❓ Question on state finances, highlighting the current government's surplus compared to the previous government's debt, and contrasting financial management approaches.
AnsweredQoN 46Legislative Assembly
QuestionView source ↗
STATE FINANCES
46. Ms A. SANDERSON to the Treasurer :
I refer to the 2018–19
midyear review that shows this government is on track to deliver the state its
first budget surplus since the previous Liberal–National government
plunged the state's finances into record debt and deficit. Can the
Treasurer outline to the house how the McGowan Labor government's
responsible approach to economic financial management is delivering for Western
Australians, and advise how the recent midyear review compares with those
delivered by the now Leader of the Opposition?
Mrs L.M. Harvey : This is a speech.
46. Ms A. SANDERSON to the Treasurer :
I refer to the 2018–19
midyear review that shows this government is on track to deliver the state its
first budget surplus since the previous Liberal–National government
plunged the state's finances into record debt and deficit. Can the
Treasurer outline to the house how the McGowan Labor government's
responsible approach to economic financial management is delivering for Western
Australians, and advise how the recent midyear review compares with those
delivered by the now Leader of the Opposition?
Mrs L.M. Harvey : This is a speech.
AnswerView source ↗
Do not worry, Deputy Leader of the
Opposition, the speech is coming; do not worry about that!
I thank the member for Morley for
her question. It was good to deliver a midyear review that showed improving
finances for the first time in about six years. That is what the midyear review
highlighted. That is why we saw Moody's, a couple of weeks ago, put us
on a better outlook, making the specific point that it is the fiscal discipline
of this government compared with the lack of political will of the former
government that is delivering the record low expense growth at a time when we
are also delivering essential services and capital works for Western Australians.
I was intrigued and I always like a speech
by the Leader of the Opposition, particularly one when he gets the opportunity
to range far and wide, because many things are said that I certainly get to
enjoy. One of them was his reflection upon the successful outcome by the
Premier, myself and other ministers of getting a fairer return of the state's
GST to Western Australia—something that disgruntles the Liberal Party
to this very day. The Leader of the Opposition said, ''Well, all you
were doing was following my process.'' I want to reflect upon that
process for a minute, if I may.
Dr M.D. Nahan interjected.
The SPEAKER : Leader of the
Opposition!
Mr B.S. WYATT : First I want
to take us all back to the 2011–12 budget and the speech given by the
then Treasurer, Christian Porter, who said —
What we reasonably anticipate is that in 2013–14 the
Commonwealth Grants Commission will have brought in a new
GST system. We expect it will produce a floor of about 75 per cent of our
population share of the GST. Therefore, we expect extra revenues of $1.8
billion in 2013–14 and $2.5 billion in 2014–15.
Let us think about that for a minute.
The Liberal Party assumed about $4 billion in extra revenue in the 2011–12
budget. What did they do with that assumed revenue? They spent it. They spent
it on the basis that they expected the Commonwealth Grants Commission in 2013–14
to just magically change how that was going to happen. So, the Leader of the
Opposition's process was to spend money and then hope it was going to
appear again sometime in the future. But that was not the end of the process.
The next part of the process—I remember that report that went to the
Liberal state council—was to threaten secession. That is the way they
were going to fix this up; they were going to secede from the rest of the
nation and that is how they were going to get a fair share of the GST. Well,
that tanked, Mr Speaker. The next one—I think this is the best—the
clearly articulated process by the Leader of the Opposition was to call the then
Prime Minister Malcolm Turnbull a liar and then crowd fund litigation against
that very same federal government. I have to say, that does not sound like a very
successful process to me to get a fair return of GST. One of the main problems
that I found when I became Treasurer in trying to get a fairer outcome was that
every single Treasurer—Labor, Liberal and federal—was making
the point: why would we even consider this when you made such a mess of the
finances? Not meaning me, but meaning the state. Indeed, I quote my friend the
New South Wales Liberal Treasurer, Dominic Perrottet, who, reflecting upon the
former Liberal government, said —
Dr M.D. Nahan interjected.
Mr B.S. WYATT : I know this stings but the Leader of
the Opposition needs to hear this.
