Ms LYLEA McMAHON (Shellharbour—Parliamentary Secretary) [3.45 p.m.]: I move:

That this House:

(1) notes that State Final Demand figures released yesterday show the New South Wales economy grew by 4.4 per cent in the first nine months of this financial year;

(2) congratulates the New South Wales Government on its sound management of the economy during the global financial crisis; and

(3) condemns the Leader of the Opposition and shadow Treasurer for fabricating New South Wales budget figures and misleading the State's business leaders.

Yesterday we received excellent news about the New South Wales economy: it continues to lead Australia. The Australian Bureau of Statistics released State Final Demand data that shows that economic growth in the $380 billion New South Wales economy leads every other economy in the nation. We lead every State and Territory. New South Wales has recorded 4.4 per cent growth over the past nine months, with 0.6 per cent growth in just the March quarter. These State Final Demand figures show that New South Wales contributed around 46 per cent of economic growth across all States and Territories so far this financial year. This is a phenomenal contribution.

Let us pause for a moment to consider that. Even though New South Wales comprises roughly only one-third of the country's population, we contribute almost half of Australia's economic growth. Importantly, this is excellent news for New South Wales families and businesses. The green shoots of recovery are flourishing in the New South Wales economy. The 4.4 per cent growth in New South Wales over the first nine months was significantly stronger than elsewhere: 3.4 per cent in Victoria, 0.1 per cent in Queensland, 2.2 per cent in Western Australia and 3.5 per cent nationally. Clearly, the New South Wales economy continues to lead the nation.

New South Wales now has enjoyed five consecutive growth quarters. Let us compare our growth this financial year with that of other States. In the first nine months of this financial year our growth rate was twice that of Western Australia and about 40 times greater than that of Queensland. Victoria has recorded only four growth quarters while Western Australia and Queensland again went backwards in the March quarter. In that same nine-month period Victoria had 3.4 per cent growth, Western Australia had just 2.2 per cent growth and Queensland had just 0.1 per cent growth. Out in front is New South Wales with 4.4 per cent growth. Only South Australia comes close, with 4.3 per cent growth.

New South Wales is leading the way. This is great news for New South Wales families and businesses. I repeat: New South Wales continues to lead Australia's economic recovery. Unlike other States, the growth of the New South Wales economy so far is broad based. The Government, households and businesses have all contributed significantly to the State's growth so far this year. New South Wales has led the nation's retail recovery following the worst days of the financial crisis. Since 2008 New South Wales retail sales have grown by 10.2 per cent, which is a rate equal to that in Victoria, compared with 8.3 per cent nationally and 5.2 per cent in Queensland and in Western Australia. The New South Wales retail sector employs approximately 10.8 per cent of the New South Wales workforce, which equates to more than 360,000 jobs, according to the latest Australian Bureau of Statistics data for the February 2010 quarter.

Both consumer and business confidence are at above average levels. Business confidence and business conditions remain above the long-term average. Dun and Bradstreet figures show that profit expectations for the September 2010 quarter remain at a five-year high. As we head into budget week it is important to reflect on last year's budget and our Treasurer's reference to a beacon of hope. Just one year ago the economic outlook was very grim indeed. Business confidence was down, consumer confidence was down, and the financial crisis was gripping the world. Certainly, recovery looked to be some way off. Yet in just a year Australia's economic growth leads the developed world and New South Wales leads the country.

Last year our Treasurer spoke about a beacon of hope, and he was right. Last year's budget set a new foundation for growth in New South Wales. Now that beacon of hope is shining over our State. The Premier and Treasurer are to be congratulated on their stewardship of the New South Wales economy. Their success has been confirmed by the nation's official data keeper, the Australian Bureau of Statistics.

Mr Brad Hazzard: Point of order: The member for Shellharbour should put propositions that the Opposition can rebut. Instead she is speaking in vague generalities.

ASSISTANT-SPEAKER (Mr Grant McBride): Order! The member for Wakehurst knows that that is not a point of order.

Ms LYLEA McMAHON: Yesterday's data comes on top of official building data released last week showing that New South Wales leads Australia's growth in new private infrastructure investment.

Mr MIKE BAIRD (Manly) [3.52 p.m.]: Talk about leading with one's chin! It is quite amazing that Government members want to talk about the Government's economic record. I move:

that the motion be amended by leaving out all words after "That:" with a view to inserting instead:

this House condemns the Treasurer and the Government for failing to meet their growth and budget forecasts for the past 10 years.

