Mr JONATHAN O'DEA (Davidson) [3.36 p.m.]: I move:

That this House condemns the former Government for its waste and mismanagement, and notes that while it has gone from office the people of New South Wales are left to pay the price.

Labor's waste and mismanagement have had massive adverse consequences on the State's finances, on the reputation of New South Wales amongst the business community and on the people of New South Wales who simply want a competent government. The people of New South Wales certainly made their views clear on 26 March when they overwhelmingly punished Labor and voted the New South Wales Liberal Party and The Nationals into power. The State Government must manage a huge range of areas delivering services to the people of New South Wales. It is charged with the efficient and effective delivery of public services, including planning, health, roads, public transport, education, law and order, electricity, water, housing, disabilities and emergency services. The existence of the embarrassing rump in that corner of the Chamber is a fitting reminder of Labor's failure to do so properly.

As the former chairman of the New South Wales Opposition waste watch committee I am acutely aware of the magnitude of the problems the O'Farrell Government has inherited from Labor. Under Labor project after project was neither on time nor on budget, if it was delivered at all. Labor lowered the bar to such a degree it became expected that projects would run over time and over budget and not deliver what was originally promised. Under Premier Carr, Premier Iemma, Premier Rees and Premier Keneally we saw five big categories of Labor waste and mismanagement, which I will outline. The first category relates to matters promised but never commenced, for example, the Spit Bridge expansion and numerous rail links, including the North West Rail Link.

The second category relates to matters announced, commenced and then scrapped, such as the Tcard and the CBD Metro projects. The third category relates to matters delivered but late and/or over budget. For example, the Chatswood to Epping rail link, parts of the Pacific Highway upgrade, the northern beaches hospital and the Solar Bonus Scheme. The fourth category relates to matters largely ignored, including the need for less backroom bureaucracy, substandard government procurement processes, the sustainability of wage growth control and the failure to accurately record vital health-related statistics like hospital waiting lists and hospital beds. The fifth category relates to matters that were delivered, but for Labor's own benefit, such as government advertising, travel, including overseas ministerial trips, and grants to the union movement.

As the now very capable Minister for Transport, Gladys Berejiklian, has highlighted, Labor's transport plans were big on promises but short on delivery—12 rail projects were promised and only half a project was delivered. That half was the Chatswood to Epping rail link, delivered three years late and a billion dollars over budget. Labor's record on track provision is utterly shameful. The South West Rail Link was first announced in December 2004, at a cost of $688 million, to be completed—supposedly—in 2012. In March 2008 it was re-announced by Labor, at a cost of $1.36 billion, to be completed in 2012. In November 2008 it was axed by Labor. In November 2009 it was re-announced, at a cost of $1.3 billion, to be delivered by 2016.

In February 2010 Labor revealed that the total cost would blow out to $2.1 billion. Therefore, the South West Rail Link under Labor was running four years late and tripled in cost, from $688 million in December 2004 to $2.1 billion in February 2010—a cost blowout of $1.4 billion. It was truly amazing in March this year to hear former Premier Keneally boast about the progress of the South West Rail Link. Labor has no shame, and it is the people of New South Wales who lose out. If Labor had kept its promise we would have saved a lot of taxpayers' money for other projects. We could have had more front-line nurses, teachers and police, along with more hospitals, schools and police stations. If only we could do more with less, not less with more.

Another example of Labor's waste and mismanagement was the CBD Metro proposal. The New South Wales Auditor-General found that around $400 million was spent on the CBD Metro with no apparent future benefit for the people of New South Wales. So the cost was not just in terms of dollars; it was also in terms of delays to other transport priorities as scarce resources were diverted to a wasteful project. The metro became a symbol of New South Wales Labor: big on promises and glossy brochures, but going nowhere at massive expense to New South Wales taxpayers. So desperate was the previous Labor Government to claim that it had delivered a project on time and on budget that it fudged figures and dates. It claimed, for example, that its unnecessary desalination plant was delivered within budget and on time when neither was true. Today that desalination plant costs each household in New South Wales more than an extra $100 a year on their water bills.

