❓ The Treasurer outlines the impact of a rising Australian dollar and falling iron ore prices on the state budget, highlighting a potential $2 billion revenue loss and pressure on the budget surplus, while also noting positive economic developments.
AnsweredQoN 869Legislative Assembly
QuestionView source ↗
STATE BUDGET — AUSTRALIAN DOLLAR, EXCHANGE RATE
My question is to the Treasurer, who was very recently referred to, and will now continue be to be referred to, as the world’s greatest Treasurer! The exchange rate has been at over 90c for the past month. Can the Treasurer please outline to the house the impact that will have on the state’s budget if this continues as we seek to maintain a budget surplus? Mr T.R. BUSWELL
My question is to the Treasurer, who was very recently referred to, and will now continue be to be referred to, as the world’s greatest Treasurer! The exchange rate has been at over 90c for the past month. Can the Treasurer please outline to the house the impact that will have on the state’s budget if this continues as we seek to maintain a budget surplus? Mr T.R. BUSWELL
AnswerView source ↗
I thank the member for the question. If the exchange rate stays where it is and continues to grow, I would hate to see the impact it will have on my hairline; my hair has already turned grey and is heading to white! The exchange rate is one of the volatile factors that we must deal with when framing and managing the state’s budget. Despite the Premier’s high international standing, unfortunately it is a factor that is beyond the capacity of the state government to control, and when the rate moves, it has a significant impact on our fiscal capacity. To refresh the memory of members, when the budget was handed down in May, the assumed exchange rate based on the six-week floating average was 68.5c. Based on that, we forecast a budget surplus of $409 million. This morning, as I understand it—not that I trade on the exchange markets—the exchange rate went to 93c. There are no indications from the market that it will be heading south any time soon. That is good news for people who want to travel overseas. I can see the member for Perth becoming visible—I will rephrase that—shifting anxiously in his seat at the prospect, but it is bad news for the state’s finances. Members may be interested to know that we did some numbers on an assumed rate of 85.5c. At 85.5c, that movement in the exchange rate has cost us $1.5 billion. That is $1.5 billion less income in our forward estimates over the next four years. If it sits at or near that figure for some time, it will easily go to $2 billion. As we look to the midyear review and to scoping next year’s budget, the revenue will be at least $2 billion less because of the exchange rates. On top that, there has been a downward movement in the price of iron ore. At the time of the budget, we anticipated a 30 per cent reduction in the contract price of iron ore, and it has been reduced by 37 per cent. That puts a $745 million hole in the finances. The result is that the surplus is under pressure. The interesting thing is that at the same time some very positive news about the broader economic performance of Western Australia is beginning to emerge. We are seeing significant investment projects getting off the ground and a return to positive sentiment. We have, I think, a very positive potential outlook for the Western Australian economy. I do not believe that this is a finger-crossing exercise, member for Warnbro. We are seeing a return to positive territory of the state’s finances. However, we must avoid something that I call “Gorgonitis”. Gorgonitis means that we have to avoid assuming that because there are some good things happening in government that we can sit back and assume that more good things will happen. From the government’s point of view, we have to redouble our efforts to get off the ground the major projects to which the Premier often refers. We have to redouble our efforts to improve the approvals processes. The Premier has to work harder—lift yourself, I say; if I dare do so in this place! We have to do it. Mr E.S. Ripper : This is a speech for cabinet, not Parliament. Mr T.R. BUSWELL : I am simply updating the Leader of the Opposition on the position. It is a difficult situation because with improved economic conditions comes increased demand for economic infrastructure and for social infrastructure at a time when our fiscal capacity is reducing. That is why the state government will continue to focus on reining in the rate of growth of expenses. At the moment the rate is too high. The underlying rate is 9.9 per cent. Mr E.S. Ripper : The member for Victoria Park will be happy to take over. Mr T.R. BUSWELL : The problem with the member for Victoria Park—I wish him well regarding the reason for his absence this week—and the problem for the opposition is that they are a bit like two heads of the same beast. Every second day the opposition is a bit like a bad Britney Spears lip-syncing exhibition! Several members interjected. The SPEAKER : Members! Mr T.R. BUSWELL : Every day the opposition talks about not spending enough money and yet it criticises us for spending money. So what do we do? Let me just quickly tell the house three things. Mr E.S. Ripper interjected. The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
