The rationale behind Brogdens Proposals (1 Viewer)

[frog12986]

Thursday 25th August- Courtesy www.nsw.liberal.org.au

NSW Liberal Leader John Brogden today announced the Liberal/Nationals Coalition economic and government reform program to make New South Wales Number One Again.

“The reform program will begin to tackle Labor’s high taxing regime by cutting payroll tax, while eradicating Labor Government waste and duplication, which together will improve our interstate and international competitiveness.

“A Liberal/Nationals Coalition Government will introduce payroll tax cuts of up to $15,000 for more than 22,000 NSW businesses and exempt more than 4,500 NSW businesses from payroll by increasing the tax-free threshold on annual payrolls from $600,000 to $850,000.

[NOTE: For full media release including statistic table of THE LIBERAL/NATIONALS COALITION PAYROLL TAX CUT, go to http://www.nsw.liberal.org.au/archive_campaigns/
MillenniumRelease_MakingNSWNo1Again.pdf]

“To further stimulate economic growth and make New South Wales a more attractive state in which to do business, the Coalition will cut Workcover premiums by 10%, and not introduce new taxes or increase existing taxes.

“These measures, coupled with a comprehensive offensive against waste and duplication will result in the state budget being returned to surplus and the retention of New South Wales’ AAA credit rating,” Mr Brogden said.

“The offensive against waste, rampant growth in government expenses and duplication will commence with the slashing of Government departments to just 9, comprising of:

• Premier (Infrastructure, Planning and Major Projects);
• Treasury;
• Transport and Infrastructure Services;
• Health;
• State and Regional Development;
• Community Renewal;
• Education;
• Primary Industries and Natural Resources; and
• Justice

“The consolidation of government departments will enable us to reduce senior public sector expenses by slashing ‘fat cat’ positions by 25%.

“Displaced public servants, who get paid to do nothing under Labor will be removed from the payroll by abolishing the existing ‘No Forced Redundancy’ policy.

The Liberal/Nationals Coalition will also introduce a two-year public sector hiring freeze that will save approximately $1 billion in the first year.

“Importantly and in line with my commitment to effective service delivery, frontline services in Health, Education, Police, Corrective Services, Juvenile Justice, Emergency Services, Transport and Community Services will be quarantined from the hiring freeze,” Mr Brogden said.

“The NSW public sector workforce will be reduced by approximately 29,000 over two years from 2007 to 2009.

“Making New South Wales Number One Again is a central plank in the Liberal/Nationals Coalition plan to Rebuild New South Wales.

“The NSW economy should be the strongest, the fastest growing and the most competitive in Australia and it will be again under a Liberal/Nationals Coalition Government,” Mr Brogden said.

[NOTE: For full media release including statistic table of THE LIBERAL/NATIONALS COALITION PAYROLL TAX CUT, go to http://www.nsw.liberal.org.au/archive_campaigns/
MillenniumRelease_MakingNSWNo1Again.pdf]

Sounds like a forward thinking plan to me..

 

[BrenKHS]

Perhaps if the NSW government got all the money at pays in GST back, we wouldn't have to tax business's so much.

Slashing jobs... cutting taxes... typical liberal politics

 

[frog12986]

Wastage and immense bureaucratic ineffiency have no relation to the level of GST funding received by the state. That argument was merely posited to remove the pressure from Carr, Egan and Refshauge and their governments deteriorating budgetary outlook...

Inefficiency...high taxes... slow economic growth... typical ALP politics...

 

[walrusbear]

social progression... perception beyond immediate economic theory... typical ALP politics...

 

[BrenKHS]

Money has to come from somewhere - if we don't get the GST money back then we are required to obtain it from somewhere else - in this case business. This has no relevance to the issue of sacking public servants and I never stated that it was- this is to do with the taxing of business.

Efficiency = sacking people just to make things look better for the electorate?
High Taxes= This is linked to labour yet the liberals implemented the GST?

 

[Xayma]

Money has to come from somewhere - if we don't get the GST money back then we are required to obtain it from somewhere else - in this case business. This has no relevance to the issue of sacking public servants and I never stated that it was- this is to do with the taxing of business.

