http://www.theaustralian.com.au/national-affairs/labor-leaves-nsw-in-4bn-hole/story-fn59niix-1226029691977

THE incoming NSW Coalition government is struggling with a budget "black hole" of $4.3 billion, prompting Barry O'Farrell to accuse his Labor predecessors of "deception and incompetence" and sideline the state's top Treasury official.

We shall see what the independant assessment of the states finances reveals.
I would suggest that the state is broke.

Now this is a surprise!  Who would have thought that LABOR NSW would have been so dishonest/negligent.....whatever.....LOL

;D ;D ;D ;D ;D ;D ;D ;D ;D ;D

Last night, former NSW treasurer Eric Roozendaal hit back, decrying Mr O'Farrell's claims as a "predictable political ploy" and resulted from adding an extra year, 2014-15, to the government's economic projections. "We relied on Treasury advice in producing our election costings and we were not advised of any revisions," he said.

"This is a predictable political ploy by an incoming conservative government and relies on counting numbers that don't even fall within this budget period and are not part of the four-year budget process. They're basically make-believe numbers that are outside the forward estimates."

So O'Farrell is already using bull sh!t to neglect his commitments.....Typical of the Liberal party......The do nothing party in Australian politics!!!

:)

viewpoint wrote on Mar 29^th, 2011 at 7:28am:

Now this is a surprise!  Who would have thought that LABOR NSW would have been so dishonest/negligent.....whatever.....LOL ;D ;D ;D ;D ;D ;D ;D ;D ;D ;D

I am hardly suprised but am stumped that labor in any government still get away with wreaking havoc on the Australians finances. They are at it right now in the national government and need a carbon tax to fill in their hole.

philperth2010 wrote on Mar 29^th, 2011 at 7:37am:

Last night, former NSW treasurer Eric Roozendaal hit back, decrying Mr O'Farrell's claims as a "predictable political ploy" and resulted from adding an extra year, 2014-15, to the government's economic projections. "We relied on Treasury advice in producing our election costings and we were not advised of any revisions," he said. "This is a predictable political ploy by an incoming conservative government and relies on counting numbers that don't even fall within this budget period and are not part of the four-year budget process. They're basically make-believe numbers that are outside the forward estimates." So O'Farrell is already using bull sh!t to neglect his commitments.....Typical of the Liberal party......The do nothing party in Australian politics!!! :)

Your crap is no surprise fkwit......and LABOR "the bugger-up party in Australian politics"...........

$4.3B blackhole in NSW budget -   the only surprise here is that it isn't a bigger budget black hole.  

Labor, whether it's at the Federal or State level.
Their just not onto the finance thingy.
It's just not their bag.

Totally predictable either way you cut it.

Roozendahl is the sort that WOULD misrepresent the financial position, so it wouldn't surprise me if there was a "black hole".

On the other hand, whether there was or there wasn't, it was always predictable that O'Farrell would make this announcement. He seems to have gone into treasury all guns blazing.

But who would have thought that Treasury would not be 100% dependable, hey longweekend?

So can anyone tell me what will be the first on this list?

http://www.ozpolitic.com/forum/YaBB.pl?num=1301198995


come on all you liberals tell me what will be first because there is no money in the kitty

On the day he was sworn in as the state's 43rd Premier, Mr O'Farrell learned from NSW Treasury secretary Michael Schur that a surplus of $432 million in 2012-13, which was projected in the half-yearly review in December, has turned into a $405m deficit. The downgrade is the result of lower receipts from the GST and state taxes, and extra capital spending on Sydney's rail network. Mr O'Farrell was also told there was a "slowing" of commonwealth grants to NSW.