As we move towards budget week the important point is the Government's failure to meet economic and employment forecasts. The economic performance of this Government is nothing but a sad and sorry tale. I am pleased that the member for Fairfield is in the Chamber because, of all members of the Government, he alone is interested in reform. Unfortunately, he no longer plays any significant role, except for selecting Premiers. He should be following his policy interests because no other Government member has any interest in policy. That is part, but not all, of the reason—there are many factors I could list—that we in New South Wales find ourselves in such a sorry state.

Figures released yesterday showed there was an improvement in demand, but the member for Shellharbour failed to disaggregate two factors during her speech on the State's economy. Over the past 12 months the Federal Government's economic stimulus expenditure both insulated the State's economy against a severe downturn and ensured that future generations will bear the burden of an extraordinarily heavy deficit. There was no disaggregation in the speech of the member for Shellharbour of the impact of low interest rates on the economy. When those factors are taken out of the equation, it raises the question: What has the State Government done to improve the State's economy?

The State's economy resembles a Mother Hubbard experience—there is nothing in the cupboard. Furthermore, nothing has been delivered by the Government to support the State's economy. The State's current economic climate is an appalling indictment of the Government. The member for Shellharbour intended to condemn the Opposition for producing forecasts about the State's economic performance and economic downturns, but the time allotted for her speech expired. Obviously, that was not the main focus of her speech. I can understand that because the Opposition's argument was based on the Government's GST revenue windfall, which the Government is trying to hide.

The Government will be the beneficiary of a GST revenue windfall and that will bolster its budget. The question is what the Government will do with it. The Government probably already has spent most of it. The Opposition's economic forecast projected that growth under the old formula would have been the same as the growth rate of the previous two years, which is 7 per cent. Government members became quite excited about that during their speeches—ignoring the fact that the Opposition used the Government's estimates and forecasts of growth rates over the past year—but what they were unable to dispute was everything else. I have a graph that shows some great economic downturns, which I am sure the member for Shellharbour will be interested in. I would be happy to table the graph, if that is what is desired.

Ms Lylea McMahon: No.

Mr MIKE BAIRD: The graph shows the economic growth of the State from 1995 to 2010. It is not hard to see the trend. The member for Fairfield can see the little part that is coloured red, which represents New South Wales, whereas the entire rest of the country is in the black. The member for Fairfield has got it. He is nodding his head in acknowledgement.

Mr Brad Hazzard: But he is the only one who gets it.

Mr MIKE BAIRD: He gets it.

Ms Lylea McMahon: Point of order: I draw attention to the member's use of props.

ASSISTANT-SPEAKER (Mr Grant McBride): Order! The member for Manly knows that he cannot use a prop. He has not tabled the graph.

Mr MIKE BAIRD: I am very happy to table the graph. The economic performance of this Government is obviously dismal. Whatever way Government members want to cut it, they cannot spin their way out of the State's economic performance over the past 15 years. Irrespective of how or what they try, the facts will remain. In desperation they grab statistics of just one economic quarter, which in large measure has been bolstered by the Federal Government mortgaging the future of our children with a huge deficit, the effect of which will eventually impact on the State's economy. Part of the Federal Government's strategy makes sense, but combined with the lowest interest rates on record and high retail spending, New South Wales is experiencing a small economic blip. But that is not the point. The Government is responsible for the State's economy, reform, making the State competitive, restoring confidence, reducing regulation and making savings. I cannot wait to see the savings that the Government produces in the budget.

Mr Joseph Tripodi: We have a great record on that.

Mr MIKE BAIRD: The member for Fairfield is smiling because he knows that, contrary to the forecast for next year, the Government will not get down to 2.1 per cent, but that is entirely his Government's responsibility. The Opposition remains very concerned that budget forecasts do not materialise. It is not surprising that the forecast growth of the economy is not achieved. The trends are reflected in the graph, as members opposite can see.

Ms Lylea McMahon: Point of order: Again the member for Manly is relying on props instead of debating the motion.

ASSISTANT-SPEAKER (Mr Grant McBride): Order! I remind the member for Manly that he cannot use a prop. He will desist from doing so.

Mr MIKE BAIRD: For 10 years there has been a huge gap between forecasts of economic growth and the actual results. Not surprisingly, the State has underperformed at every level. Everyone in the State should have a close look at the forecasts that are part of next week's budget. The Government has a long history of underperformance. Obviously, the Opposition will not believe budget projections, and the facts support the Opposition's position. As the member for Shellharbour so clearly has shown, the Government finds it very difficult to discuss economic trends.

Another factor that shows the Government's poor performance is the increase in unemployment rates. I will not show the graph because it upsets the member for Shellharbour. However, for five years New South Wales has had the second-highest rates of unemployment of all the Australian States. Currently we are at the tail end of employment statistics across all Australian States. Government members cannot dispute the facts, though they try. They use spin instead of addressing the issues. The culture should dictate that the Government confront economic issues head-on. The Government should be asking itself what it will do across all economic parameters to make the economy of New South Wales competitive and to attract investment, give confidence to businesses and start to create real jobs, instead of jobs that have been created by infrastructure spending. But, no, the Government is all about spin, grabbing at figures on quarterly indexes and grasping small sets of statistics to justify its economic performance.

