The PRESIDENT: Order! I have received from the Hon. Penny Sharpe a notice under Standing Order 201 of her desire to move the adjournment of the House to discuss the following matter of urgency:

The Government's decision to cut $1.7 billion from the education budget in New South Wales.

The Hon. PENNY SHARPE [11.13 a.m.]: It is extraordinary that on a day when people in New South Wales have woken up to find that $1.7 billion will be cut from the education budget the Government has moved a motion to talk about the Queen's dead dog. This matter is urgent—

The Hon. Dr Peter Phelps: Point of order: The member is misleading the House. The Government has not moved any motion; a private member has given notice of a motion in his capacity as a private member. The Hon. Penny Sharpe should know that.

The PRESIDENT: Order! There is no point of order.

The Hon. PENNY SHARPE: Yes, we do note that the Hon. Dr Peter Phelps read a motion about the Queen's dead dog, as opposed to speaking about the $1.7 billion education cuts that will impact on every student, family and community across New South Wales.

The Hon. Duncan Gay: Point of order: My understanding is that this debate is to establish whether this matter is urgent. As indulgent as you have been, Mr President, the Hon. Penny Sharpe wants to sledge someone for a private member's motion. That is completely outside what we should be discussing.

The PRESIDENT: Order! The Hon. Penny Sharpe should confine her remarks as to why this motion is urgent.

The Hon. PENNY SHARPE: I put to the House that talking about the cuts to education is far more urgent than the Queen's dead dog.

The Hon. Dr Peter Phelps: Point of order—

The PRESIDENT: Order! I call the Hon. Penny Sharpe to order for the first time.

The Hon. PENNY SHARPE: There can be no matter that is more urgent for this Parliament to consider today than the impact of education cuts on the people of New South Wales. The other matters on the business paper today pale into insignificance when we examine what these cuts will do to the more than 3,000 schools and 10 TAFE institutes across New South Wales. This matter is urgent because $1.7 billion in cuts to education will fundamentally impact on students, their families and their communities across New South Wales. Not one community will be untouched as a result of these cuts.

Today's Notice Paper lists four bills that are pedestrian at best: the Crimes Legislation Amendment Bill 2012, the Industrial Relations Amendment (Industrial Representation) Bill 2012, the Industrial Relations (Dispute Orders) Bill 2012 and the Retail Trading Amendment Bill 2012. No doubt the Government has worked hard on those bills but they are pedestrian in view of the impact on the people of this State of the education funding cuts the Government is proposing.

The Hon. Duncan Gay: Why is it urgent?

The Hon. PENNY SHARPE: This is urgent because 3,000 schools in New South Wales will lose funding. This is urgent because more than 1,629 primary schools, in every small community across this State, will feel the impact of these cuts. This is urgent because 67 central schools in the smallest villages in this State will not be untouched as a result of these cuts, and 398 high schools. And let us not forget that the 113 schools for special purposes that deal with the most vulnerable children and their families will not be left untouched as a result of the $1.7 billion in cuts. Let us not forget that every single one of the 906 non-government schools in every community in western Sydney, in regional towns and in small country towns will feel the effects of these cuts.

If this is not an urgent matter for this Parliament to talk about today I do not know what is. Education is one of the most fundamental things that we provide as parliamentary representatives. We can and we should suspend the business today to examine what these cuts mean to every person that we seek to represent. Ten TAFE institutes in more than 130 communities across this State train 90 per cent of the apprentices that we need to make the State run. They provide second-chance education to meet people's aspirations when other education facilities have failed. These cuts will impact on them. The Government will no longer provide funding for Fine Arts. That shows how mean and out-of-touch the Government is.

The Hon. Dr Peter Phelps: Point of order: The Hon. Penny Sharpe should be speaking to urgency and not to the substance of the motion.

The PRESIDENT: Order! While the Hon. Penny Sharpe has been speaking to urgency, she should be careful not to debate the substantive motion.

The Hon. Duncan Gay: Point of order: I draw your attention, Mr President, to animal noises coming from the Opposition. That behaviour does not help at all.

The Hon. PENNY SHARPE: To the point of order: Those on the other side of the House have been carrying on since the ridiculous motion about the Queen's corgi was read this morning. They have been barking across the Chamber. I think that all members should be called to order.

The PRESIDENT: Order! I heard only one member bark. If that member continues to do so he will be called to order.

The Hon. PENNY SHARPE: This matter is urgent. Education is one of the core roles of State government. It is absolutely the responsibility of this Chamber to consider what these drastic changes will mean to every young person and every community in this State, and to every person who has ever aspired to build a world-class education system in New South Wales. It is time for every member in this place to defend education in New South Wales. It is time for The Nationals to stop backing their Minister, who has bumbled his way through this whole process and who clearly is incapable of defending his department's budget. It is time for Liberal Party members to stand up for the non-government schools and parents they claim they represent.

The Hon. Scot MacDonald: We are standing up for everyone.

The Hon. PENNY SHARPE: I note the interjection. The member suggests that the Government is standing up for everyone, but by cutting everyone across this State? That is why this motion is urgent. In opposition the Government had a lot to say about education. I remind the House of how quickly that has changed and how pathetic the Minister for Education is. The Minister previously said in relation to education funding cuts: "Cutting education funding means that schools in Murrumbidgee will have less money to educate disabled students with special needs, will see local public schools such as Beelbangera, Griffith North and East, Junee North lose funding; funding that may have been set aside for continuing future programs …"

The Hon. Dr Peter Phelps: Point of order: Once again the member is straying into the substance of the motion rather than debating urgency.

The PRESIDENT: Order! I uphold the point of order.

The Hon. PENNY SHARPE: I apologise. The four pieces of legislation listed under Government Business—Orders of the Day on today's Notice Paper are largely administrative. They do not address the most substantive issues that members of Parliament should address. They do not address the issues that each of us stood with our hands on our hearts during our inaugural speeches and said we care about. All members have said they care about education—that is one of the reasons why we are members of Parliament. Today is the day to stand up and say, "I will defend education in New South Wales." And the way to do that is to bring this motion on.

The Hon. DUNCAN GAY (Minister for Roads and Ports) [11.21 a.m.]: The Government opposes this urgency motion. It reeks of hypocrisy, double dealing and politics. Those opposite are responsible for the hard actions that the O'Farrell Government is taking to rescue New South Wales.

The Hon. Penny Sharpe: Point of order: The Minister is clearly not making a case as to why this motion is not urgent.

The Hon. DUNCAN GAY: To the point of order: I am very definitely making a case as to why this motion is not urgent. It is rank hypocrisy; it has nothing to do with good governance of this State.

The PRESIDENT: Order! There is no point of order.

The Hon. DUNCAN GAY: If those opposite were absolutely fair dinkum, there is a Minister for Education but he is not a member in this House—

The Hon. Amanda Fazio: Point of order: My point of order is the same as that repeatedly raised by the Hon. Dr Peter Phelps. The Minister is not debating why this matter is not more urgent than the four bills listed on today's Notice Paper. He is discussing the substantive issues. The Minister should be called to order.

The PRESIDENT: Order! There is no point of order.

The Hon. DUNCAN GAY: It is quite evident that the Opposition is concerned about the lack of evidence as to why this motion should be given urgency. As I said, if those opposite were fair dinkum and they did not just want to make a political point then this should be raised in the other place, where the Minister for Education is a member—a very good Minister for Education who is prepared to make the hard decisions to protect the State and education into the future.

The Hon. Amanda Fazio: Point of order: The Minister is not discussing why this matter is not more urgent than other matters on today's Notice Paper. The Minister has been speaking for 2½ minutes and he has not mentioned it once.

The PRESIDENT: Order! The Minister's comments are directly on point as to whether it is urgent for this motion to be debated this morning.

The Hon. DUNCAN GAY: Those opposite might not like my comments but they are the facts. If they really did care about education and they really did want to raise some points about it then this motion should be moved in the lower House, where the Minster for Education is a member. The Minister for Education has very carefully gone about protecting front-line services and teachers—

The Hon. Amanda Fazio: Point of order: The Minister is definitely not addressing the matter of urgency. He is talking about the substantive motion. He is talking about the actions of the Minister for Education. He is not talking about the importance of other items on today's Notice Paper.

The PRESIDENT: Order! It is a little early for me to form that judgement, but I can understand why the member is concerned. I remind the Minister that at all times he must direct his remarks as to whether the motion is urgent.

