BUDGET ESTIMATES AND RELATED PAPERS

Financial Year 2003-04

Debate resumed from 2 July.

Ms JUDGE (Strathfield) [7.30 p.m.]: Since I was elected to this House the Carr Government has committed $250,000 for traffic signals in the Strathfield electorate. On 12 June a new set of traffic signals began operating at the intersection of Homebush Road and High Street, Strathfield. Homebush Road is an extremely busy route, connecting the Hume Highway with Homebush railway station, while Highway Street connects to other residential streets in Strathfield, making this intersection incredibly busy. It is crossed regularly by students from one of our wonderful local primary schools, Strathfield South Primary School, which has about 800 students. This new safety measure has been welcomed by the Strathfield South Primary School community and the school council. It has great support from the principal and deputy principals, as well as the whole school community and parents. State Government funding for these lights will make a huge difference to the safety of streets in the area.

Earlier in June another set of lights was switched on where Mitchell Street intersects with Burwood Road. The new signals, which include audio-tactile buttons for pedestrians, will significantly improve safety for people travelling to or from the Royal Blind Society in Mitchell Street. I was invited to the opening of another set of traffic lights at the corner of Arthur Street and Henley Road in the Homebush-Flemington area, yet another busy road and intersection. Those traffic lights will mean much easier access to the thriving local shops in the Flemington area and will be of great benefit to all residents in the vicinity. On Monday I attended the opening of a new $2.3 million pedestrian bridge over The Boulevard, Strathfield, making the crossing much easier and safer for local residents and school students from Santa Sabina College and Santa Maria Del Monte.

Many treasured seniors who live in Marion Court Hostel and Villa also need to get across The Boulevard, because many of them do their shopping at Earlwood Plaza. Anyone who knows The Boulevard will know exactly what I mean when I say it is an incredibly busy road and thoroughfare through the Strathfield electorate. The bridge has glass lifts, making it much easier for the elderly, people with disabilities and parents with prams and young children to use. On behalf of the residents of the electorate of Strathfield I thank the Minister for Roads, the Hon. Carl Scully, for his ongoing commitment to road safety. These little measures might not seem much, but they make the huge difference in community safety. [Extension of time agreed to.]

Another matter that concerns all honourable members is community safety—one of my priorities. NSW Police community safety expenses will total $1,816 million in the coming year, an increase of $143 million, or 9 per cent, on last year's budget. The Government's commitment to increasing police numbers by 1,000 has been met ahead of schedule. Additional funding of $93 million over four years is also being allocated to meet specific election commitments, including $15 million to continue the high-visibility Operation Vikings, $8 million for a more functional police uniform, $4 million to attract officers to serve in remote locations, and $24 million for additional crime scene investigators. Of course, all benefit from those measures.

From the 2003-04 budget $21 million is also being allocated for new works with an estimated total cost of $49 million, including the Forensic Research and Investigative Science Centre, additional in-car video units to improve officer safety, prisoner modules and screens for police vehicles, and upgraded educational facilities, including the Police College at Goulburn. More than $9 million has also been allocated in 2002-03 and 2003-4 for counter-terrorism equipment. The community's safety depends not only on protection from crime but also from fires, floods and other natural disasters.

I am thrilled that in the next few months the Burwood fire station and its hard-working fire officers will receive a new fire engine. I believe it will cost about $500,000. If someone is unfortunate enough to experience a fire—whether in a residential flat, freestanding home or shop—the additional fire engine will make a huge difference. I am thrilled that the Strathfield electorate has received the new fire engine. New South Wales is superbly served by our emergency service personnel, both full-time and volunteer. Of course, Strathfield has wonderful emergency services personnel—I call them our orange angels. They do a tremendous job. This budget provides $440 million for New South Wales Fire Brigades, $144 million for the Rural Fire Service and $33 million for the State Emergency Service. That demonstrates the Government is prepared to put its money where its policies are.

It is with great pleasure that I commend the Government on yet another balanced budget that provides additional funding where it is most needed, at the same time placing New South Wales in a strong fiscal position. The budget allows for the eighth successive underlying cash surplus. This coming year we plan on a modest cash surplus of $48 million, but it has allowed the Government to reduce debt—with general government net debt now standing at just $4 billion, or just 1.5 per cent of gross State product, down from 7.4 per cent of gross State product in 1995. The cash surplus is planned to grow to $932 million by 2006-07. That is fiscally responsible in these times of uncertainty.

Total spending over four years will be $29 billion. Approximately $2 billion in new spending includes $700 million in 2004 to create more jobs for the people of New South Wales. We have also been socially responsible. Community Services spending has increased by 25 per cent, with $1.2 billion for child protection. Health spending is up 11 per cent with $205 million to establish the Cancer Institute. Spending on Police is up by 9 per cent. We will deliver a reduction in school class sizes. A further $150 million will be spent on CityRail and CountryLink services. This is a responsible budget that will put New South Wales in a solid position to move forward and grow socially, culturally and economically. It has my full support.

Ms BEREJIKLIAN (Willoughby) [7.40 p.m.]: I refer to Treasurer Egan's remark about the Labor Party's budget keeping faith with the residents of New South Wales, but nothing could be further from the truth. The property boom delivered an extra $830 million above last year's forecast in stamp duties to New South Wales, yet there has been no attempt to relieve the tax burden on residents in Australia's most highly taxed State. This is hardly keeping faith. The Labor Government's revenue take received a major boost with more than 1,000 State Government fees and charges increasing from midnight on 1 July. Services continue to be below the standard that residents of New South Wales deserve. The impact of the budget on the electorate of Willoughby is a case in point. The hard-working taxpayers in the electorate of Willoughby have been short-changed by this Government.

First I refer to the Chatswood-Epping link. Regrettably, much uncertainty continues about when the Chatswood transport interchange will be revamped. Under the heading of the Parramatta Rail Link Project in the budget papers specific mention is made of the Parramatta transport interchange, but no such separate mention is made of the Chatswood interchange. I have yet to be briefed about the Government's so-called master plan for Chatswood, but I cannot stress enough to the House and the community the need for a new transport interchange for what is one of Sydney's busiest railway stations. It would seem logical that part of the $420 million that has been allocated to the Epping to Chatswood link in this year would be dedicated, at least in part, to the overhaul of the Chatswood transport interchange. But, regrettably, no specific mention is made of it in the budget papers. I have yet to confirm that is the case.

I will continue to seek confirmation from the Government as to its plans in this regard. I note that the entire Chatswood to Epping project is due for completion in 2008. However, my residents in the Willoughby electorate want to know what this means in the interim for disabled and elderly access. People getting off the train at Chatswood railway station have to negotiate a very steep set of stairs. There are no lifts and there are no escalators. I put this to the Minister for Infrastructure and Planning in the House. He suggested that I refer to a press release that was supposed to outline the details of the Government's interim measures. I have been searching high and low for the press release, but it does not seem to exist. The residents in the Willoughby electorate have a right to know what the Government's plans are.

If the Chatswood interchange overhaul will not be completed until 2008, what will the Government do in the intervening five years? How much, if any, of the $420 million that has been allocated to the Epping to Chatswood link is dedicated to the Chatswood interchange? The people of my electorate deserve an answer to these legitimate community concerns. A bustling regional centre the size and scale of Chatswood desperately needs a state-of-the-art transport interchange. I will do everything I can, as the local member, to fight to ensure that the Government's proposal for a new interchange does not impose unacceptable burdens on the Chatswood community.

I will continue to work with my local community to ensure the timely delivery of this much-needed project. I urge the Government to be more open and transparent about the process and its plans to provide the community with this vitally important service. It is not just for the betterment and benefit of Chatswood or the wider Willoughby electorate but also for Sydney and New South Wales. As a booming regional centre, it is absolutely integral to a city the size of Chatswood within the broader electorate and the burgeoning metropolis of Sydney to have a transport interchange that complies with disability standards, ensures that all transport links are co-ordinated appropriately and delivers much-needed services. When I examined transport infrastructure generally within the Willoughby electorate following my election, I was concerned to note that a whole-of-government approach was lacking. We desperately need much better bus routes.

I am concerned that, when the Government has a plan for the Willoughby electorate, it is an ad hoc approach to transport and transport infrastructure. For example, anyone who catches a bus in my electorate, whether it is at Naremburn, Willoughby, Cammeray or North Cremorne, faces excessively long queues. Often in the mornings and evenings commuters have to wait much longer for buses than they should have to. My constituents in Castlecrag and Castle Cove are justifiably concerned about their bus services, yet nothing in the budget papers indicates that these problems will be addressed in the electorate of Willoughby. I have placed questions on notice about services in and around the Willoughby bus depot. Unfortunately, the Government has not answered all the questions in the detail I asked for. I will certainly pursue it to ensure that the Willoughby electorate gets its fair share of transport infrastructure.

