Victorians lose out in Bracks sports mania
Kenneth Davidson has a good piece in today's Age, showing how Steve Bracks has overhyped the economic benefits of events such as the Commonwealth Games, and the Australian Formula 1 Grand Prix.
Bracks has apparently claimed the economic benefit of 1.4 billion people around the world "watching" the games, and seeing the new
Melbourne logo broadcast. As Davidson points out:
The Indian broadcaster paid $543,000 for the rights to the Games and the Canadian broadcaster was reluctant to pay anything. The Ten Network's payment of $400,000 to Douglas Wood for an exclusive interview about his experience as a hostage in Iraq puts in context the value of this access to the people of the Commonwealth.Davidson also points to Steve Bracks having the wrong focus on projects:
The Games village violates fundamental planning principles in relation to equity, access and environment. The netball and hockey centre and the competition pool are likely to become white elephants that will either be a drain on taxpayers or sporting associations. [...]
The Government's sporting priorities, which put major events first, training elite athletes second and community sport last, should be reversed. Attending to the health needs of the population, particularly the young, should be the first priority of municipal and state governments.Labels: Commonwealth Games, F1GP, Treasury
Games Security Blowout: Safe but not Sorry
In amidst the
backslapping amongst the
M2006 Organisers, the
Bracks Government and the rest of the country for a games achievement; Steve Bracks has
admitted overspending on security by $70m. The government has conveniently remained under its self imposed spending cap of $697m by not including these additional costs. It's the kind of shifty accounting first year Commerce students learn, or that employed by Enron's smartest guys in the room.
It's fine that this move will not breach limits for specific Games spending, but in the end, taxpayers still pick up the bill. Victorians deserve better than Bracks.
Labels: Commonwealth Games, Police, Treasury
Victoria must play role in tax reform
THE Commonwealth Games are nearly over. They have been well managed, great fun and the athletes have been magnificent.But have you ever wondered how the Government has been able to foot the very sizeable bill with almost effortless ease?
Well, Steve Bracks and his team have experienced one of the largest revenue windfalls in this State's history and they are actively spending it, including on the Games.
From 2000-01 to 2004-05, the Bracks Government received a revenue windfall of $17.6 billion, or a 20 per cent increase in expected revenue.
The main generator of this largesse has been the State's own taxes.
When the GST was first introduced in 2000, the tax cuts as part of the GST deal were expected to result in sharp cuts in state tax revenue. This was not expected to be recovered for at least seven years. The prediction turned out to be far off the mark. The economy boomed. The State's three growth taxes -- payroll tax, land tax and conveyancing fees -- pulled in money at a record rate. Total tax receipts were $7 billion or 18 per cent higher than expected over the past five years.
Then there was the GST. Over the first five years of its existence, revenue from the GST and other Commonwealth grants exceeded expectations by $4 billion.
In the main, the Bracks Government has done little more than maintain the status quo on tax and GST. It has twice, with great fanfare, announced tax cuts. However, these have been minor changes with little impact on revenue collections. And it inherited the GST deal and has met its commitments.
The Kennett Government undertook many reforms but did nothing on tax. It raised a number of non-business taxes to help reduce the budget deficit. It subsequently did not lower these or other taxes, so the Bracks Government inherited one of the most aggressive state tax systems.
As such, Steve Bracks has been able to do little while the money has rolled in at an increasing rate.
The Bracks Government, meanwhile, has increased receipted fees, fines and user charges by 25 per cent over the past five years. A small proportion of the revenue windfall -- $2.4 billion or 19 per cent -- has been spent on expanding the State's infrastructure base. The rest -- $15.2 billion -- has been consumed.
About a third of the windfall has been consumed on more and higher-paid staff including front-line staff. But for every additional teacher, nurse, doctor and police person hired, the Bracks Government has hired an additional bureaucrat. The remainder of the windfall has been consumed in an ongoing spending spree, including the Games.
Ron Walker has warned that we may suffer a bout of depression when the party is over. I suspect he is right.
(Mike Nahan: Herald Sun 25/3/06)Labels: Commonwealth Games, Media Commentary, Treasury, Victoria Vs Commonwealth
An Ode To The Bracks Government
Team Brackswatch has received the following submission from a reader. All readers are welcomed to make submissions using the link on the right.I would like to thank the Bracks government for bringing us the Commonwealth Games.
I would like to thank them for using monstrous amounts of my money to turn a school sports event into a pseudo-Olympic games.
Thank you for thus ensuring that very ordinary Aussie athletes could thus stand tall among the pigmies of the sporting world.
Thanks to all the institutes of sport, who pay, house and feed mediocre athletes to enable them to become good mediocre athletes and not have to resort to actually working for a living.
Thank you to the Aussie athletes who whipped the pants off international powerhouses like Jersey, Swaziland and Banghalawootitoti.
Thanks to the Victorian tax payer, who will end up paying in excess of $500 each to subsidize the games.
Thank you for also taking up the slack and buying the tickets that were sent back when no tourists wanted to come to our party.
So, as I lie here in my little beddie, with a warm and fussy inner glow, I am so glad that $40 million was well spent on an opening ceremony and not wasted by improving our hospital waiting lists, helping the aged or upgrading schools and/or roads.
I can sleep peacefully and happy - thank you.
Oh, I almost forgot....a very special thank you to John Steffenson for carrying on like a drug-crazed pork chop - what a lovely "role-model" for our kids he is.
Labels: Commonwealth Games, Education, Guest Post, Health