The truth is that the Government is not performing strongly in economic management. This State has the highest costs of doing business. Surely I do not have to show the graph showing that trend. The statistics were not disputed last week by the Treasurer when they were produced to counter his press release. A small or medium enterprise with 60 employees pays the highest business costs in Australia—$170,000 in New South Wales compared with $150,000 in South Australia. To take the State's economy forward the Government must become competitive. The Government should create real jobs, which is what the Opposition commits to in its jobs action plan. Quite frankly, everything that is done by this Government is nothing short of embarrassing. In every instance, such as the mini-budget and the Government's lack of action at a critical time in the global financial crisis, the Government has let the economy lapse into ruin. The Government's record over the past 15 years speaks for itself.

Mr JOSEPH TRIPODI (Fairfield) [3.59 p.m.]: I am grateful for the opportunity to speak against the amendment and in support of this motion, which is credible and clearly details the Government's success in helping the economy to continue growing. There are some simple facts. Of course, the shadow Treasurer refused to recognise these facts and referred to other misleading facts. The first fact is that economic growth in our $380 billion New South Wales economy leads every other economy in the nation. That is, New South Wales leads every other State and Territory in this country. The second fact is that New South Wales recorded 4.4 per cent growth over the past nine months and has experienced growth of 0.6 per cent in the March quarter.

New South Wales has now enjoyed the fifth consecutive quarter of growth, which obviously dispels the concerns of investors and workers about the pending recession that has been experienced around the world as a consequence of the global financial crisis and the potential double-dip in world economic growth. New South Wales is surging ahead, despite the fact that the rest of the world is experiencing difficult circumstances and struggling with high levels of unemployment and low levels of investment. New South Wales leads Australia's growth in new private infrastructure investment. New South Wales does not just have a record level of public sector infrastructure investment; we are leading Australia in new private infrastructure investment. That is only possible because of good administration by the Government and because we have a competitive economy that attracts investment and encourages investors in boardrooms around the country to invest funds in New South Wales and share in the economic growth we are currently enjoying.

The Australian Bureau of Statistics data released last week shows that about $2.4 billion was invested in private infrastructure in the March quarter. It is important to distinguish that we have not only a historically high level of public sector infrastructure investment but also a historically high level of private sector infrastructure investment. We are changing the fabric of our economy so that we continue to grow into the future and provide employment opportunities and prosperity for our State. In the past two months more than 40,000 full-time jobs have been created in New South Wales, but the Opposition conveniently overlooked that important fact. That is a great record. It is good news for the people of New South Wales, but it is bad news for the Opposition.

Mr Brad Hazzard: How many months? Two months?

Mr JOSEPH TRIPODI: That is right, two months.

Mr Brad Hazzard: In the last 16 years.

Mr JOSEPH TRIPODI: No, two months. It is a great performance. It is difficult to accept economic selections from the member for Wakehurst. He is a wonderful guy but he does not know what he is talking about when it comes to economic matters. We refuse to accept what members opposite believe is the situation because they think they have the right to make up news and figures. It is embarrassing that the shadow Treasurer pulled budget figures out of the air and then had to defend them. It is a big blow to the Coalition's credibility in terms of economic management when members make up numbers and try to sell them as fact. It was embarrassing for the shadow Treasurer and the Coalition, which already has seriously damaged economic credibility in terms of its capacity to be serious on policy issues. The Coalition's long history in Opposition means that it has no credibility when it comes to economic management. I do not need to remind people about the Coalition's position on the electricity reform agenda.

Mr Mike Baird: Point of order: In terms of the leave of the motion, I understand if the Government is ashamed of its figures—

ASSISTANT-SPEAKER (Ms Alison Megarrity): Order! There is no point of order. The remarks of the member for Fairfield are pertinent to the motion before the House. The member has the call.

Mr JOSEPH TRIPODI: It was a new low for the Liberals when it came to credibility.

Mr Thomas George: We are not your enemy!

Mr JOSEPH TRIPODI: The Nationals are not off the hook; they are worse than the Liberals. It was a big blow to the economic credibility and reputation of Coalition members as capable fiscal managers. They have no credibility. They make it up as they go along, which is of concern to the people of this State. [Time expired.]

