❓ Mr Hughes asks about the WA budget's reception, particularly from credit rating agencies, and potential threats to the state's financial position. The Premier responds by highlighting the state's strong financial performance, infrastructure investments, and potential threats like COVID-19 and GST changes.
AnsweredQoN 509Legislative Assembly
QuestionView source ↗
STATE BUDGET 2021–22
509. Mr M. HUGHES to the Premier:
I
would like to hear a little bit more about the budget. I refer to the
responsible budget management of the McGowan Labor government that has
delivered strong surpluses and provided the financial capacity to set our state
up for the future.
(1) Can the
Premier further outline to the house what has been the response to the state
budget and this government's sensible financial management,
particularly by the credit rating agencies?
(2) Can the
Premier advise the house whether he is aware of any threats to this government's
strong financial position?
509. Mr M. HUGHES to the Premier:
I
would like to hear a little bit more about the budget. I refer to the
responsible budget management of the McGowan Labor government that has
delivered strong surpluses and provided the financial capacity to set our state
up for the future.
(1) Can the
Premier further outline to the house what has been the response to the state
budget and this government's sensible financial management,
particularly by the credit rating agencies?
(2) Can the
Premier advise the house whether he is aware of any threats to this government's
strong financial position?
AnswerView source ↗
(1)–(2) I
thank the member for Kalamunda for the question. The budget we released on
Thursday last week is all about using our financial success to set Western Australia
up for the long term. Our strong economic performance
as a state, and history of responsible budgets, means that we are in a strong
surplus position —the only government in Australia in such a position.
That surplus is all going towards Western Australia's future. It is
going to help fund our $30.7 billion infrastructure program, $9.1 billion of
which is going directly into regional
infrastructure, and then there are across-government programs that go into the
regions as well. We are setting aside $4.4 billion to pre-fund future
strategic infrastructure. I will give members some examples: the new women's
and babies' hospital in Nedlands and the new desalination plant to meet our water needs. It also responds to current
challenges, such as our COVID response, with $ 1.9 billion in operational
funding for health; a massive social housing package; and a massive climate
action package as well.
Total public sector net debt is
relatively flat across the forward estimates, based upon very careful and conservative budgeting. For the third year in a row,
our net debt is coming down. It is now 26 per cent lower than forecast
under the last Liberal–National government.
I have just outlined to the house
what the credit rating agencies had to say. There are numerous quotations from Standard and Poor's and Moody's
from last Thursday, which were glowing about the Western Australian government's management of these things, and the difference between Western
Australia and the rest of the country. That begs the question as to why other
people in the rest of the country want to undermine our performance. Why is
that, Madam Speaker?
The member asked me what the threats
are. Firstly, state Treasury says that the number one threat is a widespread
outbreak of COVID-19, as has happened in New South Wales. As we know, the New
South Wales government did not act in June like it should have. Therefore, the
rest of us are paying. The people of New South Wales are paying. We want to do
all we can to avoid that outcome.
Treasury says that another threat is
the iron ore price. We have put in place very careful budgeting on the iron ore
price and have not locked in spend based upon a high iron ore price, as the
last government did. It manipulated the iron ore price in the budget and locked
in spend accordingly. What happened? There was a massive increase in debt—800
per cent, actually, over its term in office.
There is another threat to this
position. I note that the New South Wales Treasurer, Mr Dominic Perrottet, whom
I have only ever met online —
Ms R. Saffioti : Did you swipe
left or right?
Several members interjected.
The SPEAKER : Premier, did you
want to rephrase that?
Mr M. McGOWAN : I certainly
will. I am getting a bit embarrassed by this one!
The
New South Wales Treasurer, Dominic Perrottet, said about the GST arrangement,
which gives us 70� for every dollar we put in, and I quote —
It needs substantial change and the
sooner that occurs the better.
I note he also said a few things
about me, Madam Speaker, very unflattering, I thought—very
unflattering. The Victorian Treasurer also had a —
Ms R. Saffioti : You'll
have to change your profile picture!
Mr
M. McGOWAN : That is right. I think
he was referring to the Attorney General when he was talking about me!
The SPEAKER : That is even more
unkind!
Several members interjected.
Mr M. McGOWAN : Has anyone
ever seen both of them in the same room at the same time?
Several members interjected.