This is a direct quote from the
Liberal Treasurer of New South Wales —
''I don't
believe it's our role and responsibility to support inefficient states,
like Queensland, who do not take on the reforms that we have done in NSW and
also states like WA who don't plan for the future.
''When times
were good, at the height of the mining boom, WA racked up spending on their
credit card and now expect the taxpayers of NSW to pay the bill.''
I went back to the 2011–12 budget; I saw Christian Porter
assumed an extra $4 billion—that he put on the credit card . When we came into government, it
was very difficult to convince other Treasurers and the commonwealth why we deserved a better outcome. What convinced
them? A government serious about the finances. That is why, in the end ,
we were able to get the outcome that we received. That is the reality. The
questions are always put to me: Why are you not doing this? Why are you not
doing that? The main job of the last two years is paying for all the previous
government's spend. That has been a difficult task: paying for all of
the spend of the previous government.
The other point I did like that the
Leader of the Opposition made was that all I did when I became Treasurer was to
go to the Leader of the Opposition's in-tray. That is all I did; I would
go to his in-tray and just do all the things that were sitting in the Leader of
the Opposition's in-tray. I think that the best way to describe the
Leader of the Opposition's in-tray is as a ''too-hard basket''
because ultimately nothing was done. The best way to assess a politician's
impact is really the out-tray. What did I see in the out-tray? I saw $5 billion
of deficits, $42 billion in record debt, a state in recession, five years of
domestic economic contraction. That is the out-tray, Mr Speaker. The reality is
that I continue to have to fix the mess of the former government.
I want to finish on this. One of the
other points made in the Leader of the Opposition's speech last night
was this —
The government is cost shifting to
the commonwealth and we are going to let that be plain to the commonwealth
government.
I, and former Premier Colin Barnett,
to his credit, have spent a lot of time ensuring that the commonwealth
government picked up a fairer share of the tab for providing services in Western
Australia. The GST is one part of the debate, but the commonwealth underspends
in WA in health, in education, in community services and in a range of other
areas. We have had some success in ensuring the commonwealth is starting—it
is not yet complete—to pick up the tab for its fair share of the spend
in WA.
Dr M.D. Nahan interjected.
The SPEAKER : Leader of the
Opposition, this is the last warning.
Mr B.S. WYATT : I note that if
you want to represent the commonwealth, get yourself elected to the commonwealth
Parliament.
Dr M.D. Nahan interjected.
Mr B.S. WYATT : But while you
are a member of the state Parliament of WA, wanting to be the Premier of Western
Australia, you represent this state!
Several members interjected.
The SPEAKER : Leader of the Opposition,
I call you to order for the first and second time.
Dr M.D. Nahan : Mr Speaker, he
stood and pointed at me.
Several members interjected.
The SPEAKER : If you stand on
your feet, it has to be on a point of order.
Opposition, the speech is coming; do not worry about that!
I thank the member for Morley for
her question. It was good to deliver a midyear review that showed improving
finances for the first time in about six years. That is what the midyear review
highlighted. That is why we saw Moody's, a couple of weeks ago, put us
on a better outlook, making the specific point that it is the fiscal discipline
of this government compared with the lack of political will of the former
government that is delivering the record low expense growth at a time when we
are also delivering essential services and capital works for Western Australians.
I was intrigued and I always like a speech
by the Leader of the Opposition, particularly one when he gets the opportunity
to range far and wide, because many things are said that I certainly get to
enjoy. One of them was his reflection upon the successful outcome by the
Premier, myself and other ministers of getting a fairer return of the state's
GST to Western Australia—something that disgruntles the Liberal Party
to this very day. The Leader of the Opposition said, ''Well, all you
were doing was following my process.'' I want to reflect upon that
process for a minute, if I may.
Dr M.D. Nahan interjected.
The SPEAKER : Leader of the
Opposition!
Mr B.S. WYATT : First I want
to take us all back to the 2011–12 budget and the speech given by the
then Treasurer, Christian Porter, who said —
What we reasonably anticipate is that in 2013–14 the
Commonwealth Grants Commission will have brought in a new
GST system. We expect it will produce a floor of about 75 per cent of our
population share of the GST. Therefore, we expect extra revenues of $1.8
billion in 2013–14 and $2.5 billion in 2014–15.
Let us think about that for a minute.
