NSW Labor announces bold election pledge to cut State debt by $11 billion ove next decade

A state government has made an election pledge to cut public debt by $11 billion over the next decade.

NSW Treasurer Daniel Mookhey said he would do so without resorting to privatisation.

He said the plan involved cutting debt by an average of $1.2 billion a year, partly by reinvesting the money the government makes from energy providers Ausgrid and Endeavour Energy into the state’s superannuation schemes.

The government owns just under half of each of the companies.

“This will avoid the need to borrow billions per annum to top up the fund to meet the state’s superannuation liabilities for at least the next seven years,” Mr Mookhey said.

Under the plan, the government’s share of the companies would then be transferred to the treasury’s investment platform.

If re-elected, Labor would legislate its plan, which it said would prevent its stake in the electricity network from being privatised by future governments.

The policy will save NSW taxpayers around $275 million in interest payments each year, Mr Mookhey said.

“Every dollar we don’t pay our bondholders in interest is a dollar we can invest in the roads, schools, hospitals and public transport, which makes life more affordable for working families.”

Meanwhile, the NSW Liberal party listed an expansion of the metro to southwest Sydney, as part of its Western Sydney City Deal, among its election pledges.

Both Labor and the opposition are required by law to submit their election campaign promises to the Parliamentary Budget Office for independent costing.

Mr Mookhey this week indicated he would push for One Nation to be forced to do the same.

The change recognised the three parties would credibly compete to form government, Labor said, and the office would be additionally resourced to cope with the added demand.

The party’s state leader, Mike Newman, labelled Labor governments “Australia’s worst economic managers” and challenged the party to reveal the cost of rolling out renewable energy in NSW.

Mr Newman said budgets for several metro and light rail projects had blown out by billions of dollars under Labor.

“One Nation will not be lectured ... Labor wants to put our policies under the microscope while leaving the full cost of its own agenda unanswered,” he said.