Ms Gabrielle Upton: Shame!

Mr JONATHAN O'DEA: It is a shame indeed. Over the past 12 years New South Wales has been the slowest growing State in Australia. While other States have benefitted from increased investment, increased job opportunities and increasing wealth, New South Wales has been left trailing the pack. Put simply, if our economy had grown as quickly as Victoria's economy over the past 16 years, it would be $22.1 billion larger. We would have an additional 273,000 jobs and we would have received an additional $6 billion in taxation revenues over those seven years. The New South Wales economy has been held back by high taxes, poor infrastructure, bad policies and a Government that was so inwardly focused it simply did not care about the economy, business or growth. New South Wales Labor's mismanagement has to stop, and we will make sure it does.

Mr ROBERT FUROLO (Lakemba) [3.43 p.m.]: I am reminded of a song from one of my favourite bands entitled Short Memory by Midnight Oil. It seems that those opposite are suffering from short memories. I am delighted to speak on this issue because it gives us a chance to reflect on Labor's record: record revenue and growth in New South Wales, record investment in health, police and education, an unequalled record of budget surpluses and an unequalled protection of our State's credit position. Let us not forget our very popular triple-A credit rating. Compare this with the waste and mismanagement that those opposite pioneered when they were last in government. The last Coalition Government increased the State's total liabilities by more than $6 billion. It also produced six consecutive budget deficits, cumulatively worth more than $5 billion. In 1995 the Coalition left net debt at $12.15 billion, which is 7.1 per cent of gross State product, and Moody's rating agency placed New South Wales on credit watch in 1991. So it is important to reflect on the record of those opposite when they were last in government.

But let us talk about infrastructure, waste and mismanagement under the last Coalition Government. The former Coalition Government bungled the following projects—and this is not is a complete list; it is just a taste. The airport rail link was promised at no cost to taxpayers but ended up costing the New South Wales Government $800 million. The Lunar Park redevelopment cost the taxpayers $54 million. Eastern Creek International Raceway cost the taxpayers $135 million. The cost of Port Macquarie Base Hospital blew out from $52.5 million to $143.6 million. But what is worse, in the words of the Auditor-General in 1996, "The Government is in effect paying for the hospital twice and giving it away." Finally the hospital had to be resumed by the Labor Government in 2005, at a cost of $80 million.

There is more waste and mismanagement. The former Coalition Government disposed of $1 billion worth of public assets well below their market value during its first year in office. Who could forget the State Bank fiasco under the last Coalition Government? The former Coalition Government sold the State Bank of New South Wales for $574 million in 1994. According to University of New South Wales Professor Bob Walker, the Fahey Government approved the sale of the State Bank of New South Wales for what turned out to be a bargain price, equivalent to only one to 1.25 times annual earnings when shares in other banks were trading at around 17 times earnings. Furthermore, the Coalition also guaranteed 90 per cent of the State Bank's bad debt, which meant that the final return—the net return for New South Wales taxpayers—was just $160 million. This is despite the bank being valued at between $2.6 billion and $2.9 billion by Arthur Andersen. So let us put those figures into perspective. The final net return for New South Wales taxpayers from the sale of the State Bank was $160 million, yet Arthur Andersen valued the State Bank at between $2.6 billion and $2.9 billion.

If we want to talk about waste and mismanagement, let us look no further than to when those who are in government now were last in government. And let us not forget the most ridiculous example of waste and mismanagement that the Labor Government had to undo. Let us not forget that one of the first items of business of the Carr Government was to undo the great Liberal plan: the plan for a Premier's penthouse at taxpayers' expense. Some members might remember this one. They might recall that the top floor of Governor Macquarie Tower is used by government for public events such as State dinners, receptions, media conferences and so on. But the last Liberal Government intended that it become a private apartment for then Premier John Fahey. Talk about waste and mismanagement; talk about abuse of power. Taking a public asset and using it for a private apartment for a Premier is just a disgrace. Famously referred to in the House by former Premier Bob Carr as the only plan the last Government had, the Coalition proposed a Premier's penthouse with vast bedrooms, entertainment areas, an area for antiques—all in all, a $3.5 million fit-out at taxpayers' expense so that a Liberal Premier could ponce around in his bathrobe and admire the view. I prefer the view in my electorate.

