NSW treasurer created ‘big black hole’ in budget: Labor

Phoebe Loomes | February 15, 2023

The NSW treasurer is accused of having a “big black hole” in the state budget, after revealing two major infrastructure projects won’t begin until after 2027.

Treasurer Matt Kean ruled out raising the Warragamba Dam wall or building the Northern Beaches Link tunnel during the next term of government, in a debate with shadow treasurer Daniel Mookhey on 2GB.

Mr Kean was asked if the government planned to sell state energy assets Ausgrid and Endeavour Energy to pay for the major infrastructure projects, as privatisation of public assets becomes a focus of the March 25 election.

“Over the next four years (those projects) are not in our infrastructure plan,” the treasurer said on Wednesday.

The government proposed the Northern Beaches Link tunnel in 2017 to connect the Sydney peninsula to the city centre and innerwest.

Last year, the premier committed to raising Warragamba Dam’s wall, estimated to cost about $1.5 billion, to protect homes in western Sydney from flooding.

“The fact is, you have a big black hole in your budget and you’re trying to hide it,” Mr Mookhey said.

During a heated exchange, the treasurer and the man who wants his job clashed over his handling of the energy portfolio.

Energy bills have continued to rise amid a cost of living crisis, prompting the government to introduce a one-off $250 energy bill voucher.

Mr Kean said the war in Ukraine was driving up energy prices, and the voucher would provide immediate relief, with the money coming from the government’s “strong economic management”.

Mr Mookhey said the government had made a mistake in privatising the state’s energy network, leaving residents and businesses paying super profits to private energy companies.

“Queensland, which has kept its power assets – they’ve been able to respond to shocks like Ukraine much better than we have in NSW,” he said.

“It’s time to bring an end to this decade of privatisation, which has left families at the mercy of these privately owned electricity companies that Matt never criticises.”

The coalition government has sold public assets during its 12-year term, including the state’s electricity network and ports, to fund a record spend on major infrastructure projects.

“All Matt is offering is four more years of the same policies we’ve had over the last 12, with a team that is far less impressive and far more divided than we had under Gladys Berejiklian,” Mr Mookhey said.

Mr Kean hit back, saying Labor was a “risk to the economy and a risk to this state”, adding that Mr Mookhey formerly headed a trade union.

“We’ve seen already in Canberra that when Labor get in, they reward their union mates,” he said.

The pair went to university together and insisted they were “still mates”.

“We used to team up and fight the extreme left together,” Mr Mookhey said at the end of the debate.