The Hon. DUNCAN GAY: The matter is obviously not urgent because the Opposition is using this motion in a political sphere rather than trying to work through the issues. Bills are listed on today's Notice Paper but the Opposition has indicated that none of those important bills, which have gone through a process, are more urgent than putting in place a potential political hit. If those opposite really care then instead of crying crocodile tears they should be taking this matter to the Minister for Education in the other place. Those opposite are playing political games. The Minister has had to pick up on the legacy left to the O'Farrell Government by them.

The Hon. Amanda Fazio: The Minister is clearly not debating why this matter is more urgent than other matters on today's Notice Paper. The Minister is making abusive comments about Opposition members and he is again talking about the Minister's actions. The Minister for Education is not even a member of this House. I cannot see how the Minister's actions can be relevant to this urgency motion.

The PRESIDENT: Order! There is no point of order. I refer the Minister to my previous ruling.

The Hon. DUNCAN GAY: This motion is not urgent. The matter was extensively canvassed in the other place yesterday, where the Minister is a member. The Opposition in the other place did the appropriate thing by raising this with the Minister and the Premier. It is clearly just a joke for those opposite to say this motion should be urgently debated in the Legislative Council today—where the Minister for Education is not a member—when the Opposition raised it in the other place yesterday. That highlights the hypocrisy emanating from those opposite. The people who were responsible for the Solar Bonus Scheme fiasco—

The Hon. Amanda Fazio: Point of order: The Minister is clearly not speaking to urgency; he is abusing Opposition members. The Minister is not referring to matters listed on the Notice Paper. The Minister is being generally rude and abusive, which is not helping to establish whether this matter is or is not urgent. I ask that the Minister be reminded that he should be addressing urgency.

The PRESIDENT: Order! The Minister's remarks were tending towards the substantive motion. The Minister should address the issue of urgency in his contribution.

The Hon. DUNCAN GAY: I will not in future mention the Solar Bonus Scheme fiasco or the Rozelle metro.

The Hon. Penny Sharpe: Point of order—

The Hon. DUNCAN GAY: I have just given an undertaking. Those opposite should be aware—but they are obviously not—that their illustrious leader, Mr John Robertson, said—

The Hon. Amanda Fazio: The reading of extracts of yesterday's Hansard in the other place cannot have any bearing on whether this urgency motion is more urgent or not than other matters on today's Notice Paper. The Minister should once again be directed to speak to the matter of urgency.

The PRESIDENT: Order! I have the gist of the member's point of order. However, without having heard what the member in the other place said I cannot make a judgement as to whether it was relevant to the issue of urgency. There is no point of order.

The Hon. DUNCAN GAY: Clearly it is not urgent because yesterday in the other place the Leader of the Opposition moved:

That this House opposes today's unprecedented funding cuts to New South Wales public schools, Catholic schools, independent schools and TAFE colleges.

He then spoke at length and the matter was voted on in the lower House. So their colleagues in the lower House dealt with the matter yesterday, and members opposite were not aware of it. Members opposite were left in the dark; they were left out once again.

The Hon. Amanda Fazio: Point of order: My point of order is the same as before. The Minister is not addressing urgency. Decisions made in the other place have no bearing on whether or not matters are urgent in comparison to the matters on the Notice Paper in the Legislative Council. That is the only issue we should be considering, not what took place yesterday in the other place or any comments that were made in the other place.

The Hon. Dr Peter Phelps: To the point of order: Surely it is relevant to whether a matter is urgent if reference has been made to extensive debate about a matter at a previous time in previous places, not necessarily in the other place but even in the community. If there has already been extensive debate it strikes me as strange over time that a matter is necessarily urgent.

The Hon. Amanda Fazio: Further to the point of order: In relation to the comments made by the Hon. Dr Peter Phelps about my point of order, this House has the right to determine its own destiny, to determine whether a matter is urgent. What happens in the other place is irrelevant. I ask you to direct the Minister to be relevant to the matter of urgency in his remaining time.

The Hon. DUNCAN GAY: I am saddened to hear members opposite call their leader irrelevant.

The PRESIDENT: Order! As the member's speaking time has expired, there is no need for me to rule on the point of order.

Question—That the matter is urgent—put.

The House divided.

Ms Barham Mr Borsak Mr Brown Mr Buckingham Ms Cotsis Mr Donnelly Ms Faehrmann Mr Green

Dr Kaye Mr Moselmane Reverend Nile Mr Primrose Mr Roozendaal Mr Searle Mr Secord Ms Sharpe

Mr Shoebridge Ms Westwood Mr Whan Tellers, Ms Fazio Mr Veitch

Mr Ajaka Mr Blair Mr Clarke Ms Cusack Ms Ficarra Mr Gallacher

Miss Gardiner Mr Gay Mr Khan Mr Lynn Mr MacDonald Mrs Maclaren-Jones

Mr Mason-Cox Mrs Mitchell Tellers, Mr Colless Dr Phelps

Mr Foley	Mrs Pavey
Ms Voltz	Mr Pearce

Question resolved in the affirmative.

Urgency agreed to.

The Hon. PENNY SHARPE [11.39 a.m.]: I move:

That this House do now adjourn to discuss the following matter of urgency:

The Government's decision to cut $1.7 billion from the education budget in New South Wales.

I thank the House for putting education first. I thank the House for accepting the responsibilities that we have, as members of the Legislative Council, to take a close interest in the matters of this State and to stand up for education when it is under attack. I believe that most people in this House should, and must, oppose today's unprecedented funding cuts to New South Wales public schools, Catholic schools, independent schools and TAFE colleges.

This Government is cutting $1.7 billion from education in New South Wales—that is, all public and private schools across this State. Over the next four years the department will need to reduce its staff numbers by around 1,800 people. Over 600 jobs will go in the education department. Over the next four years TAFE NSW will lose 800 jobs and 400 school administrative positions will go. The Government claims that these job cuts will be achieved through efficiency savings, thanks to the Learning Management and Business Reform Program—a more Orwellian name we have never heard before. Funding for independent schools will be frozen, in breach of the Government's promises to independent schools before the election. Every school in every community across this State will feel the blow. The Government cannot rip $1.7 billion out of the education system without impacting on the classroom and seeing resources and programs cut.

Some of the most needy students, such as kids with learning difficulties and students with special needs will be hit hardest by these funding cuts. That is in addition to what has already been cut under this Government. The HSC Advice Line has been scrapped for year 12 students. Too bad for those poor kids in western Sydney whose mothers and fathers did not go to university or did not make year 12. The advice line—a vital lifeline for students to get the support and help that they needed for the Higher School Certificate—has been canned by this Government. Cleaning hours have been cut back in 601 schools, with south-west Sydney being the hardest hit. Are local members standing up and protesting at the Government's decision? There will be less cleaning in 601 schools, as if our schools can magically clean themselves. Are we going to ask teachers to clean those schools, on top of everything else we are asking them to do?

An amount of $40.9 million already has been cut from the TAFE and vocational education and training budget. One of the great public policy achievements of governments in this State is TAFE. It provides training for skills that we need across New South Wales and it trains 90 per cent of our apprentices. More importantly, TAFE also provides the vital second-chance education that people need. Most members in this place would have attended TAFE graduations. No-one who attends those TAFE graduations is left untouched by the stories of triumph from those who, for the first time in their lives, experienced education success and have gone on to make better lives for them and their families. Let us not forget also that the school Demountable Replacement Program has been axed. Schools in this State that are bursting at the seams cannot get a new demountable building for love or money. We also know that school recurrent funding is going backwards in real terms for the first time in more than a decade.

There is no commitment from this Government to education, and these cuts come on top of many cuts that are just unsustainable. At a time when we should be investing in the education of future generations, the O'Farrell Government is taking a razor to our schools. Just this week the Organisation for Economic Co-operation and Development [OECD] released a new report showing that we have a way to go to lift our education performance. The report shows that we need to invest more in our schools so that we can reverse the decline in our results and make sure that our disadvantaged students are not left behind. Last week the Federal Government announced its response to the Gonski reforms and a plan for Australia to have a world-class education system—something to which surely all members of this House aspire. At a time when we know we are lagging behind other OECD countries this is the most devastating blow to education in New South Wales in more than 20 years.

