Mr STEVE CANSDELL (Clarence—Parliamentary Secretary) [3.21 p.m.]: I move:

That this House supports a budget that provides improved services and infrastructure for northern New South Wales.

As I said while explaining the reasons this motion should be accorded priority, it is great to be able to talk proudly about a budget that acknowledges the importance of the North Coast and the Northern Rivers area for the first time in 16 years. The area has been ignored for far too long. The Deputy Premier, The Nationals member for Oxley, has fought hard so that regional New South Wales gets the services it deserves. He, the Minister for Roads and Ports, the Hon. Duncan Gay, and the Minister for Primary Industries, the Hon. Katrina Hodgkinson, have worked hard to ensure that jobs are retained in rural and regional New South Wales despite the 5,000 public sector redundancies that will be offered. They made sure that jobs in regional New South Wales, and the North Coast in particular, were quarantined from those cuts because they know that jobs in those areas are vital to our local economies.

The fact that The Nationals have 18 members in the lower House and seven in the upper House means that rural and regional members have strength within the Coalition Government that was lacking in the Labor Government because it had only two Country Labor members. It is good to talk about these issues. As I said, the previous Government wasted a great deal of money on the desalination plant, the Rozelle Metro, the Tcard and the bailout of the Lane Cove Tunnel leading up to the 2007 election. That money could have been spent on desperately needed infrastructure for northern New South Wales and, even more importantly, infrastructure that could save lives. I refer in particular to the duplication of the Pacific Highway, which would make the road safer for truckies, holidaymakers and local commuters.

A long-term friend of mine is a recently retired paramedic who has spent years pulling bodies out of cars and trucks, and consoling loved ones on the roadside. Like all emergency services personnel, he has suffered terrible trauma as a result of attending major highway accidents, and the section of the Pacific Highway in my electorate seems to be particularly prone to accidents. The final section of the highway to be upgraded is the stretch from Wells Crossing south of Grafton to Woodburn. Last week's budget includes $40 million for the final planning process so that that work can be carried out. The budget also includes funding for the finalisation of the Glenugie section of the highway, which is a terrible blackspot seven kilometres south of Grafton. It will be good to see that work completed and the road opened at the end of this year.

The next stretch of the highway in my electorate to be upgraded is just north of Iluka. The work will involve the straightening of some dangerous s-bends and the widening of areas that are often said by truckies to be no better than a goat track. Many have lost their lives on that stretch of the highway. Twice over the past couple of years I have ridden my pushbike from Ballina to Grafton. During one ride I stopped at every memorial cross on the roadside and it was heart wrenching to read the inscriptions. One epitaph reads, "Daddy, I love you", and there is a teddy bear and a can of beer beside the cross. That is the legacy of not ensuring that this vital road infrastructure work was carried out long before now. Work on the section at the Devil's Pulpit will be commenced this year and hopefully it will be finished next year.

The $1 billion that the Government has included in this year's budget will ensure that there is no need to erect more crosses and that no family will have to write such a heartbreaking epitaph. About six years ago the Hon. Michael Costa said that the Labor Government would not close the Casino to Murwillumbah railway line, but within three months that great service to the North Coast was shut down. The member for Tweed, the member for Lismore, the member for Ballina and I have been pushing hard for some years for a budget allocation for a feasibility study to be carried out and a route to be determined for a light rail service from Casino to Murwillumbah and on to the Gold Coast. This Government has put $2 million on the table for a transport study to be carried out emphasising the Casino to Murwillumbah service and an extension to the Gold Coast.

Liberal Party members of the Government have supported the North Coast Nationals in their efforts to ensure that that project gets a guernsey. Once the study has been completed we will come to the table with the costings, the route, a design and a project timetable so that adequate transport is provided not only for commuters but also for tourists arriving at the Gold Coast airport, which has the fastest-growing passenger volume in Australia. Huge numbers of tourists fly into the airport and we should facilitate their travel to the North Coast of New South Wales so that they can appreciate our spectacular sights. The North Coast has many industries, but we need support to boost our tourism sector. [Time expired.]

Mr MICHAEL DALEY (Maroubra) [3.28 p.m.]: The member for Clarence is a mate of mine, but he is pushing that friendship. Friendship is based on respect and credibility, but that contribution was incredible. The member for Clarence has obviously been using the member for Charlestown's speechwriter. Accordingly, I move the following amendment:

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

this House notes that the budget:

(1) provides neither improved services nor infrastructure for northern New South Wales, nor for anywhere else in New South Wales;

(2) attacks the most vulnerable in our community;

(3) provides for sacking of Government workers and cuts to services; and

(4) foreshadows that the Government will fund its forward capital program by selling Government assets, including the electricity poles and wires.