Including a newly projected $2.3bn deficit for 2014-15, the Coalition claims the budget is in $4.3bn worse shape than suggested by the last set of accounts from Labor.


http://www.theaustralian.com.au/national-affairs/labor-leaves-nsw-in-4bn-hole/story-fn59niix-1226029691977




I wish there were a way of getting to the TRUTH in these accusations
This "line" is now standard practice on changes of governments - and really comes down to "one word against the other"

Baillieu is trying to pull this stunt in Victoria
But HE made the mistake of going public - in the first week - saying "the books balanced" and the Victorian economy was in "excellent health" - with a $346 MILLION surplus

He's trying to retract, now - but NO ONE'S buying it




ALSO, in the same piece ...


Quote:

In further bad news for the NSW Premier on his first day in office - comprising a two-man government with Nationals leader Andrew Stoner, until the rest of cabinet is sworn in in a few days - Julia Gillard continued to resist suggestions a promised $2.1bn in federal funding for a rail link between Epping and Parramatta could be diverted to other transport projects. "The federal government gave a commitment during the federal election and I intend to honour that commitment," the Prime Minister said.

Julia Gillard continued to resist suggestions a promised $2.1bn in federal funding for a rail link between Epping and Parramatta could be diverted to other transport projects.

"The federal government gave a commitment during the federal election and I intend to honour that commitment," the Prime Minister said.


We'll see -  Gillard now knows she's behind the eightball -  she thinks Barry O'Farrel is a benign chappy who will bend to her will -  She is determined to learn the hard way.  She is in denial that the Carbon tax is a weight around federal Labor's neck -  Guess what Juliar it's going to get heavier and heavier and will surely drown you.


ALP deserters 'spooked' by carbon tax
Tom Dusevic, National chief reporter From: The Australian March 29, 2011 12:00AM

JULIA Gillard's carbon tax may have saved two high-profile NSW ministers from a Greens' assault in inner Sydney, but the move exacerbated the revolt against the 16-year-old Labor regime in its own heartland.

In western and southern Sydney, mining areas and long-established industrial towns, factory workers, two-car families and low-income households swung more heavily against Labor than the NSW average.

Sunshine State cooling on Julia Gillard: Newspoll
Dennis Shanahan, Political editor From: The Australian March 29, 2011 12:00AM

LABOR and Julia Gillard have suffered setbacks in the pivotal state of Queensland since the Prime Minister announced a carbon tax. The ALP's primary vote has dropped below its disastrous level at last August's election.

As the federal opposition claims Ms Gillard's carbon tax contributed to the devastating state Labor loss in NSW on Saturday, the Gillard government's biggest losses of support have been in Queensland in the past two months.

Since Ms Gillard announced her decision to "walk away" from her promise not to introduce a carbon tax and bring one in from July 1 next year, dissatisfaction with the Prime Minister has jumped by between three and 11 percentage points across the various states and age groups. Her greatest rise in dissatisfaction was in her home state of Victoria.

nichy wrote on Mar 29^th, 2011 at 8:28am:

JULIA Gillard's carbon tax may have saved two high-profile NSW ministers from a Greens' assault in inner Sydney

They should use better logic.

It should read
When the extreme greens manage to impose their policies on the Australian public and have done so through a coalition with labor, they manage to save atleast a couple of high profile NSW ministers from an otherwise greens onslaught. Had the greens just been kept where they should be, in the closet, the result would have been better for the greens.

nichy wrote on Mar 29^th, 2011 at 8:28am:

Julia Gillard continued to resist suggestions a promised $2.1bn in federal funding for a rail link between Epping and Parramatta could be diverted to other transport projects. "The federal government gave a commitment during the federal election and I intend to honour that commitment," the Prime Minister said. We'll see -  Gillard now knows she's behind the eightball -  she thinks Barry O'Farrel is a benign chappy who will bend to her will -  She is determined to learn the hard way.  She is in denial that the Carbon tax is a weight around federal Labor's neck -  Guess what Juliar it's going to get heavier and heavier and will surely drown you.

Why would federal Labor Goverment fund a rail line to one safe Federal Liberal seat instead of funding infrastructure to help about 4 safe Federal Labor Seats

Please delete wrote on Mar 29^th, 2011 at 8:09am:

Totally predictable either way you cut it. Roozendahl is the sort that WOULD misrepresent the financial position, so it wouldn't surprise me if there was a "black hole". On the other hand, whether there was or there wasn't, it was always predictable that O'Farrell would make this announcement. He seems to have gone into treasury all guns blazing. But who would have thought that Treasury would not be 100% dependable, hey longweekend?

