Budget Estimates and Related Papers

BUDGET ESTIMATES AND RELATED PAPERS

Debate resumed from 1 September.

The Hon. PATRICIA FORSYTHE [3.44 p.m.]: There is something vaguely ridiculous about contributing to debate on a budget that was presented to the House months ago, and there is much that is wrong with the way this Government continues to seek to avoid scrutiny. Having said that, I suppose this opportunity is better than no opportunity. In recent years members have had almost no opportunity to debate the annual budget.

The Hon. Duncan Gay: There was none.

The Hon. PATRICIA FORSYTHE: There was none, as my colleague reminds me. However, debating the budget in October, months after it was presented to the House, allows us to comment on the way in which it is impacting on and hurting the community. I am now able to comment on the budget from a position of greater wisdom rather than merely anticipating its effect. The Treasurer, in his typical divide-and-conquer approach on behalf of the Government, would have the community believe that much of what he does is in some way benevolent. He said that in taking a bit from here and giving a bit there somehow we would all be beneficiaries.

The Hon. Duncan Gay: There has been more taking than giving.

The Hon. PATRICIA FORSYTHE: The Deputy Leader of the Opposition is absolutely right. In recent months as I moved around the State I took the opportunity to talk to people, including those in the club industry. Honourable members would recall that the Treasurer said that the new tax on poker machines would assist small clubs, and that all clubs should be grateful. The Treasurer suggested that because clubs tax revenue is earmarked for hospitals the community should be supportive of it. The difficulty with that approach is that a community has no guarantee that money taken from it by the tax will be returned to it in the form of hospital services. The community will feel the losses, and there may not be any local gains. The loss of revenue for many clubs will have a direct and discernible impact on many communities.

I shall share with the House the impact on one large club of the actions of the Carr Labor Government, and I will focus on the Queanbeyan Leagues Club, which has traditionally given much to its community. Honourable members would be aware that the Queanbeyan Leagues Club is closely associated with the Canberra Raiders rugby league team, and also has sponsored teams playing in local rugby league competitions across the whole south-east region. As well it has provided funds to other sports such as Queanbeyan hockey and Queanbeyan rugby union and to the Queanbeyan squash club. It is not possible for Queanbeyan Leagues Club to meet its tax obligations and continue the level of support it has provided in the local community. The community will be the loser, and that has caused much consternation for the club and its directors, who are proud of their good name in the community. Overall, the Canberra Raiders will reduce their expenditure this year by $300,000 to compensate for the grab of money by the Government.

Sadly it is junior sport that is the big loser. The focus for the club as a consequence of the budget cuts it must make will be on buying-in senior players rather than developing local talent; something it has always done. In the years ahead rugby league will be the loser and already young people are losing out. Two full-time jobs in junior development will be axed, saving the club $100,000. School development programs supporting talented players from school to open-age football will be cut by $50,000, and $10,000 will be cut from school football support. It is clear that the effect of having to take such harsh decisions is an uncertain future for young talented players. Eighteen local teams playing in two local competitions will lose support. For example, teams from Goulburn, Yass, Bungendore, Crookwell and Binalong will lose their grants. I am sure that honourable members recognise that those communities are doing it tough during the drought, and the loss of grants will put at risk the capacity of some teams to continue to participate. None of this has been acknowledged by the Treasurer.

For many years the club has had access to, and has maintained, Seiffert Oval in Queanbeyan, which is on State Government land. Should the club get out of that lease, it would save more than $100,000, but it would come at the cost of loss to the community. Would the Government take over the maintenance of that facility for the community? Obviously not. Local jobs, local amenities, local sport—these are the losers because of this Government's inability to manage the services of the State. The program objective of the Department of Sport and Recreation is described in Budget Paper No. 3 as follows:

… to create opportunities and facilitate active involvement so that people benefit from participating in sport, recreation and physical activity.

Sadly those words ring hollow when one places them beside the actions of the Government. It is time the Carr Government took a whole-of-government approach to issues. Queanbeyan is a loser in other ways as well. My information on this aspect has come from an unusual source. Clearly there is local concern that insufficient funds have been made available to support local road construction. There can be no other explanation for the petition that was being circulated during the Federal election at the Jerrabomberra shopping centre, and, indeed, on election day at the Jerrabomberra polling booth, by no less than the Australian Labor Party [ALP] candidate for Eden-Monaro.

The Government can proclaim its support for the people of Monaro but, clearly, even its own party members do not believe it. The ALP candidate for Eden-Monaro has shown what he thinks of the impact of the Carr Government's budget, not only on the people of Eden-Monaro, but also on the people of Bega. We witnessed the extraordinary situation during the last weeks of the campaign in which, first of all, the Labor candidate arranged a particularly interesting or extraordinary stunt whereby he organised a rally to be held in Batemans Bay to protest about facilities at the Batemans Bay hospital. The last time I checked, hospitals were the responsibility of the State Government—in other words, the Carr Government. The ALP candidate for Eden-Monaro organised the rally; we knew he was behind it because the leaflet distributed at the rally showed that he was the authorised printer of the leaflet. As part of the stunt he even arranged for the Premier to visit the electorate and make an announcement about the emergency ward at Batemans Bay hospital. The problem with that, however—and this was well highlighted by the member for the electorate of Bega—was that the announcement had already been made the year before!

As part of the stunt, with its focus on State issues clearly suggesting that the budget was inadequate for the area, the ALP candidate fell flat on his face—particularly when it was pointed out that during the visit of the Premier the hospital was closed to new admissions. Anyone seeking an indication that this Government is not looking after the south-east region of New South Wales has only to look at the sorts of issues upon which an ALP candidate chose to run in the context of a Federal election. He talked about local roads and hospitals, all of which suggested that, in respect of the budget and the interests of the people of the south-east region, this Government was not acting appropriately.

Across the south-east region of New South Wales people are hurting because of the failure of the Carr Government to properly resource their schools and hospitals. The forced closure of Monaro High School for a few days at the beginning of last term because of the failure of the school's heating system highlights the problem schools face in providing even the most basic necessities. They are hurting, too, as a result of the loss of funding for local programs, such as the business development role of the Cooma Business Enterprise Centre. In communities such as Temora and Deniliquin there is a fear of funding cuts to local agriculture research facilities as a result of portfolio cuts the Minister for Primary Industries is clearly being required to make by the Government to compensate for its poor management of the State's economy—portfolio cuts that have potential to impact significantly on local communities. The loss of a single government facility in a Sydney suburb may go largely unnoticed, but it would have a major impact on a community the size of Temora or Deniliquin.

What this budget lacks is the framework for a vision for New South Wales. The Treasurer said in his Budget Speech that Bob the Builder would be everywhere, but it seems to me as I have analysed the budget and talked to people in the communities of New South Wales that it is "Costa the Cutter" and "Michael the Miserable" who are prevailing in this budget. When I travel throughout rural and regional New South Wales, but especially in rural areas and especially the southern parts of the State, I am reminded frequently of how communities feel isolated from this Sydney-centric government. The Premier laments the rapid growth of Sydney, but offers little by way of incentive to encourage an outward migration of residents to other areas of the State.

This budget represents the tired response of a tired and arrogant government. The time-worn rhetoric of the Government—"But for what we give Queensland we would be able to do more for you"—rings hollow when we know that, despite all the States being Labor States, no attempt has been made by the Carr-Egan Government to have this State's share of Commonwealth grants reassessed. The Government's bluff has been called on this issue. New South Wales needs a fresh vision and new ideas. It needs a Coalition government, a government that will ensure its focus is on the needs of communities throughout the State and not a Newcastle-Sydney-Wollongong approach to New South Wales.

The Hon. ROBYN PARKER [3.55 p.m.]: Today, once again, I draw attention to the failure of the Carr Government to deliver key, and often rehashed, promises for Newcastle and the Hunter in its budget. I acknowledge the comments of the Hon. Patricia Forsythe that this debate is taking place some time after the budget was brought down. In my view, no amount of time could compensate for the Government's lack of commitment in real dollar terms to the Hunter. After the State election Premier Carr stated that the Hunter, with 9 per cent of the population, received 9.67 per cent of the 2002-03 works budget. That sounds pretty good until a breakdown of the capital works budget reveals that the Government's capital works spending allocates more than $15 2 million in funding to the Millennium train project.

While this project provides some manufacturing jobs in our region, the trains produced by it will never hit a track in Newcastle. Some say they rarely hit a track in Sydney! Some lines in Newcastle and the Hunter still run the old red rattlers—rather, they are grey now, but they still rattle. If one removes the Millennium trains from the capital equation, one finds that spending in the Hunter equates to $613 a head, well below that in the Sydney area at $759 a head. Last year a $227 million black hole in government spending on the Hunter was reported, and in the past six years the Carr Government has allocated $390 million in capital works for the Hunter. In that same period the Premier miraculously located $11 billion to spend on infrastructure works in Sydney. A breakdown of that figure shows that for every dollar spent by the Carr Government in the Hunter Valley $2.50 was spent in Sydney.

As I said before, keeping election promises to the Hunter is not Mr Carr's strong point. Labor campaigned for the umpteenth time at the last election on the promise of building a primary school at Ashtonfield, just as it had done for more than eight years. Nine years later Ashtonfield school finally made its way into the budget. It was only on 17 March last year, less than a week before the State election, that John Watkins, then Minister for Education and Training, was quoted in the Maitland Mercury as saying:

I know that with Ashtonfield there has been some concern that it has been on the books for some time but now there are obvious steps to get it going and this will keep on rolling. We're determined to build the school as quickly as possible because this community needs it.

