I asked Mike Baird about his new approach -- and he showed why he is reshaping stat ... Page 1 of 45 BRIEFING (HTTPS://WWW.BUSINESSINSIDER.COM.AU/BRIEFING) I asked Mike Baird about his new approach -- and he showed why he is reshaping state politics PAUL COLGAN (HTTPS://WWW.BUSINESSINSIDER.COM.AU/AUTHOR/PAUL- COLGAN) (HTTPS://WWW.TWITTER.COM/COLGO) SEP 7, 2015, 6:00 AM (HTTP://WWW.FACEBOOK.COM/SHARER.PHP?(HTTP://TWITTER.COM/SHARE?(HTTP://WWW.REDDIT.COM/SUBMIT?(HTTP://WWW.LINKEDIN.COM/SHAREARTICLE?(MAILTO:? (https://edge.alluremedia.com.au/uploads/businessinU=HTTPS% URL=HTTPS% URL=HTTPS% MINI=TRUE&URL=HTTPS%TO=&BODY=I sider/2015/09/the_interview.jpg) 3A%2F% 3A%2F% 3A%2F% 3A%2F% THOUGHT 2FWWW.BUSINESSINSIDER.COM.AU%2FWWW.BUSINESSINSIDER.COM.AU%2FWWW.BUSINESSINSIDER.COM.AU%2FWWW.BUSINESSINSIDER.COM.AU%THAT YOU'D 2FMIKE- 2FMIKE- 2FMIKE- 2FMIKE- BE BAIRD-THE- BAIRD-THE- BAIRD-THE- BAIRD-THE- INTERESTED INTERVIEW- INTERVIEW- INTERVIEW- INTERVIEW- IN THIS (https://edge.alluremedia.com.au/uploads/businessinsider/2015/09/Mike- 2015-9&T=I+ASKED+MIKE+BAIRD+ABOUT+HIS+NEW+APPROACH+--2015-9&TEXT=I+ASKED+MIKE+BAIRD+ABOUT+HIS+NEW+APPROACH2015-9) 2015-9&TITLE=I+ASKED+MIKE+BAIRD+ABOUT+HIS+NEW+APPROACARTICLE +AND+HE+SHOWED+WHY+HE+IS+RESHAPING+STATE+POLITICS)+--+AND+HE+SHOWED+WHY+HE+IS+RESHAPING+STATE+POLITICS%H+--+AND+HE+SHOWED+WHY+HE+IS+RESHAPING+STATE+POLITICS&SUMMARY=MIKE+BAIRD+TOOK+CHARGE+OF+THE+NSW+GOVERNMENT+AFTER+BARRY+O% Baird_Photos-wide.jpg) Mike20(VIA% Baird. Photo: LachlanE2%80% French FROM Mike Baird20@BIAUS)) took charge of 99FARRELL%the NSW BUSINESS Government after Barry O’Farrell’sE2%80% INSIDER resignation back in 2014. Baird 99S+RESIGNATION+BACK+IN+2014.+BAIRD+SUBSEQUENTLY+LED+THAUSTRALIA: E+COALITION+TO+A+CRUSHING+ELECTORAL+VICTORY% subsequently led the Coalition to a crushing electoral victory,2C+AND+HIS+APPROVAL+RATINGS+MAKE+HIM+THE+MOST+POPULAR and his HTTPS://WWW.BUSINESSINSIDER.COM.AU/MIKE- +GOVERNMENT+LEADER+IN+AUSTRALIA+BY+A+LONG+MARGIN.+) https://www.businessinsider.com.au/mike -baird -the -interview -2015 -9 27/ 04/ 2017 I asked Mike Baird about his new approach -- and he showed why he is reshaping stat ... Page 2 of 45 approval ratings make him the mostBAIRD-THE- popular government leader in Australia INTERVIEW- by a long margin. 2015-9&SUBJECT=I The core of Baird’s campaign was theASKED MIKE proposed sale of electricity infrastructure, BAIRD or the so-called “poles and wires”, that would in turn fund other infrastructureABOUT HIS development. He speaks about this a bitNEW in the interview – there’s some brief APPROACH background on it here -- AND HE (http://www.businessinsider.com.au/heres- a-quick-summary-of-the-infrastructure-SHOWED at-stake-in-tomorrows-nsw-election-WHY HE IS 2015-3). RESHAPING In July, Baird did the unthinkable forSTATE Australian political leaders and proposedPOLITICS) an enormous increase in the GST rate to 15% (http://www.businessinsider.com.au/mike- baird-grasps-the-nettle-will-propose-an- increase-in-the-gst-to-15-2015-7), something many economists and analysts have proposed as a way of addressing the long-term structural challenges in state and federal budgets. The idea has been gaining some traction in political quarters and among voters. Baird agreed to discuss this and some of the other economic and policy challenges he sees in NSW and around the country. The following transcript has been slightly edited for clarity and length. https://www.businessinsider.com.au/mike -baird -the -interview -2015 -9 27/ 04/ 2017 I asked Mike Baird about his new approach -- and he showed why he is reshaping stat ... Page 3 of 45 (https://edge.alluremedia.com.au/uploads/businessinsider/2015/09/Mike- Baird_Photos-3.jpg) Paul Colgan: The day that you raised the idea of increasing the GST rate to 15%, you started off that message by saying, “If you’re anything like me, you are sick of politics in this country. Point scoring, fear, smear, and winning the daily news cycle.” I think you would have had a lot of people nodding in agreement with you and it’s a strange thing to be hearing from a politician. I wondered if you could start by elaborating on that and what some of the challenges you see are in contemporary politics. Mike Baird : It’s one of the things I’ve learnt in the poles and wires debate, which is a debate that you’ve seen in this state for 20 years. The facts of the matter were that it’s good for prices – all the experience in South Australia and Victoria showed it put downward pressure on prices which is good for the overall