You get better estimations and predictions from a taxi driver. at least the taxi driver will give his prediction for free!

It seems we go around in circles and make the same mistakes every time.

We have seen it in Britain as well.

Labor simply do not make good economic managers. They have always prioritized social programmes above that of economic prudence - thereby causing debt and over-spend.

We see it at state level and we see it at Federal level.

You can't tell me that Labor have not always been about putting lower income people first. Their history simply does not show that.

nichy wrote on Mar 29^th, 2011 at 7:56am:

$4.3B blackhole in NSW budget -   the only surprise here is that it isn't a bigger budget black hole.

Yes its a bit piss weak hey?  not anywhere near the 12 billion black hole in Abbott's proposed budget that the independents found when Abbott tried to woo them into government with him. :'(

skippy. wrote on Mar 29^th, 2011 at 9:12am:

nichy wrote on Mar 29th, 2011 at 7:56am: $4.3B blackhole in NSW budget -   the only surprise here is that it isn't a bigger budget black hole.   Yes its a bit piss weak hey?  not anywhere near the 12 billion black hole in Abbott's proposed budget that the independents found when Abbott tried to woo them into government with him. :'(

Off topic as usual      ;D ;D ;D ;D ;D

FRED. wrote on Mar 29^th, 2011 at 9:14am:

skippy. wrote on Mar 29th, 2011 at 9:12am: nichy wrote on Mar 29th, 2011 at 7:56am: $4.3B blackhole in NSW budget -   the only surprise here is that it isn't a bigger budget black hole.   Yes its a bit piss weak hey?  not anywhere near the 12 billion black hole in Abbott's proposed budget that the independents found when Abbott tried to woo them into government with him. :'( Off topic as usual      ;D ;D ;D ;D ;D

I thought the topic was about black holes? no point leaving out the biggest black hole ever found,princess. :'(

skippy. wrote on Mar 29^th, 2011 at 9:20am:

FRED. wrote on Mar 29th, 2011 at 9:14am: skippy. wrote on Mar 29th, 2011 at 9:12am: nichy wrote on Mar 29th, 2011 at 7:56am: $4.3B blackhole in NSW budget -   the only surprise here is that it isn't a bigger budget black hole.   Yes its a bit piss weak hey?  not anywhere near the 12 billion black hole in Abbott's proposed budget that the independents found when Abbott tried to woo them into government with him. :'( Off topic as usual      ;D ;D ;D ;D ;D I thought the topic was about black holes? no point leaving out the biggest black hole ever found,princess. :'(

;D ;D Just like buzz and green into black holes  are you skippy  ;D ;D ;D

FRED. wrote on Mar 29^th, 2011 at 9:26am:

skippy. wrote on Mar 29th, 2011 at 9:20am: FRED. wrote on Mar 29th, 2011 at 9:14am: skippy. wrote on Mar 29th, 2011 at 9:12am: nichy wrote on Mar 29th, 2011 at 7:56am: $4.3B blackhole in NSW budget -   the only surprise here is that it isn't a bigger budget black hole.   Yes its a bit piss weak hey?  not anywhere near the 12 billion black hole in Abbott's proposed budget that the independents found when Abbott tried to woo them into government with him. :'( Off topic as usual      ;D ;D ;D ;D ;D I thought the topic was about black holes? no point leaving out the biggest black hole ever found,princess. :'( ;D ;D Just like buzz and green into black holes  are you skippy  ;D ;D ;D

Your obsession with all things homosexual is telling, but I keep telling you, I'm just not that into you. :o

skippy. wrote on Mar 29^th, 2011 at 9:12am:

nichy wrote on Mar 29th, 2011 at 7:56am: $4.3B blackhole in NSW budget -   the only surprise here is that it isn't a bigger budget black hole.   Yes its a bit piss weak hey?  not anywhere near the 12 billion black hole in Abbott's proposed budget that the independents found when Abbott tried to woo them into government with him. :'(

Funny how it was supposedly found before an election when it came to liberals but 4bil not found when it came to labor.