But it seems that this largesse ran deep in Coalition ranks. When the Minister for Energy was environment Minister an amazing $617,000 was spent on refurbishing his office—and bear in mind this was 15 years ago! The refit included: a custom-made Huon pine table costing more than $156,000, a Huon pine servery, coffee table and built-in wall unit purchased for the sum of $23,000, a built-in liquor cabinet, several expensive artworks—including an original Ken Done painting—a high-tech audiovisual system on which was found the former Minister's copy of the soundtrack to The Adventures of Pricilla, Queen of the Desert, designer art deco light fittings, not one but two fully equipped kitchens, and a specially built bedroom with ensuite complete with a Thomas the Tank Engine bedcover.

To add insult to injury, a few days before the 1995 election result was known the Minister's staff rampaged through this expensive fit-out. Cupboards were full of empty beer bottles. Every filing cabinet and drawer in the office was full of empty beer bottles. And a fire extinguisher had been discharged throughout the office. The cleaners took two nights to clean the office and subsequently lodged a complaint with the building's manager. You would think such waste and mismanagement would disqualify a member from holding ministerial office again. But, oh no, the member for Terrigal is back! Will we see a return of the Thomas the Tank Engine bedcovers? And how long before we see the Premier up on the top floor of Governor Macquarie Tower, armed with a tape measure and a hard hat and thinking the commute from Roseville is just too much these days? It is a bit rich for those opposite to talk about waste and mismanagement because their heritage in this area is unprecedented.

The DEPUTY-SPEAKER (Mr Thomas George): It was remiss of me when I was in the chair earlier today to fail to acknowledge that the Minister at the table this afternoon, the Minister for Local Government, and Minister for the North Coast, is celebrating his sixtieth birthday today. Congratulations.

Mr KEVIN ANDERSON (Tamworth) [3.50 p.m.]: First, I say happy birthday to the Minister for Local Government, and Minister for the North Coast, who turned 60 today. It is absolutely sensational, and the House congratulates him. The motion calls on the House to condemn the former New South Wales Labor Government for its waste and mismanagement, and notes that while Labor has gone from office the people of New South Wales are left to pay the price. The only thing I have in common with my parliamentary colleague opposite, the member for Lakemba, is Midnight Oil and Short Memory. Since 26 March Labor members appear to have lost their memory, which is terrible for them because they are now questioning us on our economic record. We are going to make New South Wales number one again after 16 years of State Labor's waste and mismanagement.

Just last month a CommSec report showed that when Labor was in office New South Wales was the worst economic performer compared with decade averages. The figures reflected the poor economic record of New South Wales. The CommSec "State of the States" report found that construction in New South Wales was weak over both the home building and commercial sectors—waste and mismanagement at its best. Out of all the States, we lag behind. At less than 10 per cent, New South Wales ranked last on economic growth, with Western Australia sitting at around 28 per cent. That is absolutely appalling when one considers that once upon a time New South Wales was the economic powerhouse of Australia. How shameful it is that after 16 years of Labor New South Wales is languishing at 8 per cent.

I want to speak about budget blowouts and remind our friends opposite that good governments are able to manage their budgets, as the O'Farrell-Stoner Government will demonstrate. New South Wales Labor consistently blew its budget, with budget overspending of more than $12 billion over the past seven years alone. It was like throwing money in the air and wondering where it would land—on projects that meant nothing, went nowhere and delivered nothing to the people of New South Wales. Rather than investing budget overspends in critical infrastructure that would have protected New South Wales's future, Labor used it to prop up its broken budget bottom line. I will refer to a couple of the blowouts, delays and debacles that have occurred over the past 16 years of State Labor. First, I refer to the Rozelle metro. The project was announced in 2008. It was axed in 2010, costing taxpayers $500 million. What do we have to show for it? Look around us. We have thin air—$500 million worth of nothing! The Pacific Highway was another blowout.

