News
IPAA Budget Briefings
In his briefings to audiences in Melbourne and Ballarat, Grant Hehir, Secretary, Department Treasury and Finance outlined how the State Budget will build Victoria in a tough economic climate.
More than 1100 of his VPS colleagues attended the 13th IPAA Budget Briefing Breakfast on 6 May and on 7 May, Mr Hehir delivered a lunch presentation in Ballarat to 120 professionals from the Grampians region.
The global financial crisis and bushfire recovery effort, which accounts for $1 billion of the Budget, posed significant challenges to Mr Hehir and his staff 
this year.
"This is only the second time since the pre war period that the global economy has sunk so low, making this a difficult Budget to prepare and certainly the most difficult for this Government," he said.
But Mr Hehir explained how Victoria, thanks to reliable export markets and strong financial institutions, is more sheltered than most from the global downturn.
Victoria is unlikely to escape higher unemployment and a slump in private investment, but steady consumer confidence and stable housing forecasts provide room for optimism, he said. In keeping with recent G20 and IMF recommendations, Mr Hehir explained how this Budget invests heavily in infrastructure, in particular social housing and education projects that can be rolled out immediately.
"Rather than just dig holes and fill them in, it is important to bring forward plans already in place to stimulate demand and build on production capacity."
The $11 billion expenditure stands to create 35,000 jobs across the state, a move Budget commentator Dr Vince FitzGerald said compensates for the rising job losses in the private sector.
A 13 year veteran of the IPAA Budget Breakfast, Dr FitzGerald, Chair of The Allen Consulting Group, praised the Budget for resisting tax hikes carried out by other states and for infrastructure spending with real social and economic benefits.
While Victoria has become the leanest spending state, it still manages to invest strongly in vocational training, emergency services, non-urban transport and in particular, mental health, he said.
In assessing the Budget's limitations, Dr FitzGerald called on reform of the unbalanced Federal-State financial arrangement.
"The fact is the states are chained to commonwealth financial dominance, which is not good for their ability to plan for the future."
As regional Budget commentator, Claire Higgins, Chair of Barwon Health, evaluated the Budget against the needs of communities in rural and regional Victoria.
Ms Higgins praised health care, education and transport initiatives supported by the Budget but would have liked to have seen more support for regional businesses.
In highlighting ‘hidden gems', such as funding for a volunteer recruitment scheme and support for rural sporting clubs, Ms Higgins outlined the significance these initiatives hold for bringing communities together.
"Overall this Budget is as fair as possible for as many people as possible across the state," she said.