No wonder Abbott does not like to use the treasury.

progressiveslol wrote on Mar 29^th, 2011 at 10:08am:

skippy. wrote on Mar 29th, 2011 at 9:12am: nichy wrote on Mar 29th, 2011 at 7:56am: $4.3B blackhole in NSW budget -   the only surprise here is that it isn't a bigger budget black hole.   Yes its a bit piss weak hey?  not anywhere near the 12 billion black hole in Abbott's proposed budget that the independents found when Abbott tried to woo them into government with him. :'( Funny how it was supposedly found before an election when it came to liberals but 4bil not found when it came to labor. No wonder Abbott does not like to use the treasury.

For somebody who writes on a political site you seem to know sweet FA about politics. Abbott's black hole was found by the independents,AFTER THE ELECTION, when Abbott was trying to woo them. They declined, on the grounds that Abbott could not be trusted after they saw his dodgy numbers. ;D

skippy. wrote on Mar 29^th, 2011 at 10:19am:

progressiveslol wrote on Mar 29th, 2011 at 10:08am: skippy. wrote on Mar 29th, 2011 at 9:12am: nichy wrote on Mar 29th, 2011 at 7:56am: $4.3B blackhole in NSW budget -   the only surprise here is that it isn't a bigger budget black hole.   Yes its a bit piss weak hey?  not anywhere near the 12 billion black hole in Abbott's proposed budget that the independents found when Abbott tried to woo them into government with him. :'( Funny how it was supposedly found before an election when it came to liberals but 4bil not found when it came to labor. No wonder Abbott does not like to use the treasury. For somebody who writes on a political site you seem to know sweet FA about politics. Abbott's black hole was found by the independents,AFTER THE ELECTION, when Abbott was trying to woo them. They declined, on the grounds that Abbott could not be trusted after they saw his dodgy numbers. ;D

Going through the board and seeing your posts, I can safely say that my ratio (although a small subset) of moments of unclear poltical knowledge, is looking good.

Thanks for clarifying my mistake.

skippy. wrote on Mar 29^th, 2011 at 9:12am:

nichy wrote on Mar 29th, 2011 at 7:56am: $4.3B blackhole in NSW budget -   the only surprise here is that it isn't a bigger budget black hole.   Yes its a bit piss weak hey?  not anywhere near the 12 billion black hole in Abbott's proposed budget that the independents found when Abbott tried to woo them into government with him. :'(

I'll take a proposed 12 billion black hole over a confirmed 4 billion one any day.
Anyone could see at the time Abbott was shooting from the hip at the time.
But Labor in NSW had 16 years to get this one right.
Big difference.

chicken_lipsforme wrote on Mar 29^th, 2011 at 11:03am:

skippy. wrote on Mar 29th, 2011 at 9:12am: nichy wrote on Mar 29th, 2011 at 7:56am: $4.3B blackhole in NSW budget -   the only surprise here is that it isn't a bigger budget black hole.   Yes its a bit piss weak hey?  not anywhere near the 12 billion black hole in Abbott's proposed budget that the independents found when Abbott tried to woo them into government with him. :'( I'll take a proposed 12 billion black hole over a confirmed 4 billion one any day. Anyone could see at the time Abbott was shooting from the hip at the time. But Labor in NSW had 16 years to get this one right. Big difference.

Is the difference in the lie of trying to conceal it, which I fail to see, or just that Abbott never got the chance to put his lie into action?

Why defend a lie from any of our pollies for gawd's sake?

We complain about how crap our pollies are while we make up excuses for their blatant lies?
Stupid, really stupid.

"I'll take a proposed 12 billion black hole over a confirmed 4 billion one any day."

