Certainly, Andrews’ “big builder” succeeded in constructing many roads, bridges and tunnels through his lavish borrowing to finance union-dominated infrastructure projects. Now, projects are facing skyrocketing costs and the bill will have to be paid.
It has left Victoria’s state budget in an unsustainable position, having spent heavily during pandemic lockdowns and dramatically expanded the size of the public service.
It is a case study of a powerful prime minister running the country without any accountability from the desperate Liberal opposition.
Andrews banned gas exploration and extraction, putting the state’s energy security at risk. He blamed major gas exporters.
Andrews allocated huge sums of money to projects of his own, such as the controversial Suburban Rail Loop, which avoided any strict cost-benefit analysis. It was devised by consultants PwC ahead of the 2018 state elections and goes beyond the traditional public service assessment.
It was classic Andrews’ style: cut deals with fellow politicians and handle financial due diligence.
He spent $1.1 billion to cancel Melbourne’s East West Link road project and $380 million in compensation for canceling the 2026 Commonwealth Games.
Victorians will now face decades of higher taxes.
States have such terrible tax rules that it will inevitably be employers and landlords who will be hit with higher payroll taxes and land taxes.
Large employers are already paying billions more for the government’s “mental health tax” – ironically paying the price for the social damage caused by Andrews’ lockdowns.
Victoria’s latest tax roll-out of landlords, Airbnb owners, holiday home owners and private schools will be just the tip of the iceberg of control over the state’s finances.
The total debt of $239 billion now faces interest rates of about 5 percent when refinanced, compared to 1 percent during the pandemic.
But Andrews blamed former RBA governor Philip Lowe for encouraging states to borrow heavily during the pandemic.
Andrews pledged last April to obtain a financial bailout from the federal government, but Prime Minister Anthony Albanese politely declined.
Memories of the early nineties
Privatizations will be necessary – a contradiction to Andrews’ 2022 election ploy to “bring back” the government-owned Electricity Commission to invest in green energy projects. Ten months after the election, Andrews is leaving and the SEC is nowhere to be seen.
Victoria’s economy has been built largely on massive population expansion. But in per capita terms, total household disposable income ranks seventh out of the eight states and territories, according to the Australian Bureau of Statistics.
Victoria’s financial collapse is reminiscent of the early 1990s when the stricken State Bank of Victoria, its commercial banking arm TriContinental, and the collapsed Pyramid Building Society left the state nearly bankrupt under the Labor government of John Cain and Joan Kerner.
Liberal Premier Jeff Kennett turned around the state. His Labor successors Steve Bracks and John Brumby continued responsible financial management.
But socialist Andrews has shown a lack of respect for taxpayers’ money and the financial health of present and future Victorians.
As political commentator and former Kennett adviser Stephen Mayne notes: “Victoria’s finances are much worse than they were when John Cain resigned, but somehow Dan has managed to leave on his own terms and govern without being held accountable for compromising the state’s public sector’s ability to continue to function.” the future”. “.
Andrews left an unprecedented financial legacy to Victorians that will be felt for decades. Consequences, without accountability.
Read more about Daniel Andrews’ resignation
- ‘I have changed my mind’; Daniel Andrews resigns Victorian Premier Daniel Andrews will hand power to his deputy Jacinta Allan with his shock resignation after nearly nine years in office.
- Opinion | Dan Andrews was a beloved figure in Australian politics, and the Prime Minister had a ruthless leadership style that included crushing opposition and discrediting critics while being buoyed by the unwavering loyalty of his followers, writes Philip Currie.
- Identifying Victoria’s next leadership team could take weeks. Deputy Prime Minister Jacinta Allan favors succeeding Andrews as Victoria’s next leader, but party rules mean any challenge could lead to a lengthy process.
- Opinion | Daniel Andrews destroyed Victoria’s finances A retiring prime minister leaves behind a nasty financial cocktail for his successors and future generations of Victorians, writes John Kehoe.
- Andrews leaves Victorian Labor firmly in power, but his legacy as premier has been tarnished including huge investments in infrastructure, the largest debt burden of any state and a record of division.
- Chanticleer | Andrews was a master of the big business blame game, and business leaders hoping Daniel Andrews’ departure would reset the sector’s relationship with government may be disappointed.
- Display AFR | Daniel Andrews’ populist legacy of division, debt and darkness The secret to the Victorian Premier’s polarizing success has been skillful populism.
- Opinion | Turk Andrews insists he did the right thing: Daniel Andrews has stepped down as Victoria’s Premier after thoughts about life after politics began to “creep in”, writes Jennifer Hewitt.
- ‘Autocratic’, ‘activist’, ‘strong’: Business leaders divided over Andrews’ legacy Business leaders said the Victorian Premier’s surprise resignation would enable a welcome change in leadership in line with good governance and renewal.
- Opinion | Andrews leaves a profound but divisive legacy Ultimately, Victoria needed a change from a state premier who had become too powerful and comfortable in his power, writes Patrick Durkin.