❓ Dr. Honey questions the Treasurer about significant budget and staffing increases within Treasury and the Western Australian Treasury Corporation, while the Treasurer defends the increases as necessary to address growing demands and protect WA's GST share.
AnsweredQoN 446Legislative Assembly
QuestionView source ↗
TREASURY — STAFFING
446. Dr D.J. HONEY to the Treasurer:
I
refer to the budget, which shows, a massive 26 per cent increase over two years
in Treasury's expenses along with 12.6 per cent staffing growth and an
average wage cost rise per full-time officer of 13.8 per cent, which is double
the government's wages policy, as well as a 15.7 per cent increase in Western
Australian Treasury Corporation staffing.
(1) Can the
Treasurer explain such seeming indulgence with Treasury and the Treasury
Corporation and tell us what controls the Treasurer exercises over her agency's
spending and staffing growth?
(2) Is this
evidence that the Treasurer's disregard for cost blowouts in the
transport portfolio is now extended to Treasury and the wider public sector?
446. Dr D.J. HONEY to the Treasurer:
I
refer to the budget, which shows, a massive 26 per cent increase over two years
in Treasury's expenses along with 12.6 per cent staffing growth and an
average wage cost rise per full-time officer of 13.8 per cent, which is double
the government's wages policy, as well as a 15.7 per cent increase in Western
Australian Treasury Corporation staffing.
(1) Can the
Treasurer explain such seeming indulgence with Treasury and the Treasury
Corporation and tell us what controls the Treasurer exercises over her agency's
spending and staffing growth?
(2) Is this
evidence that the Treasurer's disregard for cost blowouts in the
transport portfolio is now extended to Treasury and the wider public sector?
AnswerView source ↗
(1)–(2) I thank the member for this question. I find the
question quite odd because the total public sector has grown because
there has been extraordinary demand for more nurses, doctors, teachers and
people in agencies undertaking approvals; you name it. Across every part of
government there has been increased demand for services. In Treasury we have
just created the housing supply unit. As everyone keeps telling us, and as we
understand, housing is the number one priority, so we will throw everything at
it. That includes creating a new dedicated housing supply unit to ensure that
we continue to have new ideas and better cross-government coordination to
deliver on the enormous challenge of housing. In relation to the GST, we have
of course a continued attack on the GST from other states wanting to claw back
the GST.
The SPEAKER : Order, please!
Dr D.J. Honey : GST has not
changed.
Ms R. SAFFIOTI : It has not
changed because we are protecting it. We continue to protect the GST deals,
plus a significant review of the GST will be
undertaken over the next two years. That will feed further decisions in
relation to it, in particular the analysis that underpins the
distribution formula. We will throw everything at that too. As the public
sector grows, we need analysts to help us inform how we deliver our services
and infrastructure. I can see this is going to be a daily or weekly event. The member
has nothing left to do and no-one to talk to.
Ms S.E. Winton : No policy to
write.
Ms R. SAFFIOTI : He has no
policy to write. It is a bit sad. I do not like doing this because I feel sorry
for the member, but he stands in the afternoon tea room looking lonely with
no-one to talk to, and so he wants to come in here
and throw out some ridiculous accusations about how we are running the
government. The member for Cottesloe can keep doing that, and I will
keep explaining what a well-functioning government looks like and the fact that
we continue to deliver to address the
enormous demands in the community. As I said, whether it be health, housing or
police, there is an enormous number of projects. Our asset investment program
has gone from about $5.6 billion when the Liberal–National
government was in power and had a recession with falling employment to over
$10.6 billion just for this financial —
Dr D.J. Honey interjected.
The SPEAKER : Order!
Several members interjected.
The SPEAKER : Member for
Cottesloe, if you have something further to contribute, you can do it by way of
supplementary question if you do not continue to interject.
Ms R. SAFFIOTI : Just off the
top my head, and again back-casting to ensure consistency in numbers in
relation to the Australian Accounting Standards Board —
Mr W.J. Johnston interjected.
Ms R. SAFFIOTI : Sorry—member
for Cannington?
Mr W.J. Johnston : I just want
to point out that in the last year of the Liberal government, 113 per cent of
revenue was expenditure, whereas we are at 87 per cent of revenue as
expenditure. Talk about deficit!
Ms
R. SAFFIOTI : Turning to the
revenue boom, I want to reflect on the fact that somehow the previous
government thought there was no revenue boom and nothing happened.
