The Premier's "historic boost to revive Victoria's rail network" pushes the State back into the wasteful Government spending era. Mr Bracks' ability to spend big on upgrading rail lines to Ballarat, Bendigo, Geelong and Traralgon is due to the windfall inherited from the previous Government. The Treasury has coffers full of taxpayers money seeking the flimsiest of excuses to be spent. At the same time, a highly politicised rural electorate that believes Melbourne owes it hand-outs defines how to obtain most votes per buck. The ghosts of Kennett and Stockdale are pacing the corridors of Parliament House in the unexpected role of the Bracks re-election team.
The Labor Party went to last year's polls promising to spend $80 million on rail upgrades to the regions. Last week the Premier announced this promise is to be kept with an $800 million spend. As usual the government maintained they didn't know how bad the situation was when they estimated only $80 million would be required. This has as even hollower ring than the normal outraged claims incoming Governments make about being misled about how bad things really were -- after all railway lines and rolling stock are visible to all and an articulate lobby is there to reveal and magnify any deficiencies.
To justify its extravagance the Government has produced a bevy of analysis to "prove" that spending $800 million on rural rail will actually leave us all better off. Of course the analysis is fraudulent:
- it contains "multipliers" that make every dollar spent worth $1.20;
- it is based on a small survey that suggests some people might prefer to live away from Melbourne if the government throws enough money at them;
- it estimates how much those and the existing residents would spend for faster journeys to Melbourne (without, of course seeking that they actually pay the premium); and
- it throws in "savings" in congestion costs, emissions, car parking.
In addition to these lily-gilding devices the interest rate it uses for the capital cost is probably half the rate necessary for a commercial business. And this assumes such a business could actually get its hands on the mythical dollars the study claims to be there for the taking. Indeed, the Government has Buckley's chance of even getting $270 million it hopes National Express will chip in. In fact, National Express is more likely to ask for an additional subsidy if the Government requires it to run more services to supply the phantom demand.
However, throwing money at rural Australia looks to be a smart political move. It has pole-axed the Opposition, which is embroiled every bit as much as the Government in the give-away game to the bush. And most of the press is equally seduced by the thought of puffer-trains to placate sleepy hollow.
Smart politics aside, we soon forget Labor's promises, including to:
- Ensure tight control over spending to produce better services and cut waste
- Commit to "whole-of-government" reporting through a Financial Disclosures Bill
- Ensure the Auditor-General is provided with sufficient resources to fulfil the audit function that will be incorporated in the State Constitution
Whatever happened to these and other promises? Where is the Auditor-General in ensuring that public money is not wasted?
The former Government's over-cautious approach to tax reductions has left an irresistible budget honey pot for vote buying. However, let's not forget, the surplus came from the taxpayer. Rather than spending it on unneeded trains, it is far better to give it back to its rightful owners -- you and me. Not only does this return it to those the Government milked in the first instance but it offers a far surer means of getting increased employment. Tax cuts mean reduced charges for government services with all this entails in allowing the State to compete for new jobs with other places within Australia and overseas.
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