Although the transport interchange at Chatswood needs upgrading, we also need better co-ordination of services across the electorate, from harbour-side suburbs to Chatswood. It is understandable that the Chatswood to city link provides a reasonable service, although not as frequent as some would like. However, cross-electorate services are lacking. Many older people who reside in harbour-side suburbs need certainty that they will be able to at least utilise the public transport system when they need it. I have already outlined my concerns in great detail about the Chatswood master plan. Clearly, any proposal to increase the population in Chatswood cannot be sustained on the existing infrastructure. Yet I have seen no evidence of the Government's plans to deal with this very important matter. As a local member I will not settle for ad hoc solutions that do not adequately consider the impact on the community, especially overdevelopment.

Chatswood High School, as this House is aware, is important to me and to the community: it is the only co-educational comprehensive high school in my electorate. I attended such a high school, and I am absolutely committed to ensuring that sufficient services are dedicated to Chatswood High School. I am concerned that the high school is due for an upgrade estimated to cost $5 million. However, in year one the Government has committed only $200,000 to the upgrade. There are concerns that the $5 million estimate is not sufficient because the master plan for the upgrade of the high school does not seem to include the intensive English centre, which desperately needs to be incorporated into the plans.

The intensive English centre serves students from a large catchment. Students from the Central Coast attend, as do local students. Students whose first language is not English rely on that service and on the centre to help them overcome language problems so that they can participate in mainstream education. I am concerned that current plans do not provide for the intensive English centre. I will be vigilant to ensure that the estimate of $5 million includes the provision of everything that the high school will need. There is no point in throwing an arbitrary amount at the problem if doing so does not achieve all the necessary objectives and capital works upgrades. The school community and the broader community need to be confident that the upgrade will be delivered on time.

As I have said, when the plans are finalised, it may be the case that $5 million is insufficient. If that is the case, I will be calling on the Government to increase the budgetary allocation in ensuing years to ensure that the upgrade is delivered on time and that it incorporates the intensive English centre as well as other major buildings within the project. I inform the House that I have visited a number of primary schools and I have found that many of them have a fantastic school community. However, many schools will need capital works upgrades in future years. I will make representations on their behalf. I certainly hope that addressing the needs of those schools will also allow for sufficient attention to be given to the Chatswood High School in the near future.

I now turn to discuss the Chatswood police station. The redevelopment of the police station is long overdue. I take this opportunity to commend the Willoughby community on its continuing efforts in demanding a new police station from this Government. The community has worked hard and has waited a long time for a new police station. Just after the election, the Government promised to fund $3 million in the first year out of the estimated total cost of $8.3 million. The budget papers indicate that $2.2 million has been allocated, not $3 million. I will remain vigilant about this issue to ensure that by 2005, as indicated, the police station will be built and completed on time, and that ongoing funding in future years will materialise. When the station is built, obviously the local police, who do a fantastic job in extremely difficult circumstances, will breathe a huge sigh of relief. Some of the problems are caused by the station not being large enough to enable all the police officers to co-locate at the one time, and by the roof leaking during wet weather. Obviously, a new station is long overdue. The police will be moved to temporary accommodation during construction, and I will be vigilant to ensure that the new station is completed on time.

The Lane Cove tunnel project impacts on part of my electorate. I support the public comments made by my colleague the honourable member for Lane Cove in calling for the installation of in-tunnel filtration, which is currently not part of the Government's plan. The issue of filtration, or the lack thereof, is understandably causing a great deal of angst in the Lane Cove and Willoughby electorates. The Government must do the right thing by allaying the legitimate concerns of residents. As part of the project, the Government has decided to use the compound of an athletics field for the construction of the tunnel, and that is having a huge adverse impact on members of the community who use that field. I have made numerous representations to the Minister for Roads on that matter, and I am hoping for an outcome that is satisfactory and acceptable to the community. Such decisions cannot be made in isolation from the enormous impact that they have on the community. I call on the Minister to do the right thing by ensuring that sufficient car parking spaces are made available to facilitate continued community use of the oval.

The budget allocates a mere $4.7 million for stage two of the upgrading of the Royal North Shore Hospital, which will cost a total of $407 million. The project will not be completed until 2010. Together with the honourable member for Lane Cove and the honourable member for North Shore, I remain concerned at the amount that has been allocated to stage two, given the entire cost of the project. I will be making representations to ensure that the project moves ahead. Another very important issue that affects my electorate is the impact of the increase in gaming taxes on poker machines. The State Government's increase in taxes on poker machines and the implications of that for the club industry in New South Wales are far reaching, contrary to the comments made by the Minister for Gaming and Racing in Parliament this week. I am extremely concerned that he specifically made reference to me and to my electorate.

The Minister said that the clubs in my electorate will not be affected, but I point out to the House that the clubs in the Willoughby electorate are affected adversely. Representatives of the clubs are extremely concerned about their future viability. I have received strong representations from the Chatswood Club, the Chatswood RSL, the Chatswood Golf Club and the Gordon Social and Recreation Club. All those clubs operate within my electorate. I thank their representatives for contacting me about their legitimate concerns. The Chatswood Club provides a meeting place where several community groups, including Rotary, the Chatswood Chamber of Commerce, Probus, the Chatswood War Widows, to name a few, are able to get together. It also provides recreation facilities for residents and workers in the Chatswood area. It provides rooms free of charge and subsidises catering for these groups. If clubs such as the Chatswood Club do not do this, who will? Currently the club is losing money.

The burden of increasing tax will further increase the Chatswood Club's losses. The Chatswood Club will not remain in existence if the losses continue. When the taxes materialise, the club will have to consider increasing charges to community groups for which it provides services and to reducing staff levels in the club. The Chatswood RSL is in a similar situation. Like the Chatswood Club, the Chatswood RSL subsidises many community activities. It is the mainstay for many local community organisations. As I have already mentioned, I have also received representations from the Chatswood Golf Club, which has outlined the pressure that the tax increase places on its existing services. The Gordon Social and Recreation Club has advised me that the tax will also significantly impact adversely upon its operations. The club provides employment, entertainment and recreation services to the community and contributes funding through various programs to many local organisations. The gaming tax will seriously affect the levels of contribution of the club as well as the club's survival.

Clubs are highly labour and cost intensive operations. They are the third biggest employer in this State, employing 39,600 people. The Treasurer's assertion that two-thirds of all clubs will be unaffected or better off is a furphy. Even the smallest clubs will have to pay more tax on gaming revenue under the new regime. The Treasurer promised to consult the club community before increasing the clubs industry tax rates. The Treasurer also made a commitment to conduct an open review of gaming machine duty rates before any changes would be made. This is another example of a loss of faith on the part of this Government. The Government must listen to many community concerns and revoke this tax increase because clubs in my electorate are extremely concerned. Quite a few of them have contacted me to express concerns about their survival. I now turn briefly to discuss the car parking levy, which was increased from $400 to $420 for Chatswood. I am advised that in the Chatswood CBD, there are 6,000 spaces, and that means that there will be an increase of $120,000 per year in revenue for the Government in Chatswood alone, making a total tax revenue receipt of $2.5 million. [Extension of time agreed to.]

An issue that I will pursue in greater detail on another occasion is that the State Government has established regional centres, and Chatswood is one of them, but there is no commensurate funding to support the provision of adequate transport and infrastructure needs. I will address that issue in greater detail at a later date. I also draw to the attention of the Government and the House to a number of community groups in my electorate that currently do not receive funding. They should be considered for future government funding. The Noahs Ark Toy Library, which provides a library for the use of parents of children who have development and mental disabilities, is one of those organisations. Another is Streetwork, which supports kids on the streets in my electorate. I commend local churches, the Lions Clubs and Rotary clubs who currently help to support these community organisations. However, I think that there is also room for State Government funding.

I strongly believe that efficient management of the economy allows governments to provide equality of opportunity for its residents. The people we represent in this Parliament will have access to equality of opportunity only if they are provided with adequate essential services such as education, health, public transport, safety and security. In order to provide those services we need fiscally responsible governments and sound economic management. A well-managed economy means that adequate services are provided where they are needed. Therefore, it is frustrating to see with this budget that Labor is not only missing opportunities to make our State more attractive to investment but also is failing to deliver better services and standards of living to the people of New South Wales.

Despite record State Government revenues and budget over-spending, services in New South Wales are deficient. Furthermore, the Labor Government has failed to create a climate conducive to business growth—a topic dear to my heart. The result is that the average taxpayer is now left bearing the burden of funding this Government's inefficient economic management. Whereas the Federal Government made the tough but necessary decision to address taxation reform by introducing the GST and allowing the abolition of several state taxes, the State Labor Party has tried to sweep the issue of taxation reform under the carpet. It is indeed a great shame that New South Wales is the highest taxing State in Australia. The 2003-04 budget has not foreshadowed any tax relief for the coming four years. In fact, the measures in the budget will increase the tax take by almost $450 million over the next four years.

