Treasurer Buswell responds to concerns about household fees and charges, promising restraint where possible but highlighting challenges inherited from the previous Labor government, particularly regarding Verve Energy's embedded 10% annual increase. He accuses the former Treasurer of manipulating inflation figures and commits to transparency.

AnsweredQoN 150Legislative Assembly
Asked
4 December 2008
Portfolio
Treasurer

QuestionView source ↗

HOUSEHOLD FEES AND CHARGES
Will the Treasurer reassure senior citizens and other low-income families that he will guarantee not to increase the basket of household fees and charges by more than the inflation rate, as was done by the previous Labor government? Mr T.R. BUSWELL

AnswerView source ↗

I thank the member for Victoria Park for his obvious concern about household fees and charges. We will work through the household fees and charges model as part of the budget process. Mr M.P. Murray interjected. Mr T.R. BUSWELL : In doing that, we will look at all the components of government fees and charges that make up that basket—simple. The member for Victoria Park will have an answer next year when the budget is handed down. Our intent is, where possible, to exercise restraint in the fees and charges levied on households. However, there are some challenges. I will give one. In relation to Verve Energy, the previous government embedded in the fees and charges process a rate for the people of Western Australia that is considerably above the rate of inflation—10 per cent per annum, if my memory serves me correctly. That is therefore one challenge we have to deal with. I will tell members one other thing we will not do. We will not change the rules so that we can disguise our failures to meet those targets, like the former Treasurer did. Let me explain to the house what happened with the former Treasurer. Every year in May—it will happen next year—we hand down a budget in Western Australia. That budget has a reference rate of inflation for the purpose of the consumer price index. That reference rate of inflation is normally for the year ahead, because that is the rate of inflation at which we are looking when we bring down the budget. Guess what happened when the reference rate of inflation for the year ahead was lower than the reference rate of inflation in November of the year before? The Treasurer changed the figure. Mr C.J. Barnett : No! Mr T.R. BUSWELL : Yes, Premier. I know I was shocked, Premier. I still struggle to come to grips with the outcome. We will not cook the books in an attempt to deceive the taxpayers of Western Australia and the people who are paying the fees and charges, as the former Treasurer clearly did. That was indefensible—it was completely indefensible. This is our commitment to members opposite. Listen carefully. In May next year, when the budget is handed down, that information will be provided. It is our intention to deliver modest increases, notwithstanding the fact that the former government has locked us into putting electricity prices up by 10 per cent per annum. The other thing is that we will not try to cook the books.
Mr T.R. BUSWELL replied: I thank the member for Victoria Park for his obvious concern about household fees and charges. We will work through the household fees and charges model as part of the budget process. Mr M.P. Murray interjected. Mr T.R. BUSWELL : In doing that, we will look at all the components of government fees and charges that make up that basket—simple. The member for Victoria Park will have an answer next year when the budget is handed down. Our intent is, where possible, to exercise restraint in the fees and charges levied on households. However, there are some challenges. I will give one. In relation to Verve Energy, the previous government embedded in the fees and charges process a rate for the people of Western Australia that is considerably above the rate of inflation—10 per cent per annum, if my memory serves me correctly. That is therefore one challenge we have to deal with. I will tell members one other thing we will not do. We will not change the rules so that we can disguise our failures to meet those targets, like the former Treasurer did. Let me explain to the house what happened with the former Treasurer. Every year in May—it will happen next year—we hand down a budget in Western Australia. That budget has a reference rate of inflation for the purpose of the consumer price index. That reference rate of inflation is normally for the year ahead, because that is the rate of inflation at which we are looking when we bring down the budget. Guess what happened when the reference rate of inflation for the year ahead was lower than the reference rate of inflation in November of the year before? The Treasurer changed the figure. Mr C.J. Barnett : No! Mr T.R. BUSWELL : Yes, Premier. I know I was shocked, Premier. I still struggle to come to grips with the outcome. We will not cook the books in an attempt to deceive the taxpayers of Western Australia and the people who are paying the fees and charges, as the former Treasurer clearly did. That was indefensible—it was completely indefensible. This is our commitment to members opposite. Listen carefully. In May next year, when the budget is handed down, that information will be provided. It is our intention to deliver modest increases, notwithstanding the fact that the former government has locked us into putting electricity prices up by 10 per cent per annum. The other thing is that we will not try to cook the books.
