❓ Mrs. Stojkovski asks the Treasurer how the McGowan government is driving economic growth and business confidence. The Treasurer responds positively, highlighting economic improvements since the previous government and criticising the opposition's stance on government spending.
AnsweredQoN 615Legislative Assembly
QuestionView source ↗
STATE ECONOMY — BUSINESS CONFIDENCE
615. Mrs J.M.C. STOJKOVSKI to the Treasurer:
I
refer to the latest state final demand figures for WA, which were released last
week. Can the Treasurer update the house on how the McGowan Labor government is
driving economic growth, encouraging business confidence and turning around the
domestic economy, which was plunged into recession by the previous Liberal–National
government?
615. Mrs J.M.C. STOJKOVSKI to the Treasurer:
I
refer to the latest state final demand figures for WA, which were released last
week. Can the Treasurer update the house on how the McGowan Labor government is
driving economic growth, encouraging business confidence and turning around the
domestic economy, which was plunged into recession by the previous Liberal–National
government?
AnswerView source ↗
I can indeed answer that question,
and I thank the member for Kingsley for asking it! Can I say how far we have
come since those dark days, when, late in the day of the Liberal–National
government, business confidence was at the same level as it was during the
global financial crisis. When businesses were asked whether they preferred the
Liberal–National government or global Armageddon, they chose global
Armageddon. Importantly, from the 2016–17 year—the one year on
record that we had a recession in Western Australia—we are now back to
a period of growth. Importantly, average annual growth of state final demand is
now at 1.3 per cent. The member for Kingsley will be pleased to know that that
is the highest level since September 2013, and that this is the first time
there has been two quarters of continuous growth since June 2013. We have a range
of data. One important one that I want to mention, because I have talked about
it at length in here, is the decline in business investment. That has been
declining. In fact, at the time of the election, under the Liberal–National
government, it was declining at the rate of 32 per cent. We finally have some
growth—moderate growth, but some growth. That is an important signal
that the confidence of the private sector is returning—we see that not
just in the Chamber of Commerce and Industry of Western Australia dataset, but
also in how they are investing. That is why private sector investment in
machinery and equipment is continuing to surge; it is now growing at 22 per
cent on an annual average basis. To quote John Nicolaou, who heads up ACIL
Allen Consulting —
''To see the domestic economy
grow again � that is a very significant sign.''
This is good news at every level
around job creation and confidence. Everybody that I have spoken to has been
happy about this data—nearly everybody! It appears that The Muppet Show is not isolated to Canberra; it is here as well. I was intrigued by the
response of the Leader of the Opposition, who said —
Today's economic figures show
WA's ''growth'' is a result of government expenditure.
The member for Bateman—my
dour friend from Bateman—said —
The
growth in State Final Demand is mostly from government spending � Economy yet
to really improve.
I was intrigued by that, because it
is the first time I have heard this particular Liberal opposition complain
about government spending. I went back and had a look at what is the percentage
of government spend as a percentage of state final demand. Interestingly, right
now it is exactly the same as it was at the time of the election, at around 15 per
cent. Over 20 years, the single biggest increase in government spending as a percentage
of the economy was under whom? It was the former Treasurer, the big-government
member for Riverton and Leader of the Opposition. It surged a massive 17 per
cent while he was Treasurer. Now he complains about that government spending as
an outrage in driving the sort of growth that we want to see! At the same time,
of course, the member for Churchlands has asked me to ''pump prime the
economy''. I get the member for Bateman saying that we have to stimulate
the housing sector. At the same time that he complains about negative equity,
he wants me to go out there and have a bunch more houses built to decline
prices further. It is a bizarre scenario that we find ourselves in with the
opposition. At every turn, the opposition does not know what it stands for when
it comes to the economy or the finances. It articulates one case one minute and
then changes its mind with a very different one the very next minute. What they
should all be happy about—the member for Bateman, Leader of the
Opposition and member for Churchlands—is that we are now seeing growth
in the WA economy for the first time since 2013. That is creating jobs, it is
creating confidence and it is good for every single Western Australian.
and I thank the member for Kingsley for asking it! Can I say how far we have
come since those dark days, when, late in the day of the Liberal–National
government, business confidence was at the same level as it was during the
global financial crisis. When businesses were asked whether they preferred the
Liberal–National government or global Armageddon, they chose global
Armageddon. Importantly, from the 2016–17 year—the one year on
record that we had a recession in Western Australia—we are now back to
a period of growth. Importantly, average annual growth of state final demand is
now at 1.3 per cent. The member for Kingsley will be pleased to know that that
is the highest level since September 2013, and that this is the first time
there has been two quarters of continuous growth since June 2013. We have a range
of data. One important one that I want to mention, because I have talked about
it at length in here, is the decline in business investment. That has been
declining. In fact, at the time of the election, under the Liberal–National
government, it was declining at the rate of 32 per cent. We finally have some
growth—moderate growth, but some growth. That is an important signal
that the confidence of the private sector is returning—we see that not
just in the Chamber of Commerce and Industry of Western Australia dataset, but
also in how they are investing. That is why private sector investment in
machinery and equipment is continuing to surge; it is now growing at 22 per
cent on an annual average basis. To quote John Nicolaou, who heads up ACIL
Allen Consulting —
''To see the domestic economy
grow again � that is a very significant sign.''
This is good news at every level
around job creation and confidence. Everybody that I have spoken to has been
happy about this data—nearly everybody! It appears that The Muppet Show is not isolated to Canberra; it is here as well. I was intrigued by the
response of the Leader of the Opposition, who said —
Today's economic figures show
WA's ''growth'' is a result of government expenditure.
The member for Bateman—my
dour friend from Bateman—said —
The
growth in State Final Demand is mostly from government spending � Economy yet
to really improve.
I was intrigued by that, because it
is the first time I have heard this particular Liberal opposition complain
about government spending. I went back and had a look at what is the percentage
of government spend as a percentage of state final demand. Interestingly, right
now it is exactly the same as it was at the time of the election, at around 15 per
cent. Over 20 years, the single biggest increase in government spending as a percentage
of the economy was under whom? It was the former Treasurer, the big-government
member for Riverton and Leader of the Opposition. It surged a massive 17 per
cent while he was Treasurer. Now he complains about that government spending as
an outrage in driving the sort of growth that we want to see! At the same time,
of course, the member for Churchlands has asked me to ''pump prime the
economy''. I get the member for Bateman saying that we have to stimulate
the housing sector. At the same time that he complains about negative equity,
he wants me to go out there and have a bunch more houses built to decline
prices further. It is a bizarre scenario that we find ourselves in with the
opposition. At every turn, the opposition does not know what it stands for when
it comes to the economy or the finances. It articulates one case one minute and
then changes its mind with a very different one the very next minute. What they
should all be happy about—the member for Bateman, Leader of the
Opposition and member for Churchlands—is that we are now seeing growth
in the WA economy for the first time since 2013. That is creating jobs, it is
creating confidence and it is good for every single Western Australian.
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