Mr T.R. BUSWELL replied: I thank the member for the question. If the exchange rate stays where it is and continues to grow, I would hate to see the impact it will have on my hairline; my hair has already turned grey and is heading to white! The exchange rate is one of the volatile factors that we must deal with when framing and managing the state’s budget. Despite the Premier’s high international standing, unfortunately it is a factor that is beyond the capacity of the state government to control, and when the rate moves, it has a significant impact on our fiscal capacity. To refresh the memory of members, when the budget was handed down in May, the assumed exchange rate based on the six-week floating average was 68.5c. Based on that, we forecast a budget surplus of $409 million. This morning, as I understand it—not that I trade on the exchange markets—the exchange rate went to 93c. There are no indications from the market that it will be heading south any time soon. That is good news for people who want to travel overseas. I can see the member for Perth becoming visible—I will rephrase that—shifting anxiously in his seat at the prospect, but it is bad news for the state’s finances. Members may be interested to know that we did some numbers on an assumed rate of 85.5c. At 85.5c, that movement in the exchange rate has cost us $1.5 billion. That is $1.5 billion less income in our forward estimates over the next four years. If it sits at or near that figure for some time, it will easily go to $2 billion. As we look to the midyear review and to scoping next year’s budget, the revenue will be at least $2 billion less because of the exchange rates. On top that, there has been a downward movement in the price of iron ore. At the time of the budget, we anticipated a 30 per cent reduction in the contract price of iron ore, and it has been reduced by 37 per cent. That puts a $745 million hole in the finances. The result is that the surplus is under pressure. The interesting thing is that at the same time some very positive news about the broader economic performance of Western Australia is beginning to emerge. We are seeing significant investment projects getting off the ground and a return to positive sentiment. We have, I think, a very positive potential outlook for the Western Australian economy. I do not believe that this is a finger-crossing exercise, member for Warnbro. We are seeing a return to positive territory of the state’s finances. However, we must avoid something that I call “Gorgonitis”. Gorgonitis means that we have to avoid assuming that because there are some good things happening in government that we can sit back and assume that more good things will happen. From the government’s point of view, we have to redouble our efforts to get off the ground the major projects to which the Premier often refers. We have to redouble our efforts to improve the approvals processes. The Premier has to work harder—lift yourself, I say; if I dare do so in this place! We have to do it. Mr E.S. Ripper : This is a speech for cabinet, not Parliament. Mr T.R. BUSWELL : I am simply updating the Leader of the Opposition on the position. It is a difficult situation because with improved economic conditions comes increased demand for economic infrastructure and for social infrastructure at a time when our fiscal capacity is reducing. That is why the state government will continue to focus on reining in the rate of growth of expenses. At the moment the rate is too high. The underlying rate is 9.9 per cent. Mr E.S. Ripper : The member for Victoria Park will be happy to take over. Mr T.R. BUSWELL : The problem with the member for Victoria Park—I wish him well regarding the reason for his absence this week—and the problem for the opposition is that they are a bit like two heads of the same beast. Every second day the opposition is a bit like a bad Britney Spears lip-syncing exhibition! Several members interjected. The SPEAKER : Members! Mr T.R. BUSWELL : Every day the opposition talks about not spending enough money and yet it criticises us for spending money. So what do we do? Let me just quickly tell the house three things. Mr E.S. Ripper interjected. The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
I thank the member for the question. If the exchange rate stays where it is and continues to grow, I would hate to see the impact it will have on my hairline; my hair has already turned grey and is heading to white! The exchange rate is one of the volatile factors that we must deal with when framing and managing the state’s budget. Despite the Premier’s high international standing, unfortunately it is a factor that is beyond the capacity of the state government to control, and when the rate moves, it has a significant impact on our fiscal capacity. To refresh the memory of members, when the budget was handed down in May, the assumed exchange rate based on the six-week floating average was 68.5c. Based on that, we forecast a budget surplus of $409 million. This morning, as I understand it—not that I trade on the exchange markets—the exchange rate went to 93c. There are no indications from the market that it will be heading south any time soon. That is good news for people who want to travel overseas. I can see the member for Perth becoming visible—I will rephrase that—shifting anxiously in his seat at the prospect, but it is bad news for the state’s finances. Members may be interested to know that we did some numbers on an assumed rate of 85.5c. At 85.5c, that movement in the exchange rate has cost us $1.5 billion. That is $1.5 billion less income in our forward estimates over the next four years. If it sits at or near that figure for some time, it will easily go to $2 billion. As we look to the midyear review and to scoping next year’s budget, the revenue will be at least $2 billion less because of the exchange rates. On top that, there has been a downward movement in the price of iron ore. At the time of the budget, we anticipated a 30 per cent reduction in the contract price of iron ore, and it has been reduced by 37 per cent. That puts a $745 million hole in the finances. The result is that the surplus is under pressure. The interesting thing is