At the time he was in the area, campaigning with the member for Maitland, John Price. Ashtonfield school certainly is needed, and was needed when it was first promised by Labor back in 1995—a promise that evaporated, and budget allocation plans evaporated along with it. So, after nine years the school got some real money and a completion date of 2007. Isn't it a great pity that the under school-age children of 1995 are now looking to attend high school rather than a primary school!

The Carr Government has let down a whole generation of schoolchildren in this area. More than 300 children would have been admitted in the first Ashtonfield school intake, but instead they were enrolled into already crowded existing schools in the area, all but one of them a bus ride away. Those schools have been bursting at the seams due to the increasing growth of surrounding suburbs. I emphasise that I am referring to 300 children only in the first year. On a number of occasions in this place I have applauded the community for its continued patience and determination and for the work that it has done in relation to Ashtonfield Primary School. I have also expressed total disappointment that this project is constantly left out of the budget. I again pay tribute to the community for its efforts.

It is a shame that the Government has not honoured its promise. This is yet another indication of the Government's arrogance and disregard for the real needs of the people of the Hunter. That attitude is evident yet again when reference is made to Raymond Terrace police station and to its courthouse. In 1996-97 this Government made a commitment to allocate $2.6 million for a major new works project for Raymond Terrace courthouse and police station, to be completed in 1999. The Government dumped its plans for the new police station and the $100,000 planning money was reallocated. The funding vanished into thin air and has not reappeared. Every time the Treasurer brings down a budget, police officers who are working at Raymond Terrace police station, which is a rabbit warren, expect that money to reappear.

Last year the Minister for Police inspected 43 police stations in New South Wales and confirmed that half of them were in need of urgent repair and were not up to standard. I am not sure whether he inspected Raymond Terrace police station but the conditions there are appalling and our police deserve better. The Minister admitted that police stations across the State are too small and that the Government has not invested enough in accommodation for police. Police at Raymond Terrace would like to know where they are on the list of priorities, when they might get that budget allocation and when the Carr Government will do something about their conditions.

In October 2001 the Carr Government announced with great fanfare its plans for the resumption of steel making in Newcastle, and reference was made to the Austeel project. It was reported that the entire steel production for the first 15 years of the Austeel project had been presold for $40 billion. It was hoped that the site would inject $2.8 billion into the Hunter economy. However, that proposal was reliant on State Government approval. We all know the upshot of the Austeel project, which has been spoken about often in this place and in the other place. Looking back in Hansard it is evident that the Government avoided answering questions relating to that project.

The 10,000 jobs that were to eventuate as a result of the Austeel project vanished into thin air. Paul Murphy, when speaking to the Newcastle Business Club, said it was difficult to keep investors in the Hunter region because those sorts of projects kept falling apart. The Government wasted $21 million of taxpayers' money on the Austeel project, money that could have been used for disability services or to implement Sydney Water's sewage treatment plant upgrade program. That money could have been used to provide additional police services so that people in the Tilligerry peninsula and other areas in the Port Stephens electorate had the police coverage that they need. That money could have been put into hospitals in New South Wales or it could have been used to reduce the tax burden in Australia's highest taxing State.

This budget shows yet again a Government that is addicted to tax and to waste. The Government is expected to raise $15.5 billion in taxation this coming year, but it was evident this week that those forecasts are quite rubbery. The people of New South Wales have been left wondering where all the money has gone. Our hospitals are not any better; our schools are not being maintained and they do not have the facilities that they require; our trains are either not running on time or they are not running at all; our buses are not airconditioned; and a number of school classrooms are not airconditioned. There is a huge maintenance backlog in schools in New South Wales. Bob Carr's and the Treasurer's tenth budget has failed the people of New South Wales. It has certainly failed the people of the Hunter. This Government is addicted to tax and waste. This budget demonstrates that the Government is out of ideas, out of steam and out of favour with the people of New South Wales.

The Hon. KAYEE GRIFFIN [4.06. p.m.]: I am pleased to contribute to the debate on the budget that was brought down on 22 June 2004. This budget, which is fair, will provide much for the people of New South Wales, that is, despite the added financial pressure placed on this State by the Howard Government and its continued short-changing of New South Wales to the tune of almost $3 billion a year. Many people will benefit from this year's budget. Highlights include a record capital works program of more than $30 billion to be spent over four years and an extra $717 million for Education and Training. Other major funding increases include $707 million for Health and hospitals, $100 million for community services for children, and $110 million for people with disabilities, older people and their carers.

When Treasurer Egan handed down this budget he announced the biggest public works and infrastructure program in this State's history, with a record $29.902 million in funding over the coming four years. That is an increase of almost 20 per cent on expenditure in the previous four years. This investment will help our State continue to flourish, with new and improved assets and infrastructure. Over the next four years the Carr Government will invest heavily in building and upgrading health and hospital facilities, schools, TAFE colleges, roads, public transport and public utilities. Along with these building works I welcome the aspects of this year's budget that will make a positive contribution to addressing some of the social inequities in New South Wales.

The Carr Government is committed to giving children the best start in life. That means paying special attention to families where there is an economic or social disadvantage. Last year I was pleased to be involved with the Standing Committee on Social Issues when it released its report on its inquiry into early intervention for children with learning difficulties. The positive contribution that the Families First Program makes to families and children in New South Wales was acknowledged in that report. The fourth recommendation suggested an extension of the program so that more families and thus more children can benefit from a stronger support network of prevention in early intervention programs. These assist not only in building communities that work to help families and children; they also help children to start school and better equip them to learn.

From basic advice and information, improved access to services, to the provision of extra early childhood nurses who are able to contact more families with newborn babies, the Families First strategy provides fundamental support to families all over our State. I was pleased to welcome this Carr Government initiative and I applaud the commitment to the program shown in last year's budget. This year Families First continues to flourish under the new communities division of the Department of Community Services with the Government's continued financial support. One of the key aims of this Government, which is reflected in this budget, is to provide help and advice to parents and families, especially those in situations or circumstances that make them vulnerable to family breakdown or neglect.

It is a sad reality that not every child has a stable and loving home environment. As the Treasurer said on budget day, in this coming year it is expected that the Department of Community Services will deal with around 190,000 child protection reports and provide out-of-home care services to some 16,000 children and young people. Providing support and alternative care options for children and young people is extremely important. I am proud of the Government's continued commitment to out-of-home care, child protection and early intervention, with a further $100 million being made available in this budget to provide further assistance to children and families in need.

Major initiatives in this year's budget include increased staff resources in the department to cope with the increasing demand for child protection services. Specifically, funding will see the employment of 100 new caseworkers and support staff in out-of-home and foster services for children. These new positions will help the Department of Community Services to continue its work to improve the provision of permanent, stable, safe and appropriate placements for children and young people who are unable to live at home. The Department of Ageing, Disability and Home Care also benefits from the budget, with the allocation of an additional $110 million. This includes extra funding to provide more in-home support to people with a disability and provision for a broad range of intensive support services for children with a disability. In addition, an extra $31 million will be provided under the joint Commonwealth-States Home and Community Care Program to assist frail older people and those with disabilities to remain living independently.

I also take this opportunity to congratulate the Government on its continued commitment to public education. In the coming 12 months the Education and Training budget will be increased to more than $9.7 billion, which represents an increase of $726.6 million on last year's budget. One of the main reasons this increase is so important is that it will fully fund the recent 12 per cent pay increase awarded to teachers from additional funds and not from existing educational resources. Just as importantly, this increase in the Education budget will also assist in the planned continued reduction in class sizes. These measures continue to affirm the Government's commitment to public education in New South Wales. I am proud that our teachers continue to be the highest paid and look forward to seeing this $462.5 million in funding being spent over the next four years to employ additional teachers and provide new classrooms in order to reduce class sizes in kindergarten to year 2, as promised.

I applaud the increased level of funding for health services and hospitals in this budget. With our hospitals, their staff, doctors and nurses under increased pressure—of course problems are compounded by the Howard Government's continued efforts to destroy Medicare and bulk-billing—the Carr Government is working to ease the pressure on our health system and will deliver record levels of funding for health services in the coming year, reaching an all-time high of $9.97 billion. During the year an additional 973 hospital beds will be provided, including an additional 563 permanent beds and 410 extra beds to cope with increased winter demand. Of course, with more beds comes the requirement for extra nurses and medical staff, and this funding will ensure that these new positions are funded.

It is not only city hospitals that will benefit from these increases. Families living in rural and regional New South Wales will also benefit from a boost of $181.5 million—a 7 per cent increase on last year's funding—making a record allocation of $2.78 billion for improved health care. When compared with equivalent funding in 1994-95, that represents a 106 per cent increase. I am pleased also to see increased expenditure in this budget for mental health services. I congratulate the Treasurer on the boost of an extra $68 million, representing an increase of 9.5 per cent, for mental health services in this State. This increase will bring the level of program expenditure for mental health services to a record $783 million in the coming financial year. I have mentioned several of the highlights in this year's budget, which I believe is responsible and fair. It confirms the Carr Government's commitment to providing first-class front-line services to the people of New South Wales.

The Hon. Dr ARTHUR CHESTERFIELD-EVANS [4.13 p.m.]: As honourable members are limited to speaking for 15 minutes in this debate on the budget estimates and related papers I shall focus on only a handful of matters. The budget allocates an additional $4.5 billion to health services, starting with an additional $707 million in 2004-05—I note that the real increase is only $707 million but the Treasurer announced the total expenditure over a number of years to make it sound better. In the past two years 3,000 extra nurses have been employed permanently in the New South Wales public health system. That is great—I give credit where it is due. It is interesting to ponder where they have come from.

