❓ Opposition Leader McGowan questions Premier Barnett on the state's budget deficit, citing specific government spending decisions. Premier Barnett defends the deficit, attributing it to external factors like reduced GST revenue and falling iron ore prices, and accuses McGowan of confusing deficit with accumulated debt.
AnsweredQoN 278Legislative Assembly
QuestionView source ↗
STATE
FINANCES — BUDGET DEFICIT
278. Mr M. McGOWAN to the
Premier:
I refer to the Premier's
claim yesterday regarding his impeding large deficits when he said, ''There
is nothing this government could have done to avoid this situation.''
(1) Could the
government not have lost $400 million on the solar rebate scheme?
(2) Could his
government have chosen not to lose more than $300 million on the Muja AB deal?
Dr
M.D. Nahan interjected.
The
SPEAKER : Treasurer, I call to you order for the first time.
Mr
B.S. Wyatt interjected.
The
SPEAKER : Member for Victoria Park, I call you to order for the third time.
Mr
M. McGOWAN : I will continue.
(3) Could his
government not have embarked on the $40 million failed forced amalgamations of
local governments?
(4) Could his
government have not wasted $134 million on operating a hospital with no
patients?
(5) Could his
government have run larger surpluses and therefore had a buffer against what is
happening today?
Mr C.J. Barnett :
Could you read out the first part of your question for me? I missed the first
line.
Mr M. McGOWAN :
Your quote or the first example?
Mr C.J. Barnett : I
just missed it. I couldn't hear the first lines.
Mr M. McGOWAN : I
refer to the Premier's claim yesterday regarding his impeding large
deficits when he said, ''There is nothing this government could have
done to avoid this situation.'' I asked, whether the Premier's
government could not have lost $400 million on the solar rebate scheme, the
Muja AB deal, local government forced amalgamations, Serco running a hospital
with no patients, and driving down surpluses so that the government cannot cope
with what is happening today.
FINANCES — BUDGET DEFICIT
278. Mr M. McGOWAN to the
Premier:
I refer to the Premier's
claim yesterday regarding his impeding large deficits when he said, ''There
is nothing this government could have done to avoid this situation.''
(1) Could the
government not have lost $400 million on the solar rebate scheme?
(2) Could his
government have chosen not to lose more than $300 million on the Muja AB deal?
Dr
M.D. Nahan interjected.
The
SPEAKER : Treasurer, I call to you order for the first time.
Mr
B.S. Wyatt interjected.
The
SPEAKER : Member for Victoria Park, I call you to order for the third time.
Mr
M. McGOWAN : I will continue.
(3) Could his
government not have embarked on the $40 million failed forced amalgamations of
local governments?
(4) Could his
government have not wasted $134 million on operating a hospital with no
patients?
(5) Could his
government have run larger surpluses and therefore had a buffer against what is
happening today?
Mr C.J. Barnett :
Could you read out the first part of your question for me? I missed the first
line.
Mr M. McGOWAN :
Your quote or the first example?
Mr C.J. Barnett : I
just missed it. I couldn't hear the first lines.
Mr M. McGOWAN : I
refer to the Premier's claim yesterday regarding his impeding large
deficits when he said, ''There is nothing this government could have
done to avoid this situation.'' I asked, whether the Premier's
government could not have lost $400 million on the solar rebate scheme, the
Muja AB deal, local government forced amalgamations, Serco running a hospital
with no patients, and driving down surpluses so that the government cannot cope
with what is happening today.
AnswerView source ↗
(1)–(5)
I asked the Leader of the Opposition to repeat the first couple of sentences
because I thought I may have misheard him, but I actually heard him correctly.
He has demonstrated total confusion between an annual deficit and the level of
debt—absolute confusion of the two basic concepts. My comments
yesterday, which the Leader of the Opposition read out accurately, were in
respect of the deficit. The deficit is the annual operating balance—surplus
or deficit. Having lost GST down to 30 cents in the dollar for the coming year,
38 cents now, and having seen iron ore prices fall by 60 per cent, it would not
have mattered what any decisions had been —
Several members interjected.
Mr C.J. BARNETT :
It would not have mattered. Any decisions that could have been taken would have
made no difference to the fact —
Several members interjected.
Mr C.J. BARNETT :
Mr Speaker, I am attempting to answer, but the ignorance on the other side —
The SPEAKER :
Member for Albany, I call you to order for the first time. Member for Warnbro!
Mr C.J. BARNETT : A
confusion between deficit and accumulated debt is what the Leader of the
Opposition does not seem to understand. The point I made yesterday, which I
stand by today, is that no matter what decisions had been taken in previous
years, the state government would be on an operating deficit for this year.
There is no doubt at all. We cannot reduce the GST to a level in dollar terms
of that which was less than we received 15 years ago. We cannot survive a
collapse in iron ore royalties and run a surplus in this year. What the Leader
of the Opposition confuses —
Several members interjected.
The SPEAKER :
Member for Mandurah, I call you to order for the first time. We are now
starting to bog down.
Mr C.J. BARNETT :
The Leader of the Opposition confuses the concept of the annual surplus or
deficit. We have run surpluses every year up to this year; this year we will
have a deficit. That is the operating balance over the 12-month period. The
point I also made yesterday—the different concept, which concerns me—is
the level of accumulated debt. Previous decisions will affect that, but they
will not affect this year's operating surplus or deficit. The Leader of
the Opposition misunderstands the most basic element of the structure of the
accounts of the state.
I asked the Leader of the Opposition to repeat the first couple of sentences
because I thought I may have misheard him, but I actually heard him correctly.
He has demonstrated total confusion between an annual deficit and the level of
debt—absolute confusion of the two basic concepts. My comments
yesterday, which the Leader of the Opposition read out accurately, were in
respect of the deficit. The deficit is the annual operating balance—surplus
or deficit. Having lost GST down to 30 cents in the dollar for the coming year,
38 cents now, and having seen iron ore prices fall by 60 per cent, it would not
have mattered what any decisions had been —
Several members interjected.
Mr C.J. BARNETT :
It would not have mattered. Any decisions that could have been taken would have
made no difference to the fact —
Several members interjected.
Mr C.J. BARNETT :
Mr Speaker, I am attempting to answer, but the ignorance on the other side —
The SPEAKER :
Member for Albany, I call you to order for the first time. Member for Warnbro!
Mr C.J. BARNETT : A
confusion between deficit and accumulated debt is what the Leader of the
Opposition does not seem to understand. The point I made yesterday, which I
stand by today, is that no matter what decisions had been taken in previous
years, the state government would be on an operating deficit for this year.
There is no doubt at all. We cannot reduce the GST to a level in dollar terms
of that which was less than we received 15 years ago. We cannot survive a
collapse in iron ore royalties and run a surplus in this year. What the Leader
of the Opposition confuses —
Several members interjected.
The SPEAKER :
Member for Mandurah, I call you to order for the first time. We are now
starting to bog down.
Mr C.J. BARNETT :
The Leader of the Opposition confuses the concept of the annual surplus or
deficit. We have run surpluses every year up to this year; this year we will
have a deficit. That is the operating balance over the 12-month period. The
point I also made yesterday—the different concept, which concerns me—is
the level of accumulated debt. Previous decisions will affect that, but they
will not affect this year's operating surplus or deficit. The Leader of
the Opposition misunderstands the most basic element of the structure of the
accounts of the state.
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