❓ Opposition Leader McGowan questions Treasurer Nahan about the need for an additional Loan Bill in 2016, accusing the government of incompetence. The Treasurer defends the bill, citing a significant drop in revenue and the government's commitment to maintaining capital spending and services.
AnsweredQoN 573Legislative Assembly
QuestionView source ↗
LOAN BILL
2016
573. Mr M. McGOWAN to the
Treasurer:
I refer to the
additional $1.7 billion in the Loan Bill 2016 introduced today, on top of the $8
billion Loan Bill last year.
(1) Why did the Treasurer assure the house in
debate on the last Loan Bill last year that there would not be a need for
another, given that as part of that bill he had built in a margin of over $1.5 billion?
(2) Is it not completely incompetent to be
introducing this bill in late August, when the Treasurer will not be able to
pay teachers, nurses and police on 31 October without it?
2016
573. Mr M. McGOWAN to the
Treasurer:
I refer to the
additional $1.7 billion in the Loan Bill 2016 introduced today, on top of the $8
billion Loan Bill last year.
(1) Why did the Treasurer assure the house in
debate on the last Loan Bill last year that there would not be a need for
another, given that as part of that bill he had built in a margin of over $1.5 billion?
(2) Is it not completely incompetent to be
introducing this bill in late August, when the Treasurer will not be able to
pay teachers, nurses and police on 31 October without it?
AnswerView source ↗
(1)–(2) If the Leader of the
Opposition had been in the house for the second reading speech, he would have
had the questions answered. We brought down the Loan Bill 2015 for $8 billion.
Based on the information enclosed in the budget at the time, that had
sufficient capacity, with a buffer, to get us through to 1 July 2017. As the
Leader of the Opposition might know—I am not sure he has been listening—since
that time we have had an unprecedented drop in our revenue, a $9.3 billion
reduction in our revenue relative to forecasts. We have adjusted some. In the
midyear review, we made additional savings of $1.3 billion and in the budget
released last May, there was an additional $1.3 billion. That is a $2.6 billion
response, but still leaves a gap that is more than the surplus provided for in
the Loan Bill 2015.
Several members interjected.
The SPEAKER : Members!
Dr M.D. NAHAN : I know the opposition is in denial about
the decline in revenue, but it is a reality. What counts —
Several members
interjected.
Dr M.D. NAHAN : When Labor was in government, it was awash
with revenue. Decisions needed to be made.
Several members
interjected.
The SPEAKER : Member for Cannington!
Dr M.D. NAHAN : The quality of management is determined by
what we do in difficult times, and this is the most difficult time this state
has ever faced—at least since the Great Depression. We are steering the
economy and the state through the most difficult time ever, and we have
undertaken unprecedented efficiency standards, which the opposition has
resisted every inch of the way.
Several members
interjected.
The SPEAKER : Members!
Dr M.D. NAHAN : The opposition would also have done this.
We made a decision, given that we made large efficiencies of $2.6 billion, but
the $9.3 billion in the collapse of revenue was significant. We decided that we
were going to maintain our capital spend to maintain job creation. I know
members opposite are against that. They are against every major capital program
we have done. We have continued it. It has created 90 000 jobs. That is a job
plan, not a piece of paper that members opposite flip around. That is a job
plan. We have maintained government services without forced redundancies at
all.
Several members
interjected.
The SPEAKER : Member for West Swan!
Dr M.D. NAHAN : We decided to maintain our capital spend,
drive efficiencies like never before, but also maintain the highest quality
service delivery in the country. I might add that this Loan Bill will not
increase our debt levels additional to or beyond that which is already forecast
in the budget. In other words, the increase in debt associated with this budget
is fully forecast in the budget.
Several members
interjected.
The SPEAKER : I remind members that we do not start counting calls to order from
question time; we started this morning. There are a number of people on three
calls. I do not want anybody to go home early. I want you to be here with me
all the time.
Opposition had been in the house for the second reading speech, he would have
had the questions answered. We brought down the Loan Bill 2015 for $8 billion.
Based on the information enclosed in the budget at the time, that had
sufficient capacity, with a buffer, to get us through to 1 July 2017. As the
Leader of the Opposition might know—I am not sure he has been listening—since
that time we have had an unprecedented drop in our revenue, a $9.3 billion
reduction in our revenue relative to forecasts. We have adjusted some. In the
midyear review, we made additional savings of $1.3 billion and in the budget
released last May, there was an additional $1.3 billion. That is a $2.6 billion
response, but still leaves a gap that is more than the surplus provided for in
the Loan Bill 2015.
Several members interjected.
The SPEAKER : Members!
Dr M.D. NAHAN : I know the opposition is in denial about
the decline in revenue, but it is a reality. What counts —
Several members
interjected.
Dr M.D. NAHAN : When Labor was in government, it was awash
with revenue. Decisions needed to be made.
Several members
interjected.
The SPEAKER : Member for Cannington!
Dr M.D. NAHAN : The quality of management is determined by
what we do in difficult times, and this is the most difficult time this state
has ever faced—at least since the Great Depression. We are steering the
economy and the state through the most difficult time ever, and we have
undertaken unprecedented efficiency standards, which the opposition has
resisted every inch of the way.
Several members
interjected.
The SPEAKER : Members!
Dr M.D. NAHAN : The opposition would also have done this.
We made a decision, given that we made large efficiencies of $2.6 billion, but
the $9.3 billion in the collapse of revenue was significant. We decided that we
were going to maintain our capital spend to maintain job creation. I know
members opposite are against that. They are against every major capital program
we have done. We have continued it. It has created 90 000 jobs. That is a job
plan, not a piece of paper that members opposite flip around. That is a job
plan. We have maintained government services without forced redundancies at
all.
Several members
interjected.
The SPEAKER : Member for West Swan!
Dr M.D. NAHAN : We decided to maintain our capital spend,
drive efficiencies like never before, but also maintain the highest quality
service delivery in the country. I might add that this Loan Bill will not
increase our debt levels additional to or beyond that which is already forecast
in the budget. In other words, the increase in debt associated with this budget
is fully forecast in the budget.
Several members
interjected.
The SPEAKER : I remind members that we do not start counting calls to order from
question time; we started this morning. There are a number of people on three
calls. I do not want anybody to go home early. I want you to be here with me
all the time.
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