Some universities have abandoned nurse training and hospitals are unwilling to conduct training in house. The obvious consequence is that it might become too expensive to train nurses. It is difficult to co-ordinate university courses and hospital secondments so that nursing students can gain valuable practical experience. Hospitals are no longer willing to train nurses because State funding is lacking. The appalling cost shifting between the Federal and State governments—combined with the cross shift to private insurers and its distorting effect on health priorities—makes health difficult to manage. I have said that numerous times in this House. I remind honourable members that John Menadue in his prescient report said, "Nobody is in charge and that is the problem."

The Government has said that it will provide 973 hospital beds, comprising an additional 563 permanent beds and 410 beds to cope with extra winter demand. The problem will be staffing those beds: There is no point simply opening more beds if there are no nurses to staff them. That is a recipe for disaster. An additional $241 million is dedicated over the next four years to improving mental health services, together with an additional $24.6 million in the 2004-05 budget. That is a modest increase, for which I take credit as I initiated and established the mental health inquiry that highlighted the current problems with those services.

I thank Dr Brian Pezzutti for his good work on that committee. Parliamentary Secretary Cherie Burton has endeavoured to implement the report's recommendations, although I think the reply is a little too vague as yet. I note that the Mental Health Sentinel Events Review Committee chaired by Peter Baume examined the same issues as the parliamentary mental health inquiry and reached similar conclusions. That committee reported in December 2003. The Government's reply to that report has not been made public. I believe it exists and that the committee was very unhappy with it. I have requested a copy of that report and the committee's response to it. This Government's culture of secrecy is completely unsatisfactory.

I am waiting for the Minister for Health to work out the streamlining of the 17 area health services in New South Wales. The amalgamation of health services that serve large areas is a worry. For example, the amalgamation of the Greater Murray Area Health Service and the Southern Area Health Service would cause geographical distance problems. I believe lack of health prevention measures in areas such as tobacco control remains a huge problem. Mr Carr claims to be concerned about worker health but for nine years he has done nothing to ban smoking indoors and has now postponed any further action on smoking in pubs and clubs until after the next election. That is a disgrace. His unwillingness to enforce any restrictions in that area does not bode well for the enforcement of any restrictive measures that may be introduced in the future. The Government is putting its interest in gambling revenue before the health interests of the people of New South Wales.

The Department of Community Services [DOCS] budget continues the $1.2 billion six-year program to boost child protection and family support. The department will receive another $100 million for children and families at risk. I take credit for initiating the DOCS inquiry that led to this funding increase. Some may scoff, but I moved a motion regarding the terms of reference of that inquiry 20 months before I received the Opposition support that led to the establishment of the DOCS inquiry. The $100 million will fund 100 new child protection workers and early intervention caseworkers and a further 50 caseworkers to support staff in out-of-home and foster services for children. If my memory serves me correctly, the same number of caseworkers was in last year's budget. Information I have received suggests that the Department of Ageing, Disability and Home Care is having problems—perhaps it will be the subject of a parliamentary inquiry. Money may have been diverted—but we will have to look more closely at what is going on in that department.

The House recently passed the Water Management Bill. As most honourable members are aware, the bill contained provisions imposing a stamp duty on the transfer of licences. However, I have failed to find in the budget papers any projected estimates of revenue from this new stamp duty. For the environment and conservation of the State's natural heritage $294 million has been allocated to manage national parks and wildlife and $57 million has been allocated for major environmental protection programs. However, the downside is that the Government is selling Crown land in the Western Division for 3 per cent of its lease value. There is much speculation about the Carr Government's future plans for State Forests. The Australian Democrats and many in the conservation movement would greatly appreciate a response from either the Treasurer or the Minister for Natural Resources. We look forward to receiving a commitment that no Labor government will privatise State Forests

This year's budget also abolishes the Sustainable Energy Development Authority [SEDA]—how ironic from a Government that takes pride in its greenhouse abatement credentials! SEDA has done a great job. The Government wanted the prestige of establishing SEDA but took no real action in that area, and the more astute members who could see which way the wind was blowing have been leaving the organisation for some time. Nevertheless its abolition is most unfortunate.

The Government has announced an investment of almost $30 billion in building new assets such as schools and TAFE colleagues, public health and hospital facilities, utilities, roads and public transport. But Bob the Builder, as he fancies himself, is leasing out all the construction work and handing the liabilities over to the New South Wales taxpayer through public private partnerships which, of course, are quietly being trumpeted in this Parliament. Bob the Realtor might be more like it! Bob is unwilling to borrow because of the doctrinaire position of the Treasury in this State that is leading to the sale of assets in order to fund things in a disgraceful fashion. The private sector is making a fortune from investing when, with a triple-A credit rating, New South Wales could borrow and have debts backed by equity.

From the point of view of normal accounting and business, if one has assets, and debts which are less than those assets, it does not matter. The way property prices are going the Government would be quite capable of borrowing and building assets rather than simply flogging off assets so that it can claim it has no debt. That foolish objective is currently fashionable amongst Australian governments, both Federal and State. Under the asset acquisition for the Education budget, the budget provides for the commencement of new schools at Ashtonfield, near Maitland, and Hamlyn Terrace, near Warnervale. The figure of $364 million is given for construction and enhancement of schools for this financial year.

What the budget papers do not say is that the cost of these schools and some 32 other big projects are not included in the stated expenditure, as they will be privately financed. In fact, it has already happened. This year four privately funded schools were built by ABN AMRO, St Hilliers, Hansen Yucken and SSL Facilities Management, or Spotless. Treasury is very keen on this model for funding infrastructure because it does not appear on the books as debt. It is, however, a total fiction that it is value for money, as the amount of lease payments over the 30 years of these contracts, even if there are no unforseen costs, is more than if the money were borrowed at competitive rates by the State in the first place

We need only look at the United Kingdom experience since 1992 in public finance initiatives [PFIs], which are the British equivalent of private public partnerships. An article by Allison Pollock in the British Medical Journal of May 2002 analysed the relative costs and benefits of the two approaches. She said that the way PFIs operate in the hospital sector is that the private consortium designs, builds, finances and operates the hospital. In return the Government, through a National Health Service [NHS] trust, pays an annual fee to cover both the capital cost, including the cost of borrowing, and maintenance of the hospital and any non-clinical services provided over the 25- to 35-year life of the contract. Furthermore, there is no evidence that PFIs have increased overall levels of service.

On the contrary, their use has had two adverse effects. Firstly, they have moved the burden of debt from the central government to the NHS trusts, and with it the responsibility for managing spending controls and planning services. Secondly, the high cost of PFI schemes has presented the NHS with an affordability gap. This has been closed by external subsidies, diversion of funds from clinical budgets, sale of assets and more reliance on charitable donations. This has led to a 30 per cent cut to bed capacity and a 20 per cent reduction in staff in hospitals financed through PFIs. Allison Pollock concluded:

Not only are the macroeconomic arguments in favour of PFIs illusory but there is also a negative impact on levels of service … The government claims that PFIs deliver value for money through lowering costs over the life of t he project because of greater private sector efficiency and because the private sector assumes the risks that the public sector normally carries.

The M2 is an illustration of this in New South Wales, as is the Sydney airport rail link. The Government had to pay an extra $704 million in 2000 when the Link consortium defaulted on a $200 million loan from the National Bank. In March 2003, before the last election, the Premier gave a commitment to provide $80 million for refurbishment and additions to the Mater hospital in Newcastle. In the second half of 2003—surprisingly, after the Carr Labor Government had been re-elected—word was out that the Government had another plan. You guessed it! The Mater hospital would be redeveloped by a public private partnership. The plan will also include the integration of the services presently provided at the James Fletcher mental health facility on the Mater site. This is an unfortunate development, and obviously the Government has plans to make up some of the money for the Mater development from use or sale of the James Fletcher site. The site is within a stone's throw of Newcastle surf beach and would be highly desirable to any developer. It is basically part of Bob the Realtor's selling-off-the-farm project.

It seems ludicrous that the Government should pay lease payments to a private consortium where there will be a guaranteed higher than market rate of return, say 12 per cent to 15 per cent, when this money could be borrowed from the bank at a lower rate, and in the meantime the Government owns the infrastructure, which is likely to be appreciating. The Treasurer is always boasting about this State's triple-A credit rating, so borrowing the money would be no problem. The project's estimated budget is only $132 million, and given the modest projected budget deficit of $379 million for 2004-05 it is not a great deal of money. It is a total fallacy that the private sector can run a business more efficiently than the public sector.

The private sector will always provide a minimum or substandard service in order to maximise the return for their investors. The investors are always a higher priority than the customers, by definition. This is why customers of banks are second-class citizens to the shareholders. It becomes more critical when the service provided is a health service. There are no free lunches: the Government must prioritise and manage. Prioritisation in Health is difficult enough with vested interests in drug companies and technology, et cetera, and public private partnerships make it even harder.

The M2 is a shining example of this new south sea bubble in New South Wales. The M2 prospectus firstly overestimated the number of vehicles that would use the road. Some estimates of the percentage of available traffic that would use a toll road if there was an even slower free road range as low as 10 per cent. So the overestimation of traffic for the tollway allows the promoters of the scheme to sell the idea to governments. The promoters in many cases are government agencies, such as the Roads and Traffic Authority, in concert with the consortium that gets investors on board. Returns to shareholders for the M2 were promoted at 15.8 per cent. This figure is essentially underwritten by the Government because, whether in the building or operating stage, the project will have to be completed and kept running.