Need I remind the House what happened the last time the Liberal-Nationals were in government? Education Minister Terry Metherell scrapped 2,500 teacher positions and increased class sizes. Let us make it plain, as the Government made it plain by its decision today: The Coalition does not value education. Education is not a core value for the Government; it is simply a line item in the budget that needs to be cut. What is the Coalition's policy on education? It appears that its only policy is to put out its hand to the Federal Government. It claims that front-line positions will not be at risk and it states:

Teachers in government schools will be quarantined from these reductions.

The Liberal-Nationals Coalition already has broken its own pre-election commitments so why would we trust it now on this issue? Who will pick up the extra work when this Government cuts 400 administrative positions from schools? Who will phone parents and deal with administrative duties? Who will look after the kids who come to school without any breakfast? Who will provide them with a change of clothes? That is done by support staff, so what are we going to do? Are we going to ask teachers to do it? Teachers do enough. They have one of the most important jobs in this State, which is to educate the kids and the people in our communities. What are we going to do? We will make them do more and we will not provide them with the support that they need. This is a false efficiency that will harm every student in this State.

Members in this Chamber should not forget what the Coalition did to education the last time it was in government. It took years for schools in this State to recover. It is true to form and I suppose it is what we are beginning to expect. The education Minister and the Premier are out on their own. Their own side does not even support what is happening. I would have loved to have been a fly on the wall in the party room yesterday. However, we already have heard. They were quick to contact newspapers and to tell everyone what they said as they stood up meekly for the schools in their communities. Bart Bassett told the education Minister he should sack his chief of staff over lack of consultation. Pittwater member of Parliament, Rob Stokes, was quoted as saying:

I can't see why building the north-west rail link and keeping the [electricity] 'poles and wires' is more important than education.

Government is about choices, and today this Government has chosen to cut education in this State. The Government's announcement also included freezing funding for the non-government sector. The member for Coffs Harbour, that great maverick, Andrew Fraser, has today written to the Premier Barry O'Farrell—that would have helped—and the Minister for Education, Adrian Piccoli, urging them not to go ahead with the drastic cuts to education funding to independent schools as claimed in representations by those schools. Mr Fraser said that independent schools played an extremely important role in regional New South Wales, providing an alternative to the public education system. Are The Nationals and Liberal Party members now standing up for the very schools that they claim to represent? What is happening to schools in western Sydney? Western Sydney schools are completely abandoned by these cuts. The member for Parramatta nailed it when he said:

These are the people we should be supporting, not cutting down.

Where is the member for Parramatta today? He is hiding, but he was quick to get on the phone and to leak how important he was in that he stood up for schools in the party room. I want to talk also about the cuts to TAFE NSW, the slashing of 800 TAFE teachers and staff, hiking up fees for students by 9.5 per cent, abolishing all funding for fine arts courses and almost doubling the fees for concession students across TAFE—one of the biggest blows that will affect students in this State. People go to TAFE to obtain skills and to find employment. They want to be educated and trained so that they can get good jobs to support their families, improve their lot in life and improve their communities.

For 130 communities in this State TAFE often is the only training option for people after school. It is about making the change; it is about career change; it is about skills development; and it is about second chance education. As all members and those who have been to a TAFE college would know, TAFE teachers go above and beyond what is necessary. They are the people who are helping to fix the youth refuge; building play equipment for people at the women's refuge; and helping to support the Men's Shed with equipment and support. They do much more than just train people. They are the heart and soul of many communities. In fact, they are the last stop for those seeking support and they get things done in local communities. This Government is cutting their numbers.

The Government also is hitting students who can least afford it—the students who need their concessions. What are we doing? We are making them pay more. We know what will happen. It simply means those students will never get to TAFE—the very people we say need to be productive members of our community. We say that we will support them when they need help and that they should be trying to get a job but when they try to do a TAFE course that will allow them to get the job they want they will be left with nothing because they cannot afford the fees.

Also tucked away in the announcement yesterday was the statement that the Government no longer thinks it should be funding fine arts. How short-sighted is that? The arts are an important part of our community and they provide important training. TAFE in New South Wales has some of the best fine arts training in this country, if not the world. To strip away this money and make fine arts some sort of sideline makes members of this Government look like the bunch of philistines that they are. This Government has made TAFE more expensive and it will impact on many students. These cuts come on the back of other cuts, stripping $29 million from the TAFE budget and a further $24 million from the vocational education and training budget. Let us look at what the Minister said in opposition:

Cuts to TAFE [are] shortsighted and would cost NSW in the long term... failure to invest in education and training in NSW is a failure to invest in our future.

Studies show that every dollar spent on TAFE returns $6.40 to the economy, so it makes perfect economic sense to invest in vocational training.

Where is that commitment now, Minister? The then shadow Minister continued:

... the NSW Liberals & Nationals believe that vocational education provides a solid foundation for a strong and vibrant economy.

We believe that a highly skilled workforce is critical to rebuilding a strong economy that delivers jobs, quality services and infrastructure.

Yet in government, Mr Piccoli is more interested in the next quarter's bottom line than he is in the long-term prosperity of this State. He well knows that it takes investment in education and training to build a great working economy in the long run. Mr Piccoli signed the "Invest in TAFE for a Better State" pledge prior to the election, which included his promise to invest in services and plan for the long term. That was not worth the paper it was written on, was it? Like his promise to the Catholic school sector, clearly this promise by the Minister is absolutely worthless. TAFE teachers and students around New South Wales will rightly condemn his backflip on this pledge.

These cuts are yet another example of the mean-spirited approach that this Government takes to education in New South Wales and it will be the students who rely on TAFE the most to give them a leg up to their working life who will suffer the most. This policy will abolish all funding for visual arts courses. Does the Government really have such a short-sighted view of the world? In the Government's own words previously:

TAFE NSW plays a critical role in supporting the State's economic and social priorities.

Clearly though, this Government does not see the contribution TAFE makes to our State as a priority. There are times in government when one has to stand up for the things one says one believes in. Today and over the past few days we have seen the response of all those who put their hands on their hearts about the importance of education, about the role of special teachers in their lives, about why education is one of the things that drove them into politics in the first place—every single member who went to all the presentation days and said to the school communities before the election, "We will support you. We believe education is fundamental." The writing is on the wall: $1.7 billion in cuts will impact on every school, every student, their families and their communities. It is time to stand up for education across this State and say no to these cuts.

The Hon. DUNCAN GAY (Minister for Roads and Ports) [11.54 a.m.]: As I indicated when the Opposition was trying to seek urgency, it is rank hypocrisy for the Opposition to try to bring forward this political issue.

The Hon. Walt Secord: Oh, rank hypocrisy?

The Hon. DUNCAN GAY: Walt Secord should know better than most. He is the man responsible for spin over substance in the previous Government; the man who tried to tell people that the failed Rozelle metro would be great for them.

The Hon. Walt Secord: Point of order: My point of order relates to relevance. This is about education cuts.

The PRESIDENT: Order! There is no point of order.

The Hon. DUNCAN GAY: The relevant issue is that hard decisions had to be made because of bad decisions made by the previous Government. Walt Secord is sensitive. He is trying to forget about his role in the failed Rozelle metro—$500 million up against the wall.

The Hon. Matthew Mason-Cox: The Mary Celeste of transport projects.

The Hon. Amanda Fazio: Point of order: If the Minister wants to make imputations about another member in this place he must do so by way of substantive motion and not just throw slurs and insults across the Chamber.

The PRESIDENT: Order! The Minister should be careful not to make imputations about other members. He should confine his remarks to the substantive motion.

The Hon. DUNCAN GAY: Thank you, Mr President. As one of my colleagues just said, the Rozelle metro was the Mary Celeste of transport projects. How appropriate that is. And who can forget the Solar Bonus Scheme? We hear the hypocrisy; we see the crocodile tears from the people who have caused it. I will come to that later on. Part of what we are doing here is something that those opposite put in place but are trying to forget. They moved this motion against something that was part of their Government's approach but they have a very short memory. Because they have such a short memory I point out that this is September and yesterday there was a press release from our Minister that referred to making some hard decisions. Interestingly, in September 2003, there was a press release from another education Minister entitled "Detailed plans of education restructure released for final discussion", which stated:

The State Government today released an amended proposal to restructure the Department of Education and Training - taking on board more than 5,000 submissions from staff and community.

