NSW Treasurer Dominic Perrottet says Labor’s plan to award every public servant in NSW with a payrise will plunge the budget into deficit.
NSW Treasurer Dominic Perrottet says Labor’s plan to award every public servant in NSW with a payrise will plunge the budget into deficit.

Daley’s pay rise plan to ‘plunge NSW budget into deficit’

NSW Treasurer Dominic Perrottet says Labor's plan to award every public servant in the state with a pay rise of 3 per cent each year will strip billions from the budget and plunge it into deficit.

There are 396,000 public servants in NSW who currently receive capped payrises of 2.5 per cent each year - which is higher than the NSW average of 2.4 per cent.

NSW Shadow Treasurer Ryan Park told The Daily Telegraph: "Labor will have a fair and balanced wages policy that restores the link between wages and productivity. The independent umpire will set wages in NSW not politicians. Workers will be able to go to the Industrial Relations Commission and argue their case for a pay rise if they can demonstrate productivity gains," he said.

"The Treasurer has revealed his plan to further suppress the wages of firefighters, nurses, paramedics, police and other public sector workers. Having burned through more than $14 billion in cost blow outs and mismanagement, Dominic Perrottet now wants public sector workers to pay for his mismanagement."

"What that does is not only improve the lives of working men and women but it also helps the economy because people have got a little bit more to spend on discretionary items," Mr Park said.

Mr Perrottet said a rise of 3.5 per cent would rip $5 billion from the economy over the next four years, whereas a rise of 4 per cent would rip $7 billion.

"Here we have a Labor opposition before they have even got into government having a policy that will scrap the cap and plunge the NSW budget into deficit," he said.

NSW Leader of the Opposition Michael Daley. Picture: AAP
NSW Leader of the Opposition Michael Daley. Picture: AAP

"The people of NSW should be alert and alarmed with what the Labor Party will do to our state's budget."

Mr Perrottet said public sector wages comprise about 40 per cent of the annual budget's expenditure.

"It is the height of recklessness at a time when we have a softening property market, to be scrapping a (wages cap) policy that has maintained budget surpluses here in our state," he said.

Last month Reserve Bank of Australia governor Philip Lowe said wages growth of 3.5 per cent and inflation at 2.5 per cent each year would be best for the Australian economy.



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