This budget might as well have been circulated to members of this place with a rear-vision mirror from the wreckers attached to its front cover. Deborah Cameron was quite right in her recent interview with the Premier. She noted, as other members of the press gallery note day after day when listening to this diatribe ad nauseam, that the election result on 26 March saw a huge majority granted to the present Government. Therefore, it should get on with governing, give us its vision, tell us what it is going to do, display some sense of pride and vision, and desist from criticising the former Government—although it does not have to do that, it is making no difference.

I would have thought that upon assumption of office the Government would look to the future, but it seems intent on criticising the former Government, which it does 75 per cent of the time. That shows an inherent weakness on its part. In relation to infrastructure, there has been a $400 million cut in this budget. In the 2010-11 budget the former Labor Government budgeted for $15.7 billion of investment. In the budget released last week by this Government that figure dropped to $15.3 billion—that is, $400 million less. That is despite the fact that the Government has cut services, has sacked people, is in the midst of a fire sale of massive government enterprises—

[Interruption]

I hear the interjection from my colleague on the other side of the House. Selling a monopoly such as Port Botany and the poles and wires of the electricity industry in this State is just a grab for money. The Government is sacking thousands of workers, cutting services and putting up charges. However, one issue that has hardly been talked about—the Treasurer made absolutely no mention of it in his Budget Speech or in any offering to the public thereafter—is debt. On page 7.2 of Budget Paper No. 2 we see that in June 2010 the net debt level of the former Labor Government was $9.160 billion. It then fell to $7.889 billion. This Government paid off a bit more than $1 billion worth of debt. What we have in this budget forecast is $11.074 billion worth of net debt. That is a 40 per cent increase in one budget.

The alarming thing displayed in the columns thereafter is the plan to plunge the budget into further deficit by borrowing, borrowing and borrowing—$12 billion in June 2013, $14.422 billion in June 2015 and $14.479 billion in June 2015. In the four years of this Government it plans to double net debt. However, the Government still feels it necessary not only to plunge the budget into deficit but also to go on a fire sale of assets. One of the assets that the Government plans to privatise is the desalination plant. Under an agreement that the former Government has with the operator, the desalination plant is not switched on after the two-year warranty period unless dam levels in Sydney fall below 70 per cent. When switched on, the desalination plant continues until dam levels get to 80 per cent. That is not widely known; Quentin Dempster gave it some coverage a few weeks ago.

On 2 May 2011 the Minister for Finance and Services, the Hon. Greg Pearce, wrote to the Independent Pricing and Regulatory Tribunal saying a number of things, including declaring Sydney Desalination Plant a monopoly supplier. He asked the tribunal to regulate prices from the desalination plant. The effect of his request is that, unlike the arrangement that was entered into by the former Government—the one that the Treasurer said on Stateline a week or two ago would not be altered by this Government—the Government has asked for Sydney Desalination Plant to be able to charge for water even if it is not operating. That is akin to people paying electricity bills when they are in bed at night with all the switches turned off.

Sydney Water customers will be asked to pay for water from the desalination plant when it is not even on. That is the sleight of hand that is going on with the desalination plant and the sleight of hand that is going on when we see no mention of poles and wires. I wish I had more time to speak about the Pacific Highway. I mentioned the Pacific Highway in a speech in this House last week. The Howard Government contributed $1.8 billion to the highway over 10 years. The former Labor Government put in $2.1 billion over four years. The member for Clarence should take note that in one budget Federal Labor—Rudd, Gillard and Albanese—contributed $3.1 billion to the Pacific Highway. There was a $618 million gift from Federal Labor. Those on the other side of the House should be saying thank you to Labor.

Mr THOMAS GEORGE (Lismore—The Deputy-Speaker) [3.35 p.m.]: I support the motion, which states:

That this House supports a budget that provides improved services and infrastructure for northern New South Wales.

As most members realise, the Pacific Highway does not pass through my electorate. However, I know what the highway means to northern New South Wales and how important it is to finish that project. It was marvellous to hear the member for Maroubra speak about the Pacific Highway and the Federal Government's contribution to the project. I remind the member for Maroubra that it is a State highway. The former Government neglected the highway for so long it had to get Federal Government help. Responsibility for the highway lay fairly and squarely at Labor's feet.

I am pleased that the State Government has contributed money to have the Pacific Highway project well and truly finished within the time line. I pay tribute to all members affected by the highway and to the Ministers involved in recognising what it will do for northern New South Wales. People in the northern part of the State are pleased to see country and regional areas recognised in the recent budget. Labor totally ignored country and regional New South Wales in every budget over the years. Finally, country and regional areas are being recognised.