that at the same time some very positive news about the broader economic performance of Western Australia is beginning to emerge. We are seeing significant investment projects getting off the ground and a return to positive sentiment. We have, I think, a very positive potential outlook for the Western Australian economy. I do not believe that this is a finger-crossing exercise, member for Warnbro. We are seeing a return to positive territory of the state’s finances. However, we must avoid something that I call “Gorgonitis”. Gorgonitis means that we have to avoid assuming that because there are some good things happening in government that we can sit back and assume that more good things will happen. From the government’s point of view, we have to redouble our efforts to get off the ground the major projects to which the Premier often refers. We have to redouble our efforts to improve the approvals processes. The Premier has to work harder—lift yourself, I say; if I dare do so in this place! We have to do it. Mr E.S. Ripper : This is a speech for cabinet, not Parliament. Mr T.R. BUSWELL : I am simply updating the Leader of the Opposition on the position. It is a difficult situation because with improved economic conditions comes increased demand for economic infrastructure and for social infrastructure at a time when our fiscal capacity is reducing. That is why the state government will continue to focus on reining in the rate of growth of expenses. At the moment the rate is too high. The underlying rate is 9.9 per cent. Mr E.S. Ripper : The member for Victoria Park will be happy to take over. Mr T.R. BUSWELL : The problem with the member for Victoria Park—I wish him well regarding the reason for his absence this week—and the problem for the opposition is that they are a bit like two heads of the same beast. Every second day the opposition is a bit like a bad Britney Spears lip-syncing exhibition! Several members interjected. The SPEAKER : Members! Mr T.R. BUSWELL : Every day the opposition talks about not spending enough money and yet it criticises us for spending money. So what do we do? Let me just quickly tell the house three things. Mr E.S. Ripper interjected. The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
The exchange rate is one of the volatile factors that we must deal with when framing and managing the state’s budget. Despite the Premier’s high international standing, unfortunately it is a factor that is beyond the capacity of the state government to control, and when the rate moves, it has a significant impact on our fiscal capacity. To refresh the memory of members, when the budget was handed down in May, the assumed exchange rate based on the six-week floating average was 68.5c. Based on that, we forecast a budget surplus of $409 million. This morning, as I understand it—not that I trade on the exchange markets—the exchange rate went to 93c. There are no indications from the market that it will be heading south any time soon. That is good news for people who want to travel overseas. I can see the member for Perth becoming visible—I will rephrase that—shifting anxiously in his seat at the prospect, but it is bad news for the state’s finances. Members may be interested to know that we did some numbers on an assumed rate of 85.5c. At 85.5c, that movement in the exchange rate has cost us $1.5 billion. That is $1.5 billion less income in our forward estimates over the next four years. If it sits at or near that figure for some time, it will easily go to $2 billion. As we look to the midyear review and to scoping next year’s budget, the revenue will be at least $2 billion less because of the exchange rates. On top that, there has been a downward movement in the price of iron ore. At the time of the budget, we anticipated a 30 per cent reduction in the contract price of iron ore, and it has been reduced by 37 per cent. That puts a $745 million hole in the finances. The result is that the surplus is under pressure. The interesting thing is that at the same time some very positive news about the broader economic performance of Western Australia is beginning to emerge. We are seeing significant investment projects getting off the ground and a return to positive sentiment. We have, I think, a very positive potential outlook for the Western Australian economy. I do not believe that this is a finger-crossing exercise, member for Warnbro. We are seeing a return to positive territory of the state’s finances. However, we must avoid something that I call “Gorgonitis”. Gorgonitis means that we have to avoid assuming that because there are some good things happening in government that we can sit back and assume that more good things will happen. From the government’s point of view, we have to redouble our efforts to get off the ground the major projects to which the Premier often refers. We have to redouble our efforts to improve the approvals processes. The Premier has to work harder—lift yourself, I say; if I dare do so in this place! We have to do it. Mr E.S. Ripper : This is a speech for cabinet, not Parliament. Mr T.R. BUSWELL : I am simply updating the Leader of the Opposition on the position. It is a difficult situation because with improved economic conditions comes increased demand for economic infrastructure and for social infrastructure at a time when our fiscal capacity is reducing. That is why the state government will continue to focus on reining in the rate of growth of expenses. At the moment the rate is too high. The underlying rate is 9.9 per cent. Mr E.S. Ripper : The member for Victoria Park will be happy to take over. Mr T.R. BUSWELL : The problem with the member for Victoria Park—I wish him well regarding the reason for his absence this week—and the problem for the opposition is that they are a bit like two heads of the same beast. Every second day the opposition is a bit like a bad Britney Spears lip-syncing exhibition! Several members interjected. The SPEAKER : Members! Mr T.R. BUSWELL : Every day the opposition talks about not spending enough money and yet it criticises us for spending money. So what do we do? Let me just quickly tell the house three things. Mr E.S. Ripper interjected. The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