economy – https://www.businessinsider.com.au/mike -baird -the -interview -2015 -9 27/ 04/ 2017 I asked Mike Baird about his new approach -- and he showed why he is reshaping stat ... Page 4 of 45 households, good for businesses. At the same time it provided us with the capacity to raise capital that we could put into infrastructure which makes a difference to people’s daily lives in terms of improving travel times, improving productivity, improving schools and hospitals – a whole range of things which are required. And rather than that being the debate, you knew the instant it was raised it was always scare campaigns. I think that’s reflective of a number of the debates – notwithstanding the scare campaigns that came – you go into the hallways in Parliament, all sides of politics go well, that’s something that needs to be done, but we know the public are going to be concerned by that and we also know the effectiveness of the scare campaigns that come and I think part of my frustration, which was reflected in that message, was that as soon as you start talking about the real issues, it’s always about the political opportunities that come, rather than what needs to be done. And as a simple approach I think what the community wants is to ask governments of all persuasions: “Why don’t you just tell us what some of the challenges are and how you’re going to deal with them, and what some of the opportunities are, and how you’re going to fund them, and we will https://www.businessinsider.com.au/mike -baird -the -interview -2015 -9 27/ 04/ 2017 I asked Mike Baird about his new approach -- and he showed why he is reshaping stat ... Page 5 of 45 make a judgement on that basis.” And I think that’s what people are craving for, rather than, at the moment, using the tax debate as an example, the moment anyone raised or used the three letters GST – instant hysteria, world comes to an end, this is a terrible thing. The political swords come out before you can even have a chance to discuss it, and how it might benefit our kids and future generations. And I think that’s sad, and I think that what we need to do is take much more of the people – not just the people here in NSW, but across the country – into our confidence, and outline exactly what needs to be done, why we’re doing it, and how we’re going to do it. Mike Baird, NSW Premier Born Melbourne, 1968 Family Married to Kerryn with three children. Son of Bruce Baird, former state and federal MP. Before Investment banking career politics at Deutsche Bank, NAB and HSBC. Studied for the Anglican ministry. https://www.businessinsider.com.au/mike -baird -the -interview -2015 -9 27/ 04/ 2017 I asked Mike Baird about his new approach -- and he showed why he is reshaping stat ... Page 6 of 45 Education The King’s School, Parramatta, and the University of Sydney PC: How do you break through that familiar cycle? Because you announce something and everyone runs to the default positions, whether it’s public assets or increasing any kind of tax. So how do you try and disrupt that, and find a way through it? MB : There has to be an understanding that there is a benefit that comes. You don’t decide to make tough decisions without a benefit for the community – whether that be in the short, medium, or long-term. Hopefully across all of those. That’s why you take these sort of decisions. I think the way that the poles and wires – and this is another good example – because the reason it was so important was because in NSW we’ve become very used to infrastructure projects being announced – the videos, the brochures – and then you stand by the site and you see nothing for 10 years. And the reason was that the funding was never there to match it. So connecting that in terms of the funding that we need for our infrastructure, I think’s important so people understand, OK, well, we do have some concerns around the lease of the https://www.businessinsider.com.au/mike -baird -the -interview -2015 -9 27/ 04/ 2017 I asked Mike Baird about his new approach -- and he showed why he is reshaping stat ... Page 7 of 45 poles and wires. But if you’re telling me that on the back of that you’ve put protections in around prices – which I hear in the scare campaign – and we can also fund what’s needed in terms of the rail network – I mean Sydney Metro will come and the expansion of the motorways and hospitals and schools where we need them – if that’s going to come, well, I’m open to that. And that must be part of the reason that for 10 years we saw nothing.