billion over a five-year period from 2012-13. The Government has also supported jobs, with the extension of the first home owners supplement until 30 June this year. Members opposite said that this Government is doing nothing to bolster the New South Wales economy. However, the Government is working hard, with the Federal Government, to ensure that we have a great economy. [Time expired.]

Mr THOMAS GEORGE (Lismore) [12.55 p.m.]: The motion moved by the hardworking Government Whip, the member for Bathurst, recognises the State Government's proactive stance in working with the Federal Government. Self-praise is no recommendation. Once again Government members spoke about successful programs. I agree that the Community Building Partnership program has been a success. Do members know why it has been a success? It has been a success because community groups have run the program and employed local labour. They have employed people in their regions to get the job done. Let us compare that with the Building the Education Revolution program.

On several occasions in this House—I have raised this issue with the Minister for Education and Training—I have spoken about a little school at Tyalgum, which is about 30 kilometres from Murwillumbah. Under the Building the Education Revolution program, Tyalgum Public School was to receive a new school library and office building. The school was pleased about this. The total cost of the project was $850,000. Earlier this year I reported to the House that when the prefabricated building was delivered to the school it did not fit the footings. The building was due to be handed over earlier in the year. We are now halfway through term two and the building still has not been handed over to the school—unless that has happened this week.

Under the Building the Education Revolution program, the cost of fixing that $850,000 building so that it can fit the footings and completing the project will cost an additional $500,000. That amount does not cover the provision of a covered walkway to enable people visiting the office or library on wet days to stay dry. I am sure that the Minister for Primary Industries, Minister for Emergency Services, and Minister for Rural Affairs realises that the North Coast region gets a lot of rain. When I spoke to the Minister's office about this matter I was informed that the builder will fix the building. However, I was not told that it would cost an additional $500,000. I have been presented with a letter from the parents and citizens of Tyalgum Public School.

Mr Gerard Martin: Point of order: I ask that the member for Lismore be drawn back to the motion about job stimulus programs and not go into a forensic analysis of one issue in his electorate.

ACTING-SPEAKER (Mr Wayne Merton): Order! The comments of the member for Lismore are within the leave of the motion. The member for Lismore will proceed.

Mr THOMAS GEORGE: I note the member's point but local people were not employed on that project—in most cases they came from Queensland to areas on the North Coast. The local builders were left in their towns without work. Is that a successful program? It might be successful for Queensland workers coming into New South Wales but it is not successful for the local economy. The member for Cessnock referred to payroll tax, something that this Government should be embarrassed to talk about. Businesses in the Northern Rivers area are competing against many cross-border companies that do not have to pay payroll tax.

Mr Gerard Martin: Ninety per cent or ours don't!

Mr THOMAS GEORGE: That is right. Who supplies the rest of the businesses? The member for Cessnock should go to the North Coast and cross-border areas to learn about businesses in New South Wales, and I have provided proof in this House— [Time expired.]

Mr ALAN ASHTON (East Hills) [1.00 p.m.]: I support the motion moved by the member for Bathurst and also the contributions by the member for Cessnock and the member for Bathurst. The Federal Opposition and the New South Wales Opposition have suggested that just by a fluke Australia escaped the effects of the great financial crisis that afflicted America, Britain, Iceland, Greece and Spain. Australia did not suffer because the Federal Government, led by Kevin Rudd and Wayne Swan, introduced the stimulus package and spent a lot of money to promote jobs and keep people employed. There are 200,000 people in work who would not have had jobs! The New South Wales Government was also proactive. But the Opposition, both in Canberra and in this State, voted against the stimulus package. Whenever this Government moved a motion Opposition members moved amendments to try to deny the facts.

Mr Steve Whan: They always criticise.

Mr ALAN ASHTON: Exactly. They carped and whinged and said, "It will all be good, nothing is happening, it is only a little bit of rain," when a financial Cyclone Tracy was hitting the economy of this country. People have forgotten that this Government extended to 30 June 2010 the first home owner grant and provided $3,000 to help first home buyers purchase newly constructed dwellings. So far, supplements and grants amounting to about $30 million have helped 10,000 first home buyers. The latest data from the Australian Bureau of Statistics shows the effect of this Government's initiative to support housing construction. Residential building approvals in New South Wales increased 43 per cent in March 2010 compared to February 2010. The national average increase was 15.3 per cent, in Queensland approvals went backwards by 1.9 per cent and in Victoria they increased by 13.3 per cent.