I remind honourable members that when the Labor Party came to power in 1995 it stated there would be no new taxes and no tax increases. Since that time, Labor has introduced the insurance protection tax, the owner occupied land tax, the parking space levy, and tax on fishing licences. It has also increased land tax on investment properties, registration on motor vehicles, payroll tax, tax on gaming, extended payroll tax to share options and employee share schemes, increased car parking levies in Sydney's commercial districts and the removal of workers compensation concessions for trainees. Between 1994-95 and 2003-4 it is projected that payroll tax revenue will increase by 63 per cent, land tax revenue will increase by 145 per cent and stamp duty on property transfers will increase by more than 200 per cent.

Alongside those taxes, by Treasury's own estimates, the Government's cost overruns over the past four years have amounted to more than $5.5 billion, including cost overruns of $1.44 billion during 2002-03 alone. It is of great concern that against that backdrop of rising State Government revenue streams, increasing taxation—and add to that the successive budget spending overruns—the people of New South Wales have inadequate return on their hard-earned tax dollar. Waiting lists continue to blow out, our transport infrastructure is at breaking point, our classes are too large and the list goes on. My constituents in Willoughby have every right to demand to know why the elderly and disabled cannot have escalators at Chatswood railway station, why they have had to wait so long for a new police station or why residents have to pay land tax on the family home they have owned and lived in for 30-odd years.

But again the question beckons: if those additional revenue sources are not fixing the many problems we have in the delivery of essential services, or if they are not being used to ease the tax burden on the people of New South Wales, where is the money going? For the sake of the hard-working taxpayers in Willoughby and across New South Wales the Government must urgently address these legitimate questions. In stark contrast to the Labor Government's grab for more tax dollars in the wake of diminishing services, the Leader of the Opposition, who represents the electorate of Pittwater, has already presented to Parliament a plan to improve housing affordability, cutting stamp duty by $880 million while preserving the budget surplus. For instance, since 1995 in the Willoughby electorate the median stamp duty payable on a house in Cammeray has increased by 160 per cent, by 214 per cent in Artarmon, by 161 per cent in Willoughby, by 161 per cent in Chatswood and by 157 per cent in Northbridge. Clearly the Government's failure to address that is, again, a loss of faith.

The Government has yet to report on the $4.5 billion of spending in a number of government departments and agencies. We eagerly await the Government's compliance with the Public Finance and Audit Act in giving the Opposition disclosure of those items. The Willoughby electorate is a great place in which to live, but there is much to do and much to protect. But for the residents of the Willoughby electorate this budget has failed to provide certainty and has fallen short in a number of key areas. Many issues affecting the electorate of Willoughby, namely Transport, Transport Services, Police, Health, Education, and Community Services need to be addressed. I look forward to raising those issues in ensuing weeks.

Mr ASHTON (East Hills) [8.03 p.m.]: This is the fifth New South Wales budget that I have had the privilege to speak about, and is the eighth balanced budget introduced by the Carr Labor Government. A total $29 billion of capital works over the next four years is the highlight of the budget's forward estimates, and that is a 22 per cent increase on the previous four years. The budget also delivers strong spending across all areas including schools, hospitals, child protection and other services. The Government is getting on with the job of securing the future for New South Wales. In the financial year 2003-04 the budget result is a $43 million surplus with a surplus predicted in each of the following three years. Keeping the budget in the black means that the Government can plan for the time when it may have to allow for what is called a rainy day. More money will then be available for commitment to schools, hospitals and other services.

There is nothing wrong with having a surplus, because occasionally one has to dip into that surplus rather than borrow. The Government has a good record of not borrowing, and of living within its means. The $29 billion I mentioned earlier is a record amount that will be spent on capital works over the next four years. That is up $5.3 billion, or 22 per cent. That $29 billion investment guarantees the long-term viability of many jobs and many of the essential structures of a civilised society. This year capital works will total $7.138 billion, a $788 million increase on last year's total of $6.35 million. These are big numbers and this is real money. In addition in 2003-04 it is estimated that the private sector will spend $1.1 billion for major public-private partnership projects such as the cross-city tunnel and the Western Sydney Orbital, which is an increase of $28 million. However, the Government will need to look closely at what private partners it chooses for various projects.

Companies the Government chooses to deal with in private partnerships must be prepared to guarantee the paying out of workers entitlements and unsecured creditors. If a problem develops with a company chosen by the Government to enter into a partnership, and that company folds, the workers and unsecured creditors rights will be protected. The Government has my wholehearted support in private partnerships, as that seems to be a quick way to get the desired result. People are prepared to pay a degree of private costs including tolls on roads and other costs to get the project up and running rather than waiting 50 years. However, it is very important that the Government give close attention to choosing partner companies.

An amount of $990 million is allocated for new and upgraded rail lines, bridges, railway carriages and stations; $330 million is allocated for new and upgraded schools; $457 million is allocated to build and improve hospitals; and $2,220 million is allocated for capital works and maintenance. My re-election to the seat of East Hills depended not on my great ability to represent the electorate, which is well known, but on the Government's ability, over the past four years, to deliver so many services to schools and hospitals—Bankstown hospital is just one street out of my electorate—and the environment, work on the Georges River, and the increase in police in the Bankstown Local Area Command. All costs were met from Government revenue.

The Government continues record spending on essential services. In 2003-04 the recurrent capital works spending on Health is $9.275 million, on Education it is another record $8.691 million, on Police it is $2.073 million, on Community Services it is $818 million, on Ageing and Disability it is $1,290 million and on Public Transport it is $2.626 million. These figures are accurately costed and they are sound figures. They are evidence of the fiscal responsibility of this Government. Some of the tax changes in the budget will increase revenue by $32 million in 2003-04 and $80 million in the next financial year. Tax changes this year, together with those introduced in the preceding four years, resulted in the annual tax revenue been about $1.4 billion lower this financial year than it would have been without those measures.

At times the Opposition talks about tax windfalls and the money rolling in. It should recognise that over eight years of this Labor Government we have wound back so many State taxes and charges that there has been no windfall. If this Government had abolished some of the services that are bringing in money now, and kept the services that are not, we would not have achieved the same result that we have achieved through sound economic management in our State. Tax changes in the budget include a crackdown on avoidance practices through amendments to the Duties Act. Termination payments and share option plans made to non-executive directors will be included in the payroll tax base. The honourable member for Willoughby referred earlier to the parking space levy, which will be increased from 1 July this year and, thereafter, indexed annually to the increase in the Sydney consumer price index.

Mr George: She was going crook about it.

Mr ASHTON: She did. That levy is hypothecated to public transport infrastructure. In addition, this budget sets out changes to duty rates or gaming devices in clubs and hotels. Those changes, which will come into effect next year, will be phased in over the next seven years. I, like the honourable member for Willoughby, have been approached by clubs in my area. The clubs in my electorate—and there are many large and small clubs—believe that the figures in the budget are not accurate. They believe at this stage that the Government has underestimated the impact of these charges. I hope that the Government listens to their concerns. Clubs should not just be a source of tax revenue for the Government. It is important that we recognise what clubs do for the wider community.

I am sure that all honourable members are aware that some form of taxation has to apply to the revenue that is derived from gaming machines. If these clubs believe that their figures are different from figures that are reflected in the budget papers, I am sure the Government is prepared to listen to them. One of the Carr Government's greatest achievements relates to the lowering of debt. In 1995 general government debt in New South Wales was $12.2 billion—a figure much higher than the debt incurred by the Federal Government a decade ago. General government debt in New South Wales is now $4 billion. Every government incurs some form of debt. Governments buy or borrow in the full knowledge that they will receive revenue in the future. It is important for honourable members to note that, in the time of this Government, the Treasurer wiped out $8 billion worth of debt.

Running surplus budgets in good times means that we can cut back on debt and interest costs. However, it also means that much more money is available to spend on schools, hospitals and police. The New South Wales Government delivered the largest State Health budget this year. It will spend an all-time record $9.3 billion on Health. The Minister for Health, the honourable member for Bankstown and I visited Bankstown hospital on Monday to observe the new triage procedures and to establish how the rapid emergency assessment teams are operating. While we were there we were informed that there had been a car accident at Greenacre. Three or four ambulances brought three adults and four children, who fortunately were not seriously injured, into the hospital. We were able to observe first-hand its triage procedures.

I am sure that even the honourable member for Lismore would be aware that there is always a photograph opportunity somewhere, but on this occasion it was not set up. Those who were wounded had to be assessed by the emergency assessment teams and they were consigned to beds. For a while the hospital went into code red mode for those life-threatening cases. There was no chaos, we were able to move around and see what the doctors and nurses were doing, and we were kept informed of what was happening. We also had an opportunity to talk to one of the patients who was featured this week in an article in the Torch in Bankstown. He said that he was happy with the treatment he received at Bankstown hospital and his wife said that she was happy with the new car parking facilities at the hospital.