Deputy Premier and Minister for Education and Training, Dr Andrew Refshauge, said the Government had taken on board many concerns raised by staff, the Public Service Association (PSA), the Teachers Federation, Principal groups, P & C, industry and other stakeholders—

The Hon. Steve Whan: Is that before or after he reduced class sizes?

The Hon. DUNCAN GAY: Just wait, there is a kicker to this one.

The PRESIDENT: Order! The Hon. Steve Whan will have an opportunity to make a contribution to the debate.

The Hon. DUNCAN GAY: He could not wait for the kicker. It goes on:

Dr Refshauge said the number of job cuts would remain the same at around 1,000 - with an additional 100 staff moving from Head Office into regions to support schools.

When there are hard decisions to be made it is wrong if we make them but it is right if those opposite make them. That is the hypocrisy of this whole matter. The hard decisions we have made today incorporate one of the few hard decisions that those opposite made in government. They jumped up and down about how the whole community is against this.

The Hon. Sophie Cotsis: They are.

The Hon. DUNCAN GAY: There we go. The Hon. Sophie Cotsis said, "They are." I refer to a media release put out yesterday headed, "NSW Bishops regret cuts to all NSW schools."

The Hon. Penny Sharpe: That is not what they are saying.

The Hon. DUNCAN GAY: Listen. I know you will not like it. It states:

"The Catholic bishops of NSW believe the Australian community needs to spend more rather than less on education—

We all agree with that. It goes on to state:

across the board if our young people are to have the opportunities they deserve," the Chairman of the Catholic Education Commission of New South Wales, Bishop Anthony Fisher, said today.

I think both sides of the House would agree with that. It then states:

We therefore regret the cuts to all NSW schools, both government and non-government, that the NSW Government has announced today. The Catholic Bishops recognise that in tough economic times governments need to be fiscally responsible, but trust that as soon as economic circumstances allow the state of New South Wales will restore and increase its contribution to the education of every child in NSW.

The Premier said we will do that and the Minister for Education said we will do that. When times get better, when we overcome the problems they caused—

The Hon. Walt Secord: Point of order. The Minister is misleading the House. He is selectively quoting and he has left out a very important quote—

The PRESIDENT: Order! There is no point of order. I call the Hon. Walt Secord to order for the first time.

The Hon. DUNCAN GAY: Because it is in Hansard I can say that I am not selectively quoting. I have deliberately read the first two paragraphs of the media release. I would have read more except the Hon. Walt Secord has taken up too much of my time on frivolous points of order. Everyone knows that we have—

The Hon. Walt Secord: You have eight minutes.

The Hon. DUNCAN GAY: I have a lot to say. We have a $5.2 billion reduction in GST revenue over the next four years and reductions in other forms of revenue. The State Government has had to make tough decisions to ensure that New South Wales is living within its means. In 2011 the New South Wales Government set efficiency saving targets for the whole public sector. In June 2012 the New South Wales Government put in place a labour expense cap. In 2011-12 the total required savings in the Department of Education and Communities was $201 million. All of us have equivalent savings, if not more. This means that over the next four years the Department of Education and Communities will need to make significant changes to meet its budget savings target of $1.7 billion. Good on the great Minister for Education, my mate Adrian Piccoli, because he took the tough decision to protect the front-line staff, the teachers and the teachers' aides. That is something Walt Secord would not have done. When he was at Cecil Hills High School he was prepared to sacrifice anyone to save his own arse.

The Hon. Walt Secord: Point of order: The Minister is not referring to me by my proper title.

The Hon. DUNCAN GAY: So you are not the Hon. Walt Secord?

The PRESIDENT: Order! I did not hear exactly how the Minister referred to the member. I am sure the Minister will make every effort to refer to members by their correct titles.

The Hon. DUNCAN GAY: I will. In case the member remains angry, I indicate that it was the now Hon. Walt Secord in his previous role as chief spin doctor to the Labor Government who tried to discredit everyone else over Cecil Hills High School. His foray into education is not an honourable one by any stretch of the imagination.

The PRESIDENT: Order! I have previously asked the Minister not to make imputations about other members.

The Hon. DUNCAN GAY: I apologise; he led me astray.

The Hon. Steve Whan: Easily led, aren't you?

The Hon. Walt Secord: You were misled.

The Hon. DUNCAN GAY: I was misled. The Minister for Education is the Minister for all schools. He has taken the decision that the savings—

[Interruption]

The PRESIDENT: Order! The Hon. Walt Secord and the Hon. Steve Whan will have an opportunity to contribute to the debate. I ask them to allow the Minister to make his comments without constant disruption.

The Hon. DUNCAN GAY: As I was saying, the Minister is responsible for all schools. He has taken the decision that savings measures should be spread across all funding programs and grants across the Education portfolio, except teachers in schools, who have been quarantined from the labour expenses cap. The impact of these savings measures has to be shared and the Minister for Education has asked the director general to ensure that the impact on education be minimised as much as possible. These changes include reducing staff, working more efficiently within reduced operating budgets, adjusting non-government school sector funding, and increasing revenue from fees and services. He announced three sets of measures to meet our budget savings: first, in the non-government sector; second, in the government sector savings measures; and, third, in TAFE NSW. Most members are aware of where the savings are in the non-government area, but it is important—

Dr John Kaye: No, we're not. We need details on it.

The Hon. DUNCAN GAY: If I have time left I will go into the detail. The member's colleagues have taken up a lot of my time with frivolous interjections. The member has been remarkably good. I had indicated that I would mention the initiative of the former Government. Prior to the last election, the former Labor Government and the Public Service Association agreed to a reduction of 400 school administrative staff—

The Hon. Dr Peter Phelps: A reduction?

The Hon. DUNCAN GAY: Yes, a reduction of 400 school administrative staff positions as a result of the rollout of the Learning Management and Business Reform program. This was to offset salary increases already paid to school administration staff and support staff; teachers in government schools were to be quarantined from those reductions. Interestingly, today the Labor Opposition's urgency motion is against this proposition. When Labor members were in government they—

The Hon. Steve Whan: Put more money into education.

The PRESIDENT: Order! I call the Hon. Steve Whan to order for the first time.

The Hon. DUNCAN GAY: Mr President, they talk the talk—one can hear them on a daily basis chattering away, some more like chainsaws than conversationalists—but they will not walk the walk. When they put this initiative in place they called it proper management.

The Hon. Sophie Cotsis: There was consultation.

The Hon. DUNCAN GAY: When this Government does exactly the same thing, it is the end of the world. This rabble opposite on the losers lounge left us with a mess when we came into government. We are protecting the people of the State in the most responsible way possible to ensure that we have the funds for continuing proper education. The Minister for Education is willing to stand up against almost anyone. He has been hit by people in Canberra from both sides recently, so he has a huge ticker. This bloke has stood up where others would not stand up. We are taking responsible action so we can help guarantee the supply of services within all our crucial areas. As the Catholic bishop said, and as members in this House acknowledge, there is nothing more important than education.

The Hon. Penny Sharpe spoke about cleaners in her contribution. Cleaners are on a contract that was signed by the former Government and it is not changing. It was a five-year contract. That was a good point. Now schools are bursting at the seams because of 16 years—

[Interruption]

The Hon. DUNCAN GAY: You will get a chance in a moment.

The PRESIDENT: Order! The Hon. Sophie Cotsis will have an opportunity to contribute to the debate.

The Hon. DUNCAN GAY: Schools are bursting at the seams. That is the result of 16 years of neglect by the former Labor Government. This Government is being financially responsible so as to be sustainable into the future. Labor members do not understand what happens in schools. The proposed cuts are directed at the back office in the bureaucracy, not at front-line staff and teachers. Not to put too fine a point on it, but if this State had been left in a better position the hard decisions of yesterday would not be needed. Labor members should hang their head in shame and think twice before they continue with this hypocrisy.

The Hon. STEVE WHAN [12.09 p.m.]: Today the people of New South Wales are condemning the cuts to education. There is anger in every sector of education in New South Wales—in public schools and in private independent schools. This Government has undertaken savage cuts with no consultation and with no real justification. I refer to the attempt at justification we have just heard from the Hon. Duncan Gay. Yesterday we heard the Premier in the other place try to perpetrate the big lie that the Government inherited a $5 billion black hole when it came to office. That lie has been comprehensively destroyed by the Parliamentary Budget Office and by its own internal assessments by the Premier and the Treasury. He then perpetuated the other big lie that when the Coalition came to office an enormous secret was revealed. The truth is that the Coalition was given full budget briefings well before it came to office and it knew exactly the budget situation in New South Wales.