The interesting thing is that at the same time some very positive news about the broader economic performance of Western Australia is beginning to emerge. We are seeing significant investment projects getting off the ground and a return to positive sentiment. We have, I think, a very positive potential outlook for the Western Australian economy. I do not believe that this is a finger-crossing exercise, member for Warnbro. We are seeing a return to positive territory of the state’s finances. However, we must avoid something that I call “Gorgonitis”. Gorgonitis means that we have to avoid assuming that because there are some good things happening in government that we can sit back and assume that more good things will happen. From the government’s point of view, we have to redouble our efforts to get off the ground the major projects to which the Premier often refers. We have to redouble our efforts to improve the approvals processes. The Premier has to work harder—lift yourself, I say; if I dare do so in this place! We have to do it. Mr E.S. Ripper : This is a speech for cabinet, not Parliament. Mr T.R. BUSWELL : I am simply updating the Leader of the Opposition on the position. It is a difficult situation because with improved economic conditions comes increased demand for economic infrastructure and for social infrastructure at a time when our fiscal capacity is reducing. That is why the state government will continue to focus on reining in the rate of growth of expenses. At the moment the rate is too high. The underlying rate is 9.9 per cent. Mr E.S. Ripper : The member for Victoria Park will be happy to take over. Mr T.R. BUSWELL : The problem with the member for Victoria Park—I wish him well regarding the reason for his absence this week—and the problem for the opposition is that they are a bit like two heads of the same beast. Every second day the opposition is a bit like a bad Britney Spears lip-syncing exhibition! Several members interjected. The SPEAKER : Members! Mr T.R. BUSWELL : Every day the opposition talks about not spending enough money and yet it criticises us for spending money. So what do we do? Let me just quickly tell the house three things. Mr E.S. Ripper interjected. The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
Mr E.S. Ripper : This is a speech for cabinet, not Parliament. Mr T.R. BUSWELL : I am simply updating the Leader of the Opposition on the position. It is a difficult situation because with improved economic conditions comes increased demand for economic infrastructure and for social infrastructure at a time when our fiscal capacity is reducing. That is why the state government will continue to focus on reining in the rate of growth of expenses. At the moment the rate is too high. The underlying rate is 9.9 per cent. Mr E.S. Ripper : The member for Victoria Park will be happy to take over. Mr T.R. BUSWELL : The problem with the member for Victoria Park—I wish him well regarding the reason for his absence this week—and the problem for the opposition is that they are a bit like two heads of the same beast. Every second day the opposition is a bit like a bad Britney Spears lip-syncing exhibition! Several members interjected. The SPEAKER : Members! Mr T.R. BUSWELL : Every day the opposition talks about not spending enough money and yet it criticises us for spending money. So what do we do? Let me just quickly tell the house three things. Mr E.S. Ripper interjected. The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
Mr T.R. BUSWELL : I am simply updating the Leader of the Opposition on the position. It is a difficult situation because with improved economic conditions comes increased demand for economic infrastructure and for social infrastructure at a time when our fiscal capacity is reducing. That is why the state government will continue to focus on reining in the rate of growth of expenses. At the moment the rate is too high. The underlying rate is 9.9 per cent. Mr E.S. Ripper : The member for Victoria Park will be happy to take over. Mr T.R. BUSWELL : The problem with the member for Victoria Park—I wish him well regarding the reason for his absence this week—and the problem for the opposition is that they are a bit like two heads of the same beast. Every second day the opposition is a bit like a bad Britney Spears lip-syncing exhibition! Several members interjected. The SPEAKER : Members! Mr T.R. BUSWELL : Every day the opposition talks about not spending enough money and yet it criticises us for spending money. So what do we do? Let me just quickly tell the house three things. Mr E.S. Ripper interjected. The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
Mr E.S. Ripper : The member for Victoria Park will be happy to take over. Mr T.R. BUSWELL : The problem with the member for Victoria Park—I wish him well regarding the reason for his absence this week—and the problem for the opposition is that they are a bit like two heads of the same beast. Every second day the opposition is a bit like a bad Britney Spears lip-syncing exhibition! Several members interjected. The SPEAKER : Members! Mr T.R. BUSWELL : Every day the opposition talks about not spending enough money and yet it criticises us for spending money. So what do we do? Let me just quickly tell the house three things. Mr E.S. Ripper interjected. The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
