NSW’s incoming Premier will confront a range of regional challenges, which they inherit following Mike Baird’s unexpected resignation from politics, effective next week.
There are several burning issues in the bush which were ignited by Mr Baird that will require the intervention of the new Premier to put out.
The Coalition’s bush brigade in the Nationals have the relatively inexperienced John Barilaro leading their party to assist the new leader as Deputy Premier. Mr Barilaro replaced former Nats leader Troy Grant, who stepped down in November last year.
Forced council mergers
Anger is running high in the regions – particularly the Central West - after government’s squeezed 152 councils into 112.
Mergers proved to be a major factor behind the Nationals’ capitulation at the Orange by-election and claimed Mr Grant’s scalp.
A large cohort of merger opponents are looking to the new Premier, and Deputy Premier John Barilaro - who hasn’t ruled out alternative action, but it’s a tricky road regardless. See all the mergers through, cop a lashing from angry voters. Stop the mergers affecting the noisy councils, and face an outcry from those that have begrudgingly begun the process.
Water
Murray Darling Basin reform has arguably hit NSW hardest of the four Basin states. Irrigators and their communities across the state have warned government they are at breaking point.
But South Australia demands that the Murray Darling Basin Authority and federal government ignore the social impact caveats contained in the policy and push ahead with the initial water recovery targets in full.
Legislation requires environmental and social imperatives are balanced – but that is not necessarily on the agenda of SA from the bottom end of the river system. PM Malcolm Turnbull recently added Basin reform to all state premiers’ agenda late last year, when he listed it as an issue for consideration at the Coalition of Australian Governments.
NSW Water Minister Niall Blair has won praise for his hard-line in interstate negotiations, but he will require support from the Premier if he is to stare down interstate critics.
Land use
Mr Baird said, when announcing his resignation, that a “hallmark” achievement of his time in office was his government’s August 2016 buyback of BHP Billiton’s coal licence.
The move ensured prime cropping land on the Liverpool Plain’s black soil at Caroona was protected from mining impacts.
The new Premier will face questions about a similar coal licence owned by Chinese miner Shenhua just up the road at Breeza.
Meanwhile, federal Environment and Energy Minister Josh Frydenberg has urged NSW and Victoria to open up their land to coal seam gas exploration, which he said would help curb rising electricity prices.
A new Premier will face questions from several fronts – from consumers about soaring power bills, from renewable energy advocates that argue energy prices are not determined by gas supply and environmentalists and farmers who are opposed to the impacts of gas extraction.
Regional infrastructure
Reports show regional NSW languished while nearly 40 per cent of all growth in the Australian economy last financial year was generated in Sydney. Regional GDP grew by just 0.4 per cent in 2015-16 and zero the year before.
Treasurer Gladys Berejiklian, who is favourite to take over from Mike Baird, acknowledged “pockets of challenge” across the state despite a jump in jobs growth and housing approvals. Crucially, she identified infrastructure spending as key to jump-starting the regions, which she said would encourage more private investment.
Agriculture and Local Land Services funding
Deputy Nationals leader and Primary Industries, Lands and Water Minister Niall Blair described 2016 as a year of policy wins for the bush. But funding and resources need to be delivered to implement the new policies.
A pattern of Department of Primary Industries underspending continued in last year’s state Budget (total yearly spend dropping $200 million since 2013-14) while farmers are waiting to see if LLS will be equipped to handle the new native vegetation regime.
Government announced late last year LLS would get $28 million to roll out its new native veg policy, while a Sustainable Land Management office, housed within LLS, will be set up with 100 staff. But more detail is needed on the raft of changes to LLS’ structure which are said to improve the organisation’s sustainability and enhance local decision making. Critics fear job losses and a reduced on-ground capability on farming issues.
