NSW: Budget cuts will cripple economy

A Unions NSW commissioned report shows that the State has no budget black hole and that public spending must be maintained through the current ‘soft patch'.

"This report confirms what we've suspected, the State Government has confected a budget crisis to explain unjustifiable cuts to services, jobs and wages," Unions NSW Secretary, Mark Lennon said.
"Enough is enough. The Premier cannot keep on referring to a fictional black hole. From here on in, this Government owns all political responsibility for budget cuts."

The report makes four major points

• There is no budget black hole and cutting either front line or support staff will place undue stress on already stretched services
• The Government's wages straitjacket will make it difficult to attract and retain good staff and this will worsen due to the national labour shortage
• A strong infrastructure program is needed to kick start the NSW economy
• Cutting services will push NSW residents to other states, a further drain on the state's economic growth

"All the indications show that the State Government is preparing a slash and burn budget, but it's not too late to change tack," Mr Lennon said.
"Now more than ever, we need a government that invests in services and infrastructure. The O'Farrell Government must take heed."

See Report