No shocks in state budget

There are few, if any, major surprises or unexpected sweeteners in the first budget of the Baillieu Government handed down this afternoon.

He said the budget had focused on spending $5.1 billion to deliver the government's election promises and making $2 billion in government cuts.























Mr Wells said a $30 million increase in the estimated cost of providing Protective Service Officers on trains was because the Government would now deliver all 940 a year early, by 2014 instead of 2015.

But he admitted the government's plan to install Protective Service Officers in hospital emergency wards needed more work and was not detailed in the budget.

The government had spent $5.1 billion to deliver its election promises, Mr Wells said.

Government debt has increased under the budget from 2.6 per cent of gross state product to 5.9 per cent.

YES
I FULLY support means testing of welfare - private health insurance assistance included

THE Victorian Education Department is facing budget cuts of almost $350 million over the next 4½ years, according to the opposition, prompting fears that public schools will lose funding.

Opposition education spokesman Rob Hulls said department officials had told him at a briefing last week they had been ordered to find $338 million in savings, including $36 million by June 30.

''Here we go again - one of the Liberal government's first decisions is to hack into the education budget,'' Mr Hulls said. ''These are substantial cutbacks … they have decided to turn their back on the state school system.''



''I can't understand why more money is going to the private sector when we have so many government schools that need to be brought up to scratch,'' said president Frank Sal.

''Clearly from a government secondary perspective, I'd be very concerned if they are cutting any dollars from the government school sector.''

THE appointment of former NSW premier Nick Greiner as chair of Infrastructure NSW, a new body to help get infrastructure going again in the state, is an important signal that NSW is back in business.
As Greiner told The Australian yesterday, the last NSW government had lost the trust of the business community.

Greiner, a Harvard MBA who has carved out a successful career as a company director over the past 15 years, has the unique combination of a strong public sector background, hands-on high private sector expertise and a pragmatic, can-do attitude.

And Greiner, whose corporate roles have included chairman of construction and infrastructure company formerly known as Bilfinger Berger, has now signalled that he is looking for ways to get the private sector back into infrastructure investment in NSW.

Greiner has made no bones about holding up Victoria as the state with the best reputation for delivering on public-private sector infrastructure projects.

And he has absolutely no hesitation in having his Infrastructure NSW consult with and learn from that state's experience, specifically from . As he says, there is no point in re-inventing the wheel.

One example Greiner holds up as a successful public-private sector deal in the current, post- and post-GFC environment in Victoria's , a 27km tunnel between the Frankston Freeway/East Link interchange and theat Mount Martha.

Let in 2009, the $900m project is being undertaken by a consortium of companies including Bilfinger Berger (now part of the Lend Lease group), Abigroup and the Royal Bank of Scotland on an "availability" model that involves the government taking the initial construction risk and paying the investors on a basis that the road is available and properly maintained.