It is likely that the railway in the north-west sector of Sydney, which is absolutely necessary, has not been built because the M2 contract did not allow any competition. That is an example of competition stopping sensible planning in this State. The recent photo opportunity for Minister Carl Scully at the completion of drilling for the cross-city tunnel served to underline the lost opportunities in planning Sydney's transport system in this new millennium. The Carr Labor Government continues to throw millions of dollars at road transport while ignoring more environmentally friendly and efficient options. There have been two chances now for the Carr Government to put in place a light rail network to ease traffic congestion in the city, and it has missed them both.

The plan to run trams from Central station to Kensington to carry the 20,000 students who commute to the University of New South Wales daily was floated at the time of the Eastern Distributor tollway project. The idea was again raised when the latest city road, the cross-city tunnel, was mooted. Once again the light rail plan was passed over. On any analysis, light rail should have been the preferred option. The cost of the cross-city tunnel was originally announced to be $273 million. The latest cost is now estimated to be $640 million. For this money we get a 2.1 kilometre tunnel that will fill with cars.
For less than half this price we could get 4.4 kilometres of tram track that would take thousands of cars off the roads, with most of the route being along Anzac Parade. The carrying capacity of one tram is approximately equal to that of 35 cars. The Lane Cove Road tunnel will cost $815 million but the Government has shelved plans to build the Carlingford to Epping rail link despite the fact that the equipment to build it was in place and will be extremely expensive to put back. The rail link should have gone from Epping to the north-west sector. This Government does not have a transport strategy; it has a roads strategy, which will not alleviate the traffic problems of Sydney. It is economically and ecologically unsustainable and not appropriate for this new century.

The other important matter that needs to be mentioned is the level of secrecy of this Government. The database of government-owned land assets. It was noted in the Daily Telegraph that Jennifer Westacott said that these assets must be sold quickly before the people have organised resistance at a local level to save each piece of land that is about to be flogged off. Again, it is an absolute disgrace for the Government to flog off assets as quickly as possible. The committees of this House spend a great deal of time trying to get to the bottom of this Government's approach of secrecy. The open government bill was passed in this House and referred to the lower House, where it was flicked off to the Public Accounts Committee. The Government does not want to know about open government, which is the key to excellence and efficiency in government because it is accountable. This Government is not.

The Hon. GREG PEARCE [4.28 p.m.]: Honourable members will recall that this budget was brought down in a somewhat hysterical context following the urgent mini-budget brought down by the Treasurer on 6 April. The principal reason for the mini-budget was the Treasurer's claim at the time that the New South Wales budget was going to be cut by $376 million by the Federal Government. That was a lie. It was always a lie and was a political stunt. But it raises something that needs to be clarified, and I know that sensible people who look at the New South Wales budget understand the real position with the Commonwealth-State financial arrangement and the substantial funding that comes to New South Wales from the Federal Government, particularly GST revenue and other grants.

When the budget papers were presented—I am looking at section 7 of Budget Paper No. 2—they contained a more rational overview of the financial arrangements with the Commonwealth. They include a recalculation of the claim that was made by the Treasurer, which indicates that the true figure was not $376 million but $345 million. They explain it was not a cut in any sense, but rather a calculation based on the reform of the financial arrangements, which was due in 2004, and reflects the allocation of funding between the States. The Premier, Mr Carr, and the Treasurer, Mr Egan, entered into that arrangement when they agreed to the GST package. The fact that they continue not to be able to come to terms with their agreement with the Commonwealth is another cause for concern about the management of the budget in New South Wales.

The other major reason given for the mini-budget was the need to find an extra $400 million for nurses' and teachers' pay increases. The inquiry into the mini-budget proved that to be incorrect because funding already was included in the budget. The result was that the mini-budget introduced a series of expenditure cuts and savings, which were part of the process in any event according to the head of Treasury, and introduction of the vendor tax. We will see what happens with the vendor tax, but all of us know that it represented another rip-off by this tax-and-spend Government and by the Treasurer, who has never seen a tax that he does not like. I want to spend some time on the Government's management of its asset program and the allocation of funds to it. The real concern is that this Government has been in office for nearly 10 years during which time we have experienced what will become the legacy of this Government: the legacy of lost opportunity.

We have seen a constant run-down of the State's infrastructure and a lack of appropriate investment and management of that investment. In large part that has manifested itself in cost overruns and delays in the very few infrastructure projects the Government has been prepared to undertake. One of the largest current infrastructure blow-outs disclosed in the budget relates to half of the Chatswood-to-Parramatta railway. It is interesting to note that in prior years the budget paper estimate for the cost of the railway was always shown in dollar figures that were not relevant to the current year. This year, for the first time, the estimate is based on current figures. The cost for half of that railway has blown out to $2.038 billion, a total blow-out of $1.217 billion over the period of planning and budgeting for the railway. It is a $417 million blow-out in the current year for half the railway that was promised originally. It is a terrifying example of the Government's inability to manage infrastructure projects and yet another example of its focus on spin through the announcement and re-announcement of projects.

Clearly the Government has no serious policy program for transport renewal, just as it has no serious program for health, education and other important infrastructure renewal. Other areas of infrastructure and asset management are typical of what I have already referred to as the legacy of lost opportunity: a run-down in infrastructure and the inability of the Government to manage infrastructure and asset projects. A quick review of the budget papers indicates that the Government has set a new record for financial mismanagement with a total blow-out of $438 million in the cost of 54 of its capital works projects, which I can identify. A detailed analysis of the 2003-04 budget papers reveals blow-outs of up to 500 per cent on one project and an average blow-out of 56 per cent on the projects I have identified, which is an indication that the Premier's and the Treasurer's financial management skills are simply non-existent. Some of the projects are quite extraordinary. For example, how does an integrated information system for the transport ministry increase in cost from $4 million to $9 million in 12 months? Why did the planned stabling and train service facilities rise from an estimated cost of $5 million to $12 million in the same period?

An information technology project for the Department of Health blew out by $2.5 million, while the redevelopment of the Long Bay prison hospital blew out by $14 million. These blow-outs raise more than just questions about the competency of the Carr Government's financial skills, they also suggest that projects are not being managed efficiently and that taxpayer dollars are being wasted. If the State Government were able to manage its projects on budget and on time we would not have the budget in deficit and a crumbling and ageing infrastructure. An analysis of the budget papers also revealed that building and infrastructure improvements for the Sydney Harbour Foreshore Authority had blown out by more than $10 million, while work on the State Records Repository building has blown out by $6.5 million. If these blow-outs occurred in just one or two capital works projects there would be cause for concern, but the fact that 54 projects have blown out is cause for total alarm. I will take a few moments to inform honourable members of some of the most extraordinary blow-outs.

One wonders how some of these blow-outs could occur. They are right across all areas of government. For example, the Department of Health had a Newcastle strategy that blew out from $236 million to $296 million, an increase of 26 per cent or $60 million in one year. How can a strategy have a blow-out of 26 per cent? The Sydney Catchment Authority's program of upgrades blew out from $44 million to $91 million, a 104 per cent increase. The Department of Community Services Case Worker Accommodation Program blew out from $36 million to $63 million, a 72 per cent increase. Sydney Water Corporation has a series of projects called Water Reuse Projects that increased from $15 million to $40 million, or 167 per cent. Sydney Catchment Authority Prospect Reservoir upgrades, which would be an interesting topic at this time when the Government cannot guarantee water supply to Sydney, blew out from $30 million to $52 million, a blow-out of $22 million or 75 per cent. The Department of Corrective Services Long Bay hospital redevelopment increased from $50 million to $64 million, a 28 per cent blow-out. All these blow-outs occurred in one year. The Department of Health Children's Hospital Westmead research facility blew out by 277 per cent from $5 million previously estimated to nearly $19 million.

The Sydney Water Corporation's integrated information capture and telemetry project was the subject of a blow-out of 20 per cent. The costs blew out from $67 million to $81 million. Mismanagement is apparent right throughout this Government, which simply cannot manage projects and budgets or deliver projects within budget constraints. The cost of the information systems enhancements in the Department of Commerce blew out from $6.8 million to $15.8 million, which is an increase of nearly $9 million or a 131 per cent blow-out. Thank goodness the Sydney Water Corporation has been busy. It has a project for the Blue Mountains sewerage system, but again it was unable to properly cost the project and costs blew out from $81 million to $90 million, which represents an 11 per cent blow-out.

Not to be outdone, the State Rail Authority's train service facilities and stabling project blew out from $4.9 million to $12.3 million, which represents an increase of $7.4 million or a 150 per cent blow-out. That makes the Millennium train project appear to be almost a significant achievement by the State Rail Authority. I note that legislation is in the pipeline concerning the State Records Authority, which is constructing a stage 6 repository building. The cost of that project blew out from $14.3 million to $21 million last year, which is an increase of $6.7 million or a 47 per cent blow-out. The list of project mismanagement and cost blow-outs goes on and on.

The Hon. Patricia Forsythe: Where is the money going?

The Hon. GREG PEARCE: I am telling the House where the money has gone.

The Hon. Patricia Forsythe: Waste?

The Hon. GREG PEARCE: It has been spent on the complete mismanagement of these projects, and waste. The cost of the Sydney Ports Corporation's bulk liquids berth increased from $8.8 million to $15.4 million, which is an increase of $6.6 million or a blow-out of 75 per cent. Let us not leave out any areas of government. The Muswellbrook police station was estimated to cost $1 million but ended up costing $6 million, which is an increase of $5 million or a blow-out of 500 per cent.

The Hon. Eric Roozendaal: There you go—attacking the police again.