Mr Donald Page: We could have built some hospitals with that money.

Mr KEVIN ANDERSON: That is right—$500 million could have gone towards putting more police officers in uniform and increasing visible policing in our communities, as well as building infrastructure such as hospitals, roads and rail. We need to make New South Wales number one again; there is no doubt about that. This Government will rebuild the New South Wales economy. We will return quality services, we will renovate infrastructure, and with some of the money we will save we will upgrade our hospitals. In the Tamworth electorate alone, we are committed to providing funds for communities like Barraba, which has suffered because it has no running water. This is 2011. A small community in my electorate has no clean, fresh running water. It has used bore water, which is totally unacceptable. We will turn that around; we will fix it. We have already committed funds to that project.

We will broker a deal with local government. Under the new Minister for Local Government—who, I might say, is doing great things on his sixtieth birthday and is still going strong—we are also brokering deals with the Federal Government to get infrastructure going again in New South Wales. That is our plan. We will also restore accountability to government by giving people a say on issues that affect their lives. We will restore accountability and stop the waste and mismanagement. We will also return planning to the community—and we are starting to do that right now, which is the way it should be. People need to have a say in what is happening in their communities. We will reduce government domestic and international travel expenses by 25 per cent. We will reduce the waste and mismanagement. That is why the motion calls on this House to condemn the former New South Wales Labor Government for its waste and mismanagement, and note that while Labor has gone from office the people of New South Wales are left to pay the price. We will turn that around and make New South Wales number one again.

Ms ANNA WATSON (Shellharbour) [3.55 p.m.]: The Government has a hide to talk about the people of New South Wales paying the price. Since being elected, this new Government has broken promises and failed families all over this State. Yesterday it was the Premier failing families by refusing to back away from retrospective legislation that will leave families who invested in solar worse off. And today we have another cracker. The latest announcement will hurt our hardworking teachers, police officers and nurses. Under legislation introduced in the other place, the O'Farrell Government will have unprecedented powers to slash wages and conditions for our workers. The proposed changes are worse than the Howard Government's WorkChoices laws. The Premier has outdone John Howard and Peter Costello with this unprecedented attack on the rights at work of nurses, teachers and police officers.

Let me be clear: the Premier's bill is worse than WorkChoices. Under these changes, the Premier could decide that from 1 July the Government's policy is to reduce annual leave entitlements for nurses, teachers and police—and the independent umpire would be bound to enforce it. Every single condition of employment is now at risk, including wages, penalty rates, nurse ratios, shift allowances, sick leave, long service leave and maternity leave. Never before has a government sought to so drastically reduce the ability of the independent umpire to resolve disputes between workers and employers. The O'Farrell Government has targeted the men and women in our community who keep us safe, who care for the sick and who teach our children. These changes put at risk the wages and conditions of more than 300,000 workers across New South Wales.

Mr Donald Page: Point of order: I draw your attention to the motion, which refers to the waste and mismanagement of the former Labor Government; it is not about industrial relations. I ask you to direct the member for Shellharbour to return to the leave of the motion.

The DEPUTY-SPEAKER (Mr Thomas George): Order! I noticed the Minister was a bit reluctant to take the point of order. This is the first day the member for Shellharbour has been able to contribute to debate. The member for Shellharbour will return to the leave of the motion.

Ms ANNA WATSON: Thank you, Mr Deputy-Speaker. As I said, the O'Farrell Government has targeted the men and women in our community who keep us safe, who care for the sick and who teach our children. The worst part is not the bill, it is the deception. The Government said in its media release this morning, "The legislation introduced to Parliament on wages ensures the former New South Wales Government's policy is actually followed."

Mr Donald Page: Point of order: I am somewhat reluctant to take a point of order on a new member, but members must speak to the general subject of the motion. This motion is about waste and mismanagement under the former Labor Government; it is not about industrial relations laws. I ask you to direct the member to return to the leave of the motion.

Mr Richard Amery: To the point of order: Whilst I recognise that the wording of the motion may be restrictive, the member for Davidson made wide-ranging comments in debate. He singled out Opposition members and attacked every facet of the former Government's operations. In light of the broad-ranging nature of the debate, I believe the member for Shellharbour is in order.