Where is it "confirmed"? Once again we have a liberal leader sidestepping the treasury to bring in some mates for their opinion.

From the Australian's story:

Maybe some more financially literate person could comment - bogarde? Hicks?

Mark Posted at 12:03 PM Today

   Can you guys seriously not work out the trick that O'Farrell is pulling here? He takes the DIFFERENCE between the old and new 2012/2013 and 2013/14 projections ($837 million and $1,320 million), then adds the ENTIRE projected 2014/2015 deficit of $2.3 billion. And you guys just uncritically report it as a "4.3 billion black hole" and give Roozendaal a quote three-quarters of the way down, as if it's just "he says, she says, and no-one really knows". No wonder our politics is so dumb, when politicians can tell obvious lies like this and our press corps lacks either the brains or inclination to do the basic maths necessary to report the facts.

Comment 1 of 1

progressiveslol wrote on Mar 29^th, 2011 at 10:58am:

skippy. wrote on Mar 29th, 2011 at 10:19am: progressiveslol wrote on Mar 29th, 2011 at 10:08am: skippy. wrote on Mar 29th, 2011 at 9:12am: nichy wrote on Mar 29th, 2011 at 7:56am: $4.3B blackhole in NSW budget -   the only surprise here is that it isn't a bigger budget black hole.   Yes its a bit piss weak hey?  not anywhere near the 12 billion black hole in Abbott's proposed budget that the independents found when Abbott tried to woo them into government with him. :'( Funny how it was supposedly found before an election when it came to liberals but 4bil not found when it came to labor. No wonder Abbott does not like to use the treasury. For somebody who writes on a political site you seem to know sweet FA about politics. Abbott's black hole was found by the independents,AFTER THE ELECTION, when Abbott was trying to woo them. They declined, on the grounds that Abbott could not be trusted after they saw his dodgy numbers. ;D Going through the board and seeing your posts, I can safely say that my ratio (although a small subset) of moments of unclear poltical knowledge, is looking good. Thanks for clarifying my mistake.

I guess I'm flattered that you'd troll through the board to catch up on all my posts, I'm not surprised you see me as someone that knows what they're on about, opposed to yourself of course. :-*

>Maybe some more financially literate person could comment - bogarde? Hicks?>

Not me ernie footbru. My days of trolling through columns of figures are happily long gone.
But I'm always happy to give the subject a kick along in a political sort of way. Like referring to what a tragic state the public service has come to when the head of Treasury has to be bumped off onto leave because he can't be trusted not to interfere with the audit process, which is the only conclusion a reasonable person could come to.

Please delete wrote on Mar 29^th, 2011 at 11:10am:

"I'll take a proposed 12 billion black hole over a confirmed 4 billion one any day." Where is it "confirmed"? Once again we have a liberal leader sidestepping the treasury to bring in some mates for their opinion.

One of the basics of Politics, of all Political Party's  -
Never call for an inqury, unless you "know" the outcome, before it starts!

So after fatty o barrel gets elected he discovers a budget black hole?

Do we get to hear the "Non Core promises" bullshit again?

Why couldnt he have discovered this budget black hole when he was in opposition and used it in his election campaign?

I am sick of this crap from politicians in claiming after the election that there is no money due to previous governments leaving a budget black hole this excuse should not be allowed if the politicians were competant they would know the state of the finances before elections.

I dont see this budget black hole as an excuse after the election to cover the laziness of inept politicians who should research these facts and highlight them while they are in opposition.

Labor leaves NSW in '$4bn hole'

On the day he was sworn in as the state's 43rd Premier, Mr O'Farrell learned from NSW Treasury secretary Michael Schur that a surplus of $432 million in 2012-13, which was projected in the half-yearly review in December, has turned into a $405m deficit. The downgrade is the result of lower receipts from the GST and state taxes, and extra capital spending on Sydney's rail network. Mr O'Farrell was also told there was a "slowing" of commonwealth grants to NSW.