Mr M. McGOWAN : Madam Speaker,
the Victorian Treasurer also had a go at our GST share. The Tasmanian Premier,
who is also the Treasurer, said this, which is amazing, and I quote, that WA —
� will, in effect, be provided with
an advantage that the rest of the country won't have.''
This is Tasmania, which gets back $2
for every $1 it puts in, just so we understand that.
No state or territory will be worse
off under the GST arrangements. Obviously, we will have to fight off the other
states again, because they will be trying to undermine it. A review is coming
up in coming years; it should not be brought forward. The deal that was secured
for 70� in the dollar, rising to 75�, should not be undermined, and we will
continue to fight that issue.
thank the member for Kalamunda for the question. The budget we released on
Thursday last week is all about using our financial success to set Western Australia
up for the long term. Our strong economic performance
as a state, and history of responsible budgets, means that we are in a strong
surplus position —the only government in Australia in such a position.
That surplus is all going towards Western Australia's future. It is
going to help fund our $30.7 billion infrastructure program, $9.1 billion of
which is going directly into regional
infrastructure, and then there are across-government programs that go into the
regions as well. We are setting aside $4.4 billion to pre-fund future
strategic infrastructure. I will give members some examples: the new women's
and babies' hospital in Nedlands and the new desalination plant to meet our water needs. It also responds to current
challenges, such as our COVID response, with $ 1.9 billion in operational
funding for health; a massive social housing package; and a massive climate
action package as well.
Total public sector net debt is
relatively flat across the forward estimates, based upon very careful and conservative budgeting. For the third year in a row,
our net debt is coming down. It is now 26 per cent lower than forecast
under the last Liberal–National government.
I have just outlined to the house
what the credit rating agencies had to say. There are numerous quotations from Standard and Poor's and Moody's
from last Thursday, which were glowing about the Western Australian government's management of these things, and the difference between Western
Australia and the rest of the country. That begs the question as to why other
people in the rest of the country want to undermine our performance. Why is
that, Madam Speaker?
The member asked me what the threats
are. Firstly, state Treasury says that the number one threat is a widespread
outbreak of COVID-19, as has happened in New South Wales. As we know, the New
South Wales government did not act in June like it should have. Therefore, the
rest of us are paying. The people of New South Wales are paying. We want to do
all we can to avoid that outcome.
Treasury says that another threat is
the iron ore price. We have put in place very careful budgeting on the iron ore
price and have not locked in spend based upon a high iron ore price, as the
last government did. It manipulated the iron ore price in the budget and locked
in spend accordingly. What happened? There was a massive increase in debt—800
per cent, actually, over its term in office.
There is another threat to this
position. I note that the New South Wales Treasurer, Mr Dominic Perrottet, whom
I have only ever met online —
Ms R. Saffioti : Did you swipe
left or right?
Several members interjected.
The SPEAKER : Premier, did you
want to rephrase that?
Mr M. McGOWAN : I certainly
will. I am getting a bit embarrassed by this one!
The
New South Wales Treasurer, Dominic Perrottet, said about the GST arrangement,
which gives us 70� for every dollar we put in, and I quote —
It needs substantial change and the
sooner that occurs the better.
I note he also said a few things
about me, Madam Speaker, very unflattering, I thought—very
unflattering. The Victorian Treasurer also had a —
Ms R. Saffioti : You'll
have to change your profile picture!
Mr
M. McGOWAN : That is right. I think
he was referring to the Attorney General when he was talking about me!
The SPEAKER : That is even more
unkind!
Several members interjected.
Mr M. McGOWAN : Has anyone
ever seen both of them in the same room at the same time?
Several members interjected.
Mr M. McGOWAN : Madam Speaker,
the Victorian Treasurer also had a go at our GST share. The Tasmanian Premier,
who is also the Treasurer, said this, which is amazing, and I quote, that WA —
� will, in effect, be provided with
an advantage that the rest of the country won't have.''
This is Tasmania, which gets back $2
for every $1 it puts in, just so we understand that.
No state or territory will be worse
off under the GST arrangements. Obviously, we will have to fight off the other
states again, because they will be trying to undermine it. A review is coming
up in coming years; it should not be brought forward. The deal that was secured
for 70� in the dollar, rising to 75�, should not be undermined, and we will
continue to fight that issue.
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