Asset recycling hailed as NSW’s “secret sauce” to financial success

By July, 2017 August 31st, 2017 Infrastructure, Local, State
NSW Treasurer Dominic Perrottet has praised asset recycling as an effective way to generate a Budget surplus and reinvest into new infrastructure.

New South Wales Treasurer Dominic Perrottet, speaking at the AFR Infrastructure Summit 2017. Image: Paul Hemsley/GovNews.

New South Wales Treasurer Dominic Perrottet has had a lot of infrastructure-related news to spruik as he promotes the surplus and investment goals of the State Budget 2016-17.

And one of the strategies that Mr Perrottet has lauded as a “secret sauce” to the state’s success is asset recycling – a controversial approach to filling up the government’s coffers with significantly large amounts of revenue by selling off government-owned assets.

Depending on the amounts of money accumulated, a government may find itself in a surplus and may reinvest those funds into new infrastructure projects – a tactic that’s received praise from United States Vice President Mike Pence in his recent visit to Australia this year.

Speaking at the Australian Financial Review’s Infrastructure Summit 2017 in Sydney, Mr Perrottet said asset recycling has enabled the government to have a significant amount of funds, where investments can be made directly in to the biggest infrastructure pipeline.

As a result of the state government’s asset recycling scheme, Mr Perrottet said the it has announced a four-and-a-half billion dollar surplus for 2016-17, with projections of a $2.7 billion surplus for the next financial year and on average over the forward years, surpluses greater than $2 billion.

However Mr Perrottet hit out at critics of the government’s asset recycling strategy who persistently and passionately argue that governments have a habit of pocketing the money and withhold it from needed investment.

“It’s important to know that we don’t run surpluses for the sake of it,” Mr Perrottet said.

“People have this misconception that the money just sits there in the bank. No, we immediately invest those proceeds into our infrastructure pipeline going forward.”

The Treasurer argued the importance in maintaining the state’s financial standing and reputation by maintaining a surplus rather than struggling with a deficit.

“It means we can continue investing in infrastructure without affecting our AAA credit rating. That’s something that we have a strong position in maintaining through the fiscal responsibility in NSW.”

Filming begins on Godzilla vs Kong on the Gold Coast as Queensland government ramps up excitement for millions of dollars in tourism income.

Godzilla vs Kong rolls cameras in QLD

| Entertainment, State | No Comments
Sunshine State expecting roaring tourism returns.
Noushin Shabab and Negar Shabab, being some of the top cybersecurity gurus of their age, share their thoughts on fixing Australia's digital talent shortage.

5 Minutes With… Noushin Shabab and Negar Shabab, Cybersecurity Twins

| 5 Minutes With... | No Comments
How should Australia fix the cybersecurity talent shortage of the next generation? Find out here!
After Malcolm Turnbull's dramatic exit, now is Prime Minister Scott Morrison's opportunity to rewrite the rulebook for the election and unite the party.

PM ScoMo: same pitch, new salesman

| Analysis, Federal | No Comments
New leader’s great opportunity after Turnbull hits a dead end.
After, the duel-citizenship-induced bi-election of July 2018, the rules have changed for Prime Minister Malcolm Turnbull and Opposition Leader Bill Shorten.

After by-election, leadership debate will roar again

| Analysis, Federal | No Comments
'Super Saturday' fallout to haunt PM until next federal election.
GovNews Newsletter

Stay informed with GovNews...

Gain valuable insights into the latest news, 5 Minutes With, up-coming events and government concepts and initiatives exclusive to eNews.

Only use your corporate email address to sign up. Personal emails (e.g. gmail, yahoo, hotmail, live etc…) will be removed.

You will need to confirm your subscription. Check your junk folder if you have not received a confirmation.