State Economy

Hansard ID: HANSARD-1323879322-117697

Hansard session: Fifty-Seventh Parliament, First Session (57-1)

State Economy

Mr MARK COURE (Oatley) (14:52:47):

My question is addressed to the Treasurer. Will the Treasurer update the House on how the Government is maintaining a strong economy and supporting the community in New South Wales?

Mr DOMINIC PERROTTET (EppingTreasurer) (14:53:40):

— I thank the member for Oatley for his question and his interest in the New South Wales economy. I note that I have been out of Parliament for a while and have been out for a bit longer but in that time the Berejiklian-Barilaro Government has been hard at work. I made a massive difference from isolation. The Government has set up the State's mass vaccination hub in Homebush, which is open and NSW Health has delivered—if I am not wrong, health Minister—80,729 doses of the COVID vaccine in the last week alone. Since 22 February, 1.498 million doses have been administered across the State. Dave Layzell is here; we won a by-election.

We have announced $24 million for live music support packages, $89 million for three new schools for students with disabilities and $850,000 for a range of activities in The Rocks and Darling Harbour, which the customer service Minister, the planning Minister and the tourism Minister are all across, as part of our CBD revitalisation fund. We put together a flood‑prone land package and on Sunday we announced $36.4 million for mental health support in the bush. The Premier spoke about the river crossing in Hawkesbury, which she announced with the Prime Minister and the transport Minister yesterday. Recently I was with the new sports Minister and the planning Minister at Warriewood Beach to announce $16 million of funding across four years—that is $4 million each year—for surf club facility programs. We have been incredibly busy. What have members opposite been up to? How are they going? Are they all okay?

Mr Ryan Park:

Everyone's happy over here, Dom. Everyone's happy.

Mr DOMINIC PERROTTET:

That's good. It is accomplished: The chosen one has arrived. I congratulate Chris, well deserved. I have done a bit of reading. You studied at Princeton, Ivy League, right? Wow, we are so privileged and honoured to be in your presence. Do you row?

The SPEAKER:

The Treasurer will direct his comments through the Chair.

Mr DOMINIC PERROTTET:

Mr Speaker, I think you are going to have some problems this week because they are all auditioning for the shadow ministry.

Ms Jodi McKay:

Not all of us, Dom.

Mr DOMINIC PERROTTET:

Not all of them. Not Jodi; she is out. The new Leader of the Opposition should sack them all and be on his own because, as they say, a change is as good as a holiday. But that only works if you have been working, and the members opposite have been on a holiday for 10 years. The Berejiklian‑Barilaro Government's focus is where it should be, and that is on the people of New South Wales. Yesterday we handed down the NSW Intergenerational Report, or IGR, which shows that our State will change drastically over the next 40 years. It gives an insight for governments from all sides of politics to look at the opportunities and challenges we are facing so we can develop policies that will improve the lives of people right across the State. As the great David Bowie said, "The future belongs to those who hear it coming." That is exactly what the Berejiklian‑Barilaro Government is doing.

Extension of time

The report found that productivity is projected to become the biggest driver of our economic growth, increasing at 1.2 per cent per year over the next 40 years. By 2061 the fiscal gap will be 2.6 per cent of GSP. The good news is that is an improvement from the 2016 IGR when the gap was 3.4 per cent. Our population will expand by around 40 per cent to 11.5 million people in 2061. That is up from 8.2 million. Life expectancy is projected to increase to almost 92 years for women, with men falling behind—discriminated against again—at just over 89 years for people born in 2061. New South Wales will need an additional 1.7 million homes, which the planning Minister is all across. That is 42,000 additional homes each year. []

The report also notes that housing affordability has reduced, with the time taken to save for a deposit increasing from 6.6 years in 1996 to 11.5 years in 2020. This is an interesting one for the boomers—and Brad has just walked back in.

Mr Ryan Park:

Hang on, that's a bit harsh.

Mr DOMINIC PERROTTET:

It is just a fact, Ryan. Sixty per cent of boomers owned a home when they were between the ages of 25 and 34. The figure for millennials is 15 points lower, at 45 per cent, for the same age bracket. That shows that housing affordability is obviously decreasing. But we need to continue to look at policies to help. Millennials do not have a lobby group or talkback radio to go to, so it is our job to represent them in this place. Wages will increase, as we have seen, to an average of about $139,000 per year in today's dollars. That is compared with $86,000 in 2018‑19. The jobs of the future will be more highly skilled and the workforce will be increasingly concentrated in the social services and business services sectors.

Former Prime Minister Paul Keating talked about the touch and tech industries that will come forward. Overall, the IGR projects that by 2061 the people of New South Wales—because of the great work of the health Minister—can be expected to live longer lives, have more flexible career options and enjoy a higher standard of living. A few years ago we set up the NSW Generations Fund and seeded it with $10 billion. It is now at $14 billion, with returns of around 8.05 per cent. That will grow to $430 billion and have a significant impact on reducing the debt that future generations will have to pay down in the years to come.