The Hon. Duncan Gay: Point of order: At no stage did I talk about the budget that we inherited. My only mention of economics related to the falling GST revenue.

The PRESIDENT: Order! As a longstanding member of this House, the Minister knows that that is not a point of order.

The Hon. STEVE WHAN: I was referring to the Premier's comments yesterday. He pretended that the Coalition got a budget surprise when it came to office. In fact, the budget briefings provided to the Coalition in opposition were more pessimistic than they should have been; the budget outcome was better than was predicted in December 2010. Members opposite had every opportunity to be truthful with the people of New South Wales about their plans for education in this State.

Government members are still perpetuating the myth about a cut in GST revenue. In fact, this Government will receive an extra $3 billion in GST revenue over the next few years. Members opposite are pinning that statement on a forecast reduction in GST revenue in the last budget. It is incorrect to use that as a justification for these cuts in the education budget. We can proudly say that under the Labor Government every budget included increased education spending. We reduced class sizes in lower primary school, which meant the employment of more teachers. That is in stark contrast to the Greiner Government's sacking of 2,500 teachers.

These budget cuts will hit those people who can least afford to be hit. Public schools will have to endure massive funding cuts and that will impact on front-line services. It is all very well for the Government to say that this will impact only on back office functions. When support staff and front office staff are cut that has an impact on those whose job it is to chase up kids who do not turn up to school. They are often from the least affluent backgrounds and their parents need to be chased up to ensure that their children attend school. It is those jobs that will be impacted. Staff who safeguard our children's welfare and who ensure that they can participate fully in the school community and those who undertake administrative tasks to free up teachers for classroom duties will be impacted. I do not believe for one second that teachers will not be affected by these cuts. If the Government's justification is even remotely correct, these cuts will still hit front-line services.

The Government has reneged on the commitments it made about TAFE funding during the election campaign. We witnessed the appalling hypocrisy of The Nationals members such as the member for Monaro. The Cooma-Monaro Express carried a photograph of him and the Minister for Education, Adrian Piccoli, signing the five-point TAFE pledge and offering support for a skills charter.

The Hon. Matthew Mason-Cox: Did you also sign it?

The Hon. STEVE WHAN: Yes, I took great pleasure in signing the five-point TAFE pledge. However, I did so in the full knowledge that had the Labor Party been returned to office it would have honoured that pledge because our Government consistently honoured its pledges. Members opposite hypocritically signed that pledge knowing full well that they would engage in yet another of their ideological crusades and smash public education. TAFE budget cuts will hit country communities more than metropolitan communities. The Standing Committee on State Development recently visited country areas and one of the issues raised most consistently with regard to vocational training was the core role that TAFE colleges play. Private providers cannot service those needs from the city; we need a core TAFE presence in regional New South Wales. This Government is launching another attack on TAFE colleges in country New South Wales and elsewhere in the State.

The Opposition understands that the Government was considering further contestability in the TAFE sector. We have also seen an increase in TAFE fees. Today we heard that the Government will no longer support arts courses at TAFE. While governments can pretend that that area of education is not important, the reality in many regional communities is that arts courses and the arts industry are important to the local economy, let alone to the wellbeing of people in those communities. One of the major tourist attractions in Jindabyne is the Sculpture by the Lake Festival. Many of the artists who participate in that festival did their initial study at the local TAFE and a number of them also run local businesses. Those courses will no longer be subsidised by the Government as a result of these budget cuts.

Everyone knows that education is the key foundation for our engagement in the Asian century. However, we will not be able to compete with the rest of Asia if education funding is slashed and we will not be able to maximise what should be our competitive advantage. As a member of the Labor Party I completely reject the view of members opposite that we should be competing from a base of low wages. That is not the future that any of us want for our children. We want our competitive advantage to be based on our skills and our highly educated community. This Government is driving the State backwards and sabotaging our quest to achieve that goal.

It is outrageous that these budget cuts are being made while the Gonski reforms are being discussed across Australia. The Federal Government has the laudable objective of making Australia's education system one of the top five in the world. It must be an incredible blow to people who are concerned about the education sector to hear the Prime Minister announce that laudable objective and then to have a Conservative State Government smash it back to the starting block by cutting its education budget.

We know that concern has been expressed in the Coalition party room about this issue. Let us hope that some members opposite have the guts to say what they said in their party room yesterday. We heard that Coalition members in the other place were not backward in expressing their views. The member for Pittwater compared spending priorities and asked how education could rate below spending on the North West Rail Link. That is interesting given the way the Government has been talking about that project. We also know from reports in the press that Premier O'Farrell was so worried about the views expressed by his colleagues that he refused to allow a vote on the issue. What an act of cowardice.

The PRESIDENT: Order! The member knows that he should not reflect on members in the other place.

The Hon. STEVE WHAN: It is reported in the press that the Premier would not allow a vote. That is disgraceful.

The Hon. Dr Peter Phelps: Do you know anything about our party room?

The Hon. STEVE WHAN: Only what I read in the newspapers, and that is a great deal. The Catholic Education Office and representatives of other independent schools have expressed serious concerns about these budget cuts. The Catholic Education Office referred to them as unprecedented. There was a minor back-down, but in real terms these cuts represent a severe reduction in independent school funding. [Time expired.]

Reverend the Hon. FRED NILE [12.19 p.m.]: I am pleased to speak on this urgency motion about the dramatic cuts the Government is making to its education budget. Obviously that will impact on public schools, but it will also impact on independent schools. Independent schools comprise schools within the Catholic education system and other Christian schools. The Federal Leader of the Opposition, Tony Abbott, has been critical of these two progressive announcement cuts—one of $67 million and the other of $1.7 billion—to the State education budget. Mr Abbott is reported as encouraging his "New South Wales members of Parliament to lobby members of the O'Farrell Government over its plans to cut tens of millions of dollars in funding from Catholic and independent schools".

Those remarks were made in a Coalition party room in Canberra, where it is reported that Mr Abbott said he was concerned by the proposed cuts as the Liberal Party had a proud history of funding independent and Catholic schools. Mr Abbott said that supporting the non-government sector is "in our DNA". It is a very serious matter for the Federal Leader of the Opposition to criticise the State Government of the same party. The independent schools, under the banner of Christian Schools New South Wales, has issued a statement through its Executive Director, Stephen O'Doherty, who states:

The NSW Government has confirmed it will make significant cuts to education. Minister Adrian Piccoli has announced the overall cuts to government and non-government schools will amount to 3%. The cuts will total $1.7b over the next 4 years …

The Minister has announced that 500 jobs will be axed in the Department of Education—but not teaching positions. TAFE will suffer cuts to staff and courses.

It is thought as many as 1,800 TAFE teachers, and support and departmental staff could lose their positions under these major cuts. Mr O'Doherty continued:

The cuts to non-government schools will be $166m over 4 years …

The effect of capping funds, in a growing sector, with costs increasing at well over double the general inflation rate, will be significant over the four years ahead …

We remain concerned that non-government schools, particularly independent schools, will feel the cuts disproportionately when compared to Government schools over time. This is because, as the Minister has pointed out, cuts to the Government sector are being targeted to departmental positions, not to schools and classrooms.

The cuts to independent schools will have a direct impact on schools and classrooms. There is no fat bureaucracy to cut, as there is in the State education department, in the independent and Catholic schools systems. The cuts will go down the line and affect schools and classrooms. Mr O'Doherty continued:

It is true that the O'Farrell Government faces a big task in reducing state expenditure, the consequence of a significant drop in state revenue on top of budget pressures inherited from the previous [Labor] government.