Members only have to look around their electorates to see where that cooperation has benefited their constituents. My electorate adjoins Menai electorate and I know that this Government has delivered $53 million to upgrade the Alfords Point Bridge, which was finished last August; $45 million for road widening and the construction of other bridges that will sustain 650 jobs, which ties in with the theme of the Federal Government's stimulus; and $300,000—$400,000 in some electorates—for the community building partnership program. In my electorate, 16 groups have received funding and they are very appreciative. In a couple of weeks I will be honoured to open science facility upgrades at Picnic Point High School and Sir Joseph Banks High School in my electorate.

Mr Steve Whan: Who funded them?

Mr ALAN ASHTON: The State Government funded them. It also provided $650,000 for a new industrial grade kitchen and $2.5 million for a gym at Picnic Point High School, which I attended when it did not have a gym. What did the Howard Government do in its 12 years in office? Whenever there was a surplus it was pumped into marginal electorates, in one case to dam a lake that did not need a dam. The Howard Government was damned at the last election and the Federal Coalition will be damned again at the next. One person in my electorate keeps writing letters to the paper saying that Alan Ashton has a fetish about getting schools fenced. Yes, I do, and I am sure all school fencing will be completed after the next budget, as there is one more school to be fenced. When a school is fenced it not only looks good but, more importantly, the fencing protects the kids and the teachers and their work. The member for South Coast knows that if fences were taken away from schools in her electorate she would be very unpopular.

Mrs Shelley Hancock: We haven't got too many to be taken away.

Mr ALAN ASHTON: I do not know why—the schools in most electorates have them.

Mr Steve Whan: Good local members have got them for their schools.

Mr ALAN ASHTON: That is a fair point, and maybe that is why all except one are fenced in my electorate. The member for South Coast needs to be more active. I have heard that her preselection is safe, and she is a nice lady, so I will not go too far. There was $400 million for the Kingsgrove to Revesby quadruplication and $100 million was spent on Revesby Station. This Government is tying everything in with the Federal Government's efforts. The Government supports the stimulus package, but it has also committed its own money to keep jobs and to create jobs, rather than talk about cutting jobs in the public sector like the Opposition is doing.

Mrs SHELLEY HANCOCK (South Coast) [1.05 p.m.]: I am pleased to contribute to this debate and I commend the member for Bathurst for bringing forward a very important motion relating to job stimulus programs. The intrinsic issue in this motion is the need for State and Federal governments to cooperate to ensure that job creation continues not just in difficult economic times such as we experienced recently, but in the years ahead. In my view one of the best ways to stimulate the economy is to invest in infrastructure, something with which I am sure all members agree. I am sure the member for Bathurst, when talking about issues in his electorate, has acknowledged the need to invest in infrastructure. I am disappointed in the comments of some members who suggested that the former Federal Government stood back and did absolutely nothing about infrastructure in their electorates.

Previously I have heard that type of lie promulgated in this House. The Princes Highway is so important for residents and visitors and we rely on tourism on the South Coast for business and investment. We have to acknowledge that it needs to be upgraded. I remind members opposite that even though the Princes Highway is a State highway John Howard, through the vigorous lobbying of the member for Gilmore, Joanna Gash, granted $34 million for the north Kiama bypass, for which the member for Kiama likes to take credit; $15 million for the section of the Princes Highway between Forest Road and Jervis Bay Road; $10 million for the Conjola Mountain deviation project, which is wonderful and has just been completed—I pay tribute to the Roads and Traffic Authority and the Government for its completion—and significant black-spot funding for roads such as Forest Road, which connects the Princes Highway and villages like Callala Bay. It is a lie to suggest that the Howard Government was not cooperating with the State Government.

Prior to the last election John Howard committed $20 million for the highway duplication at South Nowra and just recently Tony Abbott committed, if elected, to a further $20 million at the East Lynne section of the Princes Highway where, tragically—

[Interruption]

I would hate to think that members want to interject when I am talking about a site on the Princes Highway where three members of one family were killed recently. Members should compare the Howard Government with the current Federal Government. What has Kevin Rudd done? The answer is nothing—nothing for the Princes Highway has been achieved. Despite this Government applying for $1 billion under Infrastructure Australia, not one cent has come from Kevin Rudd for the Princes Highway—no comments, no responses to correspondence, nothing. Apparently the current Federal Government does not recognise submissions by the Roads and Traffic Authority.

The Roads and Traffic Authority audit identified the need for a billion dollars to be spent on the Princes Highway, as did the NRMA audit. In the past, the South East Australian Transport Strategy [SEATS] and the Princes Highway action group, PHocus, lobbied vigorously for work to be carried out on the Princes Highway. It was sad and very disappointing when the former Premier, Nathan Rees, applied for infrastructure funding. It must have been tragic for him not to achieve anything, apparently because of the paucity of the submission tendered by the Government. What is the current situation with the Princes Highway? Where is the job-creating program for the Princes Highway? Last year the Government cut the budget to the Princes Highway by 46 per cent, in comparison with the allocation in the previous year—46 per cent!

