Arthur Sinodinos (NSW, Liberal Party) Share this | Link to this | Hansard source

My question is to the excellent Minister for Finance and Minister representing the Treasurer, Senator Cormann. Can the minister inform the Senate how the government is building infrastructure in New South Wales and thereby laying the foundations for future growth?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I thank Senator Sinodinos, a senator from the great state of New South Wales. Our Asset Recycling Initiative taps into the private sector's willingness to invest in well-established and mature assets in order to fund new productivity enhancing, job-creating infrastructure. This is, of course, a key part of our strategy, working closely with the Baird coalition government in New South Wales, to build a stronger, more prosperous economy. Those established and mature assets will continue to perform and perform better in private hands, helping to drive increased economic growth and ease congestion as a result of significant additional investment in high-quality, new economic infrastructure.

Our Asset Recycling Initiative will support up to $38 billion in new infrastructure spending across Australia, and we know that the first cabs off the rank, taking advantage of our Asset Recycling Initiative, were none other than Senator Lundy's Labor colleagues here in the ACT. Senator Lundy is absent today. Earlier this month the federal government also announced that $2 billion in incentive payments for crucial infrastructure projects will be provided to the state government of New South Wales. The coalition government here in Canberra is working together with the coalition government of New South Wales for the benefit of the people of New South Wales. Those incentive payments made under the Asset Recycling Initiative will be used to support the New South Wales government's infrastructure plans to create jobs, reduce congestion and boost growth. It is very popular with a range of Labor luminaries, including none other than former Labor Prime Minister Paul Keating, who said about the 49 per cent lease:

I support the Premier's view about this.

There are still some obscurantists in the Labor party …

Of course the obscurantists are over there, and they are in New South Wales. I have a few other quotes I would like to share and hopefully I will get the opportunity. (Time expired)

Arthur Sinodinos (NSW, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Will the minister advise the Senate what the reform legacies of previous governments teach us about the advantages of encouraging private investment in old public utilities?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

It teaches us that the Labor Party says one thing in opposition and does quite another thing in government. In opposition they try to get into government by misleading people. They tell us 'They are all against us.' Let me give Labor a little history lesson. It was none other than the Hawke Labor government that in 1988 sold the Commonwealth Accommodation and Catering Service, in November 1998 the Defence Services Homes Corporation loan portfolio, in 1991 the Australian Defence Force home loan franchise, in June 1991 Commonwealth housing loan assistance schemes in the ACT, in 1992 Australian Airlines, in March 1993 the first 25 per cent of Qantas, in October 1993 the Commonwealth Bank and in November 1993 the Snowy Mountains Engineering Corporation. At a state level, the Goss Labor government in Queensland sold Gladstone power station. (Time expired)

Arthur Sinodinos (NSW, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Will the minister advise the Senate of the opportunities and risks arising from state and territory government decisions on funding for major infrastructure investment?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Over 16 years in government, New South Wales Labor announced and then axed important infrastructure projects again and again because they could not find the money to pay for them. And we have a whole series of former Labor state politicians who are now singing the praises of Mike Baird and his plan to keep New South Wales working. These include former Labor Treasurer, Michael Costa, who I quote here directly:

Mike Baird's proposal for a partial privatisation is moderate, sensible and the right thing to do.

To quote Martin Ferguson directly:

As a former federal minister for energy, as a former union official—and as a long-serving member of the Australian Labor Party—I am proud to stand here before you today to lend my strong support to the restructure and sale of the NSW and Queensland electricity grids.

I have got more Labor quotes here and, in the interests of the Senate, I table these quotes.