Mr T.R. BUSWELL : The problem with the member for Victoria Park—I wish him well regarding the reason for his absence this week—and the problem for the opposition is that they are a bit like two heads of the same beast. Every second day the opposition is a bit like a bad Britney Spears lip-syncing exhibition! Several members interjected. The SPEAKER : Members! Mr T.R. BUSWELL : Every day the opposition talks about not spending enough money and yet it criticises us for spending money. So what do we do? Let me just quickly tell the house three things. Mr E.S. Ripper interjected. The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
Several members interjected. The SPEAKER : Members! Mr T.R. BUSWELL : Every day the opposition talks about not spending enough money and yet it criticises us for spending money. So what do we do? Let me just quickly tell the house three things. Mr E.S. Ripper interjected. The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
The SPEAKER : Members! Mr T.R. BUSWELL : Every day the opposition talks about not spending enough money and yet it criticises us for spending money. So what do we do? Let me just quickly tell the house three things. Mr E.S. Ripper interjected. The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
Mr T.R. BUSWELL : Every day the opposition talks about not spending enough money and yet it criticises us for spending money. So what do we do? Let me just quickly tell the house three things. Mr E.S. Ripper interjected. The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
Mr E.S. Ripper interjected. The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
[Applause.]
Mr T.R. BUSWELL replied: I thank the member for the question. If the exchange rate stays where it is and continues to grow, I would hate to see the impact it will have on my hairline; my hair has already turned grey and is heading to white! The exchange rate is one of the volatile factors that we must deal with when framing and managing the state’s budget. Despite the Premier’s high international standing, unfortunately it is a factor that is beyond the capacity of the state government to control, and when the rate moves, it has a significant impact on our fiscal capacity. To refresh the memory of members, when the budget was handed down in May, the assumed exchange rate based on the six-week floating average was 68.5c. Based on that, we forecast a budget surplus of $409 million. This morning, as I understand it—not that I trade on the exchange markets—the exchange rate went to 93c. There are no indications from the market that it will be heading south any time soon. That is good news for people who want to travel overseas. I can see the member for Perth becoming visible—I will rephrase that—shifting anxiously in his seat at the prospect, but it is bad news for the state’s finances. Members may be interested to know that we did some numbers on an assumed rate of 85.5c. At 85.5c, that movement in the exchange rate has cost us $1.5 billion. That is $1.5 billion less income in our forward estimates over the next four years. If it sits at or near that figure for some time, it will easily go to $2 billion. As we look to the midyear review and to scoping next year’s budget, the revenue will be at least $2 billion less because of the exchange rates. On top that, there has been a downward movement in the price of iron ore. At the time of the budget, we anticipated a 30 per cent reduction in the contract price of iron ore, and it has been reduced by 37 per cent. That puts a $745 million hole in the finances. The result is that the surplus is under pressure. The interesting thing is that at the same time some very positive news about the broader economic performance of Western Australia is beginning to emerge. We are seeing significant investment projects getting off the ground and a return to positive sentiment. We have, I think, a very positive potential outlook for the Western Australian economy. I do not believe that this is a finger-crossing exercise, member for Warnbro. We are seeing a return to positive territory of the state’s finances. However, we must avoid something that I call “Gorgonitis”. Gorgonitis means that we have to avoid assuming that because there are some good things happening in government that we can sit back and assume that more good things will happen. From the government’s point of view, we have to redouble our efforts to get off the ground the major projects to which the Premier often refers. We have to redouble our efforts to improve the approvals processes. The Premier has to work harder—lift yourself, I say; if I dare do so in this place! We have to do it. Mr E.S. Ripper : This is a speech for cabinet, not Parliament. Mr T.R. BUSWELL : I am simply updating the Leader of the Opposition on the position. It is a difficult situation because with improved economic conditions comes increased demand for economic infrastructure and for social infrastructure at a time when our fiscal capacity is reducing. That is why the state government will continue to focus on reining in the rate of growth of expenses. At the moment the rate is too high. The underlying rate is 9.9 per cent. Mr E.S. Ripper : The member for Victoria Park will be happy to take over. Mr T.R. BUSWELL : The problem with the member for Victoria Park—I wish him well regarding the reason for his absence this week—and the problem for the opposition is that they are a bit like two heads of the same beast. Every second day the opposition is a bit like a bad Britney Spears lip-syncing exhibition! Several members interjected. The SPEAKER : Members! Mr T.R. BUSWELL : Every day the opposition talks about not spending enough money and yet it criticises us for spending money. So what do we do? Let me just quickly tell the house three things. Mr E.S. Ripper interjected. The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