Hospitals do not only supply drugs and medical services. Elderly and infirm people need easy access to our hospitals. They do not want to park their cars in a nearby suburb and walk half a mile in order to obtain the treatment that they require. The Government has allocated an amount of $5 million for the establishment of the New South Wales Cancer Institute. I am appreciative of the fact that Opposition members supported that legislation when it was introduced in this House by the new Minister Assisting the Minister for Health (Cancer), the Hon. Frank Sartor, who should be congratulated on the role that he played in this matter. The Government has made provision in this year's budget to improve acute and community mental health facilities and services—an area in which I have an interest.

Siegfried Sassoon, one of the war poets, once said that it was quite respectable for soldiers to come home from World War I with broken arms, or only one leg. For some time after the war those soldiers were treated as real heroes. However, many of the soldiers who returned from World War I were mentally destroyed for the rest of their lives. Mental health has been a silent killer in Australia for 200 years or so, ever since white man set foot on this island. There is some degree of concern about the number of young people in society who suffer mental illness. I assure honourable members after having been a schoolteacher for 20 years that it is not just because children are being naughty that doctors are interested only in prescribing pills or that psychiatrists have taken over medical practices in society. The Government recognised that fact.

In 2003-04, $715 million will be spent on the provision of mental health services—an increase of $90 million, or 14 per cent, on last year's figures. Given that inflation is running at nearly 7 per cent, that increase of 14 per cent represents real money. The budget for mental health has increased by 101 per cent since this Government first came into office in 1995. Percentages often do not reveal the truth. The budget for mental health might have increased by 100 per cent but the base figure might have been quite low. If, for example, we were spending $2 million on mental health in New South Wales and that figure was increased by 500 per cent to $5 million or $10 million, it would not be a big percentage increase. However, this Government has doubled expenditure on the mental health budget, so it is really doing something worthwhile in that area. I urge the Government to continue increasing the mental health budget.

Honourable members would be aware of constituents in their electorates who might not just be waiting for priority housing or some other assistance. Many constituents in our electorates who suffer from mental health problems turn to us as a last resort. Constituents might need a pension or welfare from social security, or they might be struggling to cope with some debt that they cannot afford. Money affords greater access to most things in society but it can leave people vulnerable to health crises. We must do everything we can in this area of mental health. The Government has allocated more money for services in rural areas, but it needs to spend more. It has allocated $150,000 to support, supervise and train rural general practitioners in mental health. I am sure that all honourable members, including my colleague the honourable member for Newcastle, would like the Government to provide additional funding.

Mr George: More is required.

Mr ASHTON: More is required. Rodney Cavalier, a former Minister in this place and a colleague of mine, used to say, "Demands are infinite and resources are finite."

Mr George: Was he a mate of yours?

Mr ASHTON: He was. The funding cake might be large, but every year the demands increase. No matter how much funding this Government allocates, people will always want more. General practitioners are struggling at the moment in country areas. I will not conduct a Federal bashing exercise, which I am quite capable of doing, and blame the Federal Government for that. General practitioners who are working alone in country areas such as Lismore or Broken Hill tend not to have much experience in the mental health area. Much more needs to be spent on providing mental health services. However, funding for those services will probably have to be taken from other services. We need to expand the size of the funding cake that is available for the provision of these services. I was proud to announce in the past 18 months that the Bankstown local area command had received a substantial increase in police numbers. It is the largest police command in New South Wales. I do not know the exact figures but police numbers in Bankstown have swelled with each attestation from the Goulburn police academy and now total about 270 or 280 officers.

Mr Gaudry: It's a big command.

Mr ASHTON: Yes, it is the biggest in New South Wales. The police are shortly to move from five separate locations to new premises in a single building that housed the Bankstown tax office until the Howard Government closed it. The budget funds many election commitments in the policing area. It provides an extra $1.4 million to implement licensing and enforcement changes in the security industry. I met a fellow who had applied for a security licence but did not tell the whole truth. Police officers tell me anecdotally that the security industry must be regulated more closely. Too many people don a black uniform, arm themselves with a baton and declare themselves to be security officers. Fairly strict codes now govern the security industry and the issuing of licences. I am sure that all honourable members support the Government's policies in that regard. Some $8.5 million will be spent over two years to install video cameras in police highway patrol vehicles. Those cameras are necessary not to produce footage for blooper shows on prime-time television but to record vital video evidence. [Extension of time agreed to.]

I congratulate the Government on the record Education funding in this budget. Education and Training will receive a record $8.7 billion this year, which is a 7 per cent increase on last year. We are not going backwards: Education funding increases are well ahead of inflation. I will not list all those areas where money will be spent. However, money has been spent on school security fencing in my electorate in the past year or two and I have made donations on behalf of the Government for covered outdoor learning areas and other school facilities. I know that the transport allowance is to be reviewed. It was a wonderful initiative when it was introduced several years ago but its costs have blown out since then. However, I will not have any input in that change.

The Government is delivering better roads for New South Wales. Anyone who has travelled extensively on our roads knows that they could do with some attention. We must remember that this is not Germany, Austria or Great Britain. Australia is a large country with a small population. Drivers on our roads might hit the odd pothole—if they are anything like the honourable member for Murray-Darling they might deliberately hit a kangaroo or koala; the honourable member will not be offended by that comment—

Mr George: What about the koala?

Mr ASHTON: The honourable member for Murray-Darling would use it in a recipe. I think our roads are very good given the size of this country. Australia is big like the United States of America but our population is almost 20 million and theirs is 275 million—it has a much bigger tax base. Any expenditure on New South Wales roads is a great effort. I have mentioned the cross-city tunnel. I can travel to Parliament House on the M5 and the M5 East—and, more importantly, get home at night—in about 25 minutes without breaking the speed limit. I used to have to negotiate about 30 sets of traffic lights in Bexley and Beverly Hills. We know that rail bridges will have to be constructed. It will cost $30 million to replace the Menangle bridge—about which much has been said in this place—and many of our older bridges are bound to need work.

The Government is spending $375 million on the Environment. I thank the Government and the Minister for the Environment for the work that has been done in Georges River National Park, including Fitzpatrick Park in my electorate, where new roads, barriers and seawalls are being replaced. The grass is mowed regularly and kids are returning to the area. I think it costs only about $7 to access the park, with free access for most classes of pensioners—which is a real bonus. The budget allocates 9.3 per cent more money to the area of Ageing, Disability and Home Care, and I thank the Minister for Community Services, Minister for Ageing, Minister for Disability Services, and Minister for Youth for her efforts in that regard. I also record my appreciation for the allocation of $800,000 to rebuild a preschool that would have been forced to close at the end of the year when a church removed its support.

It is incredible that although the Government has allocated millions of dollars for Housing in East Hills, that will buy only about 16 units. The cost of housing is so incredible that the Government's attempts to build public housing and reduce waiting lists—which remain far too long—will be unsuccessful in the short term. Everyone in public life should make that honest admission. Children and families win in this budget. The Treasurer described it as a true Labor budget. I know that it has been criticised by some local newspapers and the media based on the so-called stamp duty bonus. Money is undoubtedly coming into State coffers as a result of the overheated housing market.

However, I have talked to those in the know who say that the bubble must burst—and very soon. The only thing that is obvious about interest rates is that high rates must eventually fall and low rates must eventually rise. That is part of the economic cycle. Housing in New South Wales—which is almost unaffordable at present—is delivering money to the Government to pay for schools, hospitals, police and the ageing and disability services that we need. The Treasurer has made provision for future demand when the economy is not so good. I congratulate the Government on this budget and thank honourable members for their attention.

Mr GEORGE (Lismore) [8.27 p.m.]: It is with great pleasure—although that might not be obvious from my speech—that I speak in the take-note debate on the budget estimates and related papers. At the beginning of his speech the Treasurer announced $29 billion over four years for massive new public works and investment. Sadly, not much of that money will be spent in my electorate of Lismore. I will place on record some of the concerns in my electorate and, where appropriate, recognise what has been achieved.

Improvements have been made to Casino hospital. The budget finally allocates money to fully fund the Kyogle multipurpose service [MPS] and the Nimbin MPS is close to commencement. Yesterday the Deputy Leader of the National Party raised as a matter of public importance problems at Lismore Base Hospital. The Lismore Base Hospital clinical services plan will be discussed in the next couple of months. The Minister for Health has indicated that he will visit Lismore to listen to our concerns and to hear about the good things in our area.

Critical care services need upgrading. Those services include emergency services at Lismore Base Hospital, patient triage, intensive care and coronary care services, women and children's health services, obstetrics and gynaecology, child health services, acute medicine, chronic and complex care, intensive care unit, renal services, aged care rehabilitation, mental health services, surgical services and clinical support services. I will work closely with the Northern Rivers Area Health Service [NRAHS] and clinicians in an attempt to achieve that upgrade. I thank the Minister for the allocation to Richmond Clinic of approximately $100,000 for planning for its $20 million project. It will be up to me, as the local member, to continue to pursue that project. The Richmond Clinic provides important mental health services to our region.

