The NSW Government’s Achievements To Date, And What To Expect Next

NSW GOVERNMENT 2016 REVIEW & 2017 FORECAST

In this update:

As business and the public sector return from a well-deserved break, we have taken stock of the Baird Government’s achievements in 2016 and outlined what to expect over the course of the coming year.

  • NSW Government’s Key Achievements in 2016

  • What to expect in 2017

  • NSW Parliamentary Sitting Calendar

Key Achievements in 2016

Under the leadership of Premier Mike Baird, the NSW Government remained focused throughout 2016 on strong fiscal management and delivery of its record infrastructure program. The Government also remained committed to pursuing its policy reform agenda, notwithstanding the controversial nature of some elements of its program.

The structure of the Cabinet has remained predominately unchanged since the March 2015 election, however Hon. John Barilaro MP was elevated to the position of Leader of the Nationals and Deputy Premier following Hon. Troy Grant MP’s decision to step down last November. Several key appointments to the public service have been made, including Rob Whitfield as Secretary of Treasury and Mark Scott as Secretary of the Department of Education.

NSW remains in an exceptionally strong financial position, with net debt being eliminated for the first time in the State’s history and a $4 billion surplus being delivered for 2016/2017. This has been achieved through restrained spending by the Government as well as the successful Ausgrid and Transgrid transactions, which together raised more than $26 billion, exceeding the Government’s original expectations. NSW has also continued to lead the nation in jobs growth, business investment growth, and consumer confidence.

The Government is leveraging its financial position by investing a record $73.2 billion in infrastructure over forward estimates. Headline infrastructure achievements in 2016 included:

  • Completing tunnelling and laying the first tracks for the 66km Sydney Metro, Australia’s largest public transport project

  • Commencing tunnelling on NorthConnex, a 9km tunnel linking the M1 and M2

  • Allocating funding and/or commencing works for the redevelopment or construction of the Blacktown and Mount Druitt Hospital, Byron Central Hospital, Campbelltown Hospital, Dubbo Hospital, Gosford Hospital, Maitland Hospital, Northern Beaches Hospital, South East Regional Hospital, St George Hospital and Sutherland Hospital, Tamworth Hospital, Wagga Wagga Rural Referral Hospital, Westmead Hospital, and Wollongong Hospital Elective Surgery Unit

  • Opening the $1.5 billion International Convention Centre Sydney

  • Commencing early works for the Newcastle Light Rail

  • Completing the King Georges Road Interchange and reaching the 80 per cent completion mark for the widening of the M4, as part of the $16.8 billion WestConnex project

  • Selecting a consortia for the construction of a new Parramatta Stadium, and setting in place agreements to transform ANZ and Allianz Stadiums.

The NSW Government also pursued other major reforms in 2016. Alongside the more contentious policies of council amalgamations, lockout laws and restrictions on greyhound racing, the Government also introduced legislation for a container deposit scheme, introduced the NSW Innovation Strategy, modified the compulsory land acquisition process, amended the three strikes scheme for licenced venues, and released draft District Plans by the Greater Sydney Commission, among other initiatives.

What to expect in 2017

2017 marks the half-way point of the Baird Government’s term, and with it, the likelihood of a change to the makeup of Cabinet. It has been widely reported that a reshuffle is likely to take place prior to the Parliament sitting in mid-February. Changes in Ministerial positions are also often a precursor to movements in the public service, so some change at the senior levels of departments and agencies could be expected this year.

On 5 December 2016, the Government called for Expressions of Interest for the long-term lease of a 50.4 per cent stake in Endeavour Energy, expected to raise around $4 billion. As the third and final electricity distribution asset to be leased, the transaction has already generated significant international interest, and will be a focus of Treasury. The Government is also undertaking a process to privatise the land titles registry function, which is expected to deliver around $1.5 billion.

Key infrastructure projects including Westconnex and Sydney Metro will meet major milestones throughout the year. Stage Two of the Sydney Metro between Chatswood and Sydenham has received planning approval, and construction is scheduled to commence this year. The Government is also likely to commence new projects including the Circular Quay precinct redevelopment, and the redevelopment of the Fish Markets. The $1.8 billion major road works program for the Western Sydney Airport will also be progressed this year.

The Government’s proposed new metro line linking the Sydney CBD to Parramatta is also likely to be a focus this year, following an announcement by Transport Minister Andrew Constance last November that the project will be NSW’s next major public transport project.

Planning Minister Rob Stokes unveiled on Monday proposed amendments to the Environmental Planning and Assessment Act, with the aim of streamlining the process for planning applications and reducing approval times. Other priorities for the Government will include the ongoing implementation of the NDIS, boosting the Government’s digital presence, addressing domestic violence, and leveraging the Jobs for NSW fund to create new jobs.

As the Government begins to turn its attention towards the 2017-18 Budget to be delivered in June, now is the time for organisations that are interested in making a pre-budget submission to prepare an application to the NSW Treasury and make their view heard.

2017 NSW Parliamentary Sittings

A copy of the 2017 NSW Parliamentary Sitting Day calendar can be found here.

Further Information
For further information or analysis on how the NSW Government’s agenda may affect your organisation this year, contact me to arrange a briefing on (02) 9223 0311 or via email: ih@premierstate.net.

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