The Hon. GREG PEARCE: That one takes the record. The Attorney General's Department's CourtLink project, phase two, was estimated to cost $15.7 million but the cost increased to $20.9 million, which is an increase of $5.26 million or a 34 per cent blow-out. I am pleased that the Hon. Eric Roozendaal is present in the Chamber and is listening to the figures I have mentioned because he knows a lot about raising money and it is good for him to learn a little bit about the financial mismanagement of this Government.

The Hon. Eric Roozendaal: Point of order: I appreciate how boring the honourable member's presentation is, but I believe there is a standing order that disallows members reading novels or books while someone is speaking, which is what the Hon. Patricia Forsythe is doing. I ask for a ruling on that.

[Interruption]

The DEPUTY-PRESIDENT (The Hon. Amanda Fazio): Order! The Hon. Melinda Pavey will cease interjecting. The Clerk has advised, and the Rulings of the President of the Legislative Council confirm, that members must not read either newspapers or magazines in the House. The reading by members of other material, including comic books, is also not permitted. However, there is no prohibition in either the standing orders or the Rulings of the President of the Legislative Council on the reading of books by members. No point of order is involved.

The Hon. GREG PEARCE: It is a pity that the Hon. Eric Roozendaal does not understand that people read. I will conclude my remarks because the time allocated for my speech has almost expired. I point out that the list of examples of the Carr Government's completely inadequate financial management goes on and on. The list shows the lost opportunity that has been forced upon this State because of the run-down of infrastructure and the run-down of the State's assets by this State's incompetent Premier and the Treasurer. [Time expired.]

The Hon. ERIC ROOZENDAAL [4.43 p.m.]: I am grateful for this opportunity to commend the Government for its work on the 2004-05 budget. I particularly thank the Treasurer, the Hon. Michael Egan, for his efforts. I have no doubt that all members of the House are aware of the financial pressures placed upon the State by the unfair Federal grants system. While that system remains unchanged, the task of fairly allocating our State's resources will be a difficult one. It is all right for members of the Coalition to laugh about the fact that this State has been ripped off by a Coalition Federal Government—I know they think it is hilarious—but the people of Richmond and Parramatta got it right and sorted the Coalition out at the recent Federal election. This year's budget is one that reflects current financial pressures.

The Hon. Charlie Lynn: Point of order: Madam Deputy-President, you have ruled that members are not allowed to read comics. It is obvious that the Hon. Eric Roozendaal is reading a comic.

The DEPUTY-PRESIDENT (The Hon. Amanda Fazio): Order! I thank the Hon. Charlie Lynn for his attempt at being a comic. There is no point of order.

The Hon. ERIC ROOZENDAAL: The point that should be noted is that what I am reading actually has writing, as distinct from the picture books that members of the Coalition relate to. Although this year's budget reflects current financial pressures, it also succeeds in maintaining adequate funding for the State's infrastructure and services. It is a sound budget—the hallmark of an experienced Treasurer and a Government that is strong on economic management.

I note particularly the massive investment in infrastructure to which the Government has committed itself. This Government has recognised the importance of capital works spending to State development and is prepared to spend a whopping $29,902 million in this area over the next four years alone. This represents an increase of over $4,787 million on expenditure over the previous four years or an increase of 19.1 per cent. I elucidate that point because I know that Coalition members will run out of fingers if they try to work it out. The increased capital works expenditure represents the largest in the State's history in both real dollar terms and in what the Treasurer, the Hon. Michael Egan, has referred to as "after-inflation dollars". What makes the increase even more remarkable is that capital works funding over the past four years has not been inadequate. Over that period the Government spent a massive $25,115 million. I commend the decision to invest more in this area.

[Interruption]

Residents of New South Wales will benefit from improved infrastructure and our economy will benefit from the stimulation that an extra $4,787 million in capital works spending will provide. I note that in the next year alone new Government investment in infrastructure will total $7,463 million. Out of that total, $3,614 million will be spent in the general government sector and $3,852 million will be spent in government business and utilities.

[Interruption]

The DEPUTY-PRESIDENT (The Hon. Amanda Fazio): Order! The Hon. Greg Pearce will cease interjecting.

The Hon. ERIC ROOZENDAAL: This spending will benefit education: $448 million will be spent on new and upgraded schools and TAFE colleges. This spending will benefit health: $600 million will be provided for new and improved hospitals. Moreover, this spending will benefit both public and private transport: $1,048 million will be spent on new and upgraded rail lines, rail carriages and stations, and $2,400 million will be spent on roads capital works and maintenance. This represents total statewide investment—investment which will benefit all State residents. But the fruits of this investment will be particularly observable at a local level. As the duty member of the Legislative Council for Coffs Harbour, Manly, the South Coast and the upper Hunter, I note the capital works spending that the budget devotes to these electorates. The electorate of Coffs Harbour will receive $38.05 million in capital works funding over the next year. Of this amount, $6 million will be spent on the Coffs Harbour radiotherapy project.

The Hon. Melinda Pavey: Good.

The Hon. ERIC ROOZENDAAL: I am pleased that the Hon. Melinda Pavey is very supportive of the Government's actions. In addition, $1.3 million will be spent on improving access to hospital beds at the Coffs Harbour Base Hospital; $640,000 will be spent on two new $320,000 fire engines for the New South Wales Fire Brigades stations at Bellingen and Bowraville; $30,000 will go to the Coffs Harbour State Emergency Service to assist in the acquisition of four new emergency response vehicles; $25,000 will complete the major $2.3 million upgrade of the Dorrigo High School, which will be completed later this year and which will include a new administration building, a canteen, access ramps, covered walkways, a car park and bus sector area; $2 million for the planning of dual carriageways on the Pacific Highway at Bonville, Sapphire to Woolgoolga, and Macksville to Urunga; and $2 million on road resurfacing and architectural treatment of homes at Sapphire and Korora as part of the $18 million Pacific Highway noise abatement program.

The Hon. Melinda Pavey: That is where I live—Korora.

The Hon. ERIC ROOZENDAAL: I thank the honourable member for her support. The total expenditure in the Coffs Harbour electorate also includes $180,000 to install permanent variable message signs and remove roadside hazards along the Pacific Highway as part of the State Government's $14 million road safety package which was announced in March this year; and $6,085 will be allocated to the Bellingen State Emergency Service to assist in acquiring two new emergency response vehicles.

In the electorate of Manly, key areas of local expenditure this year are $2.3 million for education, $2.7 million for roads, and $4.8 million toward upgrading of the North Head Sewage Treatment Plant. Specifically, $3 million has been allocated to the $10 million Manly Wharf refurbishment, $1 million to the widening of the Spit Bridge and approaches, and $2.3 million for stage two of the Harbord Public School upgrading.

In the South Coast electorate, $3.776 million will be devoted to the Attorney General's Department, $1.5 million for public housing, and $16.4 million for local roads. Specific examples of State funding for projects include $3.7 million earmarked for the Nowra Courthouse, $9 million for the upgrade of the Nowra to Nerriga road, $800,000 to widen the Princes Highway at South Nowra at the Browns Road roundabout, $200,000 for a bus bay on the Princes Highway and Croziers Road, Jaspers Brush, and $800,000 for the Jervis Bay National Park.

Finally, the electorate of Upper Hunter will benefit from $116 million in capital works funding, of which $41 million will be spent on local roads. An example of a specific project in the Upper Hunter is the completion of the reconstruction and realignment of the Golden Highway at Devils Elbow, on which $150,000 will be spent. Another example is the widening of the Golden Highway west of Four Mile Creek, for which $900,000 has been allocated. In addition, $325,000 has been allocated to upgrade public housing in Muswellbrook and $5.857 million on the Muswellbrook police station.

The list of capital works funding commitments in Coffs Harbour, Manly, the South Coast and the Upper Hunter is an impressive one. It is clear evidence of the Government's commitment to investing in infrastructure statewide, and I commend that commitment. Yet, I note that improvements in infrastructure will not come at the cost of the deterioration of other services. The budget dedicates an extra $100 million to community services and children, and $110 million to people with disabilities, older people and their carers. In total, an extra $717 million will be spent on Education and Training and an extra $707 million on Health. A Labor government will always be willing to support essential community services, even while the Federal Government continues to deny this State its fair share of revenue.

This is a practical budget, a budget that leaves New South Wales with the second-best balance sheet of any State government in the nation. Only Queensland is in a better situation, and Queensland is massively subsidised by New South Wales under the Federal grants system. New South Wales does not have the Federal grants system to thank for its strong position; New South Wales has a strong leadership team that continues to keep the State in a strong fiscal position.

The Hon. IAN WEST [4.54 p.m.]: I take great pleasure in contributing to this take-note debate on the budget estimates and related papers for the financial year 2004-05.

The Hon. Greg Pearce: Have you read them?

The Hon. IAN WEST: I have been through them in some detail. The 2004 State budget delivers everything that the Government can afford to deliver as it balances the books. This year there was a deficit of $379 million and a budget turnover of $37.44 billion, which represents a 6.4 per cent increase on last year's budget. As outlined in the April mini-budget, extraordinary measures had to be taken given the raw deal that New South Wales gets from Federal revenue. Those cost-saving measures and changes to stamp duty outlined in the mini-budget were necessary due to cuts in Federal funding such as the vicious cuts to GST revenue, which are cost neutral. That neutrality will not change until some time in the 2007-08 fiscal year.