I thank the member for the question. If the exchange rate stays where it is and continues to grow, I would hate to see the impact it will have on my hairline; my hair has already turned grey and is heading to white! The exchange rate is one of the volatile factors that we must deal with when framing and managing the state’s budget. Despite the Premier’s high international standing, unfortunately it is a factor that is beyond the capacity of the state government to control, and when the rate moves, it has a significant impact on our fiscal capacity. To refresh the memory of members, when the budget was handed down in May, the assumed exchange rate based on the six-week floating average was 68.5c. Based on that, we forecast a budget surplus of $409 million. This morning, as I understand it—not that I trade on the exchange markets—the exchange rate went to 93c. There are no indications from the market that it will be heading south any time soon. That is good news for people who want to travel overseas. I can see the member for Perth becoming visible—I will rephrase that—shifting anxiously in his seat at the prospect, but it is bad news for the state’s finances. Members may be interested to know that we did some numbers on an assumed rate of 85.5c. At 85.5c, that movement in the exchange rate has cost us $1.5 billion. That is $1.5 billion less income in our forward estimates over the next four years. If it sits at or near that figure for some time, it will easily go to $2 billion. As we look to the midyear review and to scoping next year’s budget, the revenue will be at least $2 billion less because of the exchange rates. On top that, there has been a downward movement in the price of iron ore. At the time of the budget, we anticipated a 30 per cent reduction in the contract price of iron ore, and it has been reduced by 37 per cent. That puts a $745 million hole in the finances. The result is that the surplus is under pressure. The interesting thing is that at the same time some very positive news about the broader economic performance of Western Australia is beginning to emerge. We are seeing significant investment projects getting off the ground and a return to positive sentiment. We have, I think, a very positive potential outlook for the Western Australian economy. I do not believe that this is a finger-crossing exercise, member for Warnbro. We are seeing a return to positive territory of the state’s finances. However, we must avoid something that I call “Gorgonitis”. Gorgonitis means that we have to avoid assuming that because there are some good things happening in government that we can sit back and assume that more good things will happen. From the government’s point of view, we have to redouble our efforts to get off the ground the major projects to which the Premier often refers. We have to redouble our efforts to improve the approvals processes. The Premier has to work harder—lift yourself, I say; if I dare do so in this place! We have to do it. Mr E.S. Ripper : This is a speech for cabinet, not Parliament. Mr T.R. BUSWELL : I am simply updating the Leader of the Opposition on the position. It is a difficult situation because with improved economic conditions comes increased demand for economic infrastructure and for social infrastructure at a time when our fiscal capacity is reducing. That is why the state government will continue to focus on reining in the rate of growth of expenses. At the moment the rate is too high. The underlying rate is 9.9 per cent. Mr E.S. Ripper : The member for Victoria Park will be happy to take over. Mr T.R. BUSWELL : The problem with the member for Victoria Park—I wish him well regarding the reason for his absence this week—and the problem for the opposition is that they are a bit like two heads of the same beast. Every second day the opposition is a bit like a bad Britney Spears lip-syncing exhibition! Several members interjected. The SPEAKER : Members! Mr T.R. BUSWELL : Every day the opposition talks about not spending enough money and yet it criticises us for spending money. So what do we do? Let me just quickly tell the house three things. Mr E.S. Ripper interjected. The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
The exchange rate is one of the volatile factors that we must deal with when framing and managing the state’s budget. Despite the Premier’s high international standing, unfortunately it is a factor that is beyond the capacity of the state government to control, and when the rate moves, it has a significant impact on our fiscal capacity. To refresh the memory of members, when the budget was handed down in May, the assumed exchange rate based on the six-week floating average was 68.5c. Based on that, we forecast a budget surplus of $409 million. This morning, as I understand it—not that I trade on the exchange markets—the exchange rate went to 93c. There are no indications from the market that it will be heading south any time soon. That is good news for people who want to travel overseas. I can see the member for Perth becoming visible—I will rephrase that—shifting anxiously in his seat at the prospect, but it is bad news for the state’s finances. Members may be interested to know that we did some numbers on an assumed rate of 85.5c. At 85.5c, that movement in the exchange rate has cost us $1.5 billion. That is $1.5 billion less income in our forward estimates over the next four years. If it sits at or near that figure for some time, it will easily go to $2 billion. As we look to the midyear review and to scoping next year’s budget, the revenue will be at least $2 