Mr O'Farrell said he had immediately stood aside Mr Schur on indefinite leave and announced a comprehensive audit of state finances by Michael Lambert, who was Treasury secretary under former NSW premier Nick Greiner.

"They have cooked the books like never before and treated the public like fools," Mr O'Farrell said of the defeated Labor government. "We all expected the finances to be worse than Labor portrayed

but I am angry at the level of deception and incompetence . . . (it) is simply not acceptable."

According to the figures presented to Mr O'Farrell and Mr Stoner yesterday, the state's budget operating position in the current and next financial year has strengthened from a predicted surplus of $167m in 2010-11 to $365m, and from a predicted surplus of $176m in 2011-12 to $204m.

But this improvement is counterweighed by the $837m turnaround in 2012-13 to a $405m deficit and a $1.32bn worsening in 2013-14. This would be followed by a projected $2.3bn deficit in 2014-15, which was beyond the forward estimates in the half-yearly review. In presenting the former Labor government's election costings during the campaign, Mr Roozendaal revealed a $100m downturn in GST payments in 2011-12.

Link -
http://www.theaustralian.com.au/national-affairs/labor-leaves-nsw-in-4bn-hole/story-fn59niix-1226029691977
====================================
These reviews are part of the changeover of governments and all of the negatives raised in this treasury review reflect the period from July 1st, 2012 to June 30th, 2015.

The largest "correction" being in the 2014-2015 year, which was beyond the forward estimates in the last half-yearly review!

I am not sure where the "slowing of of commonwealth grants to NSW" comment comes from, that would not be surprising in the years ahead.

In any event, Posturings such as these, are also common to changeover periods, it's a "game" played by both major party's!

I would suggest that a slowing/decline in government revenues and changes to Expenditure, Deficits & Debt ratio's, over the next 5-10 years, are not only an increasing probability, but a virtually certainty, for a number of reasons, some related to Political ideology & some just of fact of Economic reality.

That said, broad based Austerity programs, such as the Howard era or the current Brits program & a likely future Republican program in the USA, will serve to exacerbate an Economic slowdown that is already underway & working its way thru the Global Economic system.

Economic change is needed, but it must be very targeted and playing the old "back to the future game" will not succeed this time, as the rules & limitaions of the game have changed!

Good luck & watch the Debt!

perceptions_now wrote on Mar 29^th, 2011 at 12:37pm:

Labor leaves NSW in '$4bn hole' On the day he was sworn in as the state's 43rd Premier, Mr O'Farrell learned from NSW Treasury secretary Michael Schur that a surplus of $432 million in 2012-13, which was projected in the half-yearly review in December, has turned into a $405m deficit. The downgrade is the result of lower receipts from the GST and state taxes, and extra capital spending on Sydney's rail network. Mr O'Farrell was also told there was a "slowing" of commonwealth grants to NSW. Mr O'Farrell said he had immediately stood aside Mr Schur on indefinite leave and announced a comprehensive audit of state finances by Michael Lambert, who was Treasury secretary under former NSW premier Nick Greiner. "They have cooked the books like never before and treated the public like fools," Mr O'Farrell said of the defeated Labor government. "We all expected the finances to be worse than Labor portrayed but I am angry at the level of deception and incompetence . . . (it) is simply not acceptable." According to the figures presented to Mr O'Farrell and Mr Stoner yesterday, the state's budget operating position in the current and next financial year has strengthened from a predicted surplus of $167m in 2010-11 to $365m, and from a predicted surplus of $176m in 2011-12 to $204m. But this improvement is counterweighed by the $837m turnaround in 2012-13 to a $405m deficit and a $1.32bn worsening in 2013-14. This would be followed by a projected $2.3bn deficit in 2014-15, which was beyond the forward estimates in the half-yearly review. In presenting the former Labor government's election costings during the campaign, Mr Roozendaal revealed a $100m downturn in GST payments in 2011-12. Link - http://www.theaustralian.com.au/national-affairs/labor-leaves-nsw-in-4bn-hole/story-fn59niix-1226029691977 ==================================== These reviews are part of the changeover of governments and all of the negatives raised in this treasury review reflect the period from July 1st, 2012 to June 30th, 2015. The largest "correction" being in the 2014-2015 year, which was beyond the forward estimates in the last half-yearly review! I am not sure where the "slowing of of commonwealth grants to NSW" comment comes from, that would not be surprising in the years ahead. In any event, Posturings such as these, are also common to changeover periods, it's a "game" played by both major party's! I would suggest that a slowing/decline in government revenues and changes to Expenditure, Deficits & Debt ratio's, over the next 5-10 years, are not only an increasing probability, but a virtually certainty, for a number of reasons, some related to Political ideology & some just of fact of Economic reality. That said, broad based Austerity programs, such as the Howard era or the current Brits program & a likely future Republican program in the USA, will serve to exacerbate an Economic slowdown that is already underway & working its way thru the Global Economic system. Economic change is needed, but it must be very targeted and playing the old "back to the future game" will not succeed this time, as the rules & limitaions of the game have changed! Good luck & watch the Debt!

