❓ Mr. Healy questions the Treasurer on the 2019-20 State Budget, specifically regarding the surplus and debt reduction compared to the previous government. The Treasurer responds by highlighting the government's achievements in fiscal repair, job creation, and managing household bills.
AnsweredQoN 352Legislative Assembly
QuestionView source ↗
2019–20 STATE
BUDGET
352. Mr T.J. HEALY to the Treasurer:
Can the Treasurer please outline to
the house how the McGowan Labor government's responsible financial
management has delivered the first surplus in five years and net debt that is
lower than the $44 billion that we inherited from the previous Liberal–National
government?
Several members interjected.
The SPEAKER : Members!
BUDGET
352. Mr T.J. HEALY to the Treasurer:
Can the Treasurer please outline to
the house how the McGowan Labor government's responsible financial
management has delivered the first surplus in five years and net debt that is
lower than the $44 billion that we inherited from the previous Liberal–National
government?
Several members interjected.
The SPEAKER : Members!
AnswerView source ↗
I thank the member for Southern
River for the question. I assure members that members on this side of the
chamber are very keen to talk about the
budget, unlike perhaps the opposition, which dares not speak its name, it would
seem.
We were elected in 2017. I suspect
the main issue that permeated Western Australians' minds as they looked
on in horror at what the previous Liberal–National government had done
to the operating account and to the level of debt in this state, on the back of
record revenues, and they swept it from power. That is why we were elected, fundamentally,
to fix the financial mess that the previous Liberal–National government
had created.
The first two budgets were tough
because we had an opposition trying to do all it could to stop any efforts of
budget repair. The opposition in the upper house was pulling out even its own
efforts to generate savings in its last budget. However, I am delighted to say
that the efforts of this government and the people of Western Australia,
understanding fully what this government had inherited from the previous
Liberal–National government, mean that the budget is now back in
surplus. It is not the Josh Frydenberg or the Prime Minister's surplus—a
projected surplus at some point in the future, which is being delivered in a cruel
twist of grammar. This surplus will be delivered this financial year and we
expect to remain in surplus across the forward estimates.
Why is that an important thing to do? It is not only because
it drives the opposition insane, but also because that surplus position allows
us to fund our asset investment program and pay down the $44 billion of debt
left to us by the previous Liberal–National government. The efforts of
this government and the people of WA mean that net debt is now projected to
peak at $4.1 billion lower than it was expected to peak under the former
Liberal–National government. That is why we are now saving over half a billion
dollars in interest payments. All these achievements are good news.
It is not in respect of just the finances but also the
economy. When I became Treasurer, what had been left to me was the state's
only recession. The first recession on record was the record of the former
Liberal–National government. That has been turned around by the
economic growth of two per cent in 2018–19 and we expect that to increase
to 3.5 per cent in 2019–20. That is good news. Why is it good news?
When the economy grows, jobs are created. Again, I remind the house that during
the final term, the second term of the former Liberal–National
government, not one job was created. In the first two years of the McGowan
Labor government, we have created 37 000 jobs. We expect another 23 500 to be
created in 2019–20 because we see jobs as a priority, which is why we
have set a target that is mocked, maligned and critiqued by the opposition as
though it is something quite outrageous that a government should do, but it is
something we are committed to doing.
I am delighted at how the budget has been received and that
as a result of these efforts we have able to spend $300 million to keep the bills
of Western Australians at record lows, not just power bills but also the suite
of household models that are ultimately services provided by the state. The Pre-election
Financial Projections Statement , I remind the member for Hillarys, had an
assumed electricity price rise in 2019–20 of seven per cent. We are
delivering 1.75 per cent in line with projected inflation. That is a great
outcome. It is the reward for the efforts of fiscal repair.
I was delighted on Friday morning. As I said, I think people
have received the budget well, except perhaps for those on the other side of
this chamber. I was particularly pleased to see 650 people at the Chamber of
Commerce and Industry of Western Australia budget breakfast, who gave us a round
of applause for the efforts we have gone to to deliver a surplus this financial
year. When I looked out over that crowd, it seemed that only 649 people were
giving us that round of applause. I saw the shadow Treasurer sitting there in a
funk, fuming as he gripped his knife and fork, refusing to applaud the fact
that we have done the hard work to deliver a surplus and ensure that debt
reduces, and to keep power bills low. We will continue to do all we can to
create jobs here in Western Australia.
River for the question. I assure members that members on this side of the
chamber are very keen to talk about the
budget, unlike perhaps the opposition, which dares not speak its name, it would
seem.
We were elected in 2017. I suspect
the main issue that permeated Western Australians' minds as they looked
on in horror at what the previous Liberal–National government had done
to the operating account and to the level of debt in this state, on the back of
record revenues, and they swept it from power. That is why we were elected, fundamentally,
to fix the financial mess that the previous Liberal–National government
had created.
The first two budgets were tough
because we had an opposition trying to do all it could to stop any efforts of
budget repair. The opposition in the upper house was pulling out even its own
efforts to generate savings in its last budget. However, I am delighted to say
that the efforts of this government and the people of Western Australia,
understanding fully what this government had inherited from the previous
Liberal–National government, mean that the budget is now back in
surplus. It is not the Josh Frydenberg or the Prime Minister's surplus—a
projected surplus at some point in the future, which is being delivered in a cruel
twist of grammar. This surplus will be delivered this financial year and we
expect to remain in surplus across the forward estimates.
Why is that an important thing to do? It is not only because
it drives the opposition insane, but also because that surplus position allows
us to fund our asset investment program and pay down the $44 billion of debt
left to us by the previous Liberal–National government. The efforts of
this government and the people of WA mean that net debt is now projected to
peak at $4.1 billion lower than it was expected to peak under the former
Liberal–National government. That is why we are now saving over half a billion
dollars in interest payments. All these achievements are good news.
It is not in respect of just the finances but also the
economy. When I became Treasurer, what had been left to me was the state's
only recession. The first recession on record was the record of the former
Liberal–National government. That has been turned around by the
economic growth of two per cent in 2018–19 and we expect that to increase
to 3.5 per cent in 2019–20. That is good news. Why is it good news?
When the economy grows, jobs are created. Again, I remind the house that during
the final term, the second term of the former Liberal–National
government, not one job was created. In the first two years of the McGowan
Labor government, we have created 37 000 jobs. We expect another 23 500 to be
created in 2019–20 because we see jobs as a priority, which is why we
have set a target that is mocked, maligned and critiqued by the opposition as
though it is something quite outrageous that a government should do, but it is
something we are committed to doing.
I am delighted at how the budget has been received and that
as a result of these efforts we have able to spend $300 million to keep the bills
of Western Australians at record lows, not just power bills but also the suite
of household models that are ultimately services provided by the state. The Pre-election
Financial Projections Statement , I remind the member for Hillarys, had an
assumed electricity price rise in 2019–20 of seven per cent. We are
delivering 1.75 per cent in line with projected inflation. That is a great
outcome. It is the reward for the efforts of fiscal repair.
I was delighted on Friday morning. As I said, I think people
have received the budget well, except perhaps for those on the other side of
this chamber. I was particularly pleased to see 650 people at the Chamber of
Commerce and Industry of Western Australia budget breakfast, who gave us a round
of applause for the efforts we have gone to to deliver a surplus this financial
year. When I looked out over that crowd, it seemed that only 649 people were
giving us that round of applause. I saw the shadow Treasurer sitting there in a
funk, fuming as he gripped his knife and fork, refusing to applaud the fact
that we have done the hard work to deliver a surplus and ensure that debt
reduces, and to keep power bills low. We will continue to do all we can to
create jobs here in Western Australia.
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