billion less because of the exchange rates. On top that, there has been a downward movement in the price of iron ore. At the time of the budget, we anticipated a 30 per cent reduction in the contract price of iron ore, and it has been reduced by 37 per cent. That puts a $745 million hole in the finances. The result is that the surplus is under pressure. The interesting thing is that at the same time some very positive news about the broader economic performance of Western Australia is beginning to emerge. We are seeing significant investment projects getting off the ground and a return to positive sentiment. We have, I think, a very positive potential outlook for the Western Australian economy. I do not believe that this is a finger-crossing exercise, member for Warnbro. We are seeing a return to positive territory of the state’s finances. However, we must avoid something that I call “Gorgonitis”. Gorgonitis means that we have to avoid assuming that because there are some good things happening in government that we can sit back and assume that more good things will happen. From the government’s point of view, we have to redouble our efforts to get off the ground the major projects to which the Premier often refers. We have to redouble our efforts to improve the approvals processes. The Premier has to work harder—lift yourself, I say; if I dare do so in this place! We have to do it. Mr E.S. Ripper : This is a speech for cabinet, not Parliament. Mr T.R. BUSWELL : I am simply updating the Leader of the Opposition on the position. It is a difficult situation because with improved economic conditions comes increased demand for economic infrastructure and for social infrastructure at a time when our fiscal capacity is reducing. That is why the state government will continue to focus on reining in the rate of growth of expenses. At the moment the rate is too high. The underlying rate is 9.9 per cent. Mr E.S. Ripper : The member for Victoria Park will be happy to take over. Mr T.R. BUSWELL : The problem with the member for Victoria Park—I wish him well regarding the reason for his absence this week—and the problem for the opposition is that they are a bit like two heads of the same beast. Every second day the opposition is a bit like a bad Britney Spears lip-syncing exhibition! Several members interjected. The SPEAKER : Members! Mr T.R. BUSWELL : Every day the opposition talks about not spending enough money and yet it criticises us for spending money. So what do we do? Let me just quickly tell the house three things. Mr E.S. Ripper interjected. The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
The interesting thing is that at the same time some very positive news about the broader economic performance of Western Australia is beginning to emerge. We are seeing significant investment projects getting off the ground and a return to positive sentiment. We have, I think, a very positive potential outlook for the Western Australian economy. I do not believe that this is a finger-crossing exercise, member for Warnbro. We are seeing a return to positive territory of the state’s finances. However, we must avoid something that I call “Gorgonitis”. Gorgonitis means that we have to avoid assuming that because there are some good things happening in government that we can sit back and assume that more good things will happen. From the government’s point of view, we have to redouble our efforts to get off the ground the major projects to which the Premier often refers. We have to redouble our efforts to improve the approvals processes. The Premier has to work harder—lift yourself, I say; if I dare do so in this place! We have to do it. Mr E.S. Ripper : This is a speech for cabinet, not Parliament. Mr T.R. BUSWELL : I am simply updating the Leader of the Opposition on the position. It is a difficult situation because with improved economic conditions comes increased demand for economic infrastructure and for social infrastructure at a time when our fiscal capacity is reducing. That is why the state government will continue to focus on reining in the rate of growth of expenses. At the moment the rate is too high. The underlying rate is 9.9 per cent. Mr E.S. Ripper : The member for Victoria Park will be happy to take over. Mr T.R. BUSWELL : The problem with the member for Victoria Park—I wish him well regarding the reason for his absence this week—and the problem for the opposition is that they are a bit like two heads of the same beast. Every second day the opposition is a bit like a bad Britney Spears lip-syncing exhibition! Several members interjected. The SPEAKER : Members! Mr T.R. BUSWELL : Every day the opposition talks about not spending enough money and yet it criticises us for spending money. So what do we do? Let me just quickly tell the house three things. Mr E.S. Ripper interjected. The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
Mr E.S. Ripper : This is a speech for cabinet, not Parliament. Mr T.R. BUSWELL : I am simply updating the Leader of the Opposition on the position. It is a difficult situation because with improved economic conditions comes increased demand for economic infrastructure and for social infrastructure at a time when our fiscal capacity is reducing. That is why the state government will continue to focus on reining in the rate of growth of expenses. At the moment the rate is too high. The underlying rate is 9.9 per cent. Mr E.S. Ripper : The member for Victoria Park will be happy to take over. Mr T.R. BUSWELL : The problem with the member for Victoria Park—I wish him well regarding the reason for his absence this week—and the problem for the opposition is that they are a bit like two heads of the same beast. Every second day the opposition is a bit like a bad Britney Spears lip-syncing exhibition! Several members interjected. The SPEAKER : Members! Mr T.R. BUSWELL : Every day the opposition talks about not spending enough money and yet it criticises us for spending money. So what do we do? Let me just quickly tell the house three things. Mr E.S. Ripper interjected. The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
