‘Stability’: Tim Pallas all but certain to continue as treasurer

Save articles for later

Add articles to your saved list and come back to them any time.

Treasurer Tim Pallas insists he will continue to serve as part of Jacinta Allan’s government despite missing out on becoming deputy premier on Wednesday.

The failed bid was part of a power play by Pallas’ Socialist Left faction to maintain control of the Labor Party’s leadership and deputy leadership positions. Public Transport Minister Ben Carroll, from the Right, was instead elected deputy unopposed as part of a last-minute peace deal between the two factions to prevent a public ballot and potentially weeks of leadership uncertainty.

Treasurer Tim Pallas arriving at Parliament House on Tuesday morning.Credit: Joe Armao

Spring Street has long been awash with rumours that Pallas, 63, planned to retire not long after Daniel Andrews. The pair have worked side-by-side on Labor’s frontbench since the 2006 election, and both held key leadership positions before, during and after the worst of the COVID-19 pandemic.

But the Werribee MP emerged from Tuesday’s caucus meeting insisting he would stay on and that he was happy with the outcome of the leadership tussle. “The party always makes the right decision,” he said.

During her first press conference as Labor leader, Allan confirmed she wouldn’t be sidelining her factional ally as part of the upcoming cabinet reshuffle due to occur in the next few days.

“I look forward to working alongside Tim as treasurer,” Allan said. “Tim has been an outstanding treasurer of this state. He’s handed down nine budgets. Nine. That is no mean feat. He’s a great man.”

Pallas was originally a member of Labor’s Right, but he defected – along with several other colleagues – to the Left after last year’s state election.

A senior Labor MP, speaking on the condition of anonymity, said they expected Pallas to hand down a tenth budget before calling time on his political career.

“Stability,” the MP said. “He provides that.”

Pallas was the financial and economic architect of the Andrews government, overseeing his first budget in 2015 as he delivered the funding for Labor’s level crossing removal projects, the Melbourne Metro tunnel, and to axe the East West Link.

During his years as Andrews’ treasurer, Pallas oversaw public sector wage growth, with the government negotiating new pay deals for teachers, nurses, police and firefighters.

Victoria embarked upon a massive infrastructure program under Pallas’ financial stewardship, with cheap credit and low inflation encouraging governments across the world to borrow money to build projects.

But the end of the COVID pandemic brought a firestorm of inflation, rising interest rates, and higher labour and material costs that forced blowouts in construction – leaving the Victorian budget in serious trouble.

In May this year, Pallas announced the state government would slash 4000 public service jobs as part of a $31.5 billion COVID debt repayment plan. Those cuts have started to hit, with various departments revealing to their staff where they plan to find the savings.

The budget also indicated Victoria’s debt will rise to record levels. Net debt will lift from $135.4 billion next financial year to $171.4 billion by 2027 – the equivalent of 24.5 per cent of the state economy.

To help rein the debt in, Pallas’ 2023 budget hit Victorian property investors, landlords and holiday homeowners with a bigger land tax bill, while payroll tax was also hiked.

“We know some did better out of the pandemic than others – and it’s only fair that those that did well contribute to the repayment effort,” Pallas said at the time, describing it as the most difficult of his nine budgets.

“We think that it’s fair that Victorians with multiple properties make a modest contribution to repaying COVID debt.”

Before he was an MP, Pallas was the assistant secretary of the Australian Council of Trade Unions and worked as chief of staff to former premier Steve Bracks. He won the state seat of Tarneit in 2006 and was immediately appointed to cabinet as roads and ports minister.

Get the day’s breaking news, entertainment ideas and a long read to enjoy. Sign up to receive our Evening Edition newsletter.

Most Viewed in Politics

From our partners

Source: Read Full Article