The Treasurer stated in his mini-budget speech that New South Wales has 34 per cent of Australia's population and contributes 37 per cent of the nation's GST revenue yet receives back only 28 per cent. In monetary terms that equates to New South Wales giving approximately $12.5 billion to the Federal Government and receiving back only $9.5 billion. That is a rip-off to New South Wales taxpayers of $3 billionŻan absolute disgrace. There can be little argument that New South Wales loses out on the GST roundabout, which has been shown to be an absolute farce. New South Wales is subsidising other States and does not get back anywhere near the amount that its taxpayers pour in. Even members on the Opposition benches would be able to work out those mathematics: $12.5 billion in, $9.5 billion out, not very good for New South Wales.

That allocation is deceitful and deliberately unfair, and adversely affects the State budget. New South Wales taxpayers are paying more for GST-funded government services than they will ever get back. Despite that, the State budget delivers on a number of significant programs including a massive capital works program, an increased education budget of about $10 billion and a record health budget of about $10 billion sequentially over the past nine years. Even with limits to extra funding, the budget provides for further improvements to our social and community infrastructure. The budget continues the sound economic management of New South Wales by the Carr-Refshauge Labor Government over the past nine years.

This year the Government has allocated, once again, significant funding to all areas including core areas such as health, education, community and disability services, public transport and the environment. All are at record levels of funding and eclipse the amounts spent by the Coalition when it was in government. Unlike the latest Federal Coalition budget the New South Wales budget is one of targeted funding and minimisation of waste. It is not a pork-barrelling exercise designed to maintain legitimacy and, unlike the Federal budget, the State budget has a real and demonstrable commitment to the next generation by leaving it with a manageable debt, an increase in public assets investments and renewable infrastructure.

The budget deficit is modest, despite the difficulties faced from the Federal sphere, as I have indicated. The deficit stands at a very manageable $379 million and is expected to decrease to $118 million next year, before returning to surplus in 2006-07. The highlights in this year's budget, in which Bob the Builder continues his work, despite limited pocket money from the small but perfectly formed Treasurer, are many. In health, spending has increased by $707 million to just under $10 billion, including an increase of $4.5 billion over the next four years. That will allow 973 additional hospital beds to be provided over the coming year, comprising 563 permanent beds and 410 additional beds for winter. Mental health services will receive an important boost to $241 million over the next four years. That is a serious social justice commitment.

Once again, funding has been committed to research and development programs such as the Cancer Institute and the new Clinical Excellence Commission. The State Labor Government continues to meet the challenge of rebuilding and development of our health system across the State. Another great initiative of the Carr Labor Government is the mobile surgical service that delivers specialised high-tech procedures to remote and regional areas. That means that people in the bush do not miss out on the best health care services that the State can provide. Hospitals and area health services are most in need of financial support and there are real and serious challenges to the State's health system to ensure that families and patients in the remote areas receive that support, which only this Labor Government can deliver. The efficient and effective distribution of resources in the health system under Labor means equal and increased access to better quality services, and no doubt that will help to ensure better health for all. Every teaching hospital in New South Wales has been upgraded, redeveloped or built by the Carr Government.

Education spending this year will be more than $9.1 billion, providing quality education and training in the State of New South Wales. That is an increase of $717 million from last year, and it demonstrates further the Government's commitment to education. This budget also includes the fully funded 12 per cent teachers' pay increase awarded by the Industrial Commission. Families will also continue to receive the much-needed Back-to-School Allowance to assist them with school expenses in the new year. The Coalition would get rid of this allowance—

The Hon. Henry Tsang: They will never have the chance to do that.

The Hon. IAN WEST: That is right. The Coalition does not understand how much parents in New South Wales rely on this additional assistance. Every extra dollar counts for families educating their children. The early years of schooling are especially important. Labor has promised to reduce class sizes for kindergarten, and years 1 and 2, for which funding of $373 million has been allocated over the next four years. Also over the next four years funding of $250 million has been allocated to aid teacher professional development and to ensure an adequate supply of teachers in key learning areas.

The expansion of the numeracy and literacy plan has been an important step, with in excess of $500 million to be spent over the period 2004-08 to ensure that these key areas of education receive the resources that they desperately need. This expansion has helped New South Wales perform strongly in the recent national and international literacy and numeracy tests, and it will guarantee further successes. Education technology initiatives, including upgrading of bandwidth and the roll-out of e-learning accounts for teachers and students are ongoing programs, with almost $800 million being allocated for that purpose. The capital works programs for schools is set to continue with $364 million allocated for the construction and enhancement of school facilities as part of a four-year $1.2 billion program.

TAFE has been the subject of some controversy in the course of its recent restructure, during which it has been claimed that TAFE will be destroyed. Despite these claims, TAFE in New South Wales will receive a 4.7 per cent budget boost to $1.6 billion. Once again, despite the Treasurer's wish for a tight budget, Labor is providing plenty of reasons to remind the Opposition parties that it is led by the education Premier.
A record community services budget of $803 million this year will assist children, young people and families. This amount includes $47 million for improvements to out-of-home care and $26 million to improve the child protection system. That is unbelievable. Intensive and statutory intervention services programs will receive $187 million to provide services to protect children from risk and harm. I emphasise this record funding to enable the members of the Opposition to come to grips with the fact that the Treasurer has brought down a great budget for 2004-05.

Early intervention services will receive $188 million as part of an important approach by this Government to prevent problems from escalating. This is essential for children, young people and families at risk of drug and alcohol abuse, as well as those at risk of child abuse or family breakdown. I know there are members on the Opposition benches who are concerned about drug and alcohol abuse, child abuse and family breakdown and who will wish to congratulate the Treasurer and the Premier for this allocation of $188 million for such an important cause. Prevention services will receive almost as much funding—$183 million. This includes allocations for preschools and day-care centres, community development projects, youth support services and financial assistance to vulnerable families.

This budget demonstrates the Carr Government's commitment to child and family services, and the principles behind them, such as early intervention. The budget for the Department of Ageing, Disability Services and Home Care has increased by 9 per cent this year to $1.3 billion. An estimated 500,000 people on low incomes will be assisted with housing this year. This includes measures to subsidise those in the private rental market as well as long-term public housing residents and those needing crisis accommodation. [Time expired.]

The Hon. MELINDA PAVEY [5.09 p.m.]: John Singleton, who has quite a reputation in the advertising industry and who is well-known to the Labor Party, started a tradition some years ago with the slogan that went something along the lines, "Where do you get it?" I can assure the House that the taxpayers of New South Wales are echoing as one the slogan "Where has the money gone?" That question will long remain in the minds of the people of this State.

The Hon. Rick Colless: Everyone is asking.

The Hon. MELINDA PAVEY: Everyone is asking, "Where has the money gone?" New South Wales is the highest-taxing State in the Commonwealth of Australia. That is not something of which we should be proud, especially with our population base the way it is. New South Wales should be able to achieve some better economies of scale than those of other States. That is the basis of the Grants Commission rulings—which the Premier of this State has been happy to abide by, as illustrated in his book. In 1998 he clasped his hands and prayed, hoping against hope that the Grants Commission would do the right thing by New South Wales. And the Grants Commission did do the right thing by New South Wales in that year according to the Premier, because it did its job. It did what it is supposed to do: be non-political.

This Government defends the land tax, the vendor tax, and every other tax it has introduced, and uses the excuse that inadequate Federal funding has caused business enterprise centres to close across New South Wales and is the reason that new schools and roads are not being built and that our road network is crumbling. For all this it blames the Commonwealth. Well, that just does not stack up. If one were to add up the funding that Labor suggests the Commonwealth has not provided, the result would be billions of dollars. That argument just does not wash. It is a complex and cynical exercise.

I thank the people of New South Wales for being so astute. Ten days ago they said, "We do not trust Labor with money. We do not trust it with taxpayers' money, with our money, with any money, with interest rates." Their judgment is well founded in the delivery of this State budget, which continues the tradition of this Government relying on high taxes and waste to preserve inflated spending. The Carr Government's mismanagement affects mostly the people of country and coastal New South Wales. If the Government is to make a cut, it will do so in areas it really does not care about, in areas in which it does not hold seats. Despite the protestations of Country Labor, Labor does not have good representation in country areas. Even though we all know about its support for our so-called Independent members, the Government does not look after those seats particularly well either—as I will illustrate shortly.

This budget maintains the tradition of overspending and mismanagement by Labor. While waiting lists in our hospitals grow eternally longer, our classrooms continue to crumble and our roads deteriorate, the Carr Government greedily lines its pockets with taxpayers' money. Well, the people of New South Wales know all about it and they are pretty sick of it. Ten days ago, at the last Federal election, they voted with their feet not to support the claims by the State Government that everything that was wrong with New South Wales was the fault of the Grants Commission and the Commonwealth. They have seen, once again, that Labor cannot be trusted.

It is disappointing that the Treasurer and Premier Carr have attacked those who are most able and willing to prepare for their retirement and to maintain their lifestyles in retirement without burdening the taxpayers of New South Wales. I am talking about those who have bought units or who have planned to be self-funded retirees and to look after themselves rather than rely on taxpayers to look after them later in life. Whether we are talking about mum and dad investors, grandparent investors or whatever, those people have been hit by vendor and land taxes. That has had a profound effect on the property market in New South Wales. So profound has been its effect that in August the vendor tax raised only $29 million. In the previous month it raised less than that. The Government hoped it would raise $690 million a year, which on average is about $50 million a month. So the Government is well under budget on that front because it basically killed the goose that laid the golden egg.

This Government has ridden high on the coattails of the property boom that has been experienced in this State over the past decade. The sad part about it is that we have not had tax relief; we have just had tax increases. Tragic also is the fact that we will not have a vision or a legacy for infrastructure programs as a result of that property boom in New South Wales. The Government can be sure that in March 2007 the taxpayers of New South Wales will vent their spleen. These decisions are made at the top. The Treasurer does his best, but if one morning Bob Carr reads a report in the Daily Telegraph of a problem, he turns on a tap and pours out millions of dollars in an attempt to put a band-aid over a problem—and, ultimately, that is poor management.