Mr T.R. BUSWELL : I am simply updating the Leader of the Opposition on the position. It is a difficult situation because with improved economic conditions comes increased demand for economic infrastructure and for social infrastructure at a time when our fiscal capacity is reducing. That is why the state government will continue to focus on reining in the rate of growth of expenses. At the moment the rate is too high. The underlying rate is 9.9 per cent. Mr E.S. Ripper : The member for Victoria Park will be happy to take over. Mr T.R. BUSWELL : The problem with the member for Victoria Park—I wish him well regarding the reason for his absence this week—and the problem for the opposition is that they are a bit like two heads of the same beast. Every second day the opposition is a bit like a bad Britney Spears lip-syncing exhibition! Several members interjected. The SPEAKER : Members! Mr T.R. BUSWELL : Every day the opposition talks about not spending enough money and yet it criticises us for spending money. So what do we do? Let me just quickly tell the house three things. Mr E.S. Ripper interjected. The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
Mr E.S. Ripper : The member for Victoria Park will be happy to take over. Mr T.R. BUSWELL : The problem with the member for Victoria Park—I wish him well regarding the reason for his absence this week—and the problem for the opposition is that they are a bit like two heads of the same beast. Every second day the opposition is a bit like a bad Britney Spears lip-syncing exhibition! Several members interjected. The SPEAKER : Members! Mr T.R. BUSWELL : Every day the opposition talks about not spending enough money and yet it criticises us for spending money. So what do we do? Let me just quickly tell the house three things. Mr E.S. Ripper interjected. The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
Mr T.R. BUSWELL : The problem with the member for Victoria Park—I wish him well regarding the reason for his absence this week—and the problem for the opposition is that they are a bit like two heads of the same beast. Every second day the opposition is a bit like a bad Britney Spears lip-syncing exhibition! Several members interjected. The SPEAKER : Members! Mr T.R. BUSWELL : Every day the opposition talks about not spending enough money and yet it criticises us for spending money. So what do we do? Let me just quickly tell the house three things. Mr E.S. Ripper interjected. The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
Several members interjected. The SPEAKER : Members! Mr T.R. BUSWELL : Every day the opposition talks about not spending enough money and yet it criticises us for spending money. So what do we do? Let me just quickly tell the house three things. Mr E.S. Ripper interjected. The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
The SPEAKER : Members! Mr T.R. BUSWELL : Every day the opposition talks about not spending enough money and yet it criticises us for spending money. So what do we do? Let me just quickly tell the house three things. Mr E.S. Ripper interjected. The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
Mr T.R. BUSWELL : Every day the opposition talks about not spending enough money and yet it criticises us for spending money. So what do we do? Let me just quickly tell the house three things. Mr E.S. Ripper interjected. The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
Mr E.S. Ripper interjected. The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
The SPEAKER : Leader of the Opposition! Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
Mr T.R. BUSWELL : Firstly, we are bedding in the corrective measures. There will be a $7.3 billion reduction in net debt because of those corrective measures; it is hard work, but we will deliver on those measures. The second thing we are doing is the economic audit that will soon be processed through government. The economic audit is a road map for true reform in the delivery of public sector services in Western Australia, embracing the private sector and the not-for-profit community sector in a way that members opposite could only have dreamed about! The third thing that is happening is we have instigated a process called value-for-money audits. These value-for-money audits are line-by-line forensic examinations of expenditure in significant government departments. We have started with four: KPMG is at Health, PricewaterhouseCoopers is at Education, Deloitte is at Commerce and Ernst and Young are at the Department of Environment and Conservation. Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
Several members interjected. Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
Mr T.R. BUSWELL : How much do they cost? How much does it cost not to have them there? They are the tools that we will use to protect the state finances. The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
The SPEAKER : Members, before we proceed further with question time I wish to acknowledge the presence today in the Speaker’s gallery of Mr Hiroyuki Mori, Mayor of Kagoshima City and his delegation, including Mr Hidehiko Uekado, chairman of the Kagoshima City Council, and Mr Takashi Hirayama, a councillor of the Kagoshima City Council. Kagoshima is Perth’s sister city in Japan. On behalf of all members, I welcome you to the Western Australian Parliament. [Applause.]
[Applause.]
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