During the second term of the previous government, there was the most
significant expansion of the resources sector in history, and we basically saw
a doubling in production capacity and major investment
by major iron ore players throughout the Pilbara. The capacity pretty much doubled. I have seen the investment. The private sector investment was a massive
boom. The former government had massive royalties. The former government then
budgeted on the basis that it would always get that massive increase in price—so
that is what it did. Again, I do not know how the former government did this or
on what basis anyone provided advice to do this, but it did it: it was
basically forecasting, I recall just off the top of my head, an iron ore price
of over $US110 across the entire forward estimates. The iron ore price then
normalised and the former government found
itself with operating deficits. If we want to talk about deficits, let us talk
about the operating deficits that the former government delivered. The
former government did not have enough money to pay the ongoing recurrent
everyday expenditure. As I said, everybody in this chamber has probably
borrowed money to buy a house, but if people borrow money to go shopping every
week, that is when they have a problem, and that is what the former government
did. It put the state into operating deficit. The former government saw debt
from actual to actual climb by about $29 billion in eight years. The net increase
in eight years was $29 billion.
Since
winning government, our net debt has fallen, and we have delivered five
consecutive operating surpluses. The member
tries to claim that somehow the former government was poor and everything was
out to get that government when it was in power for eight years. It is
actually the opposite: the former government had the biggest investment boom,
far bigger than what we have seen. I have the graph in my mind. The asset
investment and the expansion of the resources sector was incredible. Basically,
every major iron ore miner was doubling its capacity.
Mr W.J. Johnston : Gorgon.
Wheatstone.
Ms R. SAFFIOTI : Sorry, there
were also Gorgon, Wheatstone and the major liquefied natural gas projects.
Again, like I was saying, I know the
member for Cottesloe does not have much else to do —
Several members interjected.
Dr D.J. Honey : You don't
know the difference between personal insult and criticism of government policy.
Mr J.N. Carey interjected.
The SPEAKER : Order, please!
Minister for Housing!
Mr J.N. Carey interjected.
The SPEAKER : Minister for
Housing, the Deputy Premier is on her feet endeavouring to answer a question.
Do not incessantly interject.
Ms R. SAFFIOTI : The member
for Cottesloe said, ''You don't know the difference between a criticism
of policy and personal attack.'' The member for Cottesloe has come in
here and called me corrupt. He has said worst things in the Subiaco Post .
He did Facebook posts on the member for Perth that were literally the most
personal, insulting Facebook posts I have ever seen an opposition do.
Dr D.J. Honey : That's
untrue.
Ms R. SAFFIOTI : It is; it is
true, and you have done the same to me, so do not come in here and pretend you
have done nothing. You pretend that somehow the former government did not have
any money; it had tonnes, but it just could
not forecast. It ran two Expenditure Review Committees. Remember, the former
government had two cabinets; that is why it led the state to a disaster.
There were two cabinets making decisions based on false forecasts. That is why the Liberal–National government failed
and that is why we continue to budget conservatively and we deliver a united,
coordinated cabinet, which the Liberal and National Parties will never do. I mean,
they cannot even keep an opposition of six together, let alone ever, ever
deliver a coordinated, united government.
The SPEAKER : Just before I give
the call for a supplementary question, we could be here a very long time if we
do not get short, sharp supplementary questions and short answers to them.
question quite odd because the total public sector has grown because
there has been extraordinary demand for more nurses, doctors, teachers and
people in agencies undertaking approvals; you name it. Across every part of
government there has been increased demand for services. In Treasury we have
just created the housing supply unit. As everyone keeps telling us, and as we
understand, housing is the number one priority, so we will throw everything at
it. That includes creating a new dedicated housing supply unit to ensure that
we continue to have new ideas and better cross-government coordination to
deliver on the enormous challenge of housing. In relation to the GST, we have
of course a continued attack on the GST from other states wanting to claw back
the GST.
The SPEAKER : Order, please!
Dr D.J. Honey : GST has not
changed.
Ms R. SAFFIOTI : It has not
changed because we are protecting it. We continue to protect the GST deals,
plus a significant review of the GST will be
undertaken over the next two years. That will feed further decisions in
relation to it, in particular the analysis that underpins the
distribution formula. We will throw everything at that too. As the public
sector grows, we need analysts to help us inform how we deliver our services
and infrastructure. I can see this is going to be a daily or weekly event. The member
has nothing left to do and no-one to talk to.
Ms S.E. Winton : No policy to
write.