I also place on record the radiotherapy needs of the North Coast. The aged comprise a large proportion of the Northern Rivers population, but everyone should have access to radiation therapy services. A Current Affair tonight highlighted a concern to which I referred in debate on the Cancer Institute (NSW) Bill. That concern related to radiation services in Queensland. According to the program, many people are resigning from the system. That is of great concern to the Northern Rivers Area Health Service because statistics show that our area has the greatest need for radiation services. We will continue to push for a radiotherapy unit based at Lismore. Currently the rehabilitation unit for the NRAHS is based at St Vincent's Hospital, Lismore. Stroke victims and victims of motor vehicle and other accidents require an updated rehabilitation unit.

I am sure that all honourable members have received complaints about dental health services in this State, and whenever that matter is raised the Federal Government is blamed. However, in this case it is the responsibility of the State Government. I encourage the Minister to consider additional funding for dental health services in my area. There is a need in my electorate and in the NRAHS for an upgrade of early intervention services, such as speech therapy, psychology for the young, physiotherapy and occupational therapies. If those services are provided to those in the 0-14 age group, millions of dollars will be saved when they are older.

I place on record my thanks for the support of the NRAHS in solving the problem of the lack of doctors in Nimbin. The NRAHS, Lismore City Council, Northern Rivers Division of General Practice, and the Rural Doctors Network have created a separate entity to take care of the lack of doctors at Nimbin. I also encourage the Government to introduce an extensive campaign to raise awareness of organ donation.

I am concerned about the restructure of regional district offices throughout the State. The Minister for Education and Training has announced a blueprint for the new structure of public education and—as I told the Minister—I will be disappointed if jobs are lost in Lismore. In the past Lismore has received good support for schools. I have not yet seen the break-up for individual schools in this budget. I have written to the Minister in relation to Casino Public School, which requires a fenced play and activity area for students who take part in gross motor or sensory activities. I hope that will be provided. For quite a while Casino West Public School has asked for a new school hall but, unfortunately, that has not been forthcoming. The school received a letter from the department stating that it would be included in a forward capital works program, but as far as I can ascertain it has not been included in this budget.

Prior to the last election Kadina High School was promised a fence and airconditioning, and I hope that is included in this year's budget. Lismore High School needs a covered assembly area. I support the teachers, who are the backbone of the public education system. I received a fax today from Casino West Public School stating that it missed out on a class today because of the unavailability of casual teachers. Learning for classes K-1E was disrupted. I appreciate the very good support that some schools have received during the past 12 months. I have registered my concern about bus bay areas at schools. Country schools, in particular small country schools, are becoming more and more popular, and all the schools in my area have complained that parents arrive at the school at the same time as the school bus.

Approximately 2,000 children use the major public transport interchange at Trinity School, Lismore. I thank the Minister for sending Carol Boden, Manager, Passenger Safety, Roads and Traffic Authority to a meeting in relation to this matter. The mayor and the general manager of Lismore City Council were there, together with Barry Halsley, Superintendent, Richmond Area Command and Tony Macarthur, from the Catholic Education Commission, Sydney. The problem is that the interchange is in limbo. No-one seems to own it. That no-one accepts responsibility for it creates a major problem in the determination of rules for the area. That matter, which I have already registered with the Minister, needs to be sorted out.

There is a lack of public transport between smaller country towns in my electorate. Bus transport is badly needed. It is non-existent. For the main hub from Summerland Way to coastal towns such as Lismore, Bangalow, Byron Bay and Murwillumbah the perfect solution would be a deb set. The Minister for Transport might be able to find a way to provide this means of transport by which the people of the Tweed can get to university, TAFE colleges and so on. School students are well and truly catered for with bus transport, but public transport is not available for TAFE students.

Regarding our east-west link, the Bruxner Highway, I have correspondence from a number of councils and the Northern Co-operative Meat Company, whose customers and members are major users of the Bruxner Highway between Casino and Tenterfield. There are only two passing lanes on 100 kilometres of that roadway, what is almost all hilly country. That matter needs attention. I am pleased that the Alstonville bypass, at the start of the Bruxner Highway, is under way. The Woodenbong to Legume road is the Darling Downs to Northern Rivers connecting road, an east-west link, are again overlooked in this budget. I will continue to make overtures in respect of those matters. Regarding the Summerland Way, I have a list of about $36 million worth of works that need to be done. State and Federal funding has been received over the past 10 years, but we will be making further representations to Ministers regarding the Summerland Way, which is a very important road that requires further substantial funding.

I turn now to the budget for Police and law and order. Finally, we have a full complement of police. It took a long time and a lot of representations to get that full complement, but I acknowledge that police numbers are at full strength—even though many officers are just out of the academy and cannot work on their own. However, they have to get their experience somewhere. I want to talk now about rural crime investigators. I call on the Minister for Police to ensure they are properly resourced. They are now very important to the rural community. This is a matter that I have been pursuing since I was elected a member of Parliament. At the moment, these investigators are not properly resourced. Some rural crime investigators are driving cars that are little more than useless off made roads. I ask the Minister to give thought to allowing rural crime investigators from different area commands to work with each other, because these investigators cannot do the job on their own. At times they need outside support as well.

The Lismore police station is a high priority. The Minister has already been to Lismore. I am honoured that the Minister will revisit the electorate on 23 July. On that visit he will unveil the first police memorial in country and regional New South Wales. The Minister's office was good enough to support that initiative. The Minister will be there for the unveiling and, while there, I am sure he will have another look at the Lismore police station. Casino station certainly needs additional work. The cells were updated as part of a very good project, but the station needs much more work. I look forward to taking the Minister to Nimbin. If he accepts my invitation, we might have a look out there. [Extension of time agreed to.]

Regarding environmental and natural resource issues, the Minister is fully aware that I have been making certain representations. However, the Minister must continue to listen to what people on the land are saying to him. I have faxes about a number of different problems. One fax is from a Kyogle operator who has a problem with the disposal of effluent from septic tanks. He had been disposing of that effluent into the Kyogle sewerage system, but because of new Environment Protection Authority guidelines he is no longer able to do so because of lack of certain approvals. As a result he must transport the effluent to the Lismore sewage treatment works, which charges $90 a tonne for this waste product. Obviously, it was cheaper to dispose of this waste at Kyogle. Other such problems are being created throughout the area.

I have a note from Andrew Heap, Executive Officer of the Australian Macadamia Society, in which he says that the Lismore City Council, as the compliance agent for the Environment Protection Authority, is not getting helpful direction or guidance from the authority on noise and spray drift guidelines for the macadamia industry. He said that his society is discussing this issue with the council, which he hopes will assist the industry to overcome some difficulties. This is a major industry. However, rules and requirements being imposed on macadamia growers at the moment are causing headaches.

On Monday I received a fax from Colin L. Godfrey of the Manning Veterinary Hospital. He has a property at Ellangowan, just outside Casino. He had been clearing tea-tree regrowth, he said, in compliance with restraints imposed by the Native Vegetation Act. But a complaint was made by a member of the public. He says that the main concern appeared to be the clearing of tea-tree scrub regrowth. Mr Godfrey says he had been careful to preserve native vegetation regrowth more than 10 years old. He notes in his fax that it was suggested that it would be in his "best interests to halt the work while the complaint was being investigated." Here are people who genuinely believe they are operating within guidelines, but a Land and Water inspector from the Alstonville office asks them to halt operations until investigation of the complaint is completed.

The drought is still affecting my electorate, despite what may be said about areas east of Casino. The area between Kyogle and Casino has received quite a bit of rain, but west of that area the drought is still taking its toll on many farmers and producers. Again I place on record my concern about what will happen to abattoirs in this State when the drought is over. It is not much use waiting until it rains and the drought breaks to think about what will happen, because the day it rains there will be big problems for the meat industry in this State. The Government needs to be aware of that. I have continually highlighted the problem. I trust the Minister for Agriculture will take on board my concerns and keep in touch with the industry. If it is adversely affected, there will be ramifications for the State.

Bovine Johne's disease is still a problem for the Lismore-Tweed Rural Lands Protection Board as well as for the Casino Rural Lands Protection Board. We have the same problems regarding restrictions on trading. I know this matter is being looked at now. I encourage the working out of some system that will help the affected farmers. I will continue to say that we have a major problem with the tick control program. I note that the Minister has saved $12.5 million, and he had one tick in his pocket! I extend to the Minister for Agriculture an invitation to accompany me on a visit to the tick quarantine area to give it the big tick. We will see what can be done about the problem.

