Services In Crisis As City Bursts At The Seams
The Age
Thursday May 8, 2008
John Brumby presides over a surging population butits scale is overwhelming resources, say experts
CRITICS warn that this week's Victorian budget has only begun to provide what will be needed for the state to cope with a "surprise" population boom.Demographers, doctors and policy analysts say unexpectedly fertile Victorians and an open-armed immigration policy have stretched state services to breaking point and the budget delivered on Tuesday provides only piecemeal solutions.Monash University demographer Bob Birrell said the $1.8 billion promised for infrastructure - a record for Victoria - would barely begin to meet the state's needs."It is just a start on what's become a massive problem," Dr Birrell said. "The scale of the problem that you can see emerging is just tremendous."The Victorian executive director of the Urban Development Institute of Australia, Tony De Domenico, said the budget was helpful for first home buyers, but it would not fix the state's growing economic problems.He said more land needed to be released to lower house prices and more money should be spent on roads and railways."These are problems that no one government can fix because they have been festering for some time," he said.State Treasurer John Lenders began his post-budget day spruiking at a breakfast hosted by Progressive Business, Labor's industry outreach group.Only one question was asked after Mr Lenders' presentation. Australian Medical Association president Doug Travis said: "When will the Government commit to a long-term strategy to build our system to be bigger and better than it is (and) to provide the services that are needed for Victoria's growing population?"We have capacity problems in our hospitals. They are retarding our efforts to perform. Innovation and our productivity is, in fact, slowing."Mr Lenders admitted yesterday that Victoria's population boom had caught the Government by surprise. Last year, 73,737 births were registered in Victoria. That figure is 7.3% higher than the 68,696 registered in 2006 - the steepest one-year jump since 1985."I will be the first to admit it, we didn't see it coming," Mr Lenders told State Parliament's upper house during question time. "I am delighted to be surprised."Dr Birrell said demographers were also surprised - not that births were climbing, which had been the case since 2000, but that the climb had been sustained and acceler-ating.State Opposition Leader Ted Baillieu criticised the Government for being wrong on demographics. "We seem to be having the Premier and his colleagues blaming unprecedented growth. That's a nonsense," he said. "This Government has known about growth for a long time."Mr Baillieu also branded cuts to business taxes a "sleight of hand", saying only $300 million of the $1.5 billion being taken by the State Government was being returned to taxpayers.Premier John Brumby responded during question time."You want to know why payroll tax is increasing?" he asked Mr Baillieu. "Because there are more people in jobs."Mr Baillieu also attacked the Government over debt, claiming the state would pay billions in interest if it borrowed the money it needed to pay for new roads, railways, hospitals and schools.However, he refused to set a level of debt that would be acceptable to the Opposition, saying it would depend on how the money was spent.Mr Brumby responded by saying the Government had consistently delivered surpluses and reduced debt."I was born in the 1950s. In my whole lifetime state debt has never been so low," he said.KEY POINTS ? The budget pledged a record $1.8 billion for infrastructure.? Labor admits the population boom caught it by surprise.? Last year saw the biggest one-year jump in births since 1985.LINK? www.budget.vic.gov.au
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