One has only to read one of the tomes written about Bob Carr to know that respect for him within his own organisation—the Labor Party—is poor. Ron Greenstreet was absolutely appalled at the state of the Maroubra branch of the Labor Party when he took over responsibility of the branch after Bob Carr became a candidate for the seat of Maroubra in the late 1970s. It took him some months to sort through the couple of shoeboxes in which all the receipts had been stuffed. He was not alleging any impropriety, but he was saying that it was a pretty poor state of affairs. That is what is wrong with the management of this State's economy. We have a Premier who will spend money where he think it needs to be spent without imposing strict guidelines or thinking through the potential impacts of such decisions.

As an example, since 1995 the budget for the Premier's Arts ministry has blown out by almost 300 per cent—in 1995 it was $31 million and it is now $120 million. A healthy Arts ministry budget is vital for a culturally aware society, but a 300 per cent growth in that portfolio shows that the Premier is playing favourites with his pet projects. The money made available to fund that 300 per cent increase—from $31 million to $120 million—would certainly fix a lot of potholes and pay for many surgical operations. It could build almost 10 new primary schools. I am not saying that there should not be some increase in the budget of the Arts ministry, but 300 per cent! In 1995 the Arts ministry was left in a fairly healthy state by former arts Minister and Leader of the Opposition, Peter Collins. He was a great fan of the arts and did very well in obtaining funding for that portfolio.

Bob Carr increased that expenditure by 300 per cent off a fairly high base. Expenditure in the Arts ministry has been dependent on budget blowouts and not planned increases. Year after year the Arts budget has blown out. On average it has blown its budget every year by 37 per cent and staff in the Arts ministry has increased by 35 per cent—to 38 people. It is important to realise that the budget for the Arts ministry does not include funding for the New South Wales Art Gallery, the New South Wales Film and Television Office, the Australian Museum, the Powerhouse Museum, or the State Library. Basically the ministry runs a bureaucracy that gives welcome grants to communities. I have not been able to ascertain how much country electorates receive in the form of Arts ministry grants, but it seems that significantly money is going from the Arts ministry to bureaucrats and for staffing rather than for projects on the ground.

It is not a particularly exciting tale for the electoral areas of Monaro and Port Macquarie. According to the budget papers the Monaro electorate received only $9.7 million in capital works funding this financial year. When The Nationals represented that seat it received on average $30.9 million in five years from 1998 to 2003. Since Labor's Steven Whan was elected Monaro has received only half that amount, with an average of approximately $15 million in the past two State budgets. The people of Queanbeyan are disappointed that there is no capital works funding this financial year for the upgrade of Queanbeyan hospital. That was expected because of the Government's commitment not to commence any construction until 2007, which coincidentally happens to be an election year. So we will see the bulldozers out there when the State election is a couple of months away.

The people of Queanbeyan have demonstrated that there is an urgent need for that hospital. A three-year planning process is under way for a hospital upgrade, a very nice way of prolonging and delaying the inevitable construction of that hospital. I think the people of Queanbeyan were disappointed that the Government was not able to commence construction a little earlier. Funding for the Queanbeyan ring road has blown out by $1 million—from $5.8 million to $6.8 million—with $3.9 million to be spent this year. So the Monaro electorate has not been particularly well looked after. Recently we saw the closure of the business enterprise centre [BEC] in Cooma, a sad decision that has angered and disappointed communities in the Cooma area that were supported by the BEC. We kept the pressure on Steve Whan and the Labor Party.

The Hon. Patricia Forsythe and I have been working hard to establish whether we can alleviate the situation by ensuring that funding for that BEC is continued. We met local mayors and community representatives in that regard. This week the State Government announced that it would give the local council $100,000 in special funding. The catch-22 is that the local council must meet that funding dollar for dollar. The Government gives with one hands and takes with the other. We will keep working on that issue because the BEC in Cooma does a fantastic job and deserves to keep operating.

Funding for the Port Macquarie electorate is interesting. The budget allocates a lot of money for work on the Pacific Highway. Works on that highway—which are funded jointly by the State and Federal governments—are moving north from outer Sydney areas to Myall Lakes and Port Macquarie. The Nationals clearly provide better representation for their constituents. The honourable member for Myall Lakes, John Turner, has received $150.8 million in capital works this year but the honourable member for Port Macquarie, Robert Oakeshott, has received only $96.185 million. John Turner is clearly doing a better job. The budget allocates $3.5 million for the stage 1 upgrade of Bulahdelah Central School. The honourable member for Myall Lakes has worked hard on that project: He has written hundreds of letters and represented his community absolutely brilliantly.

I was disappointed that we were not able to meet today with the Minister for Education and Training, Andrew Refshauge, to discuss the proposed Lake Cathie school. We were supposed to meet Andrew Refshauge at 11.30 this morning—I thank him for that opportunity—but the local member of Parliament could not attend so the meeting has been rescheduled for next week. I plead with Andrew Refshauge to put Lake Cathie school at the top of the forward-planning priorities in next year's budget. The school is much needed by the fast-growing community in that area. My comments on the subject are well documented. According to my calculations from the budget papers, three National party electorates received the most funding over the six years from 1998 to 2004, with an average spend of $130 million in that period. The Independents received only $80 million on average during that period. So any claims that the Independents are representing their areas better are clearly untrue. We will continue our work. [Time expired.]

The Hon. AMANDA FAZIO [5.21 p.m.]: I am pleased to speak in the debate on the budget estimates and related papers. But before I turn to the details of my speech I must respond to several points made by the Hon. Melinda Pavey, particularly her rather spurious analysis and comparison of funding for roads in the electorates of Myall Lakes and Port Macquarie. The Hon. Melinda Pavey compared the road funding allocations for those electorates and claimed that they showed a far superior level of representation on the part of—

The Hon. Melinda Pavey: No, it was school funding.

The Hon. AMANDA FAZIO: No, you compared roads funding.

The Hon. Melinda Pavey: I was referring to school funding when I made the comparison.

The Hon. AMANDA FAZIO: In any case, when roads and schools were developed on the mid-North Coast of New South Wales members of The Nationals represented most electorates in that area. If the Hon. Melinda Pavey insists on comparing current funding levels in those two electorates, I must remind her that the Carr Government funds rural electorates honestly. We provide funding on the basis of need. If the electorate of Myall Lakes has been poorly represented over the years by Coalition members, we will naturally give it more funding to help it catch up with the level of service provision in Port Macquarie. This Government does not allocate funding in order to buy political favours from anyone. It allocates funding on the basis of need.

While I am on the subject, I shall refute a few other assertions. We all know that about 26 per cent of the State's population lives outside the sprawling metropolises—which have almost joined—of Sydney, Newcastle and Wollongong. Under the Carr Labor Government's current budget that 26 per cent of the population will receive 36 per cent of the $8.6 billion capital works and road maintenance budget. We are happy to do that. Labor does not hold most rural seats but they are areas of need and we like to fund areas of need. This budget increases health funding for people who live in regional and rural New South Wales to more than double its level when Labor came to office. Almost $2.8 billion of this year's record health budget is allocated to rural and regional New South Wales.

I can give a few more examples of the Government's funding for rural and regional New South Wales. This year the State has been put on bushfire alert months earlier than usual. In this budget the Rural Fire Service will receive a 16 per cent boost in funding to $150 million, and that will allow the service to buy more than 200 new and high-quality reconditioned tankers. That is most important. We believe in supporting volunteers in the Rural Fire Service by ensuring that they are resourced properly to assist their local communities.

I turn to my duty electorates. They are all held by members of The Nationals but that has not affected the Government's funding of them. This year's budget has delivered a record $7,463 million to the Ballina electorate, which will be spent on new roads, schools, hospitals, public housing and power and water networks. I shall list some of the projects and plans for Ballina. Expenditure on the Ballina electorate this financial year totals $48,450,600. That is being spent on projects such as the Lake Ainsworth Sport and Recreation Centre at Lennox Head, which will receive $500,000 to continue works on an indoor recreation hall and sea wall. The Waterways Authority will receive $100,000 to investigate the development of Ballina harbour. As for the Pacific Highway, $34 million will be spent this year on the Brunswick Heads to Yelgun dual carriageways, $2.8 million will be spent on the North Coast Noise Abatement Program and $1 million will be used to plan the Ballina bypass. The shoulder on the Pacific Highway will be widened from Wardell to the Bruxner Highway, and $9.5 million will be spend on the Alstonville bypass on the Bruxner Highway.

In Ballina the intersection of Kerr and Bentwick streets will be improved, and $55,000 will be spent to continue the cycleway from the East Ballina overpass to Flat Rock. Ballina council will receive $35,000 for planning pedestrian access and mobility programs. It will also be given provision to employ a road safety officer. The Bruxner Highway at Alstonville will have a protected right-turn bay at Green Street, and a protected right-turn bay will also be installed at the intersection of Coolamon Scenic Drive and Myocum Road in Mullumbimby. Ballina and Brunswick Heads fire stations will each receive new $320,000 fire engines. Byron Bay State Emergency Service will receive a $3,500 subsidy to help it purchase an emergency response vehicle. The Mullumbimby High School upgrade will be completed this year, with $560,000 in funding for new classrooms, toilets, a canteen, dark room and science laboratories. There is record health funding for the region. The budget includes a $4.5-million increase in recurrent funding to address waiting lists for surgery and $900,000 to enhance the emergency department at Lismore hospital. That funding is provided on the basis of need not on the basis of who represents the electorate.