I thank the member for Victoria Park for his obvious concern about household fees and charges. We will work through the household fees and charges model as part of the budget process. Mr M.P. Murray interjected. Mr T.R. BUSWELL : In doing that, we will look at all the components of government fees and charges that make up that basket—simple. The member for Victoria Park will have an answer next year when the budget is handed down. Our intent is, where possible, to exercise restraint in the fees and charges levied on households. However, there are some challenges. I will give one. In relation to Verve Energy, the previous government embedded in the fees and charges process a rate for the people of Western Australia that is considerably above the rate of inflation—10 per cent per annum, if my memory serves me correctly. That is therefore one challenge we have to deal with. I will tell members one other thing we will not do. We will not change the rules so that we can disguise our failures to meet those targets, like the former Treasurer did. Let me explain to the house what happened with the former Treasurer. Every year in May—it will happen next year—we hand down a budget in Western Australia. That budget has a reference rate of inflation for the purpose of the consumer price index. That reference rate of inflation is normally for the year ahead, because that is the rate of inflation at which we are looking when we bring down the budget. Guess what happened when the reference rate of inflation for the year ahead was lower than the reference rate of inflation in November of the year before? The Treasurer changed the figure. Mr C.J. Barnett : No! Mr T.R. BUSWELL : Yes, Premier. I know I was shocked, Premier. I still struggle to come to grips with the outcome. We will not cook the books in an attempt to deceive the taxpayers of Western Australia and the people who are paying the fees and charges, as the former Treasurer clearly did. That was indefensible—it was completely indefensible. This is our commitment to members opposite. Listen carefully. In May next year, when the budget is handed down, that information will be provided. It is our intention to deliver modest increases, notwithstanding the fact that the former government has locked us into putting electricity prices up by 10 per cent per annum. The other thing is that we will not try to cook the books.
We will work through the household fees and charges model as part of the budget process. Mr M.P. Murray interjected. Mr T.R. BUSWELL : In doing that, we will look at all the components of government fees and charges that make up that basket—simple. The member for Victoria Park will have an answer next year when the budget is handed down. Our intent is, where possible, to exercise restraint in the fees and charges levied on households. However, there are some challenges. I will give one. In relation to Verve Energy, the previous government embedded in the fees and charges process a rate for the people of Western Australia that is considerably above the rate of inflation—10 per cent per annum, if my memory serves me correctly. That is therefore one challenge we have to deal with. I will tell members one other thing we will not do. We will not change the rules so that we can disguise our failures to meet those targets, like the former Treasurer did. Let me explain to the house what happened with the former Treasurer. Every year in May—it will happen next year—we hand down a budget in Western Australia. That budget has a reference rate of inflation for the purpose of the consumer price index. That reference rate of inflation is normally for the year ahead, because that is the rate of inflation at which we are looking when we bring down the budget. Guess what happened when the reference rate of inflation for the year ahead was lower than the reference rate of inflation in November of the year before? The Treasurer changed the figure. Mr C.J. Barnett : No! Mr T.R. BUSWELL : Yes, Premier. I know I was shocked, Premier. I still struggle to come to grips with the outcome. We will not cook the books in an attempt to deceive the taxpayers of Western Australia and the people who are paying the fees and charges, as the former Treasurer clearly did. That was indefensible—it was completely indefensible. This is our commitment to members opposite. Listen carefully. In May next year, when the budget is handed down, that information will be provided. It is our intention to deliver modest increases, notwithstanding the fact that the former government has locked us into putting electricity prices up by 10 per cent per annum. The other thing is that we will not try to cook the books.
Mr M.P. Murray interjected. Mr T.R. BUSWELL : In doing that, we will look at all the components of government fees and charges that make up that basket—simple. The member for Victoria Park will have an answer next year when the budget is handed down. Our intent is, where possible, to exercise restraint in the fees and charges levied on households. However, there are some challenges. I will give one. In relation to Verve Energy, the previous government embedded in the fees and charges process a rate for the people of Western Australia that is considerably above the rate of inflation—10 per cent per annum, if my memory serves me correctly. That is therefore one challenge we have to deal with. I will tell members one other thing we will not do. We will not change the rules so that we can disguise our failures to meet those targets, like the former Treasurer did. Let me explain to the house what happened with the former Treasurer. Every year in May—it will happen next year—we hand down a budget in Western Australia. That budget has a reference rate of inflation for the purpose of the consumer price index. That reference rate of inflation is normally for the year ahead, because that is the rate of inflation at which we are looking when we bring down the budget. Guess what happened when the reference rate of inflation for the year ahead was lower than the reference rate of inflation in November of the year before? The Treasurer changed the figure. Mr C.J. Barnett : No! Mr T.R. BUSWELL : Yes, Premier. I know I was shocked, Premier. I still struggle to come to grips with the outcome. We will not cook the books in an attempt to deceive the taxpayers of Western Australia and the people who are paying the fees and charges, as the former Treasurer clearly did. That was indefensible—it was completely indefensible. This is our commitment to members opposite. Listen carefully. In May next year, when the budget is handed down, that information will be provided. It is our intention to deliver modest increases, notwithstanding the fact that the former government has locked us into putting electricity prices up by 10 per cent per annum. The other thing is that we will not try to cook the books.