The Liberal Party assumed about $4 billion in extra revenue in the 2011–12
budget. What did they do with that assumed revenue? They spent it. They spent
it on the basis that they expected the Commonwealth Grants Commission in 2013–14
to just magically change how that was going to happen. So, the Leader of the
Opposition's process was to spend money and then hope it was going to
appear again sometime in the future. But that was not the end of the process.
The next part of the process—I remember that report that went to the
Liberal state council—was to threaten secession. That is the way they
were going to fix this up; they were going to secede from the rest of the
nation and that is how they were going to get a fair share of the GST. Well,
that tanked, Mr Speaker. The next one—I think this is the best—the
clearly articulated process by the Leader of the Opposition was to call the then
Prime Minister Malcolm Turnbull a liar and then crowd fund litigation against
that very same federal government. I have to say, that does not sound like a very
successful process to me to get a fair return of GST. One of the main problems
that I found when I became Treasurer in trying to get a fairer outcome was that
every single Treasurer—Labor, Liberal and federal—was making
the point: why would we even consider this when you made such a mess of the
finances? Not meaning me, but meaning the state. Indeed, I quote my friend the
New South Wales Liberal Treasurer, Dominic Perrottet, who, reflecting upon the
former Liberal government, said —
Dr M.D. Nahan interjected.
Mr B.S. WYATT : I know this stings but the Leader of
the Opposition needs to hear this.
This is a direct quote from the
Liberal Treasurer of New South Wales —
''I don't
believe it's our role and responsibility to support inefficient states,
like Queensland, who do not take on the reforms that we have done in NSW and
also states like WA who don't plan for the future.
''When times
were good, at the height of the mining boom, WA racked up spending on their
credit card and now expect the taxpayers of NSW to pay the bill.''
I went back to the 2011–12 budget; I saw Christian Porter
assumed an extra $4 billion—that he put on the credit card . When we came into government, it
was very difficult to convince other Treasurers and the commonwealth why we deserved a better outcome. What convinced
them? A government serious about the finances. That is why, in the end ,
we were able to get the outcome that we received. That is the reality. The
questions are always put to me: Why are you not doing this? Why are you not
doing that? The main job of the last two years is paying for all the previous
government's spend. That has been a difficult task: paying for all of
the spend of the previous government.
The other point I did like that the
Leader of the Opposition made was that all I did when I became Treasurer was to
go to the Leader of the Opposition's in-tray. That is all I did; I would
go to his in-tray and just do all the things that were sitting in the Leader of
the Opposition's in-tray. I think that the best way to describe the
Leader of the Opposition's in-tray is as a ''too-hard basket''
because ultimately nothing was done. The best way to assess a politician's
impact is really the out-tray. What did I see in the out-tray? I saw $5 billion
of deficits, $42 billion in record debt, a state in recession, five years of
domestic economic contraction. That is the out-tray, Mr Speaker. The reality is
that I continue to have to fix the mess of the former government.
I want to finish on this. One of the
other points made in the Leader of the Opposition's speech last night
was this —
The government is cost shifting to
the commonwealth and we are going to let that be plain to the commonwealth
government.
I, and former Premier Colin Barnett,
to his credit, have spent a lot of time ensuring that the commonwealth
government picked up a fairer share of the tab for providing services in Western
Australia. The GST is one part of the debate, but the commonwealth underspends
in WA in health, in education, in community services and in a range of other
areas. We have had some success in ensuring the commonwealth is starting—it
is not yet complete—to pick up the tab for its fair share of the spend
in WA.
Dr M.D. Nahan interjected.
The SPEAKER : Leader of the
Opposition, this is the last warning.
Mr B.S. WYATT : I note that if
you want to represent the commonwealth, get yourself elected to the commonwealth
Parliament.
Dr M.D. Nahan interjected.
Mr B.S. WYATT : But while you
are a member of the state Parliament of WA, wanting to be the Premier of Western
Australia, you represent this state!
Several members interjected.
The SPEAKER : Leader of the Opposition,
I call you to order for the first and second time.
Dr M.D. Nahan : Mr Speaker, he
stood and pointed at me.
Several members interjected.
The SPEAKER : If you stand on
your feet, it has to be on a point of order.
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