Mr Barnett questions the Treasurer on whether privatisation proceeds contribute to the recurrent surplus. The Treasurer clarifies that the AlintaGas privatisation provided a one-off boost to the operating balance, not the capital account, but has negative impacts in future years.

AnsweredQoN 325Legislative Assembly
Asked
30 August 2001
Member
Portfolio
Treasurer

QuestionView source ↗

STATE BUDGET, PRIVATISATION SURPLUS
In response to my question, the Treasurer referred to a privatisation surplus. Will the Treasurer confirm that the proceeds of privatisation are included in the capital account and do not in any way contribute to the recurrent surplus that I outlined? Mr RIPPER

AnswerView source ↗

The Leader of the Opposition should read the appendix in Treasury’s mid-year review published by his own Government in the last week of December last year. There is an interesting chart in that mid-year review that shows the effect of the privatisation of AlintaGas on the operating balance. The chart shows that the privatisation of AlintaGas added $211 million to the operating balance - not the capital - in the budget for this past financial year. It further shows that the impact of the privatisation of AlintaGas on the operating balance in future years is negative. The sale of AlintaGas was a one-off boost to the operating balance because it collected $45 million in stamp duty revenue and $130 million as a one-off tax equivalent payment. The mid-year review shows a negative impact on the operating balance in subsequent years. The former Government sold an income-earning asset and the income that it generates now goes to the private shareholders, not to the Government. The Leader of the Opposition has not even read the budget documents that were released by his own Government.
Mr RIPPER replied: The Leader of the Opposition should read the appendix in Treasury’s mid-year review published by his own Government in the last week of December last year. There is an interesting chart in that mid-year review that shows the effect of the privatisation of AlintaGas on the operating balance. The chart shows that the privatisation of AlintaGas added $211 million to the operating balance - not the capital - in the budget for this past financial year. It further shows that the impact of the privatisation of AlintaGas on the operating balance in future years is negative. The sale of AlintaGas was a one-off boost to the operating balance because it collected $45 million in stamp duty revenue and $130 million as a one-off tax equivalent payment. The mid-year review shows a negative impact on the operating balance in subsequent years. The former Government sold an income-earning asset and the income that it generates now goes to the private shareholders, not to the Government. The Leader of the Opposition has not even read the budget documents that were released by his own Government.
The Leader of the Opposition should read the appendix in Treasury’s mid-year review published by his own Government in the last week of December last year. There is an interesting chart in that mid-year review that shows the effect of the privatisation of AlintaGas on the operating balance. The chart shows that the privatisation of AlintaGas added $211 million to the operating balance - not the capital - in the budget for this past financial year. It further shows that the impact of the privatisation of AlintaGas on the operating balance in future years is negative. The sale of AlintaGas was a one-off boost to the operating balance because it collected $45 million in stamp duty revenue and $130 million as a one-off tax equivalent payment. The mid-year review shows a negative impact on the operating balance in subsequent years. The former Government sold an income-earning asset and the income that it generates now goes to the private shareholders, not to the Government. The Leader of the Opposition has not even read the budget documents that were released by his own Government.

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