This year expenditure on the electorate of Burrinjuck will total $97.3 million. An amount of $1 million will be spent on Gocup Road widening and rehabilitation, and $5 million will be spent on the Hume Highway at the West Street interchange. Work on cycleways will continue, with funding of $40,000 for Boorowa Council, $30,000 for Yass council and $25,000 for Gundagai council. The Island Picnic Ground at Blowering Dam boat ramp will have $13,678 spent on improvements. A total of $2,282,015 will be spent on rail in Burrinjuck: on track reconstruction, re-railing, underbridge renewal, rail grinding, ballast cleaning, tamping and signal and electrical renewal.

Business and information technology, general education, arts and media studies programs at Goulburn TAFE will receive funding of $500,000. The Department of Environment and Conservation will receive $850,000 for the local sewerage upgrade program. An amount of $2 million will be spent to upgrade educational facilities for local police, and $965,000 will be spent to replace fire pumper appliances for the local fire brigades. A total of $10,330,000 will be allocated for new works on State forests in Tumut and Batlow. State Water will receive $2,960,000 for the Blowering Dam structural upgrade, and Goulburn Correctional Centre will receive $684,000 to continue its improvement program.

In the Upper Hunter—for which I was responsible at the time of the budget but which is now the responsibility of the Hon. Eric Roozendaal—the total expenditure is $117.8 million, which includes $5 million for the realignment of the New England Highway at Halcombe Hill, $10 million for the Newell Highway at Wallumburrawang, $22,717,848 for the electorate-wide maintenance of roads, $1,200,00 for new works to the Dunedoo Health Service, and $5.8 million to continue works in progress at the Muswellbrook police station. RailCorp will receive $552,531 towards track reconstruction, rerailing, underbridge renewal, rail grinding, ballast cleaning, tamping, and signal and electrical renewal; and $726,000 for routine maintenance.

Upper Hunter Community Transport will receive $100,651 to provide transport for frail older people, and younger people with disabilities and their carers, and Upper Hunter Community Transport will receive $211,232 to provide transport for people disadvantaged by physical, social or geographical factors. Mudgee TAFE will receive $1.98 million for new multipurpose workshops and student amenities. An amount of $50,000 has been allocated to miscellaneous works in State forests and $315,000 will be used to replace fire pumper appliances for the local fire brigades.

The Hon. Melinda Pavey referred to spending in the Arts portfolio. She has raised this issue previously in the House and during the estimates committee examination of the Arts portfolio expenditure. I have no problem at all with the Arts portfolio expenditure having increased by 300 per cent since this Government came to office. One has only to look at what this Government has done in regard to regional arts strategies, supporting programs to assist with the cultural and artistic development of people outside of the metropolitan area to know it has been very significant.

Even in Coffs Harbour, the home town of the Hon. Melinda Pavey, a considerable amount of money has been spent on an extension to the local art gallery, which has made it a focal point for the Coffs Harbour local arts community. Not only has this Government provided money for the expansion of the Regional Galleries Program but it has also provided funding for the employment of regional arts co-ordinators who network across areas to co-ordinate local artists and community organisations that provide people in country areas with access to artistic pursuits and the opportunity to develop their talents. In the past, people had to come to the Art Gallery of New South Wales to look at artworks. There was no provision for the arts in Western Sydney and regional art galleries.

This Government is proud of its commitment to provide funding for programs such as the Travelling Opera Program, which visits primary schools. The program is conducted through Opera Australia, and travels widely throughout metropolitan and country areas in New South Wales to provide young children with access to cultural activities that they would not otherwise be able to access. For the past two years I have had the privilege of launching that program. Often there is not a large enough paying audience to warrant larger organisations touring small country towns. These programs are provided free for primary school children, so there is not a problem with parents not being able to afford to pay for their children to access them.

The Government has also provided additional funding for regional conservatoriums. These programs provide cultural enrichment and opportunities for arts practitioners and for people living in non-metropolitan areas. I am at a loss to understand why people who purport to represent the interests of people living in regional and rural New South Wales are opposed to them because they provide people in those areas with vastly improved accessibility to the arts. If there are regional conservatoriums, regional arts co-ordinators or local regional art galleries in my duty electorates I visit them and tell them that if they need assistance they can see me. I try to take an active interest in those organisations because I know the vital role they play.

One has only to look at the way regional arts programs have been funded, developed and supported over the years to see that if local governments took a broader view instead of just looking at roads, potholes and footpaths, they would realise that often the infrastructure is there, having been fostered by the local council. The catch-up funding that this Government is providing ensures that that level of access is equitable across New South Wales.

It is important to focus on some of the more concrete provisions in the budget, such as the $173 million to rebuild rural and regional hospitals and to buy health care equipment, more than $74 million set aside for specific rural and regional programs including distance education centre support for 2,800 students, living away from home allowances for nearly 750 students and isolated school grants to more than 16,000 students in 185 schools. It is also important to ensure that funding is provided for people in country areas in budgets handed down year after year by the Carr Government. It is also important for people living in regional areas to have access to other things to help enrich their lives, expand their horizons and develop their talents so that they can stay and work in their local communities. They should have the opportunity to indulge in their artistic pursuits, musical pursuits, local drama, local theatre and a whole range of things that help make life a lot more entertaining and enriching for people in regional New South Wales. I commend the budget to the House.

The Hon. JOHN RYAN [5.37 p.m.]: In the little time remaining in this debate this afternoon I will refer to a couple of matters in the Community Services portfolio which should concern not only members of the Opposition but also members of the Government. Taking pride of place in my concerns is the Government's changes to the Adult Training, Learning and Support [ATLAS] Program. Reading the budget papers one gets the impression that the Government is actually providing an additional $54 million for that program. In fact, the money that previously came from Treasury to top up the Department of Ageing, Disability and Home Care budget has simply been added to forward estimates. No additional money has been added to this program. In fact, the program is now expected to cope with additional clients with exactly the same budget it has always had.

There will be some marginal increases during the next few years but the obvious conclusion is that the actual funding for these vital training programs for young people with disabilities after they leave school will be massively and cruelly cut. If honourable members had any doubts about the impact of the cuts to ATLAS and the Post Schools Option Programs on people with disabilities, their families and their carers, they should have witnessed the demonstration outside Parliament House a few weeks ago which was attended by almost 10 per cent of people who receive funding under those programs. I have always said, and passionately believe, that the first dollar any government, regardless of its colour, spends in funding should be to provide for people with disabilities. They are utterly vulnerable. They are usually beset by conditions over which they have absolutely no control. They should be among the first people for whom we set up a government, for whom we have compassion, and whose rights we defend.

The ATLAS and Post School Options Program was a fabulous opportunity for these people to receive individualised training that would allow them to start to enjoy the rights that we legislated for in the 1993 Disability Services Act. The most important thing about the program was that funding was attached to individual clients who, with their families, were able to make direct decisions about which service provider they used and how they would move from one service provider to another.

Sadly, notwithstanding any compromise about the level of funding to these clients, that specific feature of the program will be discontinued. Anyone who wishes to enter or move service providers in the ATLAS and Post School Options Program will be reallocated from one service provider to another through a vacancy management system. I find it difficult to comprehend that disability services are allocated to people who have a need only after they have been assessed extensively by a bureaucrat. They are then told by some government official, or sometimes someone from a non-government agency, what service they can have, when they can access it and so on.

One of the magnificent features of the ATLAS and Post School Options Program was that for once they had a service to which they were absolutely entitled and they were able to move that service from one service provider to another of their choice. I would like to see more, rather than fewer, services in this form provided to people with disabilities. I note that the Minister has built for herself what I might refer to as an escape hatch. She has said that if, after further consultation, it is demonstrated that the Community Participation Program cannot be provided with the level of funding currently offered, then the Government is prepared, to quote her, to "look again".

It will become apparent that the same service cannot be provided to a greater number of people with less money. The very same Community Participation Program offered by the Government was offered by the former Coalition Government under what is now known as the Post School Options Program, but the level of funding has grown to $20,000. Somehow the Carr Government believes that 10 years later it can provide the same level of service with funding levels of $9,000 and $13,500, which, in actual dollar terms, is less than the funding provided by the former Coalition Government for exactly the same program.

If members opposite believe, as I think they do, that they stand up for those who are disadvantaged and needy, I would have thought this would be something they would take up with great passion and concern in their party room. I applaud the Government for making the Post School Options Program a right for people with disabilities. It is a distinct improvement on the previous position. Nevertheless, for eight years the program has been funded consistently by increases to the budget. I sincerely hope that when the dust settles the Government can find a way to be more compassionate towards people with disabilities. I am also concerned about the consistent finding brought to my attention by people who receive services from the disability portfolio that there is a hopeless lack of capacity to meet growing needs, let alone existing needs. Only last week the Parliament received a report from the Auditor-General, which indicated that one year ago one out of every two applicants for the Home Care Service was refused a service even after they qualified. Last year the number refused a service grew from one out of two to three out of four.

Obviously, in our community large numbers of people with disabilities and the frail aged who legitimately seek home care services do not get them. It is the biggest issue in the Auditor-General's report that the Government must deal with. It simply will not work by setting up a greater level of consultation through a committee to supervise the Home Care Service, reorganising the lines of communication within the department and so on, as the Government has proposed. The Home Care Service definitely needs the capacity to expand the number of services it provides. I will responsibly assist the Government as it reviews the fees policy. If the Government is able to demonstrate that there might be a reason to increase fees for the Home Care Service then I am prepared to stand up and be—

Pursuant to sessional orders debate interrupted.