I refer to the Lismore electorate. Some money is in support of projects that have already commenced. However, if we had listened to the Opposition over the past few months we would have believed that everything was going to be wiped in this budget. Projects have been reinforced with additional funding for their completion and other projects have been enhanced. For example, in 2011-12 the Kyogle High School upgrade will receive $613,000; Murwillumbah TAFE, $2,088,000; and supported accommodation throughout the electorate, $1,008,000. This Government recognises some of the things that were neglected by those opposite for years.

The Lismore Regional Cancer Centre has been funded over the past few years. There is an allocation of $6,812,000 in the 2011-12 budget, which will enable the unit to be completed. On Friday I will stand proudly with the Minister for Local Government, and Minister for the North Coast Minister, Mr Donald Page, at a sod turning for Our House. That major project has received Federal funds of late. I think the member for Clarence and the member for Tweed will be at the sod turning. It is a project that is dear to everybody's heart.

The Murwillumbah ambulance station will receive $1.965 million for works at the station. Fire and Rescue New South Wales, Lismore regional north 2 zone office will receive $295,000 for an upgrade. In relation to social housing, $534,000 is allocated in Lismore Heights for social housing units; $1.092 million is allocated for upgrades to various social housing in Lismore; $624,000 is allocated for social housing works in progress in East Lismore; and $1.476 million is allocated for further work in progress in Lismore—that is all part of a $3.726 million package. The allocation of this funding has been well received. The member for Tweed and other North Coast members are aware of the funding allocated for the integrated transport study.

Mr Michael Daley: Don't forget the Bannora Point upgrade.

Mr THOMAS GEORGE: The member for Tweed recognised that upgrade. This Government's budget was supportive of the Northern Rivers area, especially the North Coast. Representation from the north has finally been recognised.

Ms TANIA MIHAILUK (Bankstown) [3.40 p.m.]: I will speak to the amendment moved by the member for Maroubra to the motion accorded priority. At long last the Coalition Government has released its first budget. A series of unanswered questions remain. This amendment should be passed because the Coalition needs to come clean about whether it plans to privatise the poles and wires of our electricity system. This Government needs to come clean about its plan to sell the Sydney desalination plant and what effect that will have, particularly on water prices. The member for Maroubra has already raised that issue. The Government needs to guarantee that water prices will not go up as a result of its neoliberal agenda and that it will direct any additional dividends back into subsidies for struggling households.

This amendment should be passed. I will tell members why: The Treasurer and Premier need to come clean to the people of New South Wales, particularly northern New South Wales, about how they are going to fund some of the future capital works programs, how they are going to sell State assets year after year. This Government needs to come clean about what it will do to assist struggling households to cope with increased prices, including electricity and water prices. This budget is an assault on the vulnerable people of New South Wales, particularly of northern New South Wales.

I do not know why the member for Newcastle is laughing. If I were him, I would be concerned about the mums, dads and families in the electorates of Newcastle, Clarence and Lismore who now have to pay for public preschools. It is a disgrace that this Government will now demand that parents pay for public preschools—they will pay $30 per day, $150 per week, a minimum of $6,000 per year. Shame. Thousands of parents in northern New South Wales rely on public education. People across New South Wales rely on public preschools. The budget attacks the mums and dads, but also attacks children. It cuts $266 million from capital works programs in public schools. Again, this Government shows its utter contempt for public education. Shame.

This budget attacks pensioners by raising public housing rent by $10 a week. That is absolutely disgraceful. The budget attacks public sector workers. We saw the rally last week. The Government has announced that it will cut 5,000 public sector jobs, including public sector jobs in northern New South Wales and across the State. Government members should be utterly ashamed of themselves. Day after day Opposition members watch Government members praise themselves for this deficit that they have announced to this great State. What will be the result? The Opposition is interested to see what capital works programs the Government will implement. The Government will sell a great deal of assets and leave many vulnerable people across this State in very bad shape. The Government knows that. Opposition members know that this Government will not deliver for the vulnerable people of New South Wales.

Mr Guy Zangari: They will kick them in the face.

Ms TANIA MIHAILUK: That is right; the Government will kick them in the face. We know this by looking closely at the budget. We can see that very little is being done to support thousands of families across the State. It is interesting to look at the community building partnerships. Last year the then Labor Government gave $58.4 million to community building partnerships. This year this Government has gutted that partnership program down to $11 million. That is a large reduction in funding to community organisations that channel much-needed funds towards a variety of different organisations and groups that assist families. This Government has gutted that funding and it should be ashamed of itself. I support the amendment moved by the member for Maroubra. All members in their right mind should support the amendment. Looking at the Government benches, it is a little concerning. Sacking government workers can—

Mr Troy Grant: Point of order: In relation to the behaviour in the House, I remind the member for Fairfield of Standing Order 54.

The DEPUTY-SPEAKER (Mr Thomas George): Order! I have heard enough on the point of order. That is not point of order.