We know that every department in the O'Farrell Government has to make major cuts. A statement issued by the Catholic Education Commission headed, "NSW Bishops: unprecedented threat to Catholic schools", states:

For the first time ever, all Catholic schools in NSW face a radical and immediate cut to their NSW government subsidy …

The NSW Bishops reject the projected cut in NSW government funding to Catholic schools from 2013. We are seriously concerned that this decision:

· is an unprecedented withdrawal of government aid to Catholic schools

· breaks the long established trust of parents in continued government support for Catholic schools

· comes without prior consultation or reasonable notice

· impacts potentially on every systemic Catholic school in every diocese across the state

· will require systemic Catholic schools to increase their fees by about $100 per student beyond planned annual increases, or find other school savings, to compensate for the cut in NSW government grants

That is why I said these cuts will impact on the number of Catholic and independent schools and on the number of teachers. The statement continues:

· will require independent Catholic schools to increase fees by between $58 and $496 per student beyond planned annual increases, or find other school savings …

· may force some families out of Catholic schools, force reductions of teachers and curriculum options, compromise other essential educational provisions or even force school closures

· comes at a time when most Catholic schools have already finalised their key staffing and budgeting decisions …

I emphasise that it may force school closures. The statement continues:

The Bishops are shocked that such a significant cut in NSW Government funding should come "out of the blue" and precisely when Catholic school authorities and all Australian governments are exploring ways of increasing, not decreasing, government investment in all schools.

The statement then refers to the Gonski report and the proposed expenditure of $6 billion. This is a serious matter. The Christian Democratic Party calls on the Government to step back from the edge of the precipice and seriously review these decisions, which will impact on the government public sector and the non-government sector.

The Hon. SARAH MITCHELL [12.27 p.m.]: I make a contribution to this debate at a time when households across New South Wales are tightening their belts because times are tough. The reality is that when times are tough households and governments have to tighten their belts. As the Minister for Roads and Ports said earlier in his contribution, during the next four years the Department of Education and Communities will need to make significant changes to meet its budget savings target of $1.7 billion. The decision has been made by the Minister for Education that the savings measures should be spread across all funding programs and grants across the Education portfolio, with the exception of teachers in schools because this Government remains committed to protecting our front-line staff.

The impact of these savings measures has to be shared, and the Minister for Education has asked the director general to ensure that the impacts on education will be minimised as much as possible. The director general will be given as much flexibility as possible to achieve the savings in the most appropriate way to meet the service requirements. It is important for us to put the facts on the table during this debate. The reality is that the Minister has announced three sets of measures to meet our budget savings target. First, for the non-government sector, the per capita non-government school funding pool will be capped for four years at the current level. It will not be capped forever, and the cap will not come into effect until 1 July 2013. Consultation will continue to take place with the sector about how to effect that cap. The intention with these changes is that the impact on non-government schools is the same as government schools of approximately 3 per cent.

Secondly, there will be a number of government sector savings measures. The department will replace the regional model with a leaner structure that will continue to provide educational support services to schools. The Minister for Roads and Ports said that prior to the last election the previous Government and the Public Service Association agreed to a reduction of approximately 400 school administrative staff positions as a result of the rollout of the Learning Management and Business Reform program. This was to offset salary increases already paid to school administrative and support staff. That needs to be taken into account—it has not been mentioned by those opposite.

Teachers in government schools will be quarantined from these reductions. As I said earlier, the Government is committed to keeping teachers in our schools. Importantly, every effort will be made to place affected permanent employees in positions in the new structures in accordance with the internal-placement processes. Voluntary redundancies will be offered in accordance with the Government's Managing Excess Employees Policy 2011. As I said earlier, the intention with these changes is that the impact on non-government schools will be the same as that on government schools.

I turn now to the changes to TAFE NSW. The labour expense cap will apply to all TAFE NSW staff, including TAFE teachers. Changes will be introduced after a period of engagement and consultation with relevant staff and other stakeholders. Every effort will be made to minimise the impact on frontline services. This will include reviewing education and other central support functions and rationalising some low-demand courses. In addition, TAFE NSW will increase its fees for government subsidised courses from next year. The overall annual increase will range from $44 for certificate I and certificate II qualifications to $150 for advanced diploma qualifications. The new fee schedule has been uploaded onto the TAFE NSW website; so plenty of information is available for potential students to make an informed decision. The proposed fee increases are within national averages for TAFE fees.

TAFE NSW will continue to provide generous fee exemptions. Aboriginal students will continue to be exempt from paying fees and students with disability will continue to receive an exemption from the payment of one course fee per year. Institute directors also have the delegation to waive a student's fee in cases of severe financial hardship. From 2013 TAFE NSW will cease subsidising fine arts courses in areas of low-employment growth, including some visual arts programs. The Hon. Sophie Cotsis referred to skills shortages. The Government needs to direct government funding to areas of jobs growth. Many of the visual arts courses offered through TAFE NSW have job prospects but the completion levels in those courses are low when compared with areas of skills shortage such as health, community services, property and business services.

The PRESIDENT: Order! I will not warn the Hon. Sophie Cotsis again.

The Hon. SARAH MITCHELL: It is important that TAFE colleges respond to skills shortages. This decision was made so that TAFE NSW can continue to focus on areas of high-skill needs and provide government subsidies to those skill areas. Not all fine arts courses will be affected. In areas where there is predicted jobs growth, such as graphic design, courses will continue to have their fees subsidised. The Government will determine these courses based on independent labour market forecasts. Exemptions will still apply for Aboriginal students, and Aboriginal cultural arts courses will continue to be supported through government funding for Aboriginal students.

These changes will commence on 1 January 2013. This will give students time to make informed decisions. In 2011 there were approximately 4,000 enrolments in fine arts courses, representing less than one per cent of total TAFE NSW government subsidised enrolments in that year. Importantly, students will still be able to enrol in fine arts courses. TAFE NSW currently offers many fine arts courses on a fee-for-service basis. These courses will be expanded to include some courses previously subsidised by government. Students undertaking fee-for-service diploma and advanced diploma courses may be able to apply for vocational education and training fee help loans. Those are the facts.

Finally, a few other measures will help the department meet its budget savings target. The department will reduce its procurement spending across State offices and TAFE NSW. Operating budgets will also be reduced in State offices. Vocational education and training funding for delivery will be consolidated. This will impact on approximately 2 per cent of our apprentices and trainees. A number of other programs or initiatives that are no longer core business, or which can be undertaken by others in a more efficient way, will be reviewed. The O'Farrell Government has had to make tough decisions to ensure that New South Wales lives within its means. This is an even-handed decision; it is fair.

All sectors are making a contribution to ensure that the Department of Education and Communities meets its budget savings target. As I said earlier, the intention with these changes is that the impact on non-government schools will be the same as that on government schools—around 3 per cent. However, I want to reinforce that the Government will continue the major systemic reforms it has begun in education. The Government is on track with its election commitments, including: the $250 million Literacy and Numeracy Action Plan, which will provide an additional 900 teachers and will target underperformance in literacy and numeracy across the government and non-government school sectors; the 50 student support officers working with school counsellors in some of our schools of greatest need; Every Student, Every School, improving the way that we support students with disability; the School Certificate has been abolished and the Record of School Achievement has been rolled out; the $60 million Public School Upgrade Fund and the extra minor maintenance budget; and, of course, Local Schools, Local Decisions, possibly the single biggest reform to public school education in this State for 50 years.

The Government continues to be committed to the main game in education: quality teaching through our Great Teaching, Inspired Learning discussion paper. Finally, there is the Gonski review of school funding. When there is more money available to schools we would expect that all schools receive greater funding based on need. Today, when there is a need to tighten our belts, all sectors need to play their part.

Dr JOHN KAYE [12.36 p.m.]: Some 132 years ago Sir Henry Parkes, then Premier of New South Wales, passed the Public Instruction Act through both Houses of this Parliament. With the passage of that Act was the creation of a social contract between the government of New South Wales and the people of New South Wales: a promise that every child—no matter who their father or mother was and no matter what the circumstances of their birth were—would achieve a high quality of education. For the 100 years after the passing of that Act the governments elected by the people of this State continued to improve on that model. For example, the creation of the Wyndham model and the guarantee of comprehensive secondary education within the public sector to every child in New South Wales, and the technical and further education system rolled out through the 1960s, 1970s and 1980s—a promise from the State to ensure high-quality vocational education and training for those students not interested in straight academic subjects. That promise has been broken by the O'Farrell Government.

In the lead-up to the last election I sat on platforms with the now Minister for Education, then shadow Minister for Education, Mr Adrian Piccoli. He told every audience that would listen to him, "I am here to tell you that I am not Terry Metherell." He was referring to the former Minister for Education in the Greiner Government who slashed and burnt his way through public schools and TAFE colleges. Today I inform Minister Piccoli that he is, indeed, the reincarnation of Terry Metherell.

The Hon. Dr Peter Phelps: Terry is not dead. Did you kill him?

