Mrs Roberts asks the Treasurer when net debt is expected to peak and its dollar figure. Mr Porter avoids giving a specific figure, linking debt reduction to WA receiving a fairer share of GST revenue and outlining two scenarios based on different GST revenue levels.

AnsweredQoN 354Legislative Assembly
Asked
15 June 2011
Portfolio
Treasurer

QuestionView source ↗

STATE BUDGET 2011–12 — NET DEBT
I have a supplementary question. I again ask the Treasurer when he expects net debt to peak and what that dollar figure will be. Mr C.C. PORTER

AnswerView source ↗

This was one of the reasons that the government was careful in the budget to show precisely the two scenarios: one with goods and services tax revenue falling to 0.33 with relativity, and the other with GST coming in at 0.75, which is what we reasonably and rationally expect to be the result of the review. The fact is that debt growth slows markedly, even with the 0.33 figure in the final out year, and it peaks and starts to decline with the 0.75 figure. That is the reason we gave those alternative scenarios. Mr E.S. Ripper : It won’t go beyond that; is that what you are saying? Mr C.C. PORTER : I am answering the question! We put those alternative scenarios in the budget because we want to demonstrate that our capacity to build infrastructure in this state and to keep the economy growing relies on getting our GST back. The answer to the member’s question is that debt will peak and decline once we get a fair share of our GST returned. If that does not eventuate, the point the government has been making is that we will have to fundamentally rethink the way that we are investing in infrastructure.
Mr C.C. PORTER replied: This was one of the reasons that the government was careful in the budget to show precisely the two scenarios: one with goods and services tax revenue falling to 0.33 with relativity, and the other with GST coming in at 0.75, which is what we reasonably and rationally expect to be the result of the review. The fact is that debt growth slows markedly, even with the 0.33 figure in the final out year, and it peaks and starts to decline with the 0.75 figure. That is the reason we gave those alternative scenarios. Mr E.S. Ripper : It won’t go beyond that; is that what you are saying? Mr C.C. PORTER : I am answering the question! We put those alternative scenarios in the budget because we want to demonstrate that our capacity to build infrastructure in this state and to keep the economy growing relies on getting our GST back. The answer to the member’s question is that debt will peak and decline once we get a fair share of our GST returned. If that does not eventuate, the point the government has been making is that we will have to fundamentally rethink the way that we are investing in infrastructure.
This was one of the reasons that the government was careful in the budget to show precisely the two scenarios: one with goods and services tax revenue falling to 0.33 with relativity, and the other with GST coming in at 0.75, which is what we reasonably and rationally expect to be the result of the review. The fact is that debt growth slows markedly, even with the 0.33 figure in the final out year, and it peaks and starts to decline with the 0.75 figure. That is the reason we gave those alternative scenarios. Mr E.S. Ripper : It won’t go beyond that; is that what you are saying? Mr C.C. PORTER : I am answering the question! We put those alternative scenarios in the budget because we want to demonstrate that our capacity to build infrastructure in this state and to keep the economy growing relies on getting our GST back. The answer to the member’s question is that debt will peak and decline once we get a fair share of our GST returned. If that does not eventuate, the point the government has been making is that we will have to fundamentally rethink the way that we are investing in infrastructure.
Mr E.S. Ripper : It won’t go beyond that; is that what you are saying? Mr C.C. PORTER : I am answering the question! We put those alternative scenarios in the budget because we want to demonstrate that our capacity to build infrastructure in this state and to keep the economy growing relies on getting our GST back. The answer to the member’s question is that debt will peak and decline once we get a fair share of our GST returned. If that does not eventuate, the point the government has been making is that we will have to fundamentally rethink the way that we are investing in infrastructure.
Mr C.C. PORTER : I am answering the question! We put those alternative scenarios in the budget because we want to demonstrate that our capacity to build infrastructure in this state and to keep the economy growing relies on getting our GST back. The answer to the member’s question is that debt will peak and decline once we get a fair share of our GST returned. If that does not eventuate, the point the government has been making is that we will have to fundamentally rethink the way that we are investing in infrastructure.

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