What is happening on the Princes Highway at the moment, that State-funded road? Zero. The wonderful Conjola Mountain deviation project is complete, but no other project is underway on the Princes Highway. That highway runs from the south of Sydney to the Victorian border, yet the State Government has put nothing into it and has cut its budget by 46 per cent, despite intense lobbying by various organisations, not just me. The Howard Government was committed to the Princes Highway but the Rudd Government has done absolutely nothing to stimulate the economy, business and investment in the Princes Highway. Members opposite are highly embarrassed, including the Minister for Primary Industries, the member for Monaro. He knows the truth; he knows that Kevin Rudd has failed to step up to the mark, failed to create jobs on the South Coast, and failed to invest in infrastructure and thereby create jobs. Although I commend the member for Bathurst for moving this motion, I will have to oppose it. [Time expired]

Mr GERARD MARTIN (Bathurst) [1.10 p.m.], in reply: I am not quite sure where to start. First, I will do the right thing and thank the members representing the electorates of Manly, Cessnock, Lismore, East Hills and South Coast for their contributions. The contribution by the member for South Coast was irrelevant, because it completely ignored the context of the motion. However, that was her call. In regard to the problems she mentioned on the South Coast, she should talk to the member for Kiama; I am sure he will show her how to make representations.

The member for Manly accused me of having accounting qualifications—guilty!—and therefore I am responsible for the Enron collapse in the United States of America. It is interesting to talk about people's background and qualifications on entering this House. I came here as a humble coalminer. The member for Manly, of course, is a failed merchant banker. Fancy a failed merchant banker being elected on fiscal policy! The reason this motion is being debated today is that the global financial crisis that triggered this proactive stance by the Federal and State governments was brought about by the motley merchant bankers around the world.

Members would remember Lehman Brothers' display of arrant greed and managerial incompetence—I am trying to find the correct adjective to describe their governance, or lack of it. That industry perpetuated the problem, and we have had to spend billions of dollars to solve it. The hapless Opposition members put themselves up as an alternative Government, yet they say that a failed merchant banker will be their Treasurer. Under the former Coalition Government, what happened with Port Macquarie Hospital?

Mr Mike Baird: Point of order: The motion is very clear; it is about jobs. We all know that the member for Bathurst, or his accounting profession, had a role in the financial crisis. We all know that his mates were—

ACTING-SPEAKER (Mr Wayne Merton): Order! That is not a point of order. The member for Bathurst is replying to the points raised in the debate.

Mr GERARD MARTIN: I am replying to the points raised by the member for Manly. I apologise for having some qualifications in accounting, but I spent most of my life doing other things in the mining industry. I realised very quickly that accountants are a dull mob, supplanted only by merchant bankers—particularly toy merchant bankers who find themselves lobbed into a safe seat in Parliament and, because of the dearth of Opposition talent, straight onto the frontbench. Now he is lecturing us on financial matters and how to manage the economy. He spoke about payroll tax, but he forgot to say that the Opposition has not promised anything. It talks about a 12-month holiday, in fact. No-one knows what the Opposition's policy will be.

How much money was taken out of the New South Wales economy by the former Coalition Government's incompetence that lost jobs? It took over $100 million to buy back the Port Macquarie Hospital. That was a great bit of privatisation. The airport to the city rail link, in which a predecessor of the member for Manly was involved, cost $800 million or $900 million. And remember Luna Park, another $50 million down the drain. Also, there was Eastern Creek and, of course, the State Bank, a very profitable bank that Peter Collins gave away. It was worth about $8 billion but it was sold for $400 million.

Mr Mike Baird: Point of order: The member who moved the motion is in the unusual position of not knowing what it was about. It was about jobs, basically. I know the member for Bathurst is ashamed of his accounting history—

ACTING-SPEAKER (Mr Wayne Merton): Order! I am sure that the member for Bathurst will return to his reply to the debate.

Mr GERARD MARTIN: I will have a bet with the member for Manly. If we hold a straw poll on who is more popular, accountants or merchant bankers, what would the community say? The accountants would be at the top of the list, but dodgy merchant bankers would be down the bottom. Every second Conservative politician is a merchant banker and would be right down the bottom with journalists and used car salesmen. Today we heard about the wonderful cooperation between the Labor Party in Canberra and the Labor Party in New South Wales to insulate us against the greatest financial crisis the world has ever seen.

Question—That the motion be agreed to—put and resolved in the affirmative.

Motion agreed to.