Efficiency = sacking people just to make things look better for the electorate?
High Taxes= This is linked to labour yet the liberals implemented the GST?

GST wasn't just added on, it was part of a wide range of tax reform. Coca-Cola became cheaper

 

[frog12986]

social progression... perception beyond immediate economic theory... typical ALP politics...

Social Progression? Maybe in an ideological sense..but in practice Welfare and the like do not inhibit social progression but rather create a society that has a heavy reliance upon government.

The fact that Australia's living standards and real wages have been the highest under the Howard government are the most tangible forms of proof as to whom is better at providing the people of Australia with social progression and prosperity.... not to mention the lowest rates of inflation and interest in years which have been achieved through a balance in both macro and micro policies..The record of social stability and progression speaks for itself over any push for an ideological monopoly.

So BrenKHS, we should have ineffient government for the sake of a few public servants... sounds logical

Inefficency heightens the need for extra funding due to the immense wastage in the public sector. Maximising efficiency reduces the need for more revenue and inevitably results in greater growth and production, which in themself produce greater levels of revenue with proportionally lower taxes...

Moreover, the quest for service delivery requires greater efficiency and productivity within the public sector should be the primary goal of any state government who wishes to serve thier purpose... that being the efficient and productive provision of effective public services.. this notion that state governments are drivers of economic prosperirty and progression is absurd...

 

[leetom]

The slashing of the current 21 Departments into 9 super-Departments will only serve to congest the bureaucracy, making the jobs of specific and vital Departments harder to do.

For example, the most notable exclusion from Brogden's super-Departments is the Department of Community Services (DoCS). This Department performs vital and essential, you guessed it, community services. It keeps NSW from spiralling into societal decay through a plethora of duties- the removal of children from abusive parents just one among many. Looking at Brogden's super-Departments, I can't see anything that resembles DoCS at all. Brogdon's proposed 'Department of Community Renewal', I'm guessing, may assume DoCS current responsibilities but with a name like that who knows what other tasks it may be burdened with.

DoCS peforms under enourmous pressure as it it. If the entire Department is abolished and reformed with a new Liberal perspective, meshed together with additional responsibilities from other abolished Departments, it will be distracted from it's core purpose- serving the community's negelcted.

NSW is a massive demographic. It can't be governed by 9 Departments effectively, and super-Departments will only serve to make the job being done now harder to do. Thumbs down Broggers- yet again.

 

[gerhard]

can some economics person explain idea of inflation to me?

it seems to me like luxury goods come down abit in price, but basic necessities go up heaps and they just cancel each other out to give a fairly small level of inflation. but this would mean all the poor people really have to deal with a higher rate of inflation than the rich, since they spend more as a percentage on the basic necessities.

im sure im wrong about something because im pretty stupid, so can someone help?

 

[spell check]

Inefficiency...high taxes... slow economic growth... typical ALP politics...

i'm pretty sure the invisible hand of the market got discredited during the great depression

 

[BrenKHS]

GST wasn't just added on, it was part of a wide range of tax reform. Coca-Cola became cheaper

Some things became cheaper but more things became more expensive. Services were not taxed before the GST - on the whole they are getting a larger amount of money. And NSW is getting no where near what it gives in.

So BrenKHS, we should have ineffient government for the sake of a few public servants... sounds logical

I'm just highlighting exactly what "efficiency" means; people use it today as a euphemism of job-slashing.

Inefficency heightens the need for extra funding

How does inefficiency highlight the need for extra funding!??

this notion that state governments are drivers of economic prosperirty and progression is absurd...

“The NSW economy should be the strongest, the fastest growing and the most competitive in Australia and it will be again under a Liberal/Nationals Coalition Government,” Mr Brogden said.

So what Brogden is saying is absurd? BRILLIANT! Even the liberal supporters see that he is an idiot.

 

[frog12986]

You seem to be getting your wings confused. Getting the social ideology and the economic ideology of the parties confused.

When somone talks of the social progression they are not talking about the economic wing but rather the social values of the party. The Liberal party holds conservative values. The ALP doesn't hold conservative values (ie some people like to call that progressive)

The old line that Labor is all for big old fashioned government is a bit rich against Labor these days. Sure it makes sense in the 1970s but not today.