Dr JOHN KAYE: No, the people of New South Wales got rid of him. Funding of $1.7 billion is to be cut from the New South Wales education systems.

The PRESIDENT: Order! The Hon. Dr Peter Phelps will contain his enthusiasm for history until he has the opportunity to speak later in the debate.

Dr JOHN KAYE: Funding of $1.7 billion is to be cut from the New South Wales education systems. Funding of $1.7 billion is to be taken from the future of this State. I am sure that Terry Metherell would be very proud of that record. What will this mean to public schools? Over the next four years about 1,000 employees will lose their jobs as a result of this. We have been told that they are not teachers. The Government rests on its back office myth. We heard it from Reverend the Hon. Fred Nile when he talked about the "fat" in the department of education. I invite Reverend the Hon. Fred Nile, through the President, to meet with some of the people who work in the Department of Education and Communities and to talk to teachers in the public sector. He may then understand the important role that the regional and head offices play in the delivery of public education.

There is no division between back office and front office. Whenever a teacher stands up in a public school classroom they are supported by their district, region and head offices. When they teach drug awareness they rely on programs from the drug and alcohol unit of the Department of Education and Communities. That unit will no longer exist because of these cuts. When they teach literacy and numeracy they rely on the programs that come from the curriculum learning and information centre within the Department of Education and Communities in Bridge Street. The curriculum learning and information centre will no longer exist because of these cuts.

When teachers stand up in a classroom they are dependent on office staff who answer the phones, maintain the rolls, uniform policy and the basic running of the school. The office staff ensure that science laboratories have the equipment they need for science experiments, that science equipment is ordered, that excursions are properly planned, and that the school runs smoothly. It is as much a part of teaching in a classroom to have support staff in the front office as it is to have a teacher in front of the classroom. Yet the Government is taking away the fundamental support and saying, "It's all okay. That's fine. It doesn't matter. You know why? Because we are not hurting teachers in the classroom."

This plan, this arrangement, will damage classroom teaching as surely as if the Government took teachers out of the classroom, and to pretend otherwise would be simply to put one's head in the sand over what happens inside public school classrooms. It is extremely clear that not only does the Government not care about public education; it does not have the imagination to come up with its own nasty schemes. Indeed, most of what the Government is doing comes from a Boston Consulting report that was commissioned by the previous Minister for Education, the Hon. Verity Firth. That report referred to cutting State and regional offices—some $50 million to $100 million a year in total savings within State and regional offices.

The Hon. Dr Peter Phelps: Do you endorse that?

Dr JOHN KAYE: No, we certainly do not endorse it. We opposed it at the time and we oppose it now. All I am saying is that the Government does not have the imagination to come up with its own schemes. Boston Consulting identified, based on the Victorian model, $750 million that could be found from cutting employees in administration. The blueprint was written by the previous Government and it is being implemented by this Government. This is the view of education of Boston Consulting. It is not the view of education that comes from the teacher workforce, and it is not the view of education that the parents and citizens of New South Wales want. They want quality public schools and they want those schools to be well resourced and supported.

This attack does not stop at the doors of public schools; it goes straight into the TAFE colleges. Some 800 jobs will be lost from TAFE around New South Wales. That is 5 per cent of employees gone from the TAFE system. That means 5 per cent fewer teachers in front of classrooms, 5 per cent less administrative support, 5 per cent fewer courses being offered, 5 per cent less time to look after students, 5 per cent off the value of education and 5 per cent off the economy of New South Wales. That 5 per cent is being shaved off to save a few million dollars because the Government does not care about working-class kids who go to TAFE. TAFE has no fat. The Government cannot cut the fat out of a system that has regularly and repeatedly had its guts cut out.

The previous Labor Government cut 48 per cent per student from the funding for TAFE. If it kept pace with inflation—not only education inflation but raw consumer price index inflation and the number of students—by the time the previous Government left office TAFE would have been getting 48 per cent more. That is about $1.2 billion gone from TAFE. Now the Coalition Government says, "Labor didn't damage it enough. Let's bang TAFE's head against the wall. Let's see what we can do to undermine the future of vocational education and training, at a time when TAFE is being massively privatised. And not only that: we'll boost TAFE fees by 9.5 per cent."

The previous Government increased TAFE fees by 15 per cent ahead of inflation. This Government wants to increase TAFE fees by another 9.5 per cent. Every study taken on participation in higher education and post-secondary education has found that if fees are increased the kids and young adults from disadvantaged backgrounds are lost. This action is saying, "We don't care about the kids who come from families where there is no history or tradition of educational achievement. We don't care about those kids. We are throwing them into the dust bin. We're consigning their future to the low-waged, low-skilled economy, which is rapidly disappearing."

If the Government cared about the future of the economy, social cohesion, and the words "social justice" it would ensure that TAFE fees were reduced, not increased. It is an investment in a fairer, more successful and more cohesive society. Taking money out of TAFE and imposing higher TAFE fees mean that the Government is asking those kids who get to TAFE to pay more in order to receive less. It is a con job that is purely about the Government's intention to privatise TAFE, to drive students into the private sector and to reduce TAFE to nothing but a shell.

Coalition members have spoken about the idea that hard decisions need to be made, because they like hard decisions. They know full well that the black hole they were presented with was plastic: it was elastic. It was invented by Treasury to drive and shrink the Government's agenda. Every government, when it comes to power, is presented with a budget black hole by the Treasury secretary; and the governments that are silly enough to fall for it end up damaging the future of our society. They are creating a black hole not now but in five and 10 years time by cutting back on education. Some $300 million in poker machine tax rebates—

The Hon. Dr Peter Phelps: That was Labor doing that.

Dr JOHN KAYE: If the Government was worried about the budget black hole why did it give away $300 million to the rich pubs and clubs? Over the past decade the previous Government increased funding to non-government schools by some $250 million—that is a 25 per cent increase in funding—which is way ahead of funding increases to government schools. [Time expired.]

The Hon. WALT SECORD [12.46 p.m.]: I support the motion and condemn the O'Farrell Government. I do so with a disappointed heart. I do so because access to education is one of my core principles, and it is a core Labor principle. Education was my way out of disadvantage. Education remains the great leveller in an unequal society. If it were not for public education I would not be standing here in this Chamber. I was the first member of my family to complete high school. For me, education is everything. I see education as our nation's economic development strategy. That is why I am supporting the motion. And that is why I am also calling on the O'Farrell Government to scrap its plans to cut $1.7 billion out of the public, Catholic and independent education systems.

These cuts are the last thing that any government should be doing. Make no mistake: the families of New South Wales are losing faith in the O'Farrell Government's management of the education system. This motion comes on the very morning when the community is realising that the Minister for Education has embarked on the largest cuts to education in New South Wales in 20 years. The announcement by the education Minister, Mr Adrian Piccoli, has echoes of the destructive and divisive cuts by the Greiner Government education Minister, Terry Metherell, in 1989. That brought tens of thousands of teachers and their supporters and parents onto the streets to protest and express their disgust.

This morning teachers, religious leaders and families are lining up to vehemently oppose the Government's decision to put the axe through the education system. Funding for independent schools—Catholic, Jewish and independent schools—is to be frozen, which will translate into a cut of $116 million over the next four years. New South Wales Catholic Education Commission Chairman Anthony Fisher said that the cuts betrayed a pre-election promise by the O'Farrell Government. Bishop Anthony Fisher said:

We were told Catholic school funding would be maintained and so we certainly were acting on the assumption it was secure and would continue at least at the levels we had until now. This is very disappointing.

The broken promise on independent schools comes into effect on 1 July 2013. This will be matched by a $201 million cut over four years to public school budgets. In addition, the Department of Education and Communities will slash 1,800 jobs—half of them from TAFE. The TAFE cuts will hit rural, regional and coastal New South Wales the hardest. Further, the O'Farrell Government will ratchet up TAFE fees by 9.5 per cent. The anger this has created in the community is now so deep that this matter has attracted national attention and crossed party lines. Even the Federal Opposition leader, Tony Abbott, has spoken against it. But the O'Farrell Government backbench is wearing the cuts.