Mr JONATHAN O'DEA (Davidson) [4.04 p.m.]: This is yet another motion from a Government that is trying to congratulate itself. The Government is absolutely delusional and arrogant. The shadow Treasurer admitted that there were some good figures yesterday. Indeed, it was a one-off figure—not a consistent continuance of good figures. The Government has been hit over the head with its own bricks for years and years, but if the hitting stops for a moment that does not demonstrate that the Government has done well in those previous years. To reinforce the message that has been delivered with facts and figures, we should not forget that the Labor Government has continued to mismanage the New South Wales economy over 15 years. This graph says it all.

Ms Lylea McMahon: Point of order: Members opposite should not rely on props.

ASSISTANT-SPEAKER (Ms Alison Megarrity): Order! The member for Davidson will not use a prop.

Mr JONATHAN O'DEA: Let us look at the authorities. Access Economics—the member for Fairfield has quoted Access Economics in this House on a number of occasions—

Ms Lylea McMahon: Point of order: I draw your attention to the fact that the member for Davidson continued talking throughout my point of order and your ruling.

ASSISTANT-SPEAKER (Ms Alison Megarrity): Order! The member for Davidson was asked to put down his prop and he did put it down. He will not use it again.

Mr JONATHAN O'DEA: Access Economics, in its latest business outlook, reported that New South Wales was the worst performing State economy in Australia. Fact! The CommSec State of the States report—a report by an independent authority that measures a variety of economic indicators, including unemployment, new business starts, demand for resources and business investment State by State—shows that New South Wales came out last when compared with the other States against these indicators. I do not know whether Government members are reading the chart upside down but last is at the bottom. If they turn things upside down—obviously, that is the way they read things—they might see that New South Wales is on top, but that is not where New South Wales is.

New South Wales came last in four categories: economic growth, unemployment, construction and dwelling starts. Not only has the Government demonstrated its mismanagement and financial ineptitude; we have seen the cost of that in terms of the opportunity cost of all sorts of projects. The $500 million wasted on the CBD metro was bad in itself. It meant that every person in New South Wales lost money from their pocket, and that many deserving causes went without. In my area, the Spit Road and Spit Bridge upgrades, which the member for Manly and I want to see, were abandoned promises. That $500 million could have paid for a hospital on the northern beaches, but that has been abandoned. The Mona Vale Hospital upgrade—

ASSISTANT-SPEAKER (Ms Alison Megarrity): Order! Members will cease interjecting.

Mr JONATHAN O'DEA: —and Mona Vale Road upgrades—all lost! Obviously, the puppet master is trying to save his career. The Labor Government is so focused on its internal issues that it has not focused on critical issues for the State's economic wellbeing. That is the problem. Government members are so focused on their internal power situation that they are unable to focus on what is important for New South Wales.

Ms Lylea McMahon: Point of order: As difficult as it is to do this, I raise Standing Order 76, relevance. The member is straying a long way from the motion before the House. Furthermore, it is clear that he has nothing of substance to contribute to this debate, otherwise he would find it easy.

ASSISTANT-SPEAKER (Ms Alison Megarrity): Order! The latter is not a point of order. Given that the Opposition has moved an amendment, the member for Davidson has some scope to address his concerns.

Mr JONATHAN O'DEA: Some quick examples of mismanagement are: the electricity asset sale still has not gone through in any shape or form. All we see is further internal wrangling with Prime Minister Rudd having backstabbed former Premier Iemma; the Building the Education Revolution, which the Leader of The Nationals well articulated in his contribution; the defence industry spend has not materialised; and the People First information technology program earlier this afternoon has not been delivered as promised. We see new taxes that have had to pay for the ineptitude of this Government that are unacceptable. [Time expired.]

Ms LYLEA McMAHON (Shellharbour—Parliamentary Secretary) [4.09 p.m.], in reply: The member for Manly resorted to the use of children's fairy tales and stories. He talked about Old Mother Hubbard. Let us talk about another one: Chicken Little running to the King to tell him "the sky is falling in, the sky is falling in". What is his evidence? None, zip, nada. It does not matter how it is spun. Yes, the economy is growing. Yes, the economy is doing well. The Federal Government is investing in it because interest rates are low.

Mr Brad Hazzard: Point of order: When Noreen isn't here to back you, you don't have the numbers.

ASSISTANT-SPEAKER (Ms Alison Megarrity): Order! What is the member's point of order?

Mr Brad Hazzard: When Noreen is not here to back you, you don't have the numbers.

ASSISTANT-SPEAKER (Ms Alison Megarrity): Order! The member will state his point of order or resume his seat.

Mr Brad Hazzard: You have to listen to my point of order. I draw your attention to the state of the House. There is no-one here to back her. [Quorum called for.]

[The bells having been rung and a quorum having formed, business resumed.]

[Business interrupted.]