In terms of economies and the role the government plays Australian government is pretty small compared to other major players. Many wealthy European nations and perhaps Japan.

Large state government went out of fashion when Hawke took over from Fraser and (Howard astreasurer).

As for social welfare. How about paying middle class Australians a baby bonus? Sounds like middle class welfare to me.



You are getting your political wings confused again. You also seem to be good at quoting off the Liberal party web page. Which perhaps isn't a good idea. Probably just as good as me quoting off the ALP website page for hard data.

Again. Real wages up. Cost of living up. Do you feel any richer? As you probably know the ALP was more concerned with the Social wage during the 1980s. Providing Health Care and Education at a low cost for everyone. These things are becoming more user pays. Society is more consumerist. Society STILL doesn't save any more than it did during the 1980s.

Perhaps you should use saving rates to see how prosperous society is?

As for standard of living - no one can actually measure that?!?!?! People have been fighting over that for ages. Do you measure real wages? Household debt? Social factors like whether people feel the pressure to meet large mortgages and outlays?



wow sign me up! Sounds nice in theory. Just like communism. The Public sector probably needs to be trimmed in the name of efficiency. But by such logic we should have 20 people working in the NSW Public service and all would be find and dandy.

The same Freemarketism small government ideology would see the Police force becoming privitised (at least in the future like they are in some US states) with free market principles applied.



You are simply trotting out fundementalist freemarketism...straight out of a text book :\ Without any mention of the problems of maximising efficiency. Market failures, loss of social capital, people don't always act rationally and in their own self interest...etc etc...

As an alternative to the economic measures of 'living standards', the HDI also emphatically reveals that Australias living standards, across a vast range of social and economic indicators, has in fact increased rapidly. It may be conjecturous, but nonetheless it is a 'non-economic' measure of Australia's living standards, Moreover, it does actually place Australia in a more recognised position than would be the case of any economic based indicator.

I do not see how 'saving' is an indication of more prosperity and better living standards within the general population. Please explain. If anything such consumer patterns do indicate that the population places a greater confidence in both their social and financial circumstances. Instead of placing an emphasis on 'security' through having sufficient funds within their bank accounts, individuals now convey this through their willingness to take risks. After all, it is the 'Marginal Propensity to Consume' of an indivdual which is the driving factor behind economic growth and progression....

"The old line that Labor is all for big old fashioned government is a bit rich against Labor these days. Sure it makes sense in the 1970s but not today"....

The state government reveals that this 'notion' is still rife through its own governing practices; A bulging bureaucracy that is not producing results on the front line due to congestion. Re-structure, after re-structure within the upper to middle ranks of the service, have in fact delivered more ineffective and inefficient services than existed before. Within this obsession of restructure has been an addition of close to 35000 public servants in less than 10 years. Mathematically around 3500 servants each year...If this isn't an example of 'big old fashioned government, I'm not really sure what is...

"Large state government went out of fashion when Hawke took over from Fraser and (Howard astreasurer). "
..state government actually became larger and vastly more politicised after good 'ole Neville Wran introduced his public service reforms of the 80's. Ministers were given responsibility for senior appointments and this development led to appointments based on 'allegiances', dismissals by ministers and the loss of informed, frank and fearless advice to these ministers. These changes also induced much of the inflated bureaucracy that exists today through an emphasis on 'spin' as oppose to progress...the result: an over-governed state especially when viewed as a proportion of the population

"You are simply trotting out fundementalist freemarketism...straight out of a text book :\ Without any mention of the problems of maximising efficiency. Market failures, loss of social capital, people don't always act rationally and in their own self interest...etc etc"...

Considering I do not own a textbook, that would be rather difficult. I did not admit that there wouldn't be problems along the way, as all economic/public sector reforms encounter some type of issue. However, I was merely advocating that a movement towards such 'freemarketism' will in the long run be more beneficial, and improve overall efficiency. A small step forward is better than no step at all...
"Market failures, loss of social capital, people don't always act rationally and in their own self interest".. thats sounds more like its straight out of an economic textbook to me....explain them in english, not textbook jargon