❓ The Treasurer responds to a question about the upcoming state budget, highlighting the government's commitment to responsible financial management, debt reduction, and investments in key sectors like health and renewable energy, while contrasting their performance with the previous Liberal-National government and the Commonwealth.
AnsweredQoN 272Legislative Assembly
QuestionView source ↗
STATE
BUDGET 2022–23
272. Ms C.M. COLLINS to the Treasurer:
I refer to the McGowan Labor
government's commitment to responsible financial management and its
safe and cautious approach to the COVID-19 pandemic. Can the Premier advise the
house whether the upcoming budget will continue this government's
record of strong financial management; and, if so, outline what this will mean
for Western Australians?
BUDGET 2022–23
272. Ms C.M. COLLINS to the Treasurer:
I refer to the McGowan Labor
government's commitment to responsible financial management and its
safe and cautious approach to the COVID-19 pandemic. Can the Premier advise the
house whether the upcoming budget will continue this government's
record of strong financial management; and, if so, outline what this will mean
for Western Australians?
AnswerView source ↗
I thank the member for Hillarys for
the question.
When
we came to office in 2017, we were committed, and we remain committed, to
responsible financial management and restoring the state's
finances after the financial wreckage of the last Liberal–National
government. Under the last government, debt
was climbing across the forward estimates to $44 billion. There were record
deficits and major downgrades by the credit rating agencies, therefore,
costing the state more in interest payments. Since 2017, we have worked hard to
turn that around.
Prior to the upcoming budget, this
government had already paid down the debt across the forward estimates by $11 billion.
Debt was on a pathway to $44 billion and now—we will reveal this
tomorrow—net debt will be under $30 billion. In other words, one-third
of the Liberal–National government's debt has been eradicated
under this government, despite spending $11 billion on COVID response
initiatives. It is the only government in Australia that is paying down debt.
By paying down debt—the debt
that was left to us by the last Liberal–National government—we
are saving Western Australians billions in interest payments. Over the last
four years, we have already saved $2.5 billion in wasteful interest costs. That is about $950 for every Western Australian.
We have seen with the recent rises in interest rates that it is
financially responsible to pay down debt, and we will see other governments
around Australia, including the commonwealth government, suffer enormously
because they have allowed debt to get out of control. The commonwealth government's debt is now heading towards $1 trillion—$1
000 billion—a fivefold increase on when it arrived in office.
One of its largest spends is now interest; the seventh largest spend in the
commonwealth budget is interest. The commonwealth spends $25 billion a year on
existing interest rates, which is more than the annual cost of the disability
pension.
Not only are we in a good financial
position because of the state's management and safe handling of the
pandemic, but also it has been confirmed by a
range of independent sources. In its latest outlook, released last week,
Deloitte Access Economics said —
Western Australia can lay claim to
being among the strongest economies in the world �
WA's hard border was vital to
its relative success through the first two years of the pandemic �
It also said a range of other
complimentary things that, due to my humility, I will not read out!
Members
will see in this budget major investments in health; the emergency department
reform package that we announced recently; record spending in mental
health; incentives for electric vehicles; the conversion of Rottnest Island to
largely being a renewable power location; and important investments in child
protection and combating family and domestic violence. The budget will come
down tomorrow and what it will show is that Western Australia once again is in
the rightful position of leading this country and, in fact, leading the world
when it comes to economic and financial management.
the question.
When
we came to office in 2017, we were committed, and we remain committed, to
responsible financial management and restoring the state's
finances after the financial wreckage of the last Liberal–National
government. Under the last government, debt
was climbing across the forward estimates to $44 billion. There were record
deficits and major downgrades by the credit rating agencies, therefore,
costing the state more in interest payments. Since 2017, we have worked hard to
turn that around.
Prior to the upcoming budget, this
government had already paid down the debt across the forward estimates by $11 billion.
Debt was on a pathway to $44 billion and now—we will reveal this
tomorrow—net debt will be under $30 billion. In other words, one-third
of the Liberal–National government's debt has been eradicated
under this government, despite spending $11 billion on COVID response
initiatives. It is the only government in Australia that is paying down debt.
By paying down debt—the debt
that was left to us by the last Liberal–National government—we
are saving Western Australians billions in interest payments. Over the last
four years, we have already saved $2.5 billion in wasteful interest costs. That is about $950 for every Western Australian.
We have seen with the recent rises in interest rates that it is
financially responsible to pay down debt, and we will see other governments
around Australia, including the commonwealth government, suffer enormously
because they have allowed debt to get out of control. The commonwealth government's debt is now heading towards $1 trillion—$1
000 billion—a fivefold increase on when it arrived in office.
One of its largest spends is now interest; the seventh largest spend in the
commonwealth budget is interest. The commonwealth spends $25 billion a year on
existing interest rates, which is more than the annual cost of the disability
pension.
Not only are we in a good financial
position because of the state's management and safe handling of the
pandemic, but also it has been confirmed by a
range of independent sources. In its latest outlook, released last week,
Deloitte Access Economics said —
Western Australia can lay claim to
being among the strongest economies in the world �
WA's hard border was vital to
its relative success through the first two years of the pandemic �
It also said a range of other
complimentary things that, due to my humility, I will not read out!
Members
will see in this budget major investments in health; the emergency department
reform package that we announced recently; record spending in mental
health; incentives for electric vehicles; the conversion of Rottnest Island to
largely being a renewable power location; and important investments in child
protection and combating family and domestic violence. The budget will come
down tomorrow and what it will show is that Western Australia once again is in
the rightful position of leading this country and, in fact, leading the world
when it comes to economic and financial management.
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