I refer to the Emergency Services portfolio. The Minister has allocated $50,000 to the Lismore SES, which I know will not be enough. The Lismore depot is hopeful of moving out of a flood area and onto higher ground. I will continue to make representations to the Minister in that regard. We appreciate the new fire truck that was delivered recently to Lismore. We look forward to the delivery of the new truck for Casino, which I understand will be called Tommy the tank engine. Communication between emergency services in the north of the electorate has been a problem. Sadly, we could not communicate via mobile phones because we were not permitted to build a tower. Now that Minister Debus has resolved that matter we can build a tower and, hopefully, communicate successfully via mobile phone. We have been trying to raise funds to operate a 24-hour fire station in Lismore. The council has included funds in its budget, but I have not been able to find any funds in the Government's budget. However, I am hopeful that we will be able to finalise it.

I will continue to reinforce the problems faced by small businesses and industries in my area as a result of payroll tax, workers compensation, stamp duty, fire service levy and general insurance. Different rates of payroll tax and workers compensation along the border areas—the Victorian border, the Queensland border, the South Australian border or the Australian Capital Territory border—make it very difficult for businesses to compete against interstate opposition. I know we keep talking about it. Last night the workers compensation legislation had bipartisan support. Not one business in this State is without a workers compensation problem. Not one business in this State has failed to adopt occupational health and safety principles to improve safety in the workplace. But I guarantee that businesses are paying more for workers compensation premiums today than they were five years ago. The State is losing $2.5 million a day, which is not good for anyone—the Government, the Opposition or businesses.

In seven weeks we will have an Alcohol Summit. Why will we not have a workers compensation summit? We need the experts to tell us how to deal with this problem. I hope that the Parliamentary Secretary at the table, the honourable member for Newcastle, will convince the Cabinet that we need a workers compensation summit. For the past 12 to 18 months I have highlighted the problems of the Northern Co-operative Meat Company. I will continue to use this company as an example because it continues to supply me with information. Insurance expenses for the company—not workers compensation but fire insurance—increased from $453,000 in 2002 to $2,648,000 in 2003. The stamp duty component alone increased by $200,000 and the fire service levy by $500,000. The directors and the chairman of the company have said that rather than paying more insurance they may be better off to buy a new fire truck every year and place it on the property.

When I looked at the newspaper today I saw a headline "Green tax angers abattoir. Do you care, Bob Carr?" Jobs will now be lost because of a new environmental tax. The meat company has ploughed almost $300,000 into an environmental project because it was good for the meat company and the environment but now it has to pay a a levy on its power bill—it is not the fault of Country Energy—that includes a green tax component, which they have to pay as well as the $300,000 to help the environment. Only today we heard about the plight of small clubs. Everyone is saying that the figures are wrong, but I can assure honourable members that every club in my electorate has already been in contact with me. As soon as I get back to the electorate they will want to see me. Local clubs continue to support many small communities in my area. I can assure honourable members that if these community organisations lose the support of the clubs they will have nowhere else to turn.

Last night I registered my concerns about the amalgamation that resulted in the formation of the Richmond Valley Council. Each local government in my electorate is struggling financially because of insurance payments, road maintenance, bridge maintenance, et cetera. Kyogle shire has something like 300 bridges to maintain. Each year local governments look for more money in their budgets but, sadly, it did not materialise this year. I can guarantee the Government that I will continue to make representations on behalf of the Lismore electorate. I have listed only 10 per cent of the problems in my area, but I will continue to pursue the Government to rectify them. Anyone reading Hansard will get the impression that my electorate is full of problems. I can assure honourable members that it is a good place to live, and I am very proud to represent it. I will continue to promote the positives.

Mr GAUDRY (Newcastle—Parliamentary Secretary) [8.56 p.m.]: I am proud to represent the people of Newcastle in this place. The Government has brought down another positive budget that keeps our compact with the people of New South Wales by, in the words of the Treasurer, strengthening the State's social fabric and financial position; allocating substantial additional resources for our schools, hospitals, transport, community safety and community services; and investing strongly in the modernisation and renewal of the State's social and economic infrastructure. Some $34,912 million will be spent during 2003-04. Major components include $8,159 million for the Department of Education and Training, an increase of $542 million over last year's budget; $9,267 million for the Department of Health, an increase of $920 million and a record Health budget; and $803 million for the Department of Community Services, an increase of $162 million.

Other major components include $1,276 million for the Department of Ageing, Disability and Home Care, an increase of $109 million and a recognition by the Government in the two Community Services areas of the needs to be addressed by the Government, particularly through the expansion of child protection programs; and $1,816 million for New South Wales Police, an increase of $143 million, to keep the promises we made in the last term and leading up to the election to provide record numbers of police to service the community of New South Wales. One of the really significant determinations in the budget is the recent establishment of the new Department of Infrastructure, Planning and Natural Resources, a landmark reform in environmental and natural resources management. It is the result of a stream of important decisions by this Government in its first two terms to reform legislation dealing with coastal protection, water, vegetation, forests and conservation, environmental planning and protection, and the entire planning structure in New South Wales.

The department's establishment is viewed as an important reform, if I may use that term. Under the responsibility of one Minister, it will draw together the administration of the important factors of natural resources and planning, including transport planning. That is an example of pivotal policy making by this Government. The creation of that ministry has been much needed, and it takes into account the pressures of increasing population and changing climate on this great land of ours. Those two major factors will be taken into account and integrated in the administration of the portfolio by the Minister for Infrastructure and Planning, and Minister for Natural Resources, Craig Knowles. I am pleased that he has responsibility for that portfolio because a very important issue in the Hunter region is the need for a comprehensive approach to integrate land planning and transport planning. In that context, I particularly mention rail, road and container freight movements, and the importance to the Newcastle and Hunter region of the development by the Newcastle Port Corporation of the multipurpose shipping terminal on the former BHP site.

There is a glaring need for an integrated transport plan for the Lower Hunter to cater for heavy vehicle transportation, but more particularly public transport. Passenger transport by rail, bus and ferry should be embedded in the transport system so that it serves the needs of people who live in suburbs that are developing in the Hunter region. Preparatory planning should incorporate public transport routes into the development of new suburbs. New suburbs are being developed in the south-western, western and north-western areas of the Newcastle and Lower Hunter region, in the burgeoning Lake Macquarie areas, the Minmi corridor, Raymond Terrace, and at Maitland, Kurri Kurri and Cessnock. Effective planning is needed for the future development of the area.

I cite statistics to illustrate the point I am making. In 1996 the Lower Hunter had a population of 455,000 people but it is estimated that by 2021 the area's population will be between 650,000 and 730,000—an increase of between 35 per cent and 50 per cent. Large numbers of people are moving into the developing areas I have mentioned. I have to be critical of planning decisions that have been made to date because they have not included effective links from population areas to existing public transport systems or planning for future public transport use in those areas. I have to say that the system currently is a non-integrated system. In that context, obviously the combination of infrastructure planning and natural resources under the administration of the Minister for Infrastructure and Planning, and Minister for Natural Resources is very important.

The new ministry will provide an opportunity to examine proposals for future development against the background of pressures and problems in Sydney's current transport planning. Forward planning generally takes problems and pressures into consideration. A transport working group is currently taking submissions for the Minister for Transport Services on the section of rail line between Woodville Junction and Newcastle East in my electorate. I make it clear to the House that I am a strong advocate for the retention of that rail line. Clearly, it is currently an underutilised rail line but it is linked to a large potential market of public transport users in the northern and western areas of Newcastle and southwards in the Lake Macquarie and Central Coast areas. Planning for those areas needs to be approached comprehensively.

The transport working group is headed by Mr Bill Dunbar of the infrastructure ministry and includes Gary Kennedy, the Trades Hall Council secretary; John Tate, the Lord Mayor of Newcastle; and Glen Thornton, of the Newcastle and Hunter Chamber of Commerce. It is important for people who intend to make submissions to that inquiry to clearly state their views on public transport. However, I believe that a much more comprehensive examination should be made of the transport needs of my electorate than the working group can currently provide. I refer to some interesting statistics relating to the use of public transport in Newcastle and the Lower Hunter. Very low usage has come about as a result of a combination of factors. For example, developments in the city—such as the John Hunter Hospital and the university—were built away from the existing public transport network.

During the past couple of years a review of Newcastle bus services has been undertaken with a view to better integrating public transport in areas that were not well served by the current bus network but were nevertheless areas where people work and shop. It was found that the use of bus transport had not increased greatly. Current statistics on the use of public transport for trips to work in the Lower Hunter indicate that only 4 per cent of the population travels to work by bus or by bus and train, and that the majority of people in the area travel by private car. Public transport services are used mostly by young people, elderly people, low income earners and householders who either do not have a vehicle or have one vehicle. The public transport system in Newcastle and the Lower Hunter is an incredibly important social justice issue. Why do so few people use public transport in that area? I think it is a combination of the dispersed nature of industry in the Lower Hunter and Newcastle areas and because car ownership can be achieved at a low cost. People can currently buy a new car for as little as $14,000.

