TREASURER Rob Lucas has flagged a tough first budget as the State Government seeks to reverse the “waste and financial mismanagement” stemming from almost two decades of Labor rule.
Last week, Mr Lucas said the government expected a 75pc increase in its electricity bill due to a rushed deal struck by the previous Labor administration.
Mr Lucas said initial analysis suggested energy costs across government could jump from $45m to $106m.
He said the Country Fire Service (CFS) was among the hardest hit government departments, with analysis estimating a five-fold increase in its electricity bills.
The CFS, along with other frontline emergency services, including the MFS and SES, are funded by the Emergency Services Levy (ESL), which the government has reduced to its previous level.
The State Government’s reintroduction of the general rebate, which when it was removed in 2014 saw ESL bills skyrocket, will cost the government $360m over four years.
However, Mr Lucas stressed the cut was fully funded and would not impact on service delivery or capital works.
“The CFS is covered by the ESL, but now we will have to cover the CFS and the budget overall will provide for it,” he said.
“The CFS electricity increase is relatively small in cost compared to other departments, I think it sort of increased five fold from $30,000 to $200,000 and that is where you get the 500pc increase.”
Mr Lucas blamed his predecessor for unnecessary expenditure – including on projects and programs funded by the previous Labor Government – which he said would not be continued.
“We are going to clean up the financial mess of Labor and that will include cutting out that sort of waste and financial mismanagement we see in things like the electricity negotiation,” he said.
“But we will not use the fact we discovered waste in the budget to not deliver our promises.
“Governments have done that too often in the past and the Marshall Liberal Government is not going to use that as an excuse.
“Former priorities by the Labor Government will have to be either cut or removed.”
Earlier this year, Mr Lucas confirmed the $20m second round of the Fund My Neighbourhood program, initiated by Labor just months before the state election, would not be continued.
He said projects and programs under the axe would be revealed when the budget is unveiled on September 4.
An additional $5m investment in the CFS for station upgrades was among the State Liberals’ pre-election pledges.
A decade-long billion dollar Recharging Our Regions package consisting of a $150m job and investment fund and a $750m regional road and infrastructure fund were among the party’s key region-specific pledges.
Following Federal Treasurer Scott Morrison’s proposal to remove the GST from feminine hygiene products, an estimated $3m per year of savings may need to be found within the state budget.
The 10pc tax generates $30m for the Federal Government, which is distributed to the states and territories.