Ms R. SAFFIOTI : He has no
policy to write. It is a bit sad. I do not like doing this because I feel sorry
for the member, but he stands in the afternoon tea room looking lonely with
no-one to talk to, and so he wants to come in here
and throw out some ridiculous accusations about how we are running the
government. The member for Cottesloe can keep doing that, and I will
keep explaining what a well-functioning government looks like and the fact that
we continue to deliver to address the
enormous demands in the community. As I said, whether it be health, housing or
police, there is an enormous number of projects. Our asset investment program
has gone from about $5.6 billion when the Liberal–National
government was in power and had a recession with falling employment to over
$10.6 billion just for this financial —
Dr D.J. Honey interjected.
The SPEAKER : Order!
Several members interjected.
The SPEAKER : Member for
Cottesloe, if you have something further to contribute, you can do it by way of
supplementary question if you do not continue to interject.
Ms R. SAFFIOTI : Just off the
top my head, and again back-casting to ensure consistency in numbers in
relation to the Australian Accounting Standards Board —
Mr W.J. Johnston interjected.
Ms R. SAFFIOTI : Sorry—member
for Cannington?
Mr W.J. Johnston : I just want
to point out that in the last year of the Liberal government, 113 per cent of
revenue was expenditure, whereas we are at 87 per cent of revenue as
expenditure. Talk about deficit!
Ms
R. SAFFIOTI : Turning to the
revenue boom, I want to reflect on the fact that somehow the previous
government thought there was no revenue boom and nothing happened.
During the second term of the previous government, there was the most
significant expansion of the resources sector in history, and we basically saw
a doubling in production capacity and major investment
by major iron ore players throughout the Pilbara. The capacity pretty much doubled. I have seen the investment. The private sector investment was a massive
boom. The former government had massive royalties. The former government then
budgeted on the basis that it would always get that massive increase in price—so
that is what it did. Again, I do not know how the former government did this or
on what basis anyone provided advice to do this, but it did it: it was
basically forecasting, I recall just off the top of my head, an iron ore price
of over $US110 across the entire forward estimates. The iron ore price then
normalised and the former government found
itself with operating deficits. If we want to talk about deficits, let us talk
about the operating deficits that the former government delivered. The
former government did not have enough money to pay the ongoing recurrent
everyday expenditure. As I said, everybody in this chamber has probably
borrowed money to buy a house, but if people borrow money to go shopping every
week, that is when they have a problem, and that is what the former government
did. It put the state into operating deficit. The former government saw debt
from actual to actual climb by about $29 billion in eight years. The net increase
in eight years was $29 billion.
Since
winning government, our net debt has fallen, and we have delivered five
consecutive operating surpluses. The member
tries to claim that somehow the former government was poor and everything was
out to get that government when it was in power for eight years. It is
actually the opposite: the former government had the biggest investment boom,
far bigger than what we have seen. I have the graph in my mind. The asset
investment and the expansion of the resources sector was incredible. Basically,
every major iron ore miner was doubling its capacity.
Mr W.J. Johnston : Gorgon.
Wheatstone.
Ms R. SAFFIOTI : Sorry, there
were also Gorgon, Wheatstone and the major liquefied natural gas projects.
Again, like I was saying, I know the
member for Cottesloe does not have much else to do —
Several members interjected.
Dr D.J. Honey : You don't
know the difference between personal insult and criticism of government policy.
Mr J.N. Carey interjected.
The SPEAKER : Order, please!
Minister for Housing!
Mr J.N. Carey interjected.
The SPEAKER : Minister for
Housing, the Deputy Premier is on her feet endeavouring to answer a question.
Do not incessantly interject.
Ms R. SAFFIOTI : The member
for Cottesloe said, ''You don't know the difference between a criticism
of policy and personal attack.'' The member for Cottesloe has come in
here and called me corrupt. He has said worst things in the Subiaco Post .
He did Facebook posts on the member for Perth that were literally the most
personal, insulting Facebook posts I have ever seen an opposition do.
Dr D.J. Honey : That's
untrue.
Ms R. SAFFIOTI : It is; it is
true, and you have done the same to me, so do not come in here and pretend you
have done nothing. You pretend that somehow the former government did not have
any money; it had tonnes, but it just could
not forecast. It ran two Expenditure Review Committees. Remember, the former
government had two cabinets; that is why it led the state to a disaster.
There were two cabinets making decisions based on false forecasts. That is why the Liberal–National government failed
and that is why we continue to budget conservatively and we deliver a united,
coordinated cabinet, which the Liberal and National Parties will never do. I mean,
they cannot even keep an opposition of six together, let alone ever, ever
deliver a coordinated, united government.
The SPEAKER : Just before I give
the call for a supplementary question, we could be here a very long time if we
do not get short, sharp supplementary questions and short answers to them.
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