Despite the outcry, despite the community angst and despite the self-evidence of this retrograde step in the education of New South Wales children, education Minister Adrian Piccoli and Premier Barry O'Farrell are in the community defending the indefensible. They are only listening to the Treasury bureaucrats and boffins. The cuts were approved by the O'Farrell Cabinet on Monday and passed by the Liberal-Nationals in their joint party room yesterday. Liberal-National party members such as the member for Campbelltown, Mr Bryan Doyle, and the member for Tweed, Mr Geoff Provest, cannot hide. On Monday 10 September the member for Tweed told the Gold Coast Bulletin that he could not comment until after the party room met. Well, it has met, the member for Tweed was there, and he approved the cuts to Tweed independent and public schools.

Teachers are so worried about the quality of education of their students under these cuts that they are willing to put their own jobs at risk: they are willing to stand up to the education Minister and the Premier. They are on radio and they are speaking out. It is the subject of conversation this morning in all corners of New South Wales. I also call on the education Minister and the Premier to listen to the community, which is fed up with the O'Farrell Government ripping essential services, such as doctor and medical services, out of rural, regional and coastal areas. Now we see the O'Farrell Government turning its attention to the education system. As with many issues, the Coalition it promised a lot in opposition and in government it has delivered very little—in fact, it is taking away.

The O'Farrell Government needs to drop these cuts and put away the Treasury axe. The community deserves no less. Parents, students and TAFE apprentices deserve no less. Hardworking teachers deserve no less. New South Wales families who voted for the Government and were misled by it deserve no less. The community expects governments, regardless of their political persuasion, to protect and foster education, not put the axe through it. The O'Farrell cuts come as the Prime Minister tries to reach an agreement on a new school funding arrangement with the States. She is proposing that Canberra and the States and Territories spend an extra $6.5 billion on education, teacher quality and student performance. I commend the motion to the House.

The Hon. MATTHEW MASON-COX (Parliamentary Secretary) [12.53 p.m.]: I say at the outset that the blinding hypocrisy of those opposite is only matched by their blinding economic incompetence. The realities of this debate have to be seen in the situation this Government finds itself in with budget outcomes. The reality of that, in turn, is dependent upon the last 16 years during which those opposite, when in government, trashed the economy. When we came to government 18 months ago the triple-A rating was at risk. That is the reality, and the Treasury documents show it. As we have seen time and again, those on the other side adopt the old Foghorn Leghorn approach to economics: they get up and tell lies and pretend it is the truth. The fact is that shouting it and screaming it, as they do, does not make it true.

The Treasury documents in the budgets are very clear. They state categorically, in black and white, that when this Government came to power on 26 March 2011 there was a budget shortfall of $5.2 billion. Let me just go through and explain it a little more for those opposite, who have no idea about the economic incompetence of their 16 years in power. It is very simple. The figures given to this Government when it came to office were very clear. We had figures not included—$1.6 billion in relation to the Solar Bonus Scheme. We remember the Sun King, who now finds himself in the other Chamber presiding over that debacle. We had rail grants which were not accounted for properly by the former Government and again not recorded in the budget properly.

We had a decline in revenues as a result of economic factors that impinged on the budget when this Government took power. All those things—along with the gentrader transactions, which were an unmitigated disaster from those opposite, and the contingent liabilities relating to those—may end up costing us billions. That is what we face—potential billions. The reality is that we booked $600 million, according to Treasury's advice at that time. This is the $5.2 billion that those on the other side would care to dismiss out of hand, using their wonderful Foghorn Leghorn economics or, dare I say, their ostrich view of the world when it comes to actually admitting the facts.

We need to also understand that if we took no action the triple-A rating of this State would be at risk. We would lose our triple-A rating—Treasury estimates and statements to that effect are unequivocal. I cannot understand why those opposite still dispute it. I just cannot understand why they do not understand why this Government has to take action. The $5.2 billion figure when we came to government has been compounded by the difficult economic conditions we have seen since. It is very clear from the estimates that have been provided to us by Treasury that there is a revenue squeeze on in New South Wales.

As the Treasurer has said on a number of occasions, we have another $5.2 billion that has not been forthcoming as a result of changed economic circumstances. They are the facts. In toto we are talking about a $10.2 billion situation we have had to turn around in the budget, and that is because of the blinding economic incompetence of those opposite, yet they come here today and pretend that nothing has changed. They are used to the rivers of gold. They do not understand that the economics of the situation have changed fundamentally and if this Government does not take action then we cannot have a sustainable budget in this State.

The PRESIDENT: Order! The Hon. Mick Veitch is testing my patience.

The Hon. MATTHEW MASON-COX: These are the facts they wish to ignore. Every portfolio of this Government needs to find savings and efficiencies. That is the cold, hard truth of fiscal competence. Those opposite would seek to deny that, but it is the cold, hard truth of being in government and being fiscally responsible. Those cuts will be applied across the sector. Our first budget reflected the 2.5 per cent cap on public service salaries increases. A wages cap will apply in relation to a range of other cuts that will be coming through in public sector positions. That is applied across the public sector—there are no favourites. It is applied in an equitable way across the sector. This reformist Government has done a range of very exciting things in the educational space.

The Hon. Sophie Cotsis: Exciting?

The Hon. MATTHEW MASON-COX: I will go through some of those reforms for the edification of the member opposite.

The Hon. Niall Blair: Point of order: The Hon. Sophie Cotsis has only just walked into the Chamber and immediately started interjecting. The previous speaker was given the courtesy of making his contribution in silence and I ask that the member be asked to stop interjecting.

The PRESIDENT: Order! The Hon. Niall Blair makes a fair point about the Hon. Sophie Cotsis. A number of members are interjecting to the point of disruption, which is disorderly. I ask them to desist from interjecting.

The Hon. MATTHEW MASON-COX: The budget is in dire trouble: efficiencies must be gleaned from across all government departments. The education department is not dissimilar to any other department of this Government. The cuts that have been put forward by the education Minister are equitable and balanced, and they apply equally in relation to government and non-government schools. In my household I have a child who attends a government school and children attending non-government schools, and I understand the pain in relation to that like every other parent. I also understand that if one is to be fiscally responsible and fair and balanced the cuts have to be instituted in a way that is balanced across portfolios.

That is the reality of fiscal responsibility. That is a reality that we have ensconced at the heart of this Government by changes to the Fiscal Responsibility Act recently passed by this Chamber, which instilled the triple-A rating at the heart of the economic competence of this Government. That is the right course of action, and it is the course of action that the responsible Minister has taken and that this reformist Government will continue to take to ensure that we sustain programs over time rather than accept the basket case that the previous Government left. We need to continue the reform process. I am very proud to be part of the reformist O'Farrell-Stoner Government and very proud of what the Minister for Education has done in relation to the education portfolio.

I will recount some of those major achievements. Over the past 17 months we have brought in the Early Childhood Education and Care Program. We have also delivered a whole range of university governance reforms, which have been long overdue. We have commenced consultation of Smart and Skilled for the TAFE and Vocational Education and Training sector, which will deliver significant reform in that sector. We have carried out the review of tertiary pathways as well, which will provide a clear road map to a better connected and more efficient and effective tertiary sector. Members opposite may scoff about these reforms but they do not understand reform. They do not understand the need to make reform; they just sat there during their terms of government polishing their leather armchairs. This Government has the heart for reform: it understands the need for reform and it has the ticker for reform. That is what we have in this Government and in this education Minister, who has brought in some terrific reforms. I will continue to outline them to the House.

The Every Student, Every School reform has made changes to the way we support students with disabilities so that we can build the capacity of all school staff to support students with special needs in the long term. As the father of a child with special needs I am very proud of those reforms. We also abolished the School Certificate and rolled out the Record of School Achievement, reforms the other side could never be bothered to make. That is the reality and it is pervasive in every reform we are making to the education system. I note in particular that the Gonski review has been released, and there has been a lot of commentary about that. The New South Wales Government is strongly on the record as saying that public schools and low fee non-government schools ought to be the beneficiaries of any decisions made based on that review.

We have reformed the way we deliver capital works in schools, which will deliver millions of dollars more to the school gate. We have empowered school principals, through local schools policies, to deliver programs through local builders and local resources rather than through a centralised system that deprives budgets for local schools. These are the sorts of things that will empower schools, improve teacher quality and improve education over time. It is a reformist agenda. I congratulate the Minister on having the ticker to undertake these reforms and on his courage and capacity. I am very pleased that he is continuing in that way. [Time expired.]

[The President left the chair at 1.03 p.m. The House resumed at 2.30 p.m.]

Pursuant to sessional orders business interrupted at 2.30 p.m. for questions.Item of business set down as an order of the day for a later hour.