Mr Jonathan O'Dea: To the point of order: Whilst I could easily have savaged the industrial relations record of those opposite, I did not do so.

The DEPUTY-SPEAKER (Mr Thomas George): Order! The motion accorded priority is about the former Government; it is not about a bill to be introduced. The member for Shellharbour will confine her remarks to the motion accorded priority.

Ms ANNA WATSON: I am attempting to do that. Nowhere in the bill is the word "wages" mentioned. What it does say is that the Industrial Relations Commission must give effect to any policy on conditions—

The DEPUTY-SPEAKER (Mr Thomas George): Order! The member for Shellharbour said, "Nowhere in the bill is the word 'wages' mentioned." The member for Shellharbour will confine her remarks to the motion.

Ms ANNA WATSON: What it effectively means is that any condition can— [Time expired.]

Mr JONATHAN O'DEA (Davidson) [4.00 p.m.], in reply: I thank the member for Lakemba, the member for Tamworth and the member for Shellharbour for their contributions to the debate. I suggest that the member Shellharbour may have been given the wrong script because she seemed to think she was speaking about an industrial relations bill. This motion is about the former New South Wales Labor Government's waste and mismanagement and how even though, thankfully, it is no longer in office the people of New South Wales have been left to pay the price. The member for Lakemba endeavoured to stay within the broad terms of the motion—

Mr Michael Daley: You just do not like criticism; that is your problem. You just do not like any criticism.

Mr JONATHAN O'DEA: The member for Maroubra is interjecting already. He sits on the Opposition front bench and looks at the unprotected scalp of his leader with an air of anticipation.

Mr Michael Daley: Point of order: I ask that the same strictures be applied to the member for Davidson as were applied to the member for Shellharbour.

The DEPUTY-SPEAKER (Mr Thomas George): Order! The member for Davidson will confine his remarks to the motion. I remind members that interjections are disorderly at all times and distract the member with the call.

Mr Michael Daley: I cannot help it if he is weak-minded.

Mr JONATHAN O'DEA: Thank you. I have plenty of good lines about the member for Maroubra if he continues to interject. The people of New South Wales care about waste and mismanagement. They care about their money being spent wisely. They know, as evidenced from the result in March, that those opposite were reckless in the expenditure of public resources—often windfall revenue. The member for Lakemba attempted to impugn the wonderful record of the previous Liberal-Nationals Government, which inherited $20 billion of Wran Government debt but reduced it to $7 billion. That was despite being in government during the recession we had to have—brought to us by Paul Keating—and the "banana republic" comments.

Mr Daryl Maguire: I remember it well.

Mr JONATHAN O'DEA: The member for Wagga Wagga remembers it well because he and many other people lived through those times. Despite those difficulties at a national level, brought to us by Federal Labor, we had a very responsible economic manager in Premier Greiner, followed by John Fahey, and a Government that was able to manage finances and minimise waste and mismanagement. It is accepted that there will be a little waste and mismanagement in government but the extent of the waste and mismanagement in the past 16 years under Labor was absolutely appalling. We are still paying the price. Projects were not delivered. Legacy issues are being addressed by the current Government. We realise that we will need to make some tough decisions and it will not be easy, but things have been made much harder because so many billions and billions of dollars have been poured down the drain by those opposite.

The CBD Metro probably symbolises it best. What did we get for those hundreds of millions of dollars? Nothing. What did we get for the $100 million spent on the T-card project? There was no ticket; nothing at all. The member for Tamworth highlighted some positive priorities and plans to be implemented by this Government, particularly the Five Point Action Plan, but a lot still needs to be done. Sadly, in recent years the former New South Wales Labor Government was so bad that at times it made Federal Labor appear almost okay—and there is certainly a lot of waste and mismanagement there. The former Labor Government has left New South Wales with a price to pay for which it should continue to be condemned. For New South Wales residents, the price has been high and the value generated low. The Coalition will return confidence and competence to government in New South Wales.

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

Motion agreed to.