Well, the conversation seems to have slowed a little?

perceptions_now wrote on Mar 29^th, 2011 at 3:33pm:

perceptions_now wrote on Mar 29th, 2011 at 12:37pm: Labor leaves NSW in '$4bn hole' On the day he was sworn in as the state's 43rd Premier, Mr O'Farrell learned from NSW Treasury secretary Michael Schur that a surplus of $432 million in 2012-13, which was projected in the half-yearly review in December, has turned into a $405m deficit. The downgrade is the result of lower receipts from the GST and state taxes, and extra capital spending on Sydney's rail network. Mr O'Farrell was also told there was a "slowing" of commonwealth grants to NSW. Mr O'Farrell said he had immediately stood aside Mr Schur on indefinite leave and announced a comprehensive audit of state finances by Michael Lambert, who was Treasury secretary under former NSW premier Nick Greiner. "They have cooked the books like never before and treated the public like fools," Mr O'Farrell said of the defeated Labor government. "We all expected the finances to be worse than Labor portrayed but I am angry at the level of deception and incompetence . . . (it) is simply not acceptable." According to the figures presented to Mr O'Farrell and Mr Stoner yesterday, the state's budget operating position in the current and next financial year has strengthened from a predicted surplus of $167m in 2010-11 to $365m, and from a predicted surplus of $176m in 2011-12 to $204m. But this improvement is counterweighed by the $837m turnaround in 2012-13 to a $405m deficit and a $1.32bn worsening in 2013-14. This would be followed by a projected $2.3bn deficit in 2014-15, which was beyond the forward estimates in the half-yearly review. In presenting the former Labor government's election costings during the campaign, Mr Roozendaal revealed a $100m downturn in GST payments in 2011-12. Link - http://www.theaustralian.com.au/national-affairs/labor-leaves-nsw-in-4bn-hole/story-fn59niix-1226029691977 ==================================== These reviews are part of the changeover of governments and all of the negatives raised in this treasury review reflect the period from July 1st, 2012 to June 30th, 2015. The largest "correction" being in the 2014-2015 year, which was beyond the forward estimates in the last half-yearly review! I am not sure where the "slowing of of commonwealth grants to NSW" comment comes from, that would not be surprising in the years ahead. In any event, Posturings such as these, are also common to changeover periods, it's a "game" played by both major party's! I would suggest that a slowing/decline in government revenues and changes to Expenditure, Deficits & Debt ratio's, over the next 5-10 years, are not only an increasing probability, but a virtually certainty, for a number of reasons, some related to Political ideology & some just of fact of Economic reality. That said, broad based Austerity programs, such as the Howard era or the current Brits program & a likely future Republican program in the USA, will serve to exacerbate an Economic slowdown that is already underway & working its way thru the Global Economic system. Economic change is needed, but it must be very targeted and playing the old "back to the future game" will not succeed this time, as the rules & limitaions of the game have changed! Good luck & watch the Debt! Well, the conversation seems to have slowed a little?

