NSW Premier flags new privatisation push

NSW Premier, Gladys Berejiklian, has flagged another round of privatisation via ‘asset recycling’ to help fund a new regional fast rail network.

According to Fairfax:

  • “The asset recycling agenda is definitely renewed for us”, Premier Berejiklian said. “When talking about asset recycling we’re serious, instead of owning something that might not be very creative and active on the balance sheet, you can convert that into schools and hospitals and roads and rail”.
  • “NSW is poised to enter a new golden age of infrastructure delivery”, according to Berejiklian.
  • Berejiklian wants to build a network of fast trains linking Sydney with Gosford, Goulburn and Newcastle.
  • Record low-interest rates also mean the state isn’t too concerned about accruing debt over coming years.

The obvious question arises: if the cost of servicing debt is at a record low, why sell assets to fund investment rather than just borrow the money?

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