Read it and weep - The Australian's editorial on Victoria's Labor/CFMEU government, "closed for business"
Thursday, 16 April 2015
I struggle to find words to describe the Andrews Labor Government's decision to cancel the East-West road project.
Irresponsible doesn't cut it, nor does reckless - even Scott Morrison's label of "an obscenity" doesn't describe how I feel about the issue. Andrews's cavalier approach to other people's money is so extreme that it triggers the same sorts of feelings in me as I'd feel reading about a large-scale fraud or some other grand theft by a public official.
The Australian had a go today at describing the state of Victoria's CFMEU/Labor government - it's a very good on-the-record account of Victoria under Andrews et al:
Editorial: Victorian government is closed for business
Let’s not play Clintonesque semantics over the meaning of the words compensation, promise or contract. That $420 million ka-ching Victorian taxpayers heard yesterday is the sorry sound of Premier Daniel Andrews caving in and breaking an election promise.
The Victorian government struck a deal to pay the developers of the East West Link tunnel in Melbourne $339m for costs incurred plus $81m for financing fees for a loan. Not only is this a tragic waste of scarce dollars for Victoria, this utterly foolish move by Labor — cancelling a contract signed by the former Napthine government — puts a stop to any new major infrastructure project in the nation’s fastest growing city. It signals to foreign investors that the Andrews government — if not Australia — is a riskier proposition, vulnerable to political whim and partisan expediency.
To appeal to Greens-inclined inner-city voters, the Labor leader sounded a tough, if reckless, note before last November’s poll. Yet it did Labor no favours in those vulnerable seats. Mr Andrews is now a chastened figure. Reality bites, Mr Premier. You can’t declare you will tear up a contract and get off scot-free. Federal Social Services Minister Scott Morrison was on the mark in labelling this deal to not build a road — that would plainly ease congestion and support thousands of jobs — an “obscenity” at a time of fiscal constraint. An almost limitless list of worthy social projects would benefit from that money, including disability services and housing for the homeless. The waste goes even deeper if land acquisition, public service and other costs are added in. There are other consequences, too. Recently, both the French and Spanish governments made representations on behalf of companies involved in the $6.8 billion project. Why give potential foreign investors the needless whiff of scandal or sovereign risk? Through free trade agreements, the Abbott government has tried to sell the message that Australia is “open for business”. Mr Andrews has damaged such attempts to enhance our global reputation and the prospects of more growth and jobs.
There's more to the Editorial at The Australian. Read it and weep.
UPDATE
The Australian's foreign editor Greg Sheridan is on the case too with this summary of the Andrews-government-debacle.
Sheridan explains why newspaper's foreign affairs editor has bought in to the Andrews story, it's:
.....because it (the East-West link decision - among others) is a crippling blow to Australia’s reputation as a place to do business.
It is a savage blow to Victoria but it also reinforces the growing international perception of Australia as an extremely high cost, uncompetitive, difficult place to do business, just as we used to be before the reforms of the 1980s and 90s. One of our great traditional strengths, political stability and legal and contractual reliability, is now under question.
The Andrews government has thus spent nearly half of the money it would have spent to get the road, in order to get nothing. Most of our state politicians are unsophisticated and little travelled, especially in Asia. Does Andrews have the faintest idea of how this madness looks to Asia?
And Greg is onto the CFMEU links deep into the Andrews administration:
This is a deep green/parlour pink anti-development government. Its worst decisions have been taken to appease the worst elements in the trade union movement, especially the CFMEU. The Andrews government abolished the construction code and the related compliance unit. It abolished compulsory drug and alcohol tests on building sites only to find that the union itself had changed its mind and decided these tests weren’t a bad thing after all.
Building costs in Victoria are higher than anywhere else in Australia and a crippling enemy to jobs. The criminal element in the building industry in Victoria ought to be the subject of inquiry by some speck of the ABC’s vast editorial budget.
In a nation reeling from uncompetitiveness, with the prices of our main exports in free fall, the Andrews government decided that we needed a new public holiday, on the Friday before AFL grand final day.
It's hard to believe we are talking about waste of money on so grand a scale - it's worthwhile to revisit the numbers as Greg does in his column:
The Daniel Andrews government is the worst in modern Australia. It will do immense damage to the Victorian economy and to the Australian economy as well.
Its decision to spend something between half a billion and a billion dollars in order not to build a road represents a kind of grandeur of folly unseen for decades in Australia.
There is a sheer, unrelenting stupidity to this decision, a kind of epic imbecility that combines Monty Python with Karl Marx in a distinctively Melbourne disharmony.
In repudiating contracts signed by the previous Victorian government, the Andrews government says it will spend $339 million in money the consortium that was going to build the East West Link has already spent. And none of this is compensation, so we are told. If we are to take this at face value, it suggests the project was a very long way under way already.
The Victorian opposition says it had already spent $400m of government money on the project. Federal Assistant Infrastructure Minister Jamie Briggs says there are at least another $200m in costs in getting out of all the financial arrangements.
The Victorian government says there are $80m of financial arrangements costs but these can be used to finance future infrastructure projects, though no such projects currently exist.
This is appalling government and will cost Australia dear.
Eric Abetz
Trish Crossin
George Brandis
Stephen Parry
Penny Wong
Doug Cameron
Anne McEwen
Catryna Bilyk
Christopher Back