There is also a lack of integration in the public transport system, and there are very clear examples of that. There is poor integration between bus and train services, and there is no integrated ticketing system. I know that the Government is working towards the introduction of an integrated ticketing system, and it will be a positive outcome if people are able to purchase one ticket that can be used on trains, buses and ferries. Very cheap parking is available in Newcastle, and it obviously also has an impact on whether people choose to travel by public transport or by private vehicle. I am pleased that a review of transport, particularly bus transport, is being undertaken. Currently there is no contractor obligation on bus operators to better integrate their services with other services, and there is no obligation on them to integrate into nodal centres. The Passenger Transport Act certainly is in need of review.

If there is to be better integration—whether in Newcastle, the Lower Hunter, or any area of the State—we need a system in which individual contractors contribute to the integration system and do not act separately from it. The Newcastle and Lower Hunter areas benefit from the public transport system; I believe Newcastle is the only regional city in Australia to have such a service. However, we need to work at Federal, State and local government level to improve the service. The Newcastle City Council has an urban strategy, Lake Macquarie has an urban strategy called Lifestyle 2020 and the State has a policy called Action for Transport 2010. Those strategies each have positive procedures and steps to improve transport, but they are not integrated. The relevant bodies are not working together to plan for land use and transport services. Now that Minister Knowles has taken charge of the relevant portfolios I am sure that integration will be achieved.

Mark Latham commented, in his former shadow portfolio, about the positive benefits from the Building Better Cities Program, which focuses on the inner core of cities around Australia. He said that he would regard a second tranche of funding as a positive step towards a program that looked at cities in western areas. A combination of Federal, State and local government funding for integrated transport and social infrastructure would be a positive outcome. Another matter that would benefit from a more co-ordinated approach is transport planning, particularly as it relates to container transport. Members would be aware of the proposal to increase container traffic through Port Botany. A strongly supported plan has been put forward for the development of a multipurpose terminal in Newcastle.

A similar terminal is planned for Wollongong. Container transport into Australia will undoubtedly increase, and it is clear that Port Botany will soon reach its maximum potential. There is a tremendous window of opportunity in Newcastle for a multipurpose terminal to go ahead. Expressions of interest for that terminal have been called for, and the Newcastle Port Corporation is working hard to secure the terminal for its port. The terminal at Newcastle would need to be backed up by future development of port and inland areas, particularly in Sydney, which would receive and break down the cargo from the container terminals. I have worked with the Newcastle Port Corporation and that positive project is ready to go. [Extension of time agreed to.]

The project has been given serious consideration by the shipping industry, but it wants a sense of certainty about the project. It is important that the industry is given that assurance, and I hope that in the near future that certainty will be demonstrated by the construction of the multipurpose terminal in Newcastle. The budget has a positive outcome for Transport in the Hunter. Some $10 million is needed for 30 wheelchair-accessible easy-access buses. The budget has allocated $3 million towards that project and the buses should be in operation in Newcastle by September. Some $16.2 million has been allocated towards the $236 million upgrade of the Belmont, John Hunter and Newcastle Mater Misericordiae hospitals and the establishment of the new Newcastle polyclinic.

Those upgrades are important public health investments in our city. They are made even more important because of the continual retreat by general practitioners. In a recent debate in this House I heard that 23 general practice surgeries had closed in the Lower Hunter in the past four years. At the moment some 30 medical practitioners are being sought for the hospital system in the Hunter. The Government will spend $234 million on capital work in my area to completely rejuvenate our health services. Earlier the honourable member for South Coast discussed funding for fire engines; $600,000 has been allocated for state-of-the-art engines for the Stockton and Merewether fire stations. They will be warmly welcomed by the community.

The multipurpose performance space at the Hunter Performing Arts High School is to proceed. The community has been looking forward to that facility for some time. When completed the $4.9 million facility will deliver state-of-the-art technology for students at that excellent high school in my electorate. This year some $200,000 has been spent on planning and preparing that project. The new Children's Court, which will replace the outdated Worimi Children's Court, will receive $2.5 million for development. The new court will be a state-of-the-art facility for Newcastle children. The sum of $1.1 million has been allocated to house the Department of Juvenile Justice, which had been accommodated at the previous Worimi Detention Centre. That centre will be demolished to make way for the new project.

The Hunter Water Corporation will spend $12 million on its new state-of-the-art head office. This year some $10.3 million will be spent to continue building the 14 Hunter railcars. Those railcars will rejuvenate the rail services to Scone and Dungog in the Hunter. They will link Scone and Dungog to Newcastle's central business district and enable people from those areas to travel to the regional capital of the Hunter. They will also link to Sydney train services. The building of the intra-urban carriages is to be undertaken by Goninans.

The Government has an ongoing commitment to the Newcastle electorate. It recognises the need to provide additional health, education and community services for the people of New South Wales. There is still much to be done, particularly in the provision of mental health services. The Government is aware that it has to provide funding in this year's budget and in future budgets for the provision of mental health services in my electorate. I refer, as other speakers have, to the high cost of providing accommodation. This year $754,000 will be spent on the continuation of work on eight units of accommodation for the Department of Housing in New Lambton. The total cost of that project, which is $831,000, reflects the high cost of providing accommodation for those in our electorates who are dependent on public housing.

This year's injection of funds into the Department of Community Services will deliver social justice to many families and children in need of housing or support services. I referred earlier to the $1.2 billion that will be spent over five years to boost family services. That figure includes $260 million for an additional 875 caseworkers and associated managers and an additional $186 million for new systems and support for front-line workers in the department. Every day front-line workers endure some form of stress when resolving critical issues between individuals and families. An additional $156 million has been allocated for early intervention services and $580 million for out-of-home care. Many people in our community, particularly young families, need assistance now. Assistance that is given early often leads to more stable families, less likelihood of children going off the rails, and a better and more positive community.

The Treasurer said that this budget concentrates on strengthening the State's social fabric and its financial position. The budget has delivered on the Government's election promises. However, there is still much that has to be done, a statement with which I am sure all honourable members will concur, to improve services in our community. I commend the budget to the House.

Mrs HANCOCK (South Coast) [9.25 p.m.]: As the details of the Carr Labor Government budget are disseminated to the people of the South Coast I am sure they will have many mixed feelings, as I do, about the budget. I am sure that there will be some sense of relief that most of the Government's pre-election promises have at least been partially kept. I congratulate those communities that worked so hard to raise concerns and achieve their goals in the lead-up to the State election. The electorate of South Coast was, and still is, a marginal seat. In my view, many promises were made at the last minute to try to secure this seat for Labor in the future. That did not work. People in South Coast became cynical about the Government's promises. They had been agitating for a long time for the commencement of some of these projects, but many of the promises were made only at the eleventh hour. In fact, one promise was made only two days before the State election.

There are mixed feelings in the electorate of South Coast. I will speak later about specific budget items as they relate to the people of South Coast, but I first need to express my deep concern about the continuing neglect of the Princes Highway in both the South Coast electorate and the Bega electorate. For many years community members who travel on the Princes Highway have expressed in the strongest terms their concern about that stretch of highway. Some years ago a group of concerned individuals presented a petition from 10,000 individuals calling on the Carr Government to commit greater funding to improve some of the more dangerous sections of that road. For reasons best known to him, the former Labor member did not present that petition to the Parliament; he claimed it had been passed on to the Minister for Roads. The Minister for Roads at that time should have been well aware of the strength of community feeling in the electorate of South Coast about the Princes Highway, but those concerns have been ignored.

The impetus for the petition was the death of a young man, Aryan Rumantir, on a notoriously dangerous section of the highway called Heggos Corner. That was not the first fatality in the area. That stretch of the highway is littered with crosses and flowers that have been placed there by families, loved ones and friends of those who have lost their lives at that location and at other locations on the Princes Highway. Somehow it was the death of Aryan, a young 20-year-old man, that enraged the South Coast community. That young man, a bright student, was extremely talented in drama and singing. He was a former student of Ulladulla High School—he had been a former student of mine—who was returning home from Sydney to Ulladulla for his birthday celebrations. He had been rehearsing for the Johnny O'Keefe show, which just goes to show how talented he was. Tragically, he was killed on Heggos Corner.

His tragic death touched the lives of everybody who knew him, and everybody who knew of him. The local media began a campaign called the Highway of Hell campaign, which attracted tremendous support. A local newspaper outlet asked members of the community to turn up to a public meeting to express their views about the Princes Highway, which they did. Young people, relatives of those who had lost their lives or who had been injured on the Princes Highway over the years and other members of the community expressed their views. The unanimous view was, of course, that the Princes Highway needed additional funding to make it safer for all users.

Apart from the chokepoint south of Nowra and tourists being held up for hours and hours, the safety issues and the death of young people like Aryan Rumantir provided the impetus for action groups and the Coalition to make certain promises in relation to the Princes Highway. It took us some time to devise a solution that we thought was appropriate, at least for the dangerous sections of the Princes Highway. We gave a substantial promise that if the Coalition were elected we would do something about the condition of the Princes Highway. It was a sensible plan that could have been funded. However, the budget contains nothing—not one red cent—for the Princes Highway south of Nowra. The people of the South Coast should feel betrayed.