Mr T.R. BUSWELL : In doing that, we will look at all the components of government fees and charges that make up that basket—simple. The member for Victoria Park will have an answer next year when the budget is handed down. Our intent is, where possible, to exercise restraint in the fees and charges levied on households. However, there are some challenges. I will give one. In relation to Verve Energy, the previous government embedded in the fees and charges process a rate for the people of Western Australia that is considerably above the rate of inflation—10 per cent per annum, if my memory serves me correctly. That is therefore one challenge we have to deal with. I will tell members one other thing we will not do. We will not change the rules so that we can disguise our failures to meet those targets, like the former Treasurer did. Let me explain to the house what happened with the former Treasurer. Every year in May—it will happen next year—we hand down a budget in Western Australia. That budget has a reference rate of inflation for the purpose of the consumer price index. That reference rate of inflation is normally for the year ahead, because that is the rate of inflation at which we are looking when we bring down the budget. Guess what happened when the reference rate of inflation for the year ahead was lower than the reference rate of inflation in November of the year before? The Treasurer changed the figure. Mr C.J. Barnett : No! Mr T.R. BUSWELL : Yes, Premier. I know I was shocked, Premier. I still struggle to come to grips with the outcome. We will not cook the books in an attempt to deceive the taxpayers of Western Australia and the people who are paying the fees and charges, as the former Treasurer clearly did. That was indefensible—it was completely indefensible. This is our commitment to members opposite. Listen carefully. In May next year, when the budget is handed down, that information will be provided. It is our intention to deliver modest increases, notwithstanding the fact that the former government has locked us into putting electricity prices up by 10 per cent per annum. The other thing is that we will not try to cook the books.
I will tell members one other thing we will not do. We will not change the rules so that we can disguise our failures to meet those targets, like the former Treasurer did. Let me explain to the house what happened with the former Treasurer. Every year in May—it will happen next year—we hand down a budget in Western Australia. That budget has a reference rate of inflation for the purpose of the consumer price index. That reference rate of inflation is normally for the year ahead, because that is the rate of inflation at which we are looking when we bring down the budget. Guess what happened when the reference rate of inflation for the year ahead was lower than the reference rate of inflation in November of the year before? The Treasurer changed the figure. Mr C.J. Barnett : No! Mr T.R. BUSWELL : Yes, Premier. I know I was shocked, Premier. I still struggle to come to grips with the outcome. We will not cook the books in an attempt to deceive the taxpayers of Western Australia and the people who are paying the fees and charges, as the former Treasurer clearly did. That was indefensible—it was completely indefensible. This is our commitment to members opposite. Listen carefully. In May next year, when the budget is handed down, that information will be provided. It is our intention to deliver modest increases, notwithstanding the fact that the former government has locked us into putting electricity prices up by 10 per cent per annum. The other thing is that we will not try to cook the books.
Mr C.J. Barnett : No! Mr T.R. BUSWELL : Yes, Premier. I know I was shocked, Premier. I still struggle to come to grips with the outcome. We will not cook the books in an attempt to deceive the taxpayers of Western Australia and the people who are paying the fees and charges, as the former Treasurer clearly did. That was indefensible—it was completely indefensible. This is our commitment to members opposite. Listen carefully. In May next year, when the budget is handed down, that information will be provided. It is our intention to deliver modest increases, notwithstanding the fact that the former government has locked us into putting electricity prices up by 10 per cent per annum. The other thing is that we will not try to cook the books.
Mr T.R. BUSWELL : Yes, Premier. I know I was shocked, Premier. I still struggle to come to grips with the outcome. We will not cook the books in an attempt to deceive the taxpayers of Western Australia and the people who are paying the fees and charges, as the former Treasurer clearly did. That was indefensible—it was completely indefensible. This is our commitment to members opposite. Listen carefully. In May next year, when the budget is handed down, that information will be provided. It is our intention to deliver modest increases, notwithstanding the fact that the former government has locked us into putting electricity prices up by 10 per cent per annum. The other thing is that we will not try to cook the books.

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