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All bets are off

08 Sep, 2008 09:16 AM
Revelations of the NSW Government’s dire finances has cast shadows over major projects already promised to the city.

An approved $10 million expansion of Maitland Hospital and the third river crossing are at risk of being left out of a mini budget expected later this year, following on from a dramatic weekend in State politics.

Maitland MP Frank Terenzini denied the projects were under threat.

But he conceded the failure of legislation to sell off the electricity industry had left a hole in the State’s finances.

“Speaking as the member for Maitland and as one who has always had, and always will have, the best interests for Maitland at heart, my job has become somewhat more difficult,” he said yesterday, following a Labor caucus meeting where Nathan Rees was officially appointed premier.

“Because the bills didn’t get through parliament, we are now faced with a situation where certain projects and things that I had planned for Maitland and to be done in Maitland are now up in the air.

“The projects that have been budgeted, I would expect to go ahead.

“The things I’m talking about are improved cardio vascular services, we’re talking about public transport such as easy access lifts for our railway stations and we’re talking early funding for the Thornton rail bridge.”

But Greens MP John Kaye, who opposed the privatisation proposal, was not convinced projects promised to the city were safe.

“We’ve seen governments make commitments on money and then say, sorry, the cupboard is bare,” he said during a visit to Maitland at the weekend.

Maitland Mayor Peter Blackmore said the situation was also another nail in the coffin of a Maitland bypass.

“My concern is that the mini budget will take away the funding from a number of our key items, including the $10 million expansion of Maitland Hospital and the third river crossing,” he said.

“Another major concern is that this could delay even further any talk of a bypass for Maitland.”

Outgoing treasurer Michael Costa “dropped a bomb” about the State’s financial status on his way out of Parliament House on Friday.

Mr Terenzini said the new premier had been briefed by the treasury; and the Government now had to look at more options to ensure it maintained its triple O rating.

But he said the financial crisis facing the State was not due to poor economic management, citing the Government’s surplus budgets.

“The problem is the rising cost of health services, the loss of incomes from the slowing of the national and international economy and the need for infrastructure,” he said.

“Because the power reforms didn’t go through, we will miss out on that money and now face the prospect of forking out on baseline power.

“We now have to look ay other ways to keep our sound economic management.”

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