Mr STEVE CANSDELL (Clarence—Parliamentary Secretary) [3.45 p.m.], in reply: I thank the members representing the electorates of Maroubra, Bankstown and Lismore for their exuberant support. It is such hypocrisy for Labor members to talk about increased electricity prices. The former Government had a five minutes to midnight sale of electricity assets. It blew $5 million of the State's economy in a quick overnight sale and told no-one. No-one on the Opposition benches wants to talk about that. The member for Bankstown says that people in their right mind will vote for the amendment. I remind her that people in their right mind voted on 26 March. That is why there are only two rows of Labor members in this Chamber—in the kindergarten corner—and the rest of the Chamber is made up of Government. The People of New South Wales woke up and punished Labor for making fools of them for more than 16 years.

Mr Michael Daley: It took you 16 years to get us.

Mr STEVE CANSDELL: We got there.

The DEPUTY-SPEAKER (Mr Thomas George): Order! The member for Clarence will direct his comments through the Chair.

Mr STEVE CANSDELL: Opposition members have talked about public wages policy. There will be 5,000 voluntary redundancies, and they will be from the city, the backroom bureaucrats. What will we replace them with? No-one has talked about this. There will be 550 more police officers, 2,475 more positions in hospitals and 900 more teachers. There will be $2.3 billion funding for road upgrades to tackle the blackspots and $2 billion for disability services. That is something the former Government would never even have thought about. When it cut jobs, it did not matter if they were frontline cops, nurses et cetera. Michael Costa, the former Treasurer, said that 20 per cent of the public sector should be gone—that is 70,000 workers.

Mr Michael Daley: That is why he is former.

Mr STEVE CANSDELL: He got the message, mate. The Government will cut 5,000 jobs and everyone is saying that that is too many jobs. The Government has done well with this budget. The Tweed electorate will receive a police station, a fire station and approximately $100 million for Sexton Hill. The member for Tweed is doing all right. The member for Tweed is fully supportive of our Gold Coast railway study. Michael Costa cut that service, after the former Government promised that it was here to stay. What hypocrisy for those opposite to argue against electricity prices. The member for Toongabbie was fighting very hard to get the knives out of his back—he was the last man standing—but where was the member for Maroubra?

The DEPUTY-SPEAKER (Mr Thomas George): Order! The member for Clarence will direct his comments through the Chair.

Mr STEVE CANSDELL: I apologise, Mr Deputy-Speaker. The North Coast has received a good level of funding in this budget. The budget is about saving lives by upgrading our major highway. The budget is about getting better health services and disability services. It is also an acknowledgement of the people who live in rural and regional New South Wales. About 100,000 new jobs will be created through payroll tax concessions in this budget, 40,000 of which will be in regional New South Wales. The Coalition Government recognises the major disparity between rural and regional New South Wales compared with the city—30 per cent of people live in rural and regional areas of New South Wales. The motion acknowledges a great budget and that the Government will look after regional and rural New South Wales. We will never again be forgotten, as we were for 16 years under the former Labor Government.

Question—That the words stand—put.

The House divided.

Mr Anderson Mr Annesley Mr Aplin Mr Ayres Mr Baird Mr Barilaro Mr Bassett Mr Baumann Ms Berejiklian Mr Brookes Mr Cansdell Mr Casuscelli Mr Conolly Mr Constance Mr Cornwell Mr Coure Mrs Davies Mr Dominello Mr Doyle Mr Edwards Mr Elliott Mr Evans Mr Flowers

Mr Fraser Mr Gee Mr George Ms Gibbons Ms Goward Mr Grant Mr Hartcher Mr Hazzard Ms Hodgkinson Mr Holstein Mr Humphries Mr Issa Mr Kean Dr Lee Ms Moore Mr Notley-Smith Mr O'Dea Mr O'Farrell Mr Owen Mr Page Ms Parker Mr Patterson Mr Perrottet

Mr Piccoli Mr Provest Mr Roberts Mr Rohan Mr Rowell Mrs Sage Mr Sidoti Mrs Skinner Mr Smith Mr Souris Mr Speakman Mr Spence Mr Stokes Mr Stoner Mr Toole Mr Torbay Mr Ward Mr Webber Mr R. C. Williams Mrs Williams Tellers, Mr Maguire Mr J. D. Williams

Mr Barr Ms Burney Mr Daley Ms Hay Ms Hornery Ms Keneally Mr Lalich

Mr Lynch Dr McDonald Ms Mihailuk Mr Parker Mrs Perry Mr Rees Mr Robertson

Ms Tebbutt Ms Watson Mr Zangari Tellers, Mr Amery Mr Park

Mr Bromhead

Mr Furolo

Question resolved in the affirmative.

Amendment negatived.

Motion agreed to.

The SPEAKER: Order! The motion to be accorded priority having concluded, the House will now consider Government business.