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NSW infrastructure boom must continue after Mike Baird: business chiefs

Clancy Yeates

Business chiefs are urging the next NSW premier to continue driving the state's infrastructure boom, crediting Mike Baird's support for big projects with helping to resurrect the state economy to a position of national leadership.

While Mr Baird's strategy of selling down state assets and using the proceeds to fund large projects has generated plenty of controversy, some of Australia's most powerful businesspeople are keen backers of the approach.

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NSW Premier Mike Baird has announced he will retire from politics to help his parents and sister cope with 'serious health challenges'. Vision courtesy ABC News 24.

They argue it has been critical in lifting the economic fortunes of the state – and the nation as a whole – against a backdrop of dwindling business investment.

"He's run a very disciplined economic ship and he leaves the state in a very good financial position, but he's also taken the longer term view of investing in infrastructure and using innovative models to do it," Reserve Bank board member Heather Ridout said.

"I think that will be a longer term legacy."

Westpac chairman Lindsay Maxsted said Mr Baird had made decisions that were "difficult but right" and these would have long-term benefits for the state.

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"In particular, his commitment to investing in infrastructure projects will have a multiplier effect on our economic growth, which is critical for every Australian," Mr Maxsted said.

Commonwealth Bank chief executive Ian Narev said Mr Baird was a "policy-driven leader" who had been "excellent" for business confidence.

"The strength of the NSW economy is a reflection of his economic stewardship, first as treasurer and then as Premier in partnership with Gladys Berejiklian," Mr Narev said.

Macquarie Group chief executive Nicholas Moore said Mr Baird had "delivered to the highest level, during a period recognised as being challenging for political leaders globally".

"His achievements include the financial strength of NSW and its job creation and infrastructure programs. These have supported the economic growth and prosperity of not only NSW but the Commonwealth," Mr Moore said.

The powerful financial sector has been a strong supporter – and indeed a beneficiary – of Mr Baird's policy of "asset recycling". However, the broader state economy also improved during Mr Baird's time as Premier.

Under the Coalition government, the state's unemployment rate has fallen from 5.2 per cent to 4.9 per cent. CommSec estimates NSW has the fastest-growing state economy in the country, excluding the territories.

Tony Shepherd, inaugural chairman of the Baird government's Westconnex and former chairman of Transfield Services, said continued infrastructure would help to make up for a lack of business investment elsewhere in Australia.

"My view as a business person would be to continue the program that was pioneered by O'Farrell, developed to an art form by Baird, just to continue that process," Mr Shepherd said.

Roger Corbett, chairman of Mayne Pharma, said NSW should continue to pursue the "very rational" approach of infrastructure investment funded by asset sales. Mr Corbett, who has previous been an RBA board member and chairman of BusinessDay's publisher, Fairfax Media, argued the state's leadership deserved some credit for the NSW economy, which had performed more strongly than others in recent years.

"I'm only sorry that his legacy is not longer," Mr Corbett said.

Matt Bekier, CEO of The Star Entertainment Group, said Mr Baird had also made a strong contribution to the tourism sector. "We congratulate the Premier for encouraging development and investment, particularly within our sector, to ensure this state can maximise the compelling tourism opportunities at hand," Mr Bekier said.

While Mr Baird was given credit for improving the state economy, Ms Ridout said she believed NSW would remain in good economic shape whoever replaced Mr Baird. The bigger challenges for his successor would be "structural" or deep-seated problems, such as housing affordability.

"The economy is in pretty good stead, it's always been strong in NSW because it's a diversified economy. So it's for someone to muck it up, someone to stop its momentum, and I don't think that's going to happen given, who might be contenders," Ms Ridout said.

Jennifer Westacott, chief of the Business Council of Australia, also said infrastructure spending and the budget should be key priorities for Mr Baird's successor.

"The next premier must continue to build the infrastructure that is desperately needed to make it easier for people to live and work in NSW," she said.