Baird felt 'personal cost in public life'
Mike Baird was a rare breed in politics. A banker with a social conscience who charmed voters with his no-nonsense style and convinced the voting public that privatisation was not a dirty word.
He achieved what few other state or federal politicians have been able to do in an era where populist politics and anti-business sentiment often outstrips common sense.
The New South Wales Premier's surprise resignation on Thursday triggered an outpouring of commentary on social media. For many he was the man who backflipped on a greyhound racing ban, ruined Sydney's nightlife by upholding draconian lockout laws, and forced council amalgamations.
But Baird's legacy will be overseeing the sale of more than $35 billion in electricity networks, ports and other utilities – a string of privatisations that rescued the state's economy and enabled him to deliver badly needed infrastructure projects.
Baird's secret was convincing voters to come along for the ride.
The trick was selling the infrastructure story to a cynical public after years of neglect and broken promises by successive state governments, something his investment banking background enabled him to do.
His "asset recycling" agenda convinced voters there was a trade-off for selling assets such as poles and wires because the public would get roads and public transport in return.
The backlash over the state's biggest road development – the $16 billion WestConnex motorway – showed things were not always managed perfectly. Bad planning and poor community consultation turned what was always going to be a hugely disruptive project into a target for community angst in Sydney.
When he was still treasurer, Baird oversaw the $2.3 billion sale of the Sydney Desalination Plant, which was followed by the $4.3 billion privatisation of Port Botany and Port Kembla for more than $5 billion, and then the Port of Newcastle. The public voted him back in as Premier in 2015 and Baird went on to sell transmission network owner Transgrid for $10.3 billion.
His final achievement was turning an embarrassing setback into a victory when Ausgrid was sold to super funds in October for $16.2 billion. The state had to quickly find a new buyer after federal Treasurer Scott Morrison knocked back bidders from foreign buyers just months earlier.
Baird's departure is a rare example of skilled people taking time out of business for public service before retiring at the right time to return to private life.
The challenge now will be finding a successor who can uphold Baird's legacy of infrastructure spending. Managing the state's huge transport projects and housing construction boom could go easily wrong without the right planning.
There are more assets up for sale, such as a stake in Endeavour Energy, and the infrastructure spending needs to continue as Sydney's population swells from 4.7 million to 6.4 million by 2036. Some of the city's mega-projects include the $9.6 billion Sydney Metro rail, WestConnex and a $2.1 billion light rail network.
Citi analysts list a number of sectors that could be affected by a cabinet reshuffle. This includes a review into liquor sales hours, compulsory third party insurance reforms, delays to stage four of work on WestConnex, and delays or cancellation of the Endeavour Energy sale.
The biggest threat to the state's triple A credit rating would likely come from how rating agencies react to fiscal developments at the federal level rather than state politics, Citi says.
There shouldn't be any impact on James Packer's plans for a second Sydney casino at Barangaroo, as Crown Resorts has already won a legal dispute over its building development.
Baird's successor should also look at abolishing the lockout laws, which have been hugely damaging for thousands of small businesses while benefiting property developers in Kings Cross and The Star casino.