Since the budget announcement I have received several representations about stamp duty. It is not appropriate for the Carr Government to respond to criticism about this issue by saying that we need exorbitant stamp duties to fund our schools, our roads and our hospitals. Perhaps the Treasurer should have been a better economic manager. Perhaps he should have reduced expenditure in areas such as self-promotion through advertising or reassessed his staffing costs. They are just a few of the ways in which Mr Egan could have offered some hope that people will get out of the rental market and own their own homes.

According to the representations I am receiving, the high levels of stamp duty are making home ownership a distant dream for many on the South Coast, especially the young. It seems that the Premier and the Treasurer will continue to reach into the pockets of the battlers of New South Wales—the ordinary people—without a second thought or a wave of their bony, greedy little fingers. It is no wonder this State's unemployment figures are high and its growth rates are low compared with the other States. The Government appears to have no vision. There is no incentive for people to stay in New South Wales when this increasingly arrogant Government treats ordinary people with contempt.

Another issue that came to the fore during the election campaign was the plight of self-funded retirees. The Federal Government made a 60:40 funding offer designed to return some concessions to self-funded retirees, many of whom live in my electorate. But what did the Premier do? He remained silent about the Federal Government's generous offer. I spoke to many groups of self-funded retirees before the election and I have spoken to them since, expressing my absolute disgust and disappointment that the Carr Government has failed to help them. People would have received only small concessions, but at least it would have been something. Some self-funded retirees in my electorate are struggling to survive.

On a lighter and brighter note, the community of Sussex Inlet will get its ambulance station—not because the Carr Government approached the issue with any integrity but because I raised the matter with the Coalition, which recognised the strategic importance of having an ambulance station at Sussex Inlet. The Sussex Inlet community had called for this station for at least 10 years. Sussex Inlet is 40 minutes away from Nowra hospital by ambulance and the community is home to a number of retirees, many of whom suffered heart attacks but miraculously survived despite the long wait for an ambulance. I convinced the Coalition that we needed an ambulance station at Sussex Inlet. We made the promise and costed it.

Weeks went by and guess what happened? Yes, the Labor Government matched our promise. However, I suspect that if we had not made that commitment the Government would have done nothing to provide an ambulance station at Sussex Inlet. I am extremely pleased about this project, and perhaps the retirees will feel a little safer with an ambulance station in their community. I thank all those community members who have worked hard to achieve this goal and I express my regret that one of the main movers and shakers for the Sussex Inlet ambulance station, Ron Holder, died only months ago and will never see his dream become a reality.

In a similar vein, pre-election promises regarding the Milton school and hospital are honoured in the budget. However, the promises to provide these long-overdue facilities were made only after similar Coalition promises and/or considerable community pressure. Work on both facilities will be staged and funding will continue into the next financial year. I trust that the full amounts promised will be delivered. As a teacher, I have been absolutely appalled, especially in the past few years, by the contempt that the Carr Government has shown for teachers. It has undervalued their work and seemed unable to communicate with teachers on a number of issues. I am even more appalled by the hypocrisy of this Labor Government reflected in this budget by fee increases and the removal of course exemptions for TAFE students.

The Government's response to the justifiable criticism of its stance is that it will not affect everybody. However, it will affect an enormous number of people who may find the costs simply too great and, as a consequence, will not pursue their education, training or career development. This miserly budget provision even contravenes Labor Party policy regarding the abolition of TAFE fees. Labor members must feel ashamed of their leaders as they struggle to justify this decision to their constituents. On Monday this week the Nowra branch of the TAFE Teachers Association met and resolved the following:

Nowra Branch of the TAFE Teachers Association expresses our disgust in the big increases in fees, starting in 2004, and the removal of course exemptions from all Access courses. This contravenes the Institute Strategic Plan, which has a commitment to access and equity.

I would have thought a Labor Government would stand up for access and equity, but this Government apparently does not. The resolution continued:

Many potential students will be excluded from access to education, training and career development.
That measure is unacceptable and an example of hypocrisy of the worst kind. I received a letter from the Nowra branch of the TAFE Teachers Association just today. The letter states:

I am writing to inform you about joint industrial action which is currently being undertaken at our campus by members of NSW Teachers' Federation and members of the Public Service Association in response to plans by the Department of Education and Training to radically restructure TAFE and to sack over 1000 staff …

In addition to this joint action The NSW Teachers' Federation is acting to secure reasonable salary justice for full time and part time teachers working in TAFE colleges …

It appears that the Carr Labor Government is continuing with its policy to privatise all public utilities and to thus undermine, under-resource, over-price and erode public education in NSW.

The Government has said much about supporting public education in New South Wales but this is the response from TAFE teachers in Nowra and the New South Wales Teachers Federation. I am sure that some Labor members will hang their heads in shame at that result. The bushfires that raged through the towns and village up and down the coast almost two years ago affected almost everyone on the South Coast in one way or another. At the inquiries conducted last year it was found that hazard reduction burning in national parks had been inadequate and that strategic fire trails had been allowed to close. I can attest to that first hand as I am chairman of the Rural Fire Service Strategic Planning Committee and we met on several occasions to discuss those issues.

I became aware during my visits to the fire control centre during the bushfires that bulldozers were being sent out every night to open strategic national park fire trails that had been allowed to close over. Our volunteers' lives were put at risk by that shameful action on the part of the National Parks and Wildlife Service. The communities of the South Coast love their national parks but I implore the Carr Government to ensure that strategic fire trails are kept open at all times. In relation to the Rural Fire Service budget, $5 million has been put aside for the relocation of the rural fire centre in Homebush. There are some 37 local bushfire brigades and their volunteers are concerned that $5 million will be spent on the relocation of that centre into a city area. After all, it is a Rural Fire Service brigade. For a long time the Shoalhaven Fire Control Centre has been located in Nowra—the centre of recent huge bushfires—and housed in a small, inadequate facility which was formerly a hospital and at one stage a small hotel.

Mr Newell: We have upgraded it.

Mrs HANCOCK: For years we made submissions to upgrade and build a new emergency operation centre in Nowra. The Carr Government did absolutely nothing, so the volunteers in the Rural Fire Service implored the council to ask the ratepayers of the Shoalhaven whether they would agree to a special levy. In fact, only two people in the Shoalhaven objected to such a levy. The centre will be funded by the Shoalhaven City Council and the ratepayers of Shoalhaven—not one cent from the Carr Government! So much for the contributions of the Carr Government to an emergency operation centre!

We have a number of volunteer coastal patrols in our area at Sussex Inlet. There is one at the Shoalhaven Marine Rescue Association and another at Ulladulla. Many city members would not know that those voluntary organisations have to raise their own funds and provide their own boats and vessels to rescue people at sea or those who get into trouble on our waterways. This Government needs to look seriously at providing funds for the Royal Volunteer Coastal Patrol organisations in the future or they will fold. For years they have had to raise money through lamington drives and raffles. They are in serious trouble because they do not have police boats or vessels; they only have volunteers. Their problems must be addressed.

The Minister for Roads visited the electorate of South Coast with the former member for South Coast and, two days before the election, finally conceded that something needed to be done about the huge traffic problems on Nowra bridges. There are two Nowra bridges: one was built in 1860 and was designed for the volume of traffic at that time, which would not have been high. It is now ageing, and we do not know how much longer it will be able to take the heavy vehicular traffic. [Extension of time agreed to.]

The community waged a war in the media and asked what the Carr Government would do about this long-term problem. If we do not do something now we will have very serious problems in 10 years. The budget has allocated $100,000 for a feasibility study. The people of the South Coast will watch to ensure that the study is not put in a bottom drawer and forgotten. If that happens there will be serious traffic congestion in the area. Indeed, there is a lot to be achieved in all of our electorates. There are many problems, and I have no doubt that no budget will please everybody. I have been a member of Shoalhaven council for almost 16 years and chairman of its works and finance committee, and I know for a fact that it is almost impossible to please everybody. But it seems that the people of the South Coast have missed out in many ways. They have fought hard to achieve whatever they have got for themselves.

I am appalled that promises were made just prior to the election, rather than as a result of a strategic vision to supply facilities, which would have been more appropriate. Works are proceeding on the Shoalhaven hospital, but today I was told that there is low morale at the hospital and there is talk of industrial action because of nurse shortages in the area. If we do not address the problems seriously, rather than just use this empty rhetoric that I hear so often from the Carr Government, we will have serious problems at both Milton and Shoalhaven hospitals. I look forward to the next four years. I would like this Government to address the problems of the battlers, students, self-funded retirees, pensioners, TAFE and school students and young people who are trying to get out of the rental market. Let us try to help the people who the Labor Government should be supporting. I thought that was what it stood for. Clearly, in this budget it does not stand up for those people at all.

Debate adjourned on motion by Mr Morris.