No retorts?

Gee, the case for the big black hole can't have been too strong?

What do you think Maqqa (alias mellie, alias slr, alias ?)???

perceptions_now wrote on Mar 29^th, 2011 at 3:33pm:

On the day he was sworn in as the state's 43rd Premier, Mr O'Farrell learned from NSW Treasury secretary Michael Schur that a surplus of $432 million in 2012-13, which was projected in the half-yearly review in December, has turned into a $405m deficit. The downgrade is the result of lower receipts from the GST and state taxes, and extra capital spending on Sydney's rail network. Mr O'Farrell was also told there was a "slowing" of commonwealth grants to NSW. Mr O'Farrell said he had immediately stood aside Mr Schur on indefinite leave

O'Farrell copes badly with bad news, Wonder if anyone else will be game to tell him the truth if it's not good news.

Is it a concern that he goes over the top on the first day?

A  journalist asked Mr O’Farrell “ You said there would be no more spin. Isn’t immediately announcing Labor’s “cooking the books” just more spin?”

He’s only been in office for five minutes and the new State Premier for NSW has launched the traditional salvo of claims of a budget black hole in the State’s coffers.

It’s the oldest trick in the book, although usually most pundits would wait a week or two before starting to lament the perilous state of affairs they have inherited.

“This is a predictable political ploy by an incoming conservative government and relies on counting numbers that don’t even fall within this budget period and are not part of the four-year budget process. They’re basically make-believe numbers that are outside the forward estimates.”
http://guttertrash.wordpress.com/



So, I wonder what O'farrells answer to the journalist was ?  Can't seem to find that,as yet !   Just Typical ..here we go. >:(

Gunna-do this and Gunna-do that but not Gunna-do any of it now because it's all Labor's fault :) LOL

Black hole will soon become pothole
Matt Wade
March 30, 2011


THE budget black hole is less alarming than Barry O'Farrell would have voters believe.

The deterioration in the budget outlook will certainly make it more difficult for the new Premier to finance his election promises and deliver budget surpluses. But when you compare the $4.5 billion black hole between now and mid-2015, with what O'Farrell's government will spend in that period, it looks a bit more like a pothole. That $4.5 billion is less than 2 per cent of the $248 billion that NSW can be expected to spend on its activities over the next four years.

Financial markets were not too fazed by O'Farrell's warning. Market analysts said the new budget figures were unlikely to even cause a review of the state's premium AAA credit rating.

Analysis by Michael Turner, from RBC Capital Markets, suggests the predicted growth in NSW financial liabilities would not be enough to trigger a credit rating review, even if O'Farrell did nothing to plug the budget hole he has found.

More than half the black hole was found in the preliminary, unpublished estimates for the financial year 2014-15. Forecasts that far off ''are inherently unreliable'', Turner said.

If O'Farrell had used conventional government budgeting norms and considered only Treasury's official forward estimate period up to 2013-14, his black hole would have shrunk to $2.1 billion.

The headlines after his budget announcement probably left many voters believing NSW faces a deficit of $4.5 billion. In fact, the black hole is the estimated variation from cumulative budget surpluses projected until 2013-14 added to the unpublished estimated deficit for 2014-15. The cumulative total of deficits over the new forward estimates comes to just under $1.6 billion.

The figures actually show the O'Farrell government will start off with bigger budget surpluses than forecast last December for this financial year and next.

An extra $226 million is now forecast in those two years.

Nevertheless, NSW voters can expect to hear about the budget black hole for a long time yet. The mother of all black holes - the $10 billion one revealed by Peter Costello when he became federal treasurer in 1996 - was an integral part of the Howard government's political rhetoric for more than a decade. Hansard shows the shadow treasurer, Joe Hockey, was still telling Parliament about the ''Beazley black hole'' in 2008, more than 12 years after it was unearthed.


http://www.smh.com.au/nsw/black-hole-will-soon-become-pothole-20110329-1ceus.html

I think its undignified for a incoming state governor to expose his black hole to the  public