❓ Question challenges Treasurer on previous deficit comments given the GFC impact. Treasurer deflects, blaming previous government's spending and ruling out tax increases for now.
AnsweredQoN 108Legislative Assembly
QuestionView source ↗
STATE DEFICIT
I refer to comments the Treasurer made in this house on 16 May 2006 when he said — … when the day comes that revenue growth starts to slow, and the government must still pump $1.5 billion to $2 billion into recurrent expenditure, a gap will very quickly arise, and there will only be three choices for the government—running a deficit, which no-one would rationally suggest, increasing taxes or making draconian cuts in government expenditure. (1) Does the Treasurer stand by his view that no-one would rationally suggest running a deficit? (2) Can the Treasurer confirm that, in addition to making draconian cuts to government expenditure, he will also be increasing taxes and supporting the Premier as he needlessly drives the state into deficit? Mr T.R. BUSWELL
I refer to comments the Treasurer made in this house on 16 May 2006 when he said — … when the day comes that revenue growth starts to slow, and the government must still pump $1.5 billion to $2 billion into recurrent expenditure, a gap will very quickly arise, and there will only be three choices for the government—running a deficit, which no-one would rationally suggest, increasing taxes or making draconian cuts in government expenditure. (1) Does the Treasurer stand by his view that no-one would rationally suggest running a deficit? (2) Can the Treasurer confirm that, in addition to making draconian cuts to government expenditure, he will also be increasing taxes and supporting the Premier as he needlessly drives the state into deficit? Mr T.R. BUSWELL
AnswerView source ↗
(1)-(2) Firstly, I will point out to the member for Victoria Park that what we would call today a minor seismic event has occurred in the global financial system since, I think, the date he mentioned; that is, May 2006. That event is, of course, the global financial crisis, which I understand the Prime Minister referred to just the other day by the acronym GFC. It is a fact that the global financial crisis has impacted—as we discovered last week in Canberra—on all state governments, and, indeed, the federal government. It is impacting on a variety of revenue streams and it is impacting on Western Australia. Nobody in May 2006 would have forecast or foreseen the dramatic changes that have occurred around the world and no-one, looking forward, would have expected those impacts to flow on to our state—more so than any other Australian state—to the extent that they have. The incoming government is now attempting to deal with a truly remarkable set of financial circumstances while at the same time attempting to deal with a number of other issues including revenue volatility and the government’s desire to maintain service delivery levels in Western Australia. Speaking frankly, to do so, will be a significant challenge for the people of Western Australia. This government is also committed—a commitment that the Premier reinforced during our conversations with the Prime Minister on Saturday—to working with the commonwealth on Western Australia’s infrastructure program. The commonwealth view is that that infrastructure program will play an important role in underpinning the nation’s economy during these difficult times. We are working with a vastly different set of financial parameters in a vastly different world, attempting to maintain stability in the state’s finances, and at the same time recognising our broader responsibilities. This government has given no consideration thus far to any new revenue-raising mechanisms or any changes to any of the existing revenue raising-mechanisms—none. I do not believe such consideration will ever be the case; however, we still have a lot of work to do and we are committed to working hard. I want to close by pointing out one other issue. The most difficult challenge for this government to overcome will be to rein in the recurrent spending legacy—10 to 11 per cent per annum—that the Labor Party, in government, has left to the people of Western Australia. That was the warning every commentator and I gave the government in 2006. Do members know what has happened? It has all come home to roost. This government must deal with the issues of the former government’s blind spending, and we will do it.
(2) Can the Treasurer confirm that, in addition to making draconian cuts to government expenditure, he will also be increasing taxes and supporting the Premier as he needlessly drives the state into deficit? Mr T.R. BUSWELL replied: (1)-(2) Firstly, I will point out to the member for Victoria Park that what we would call today a minor seismic event has occurred in the global financial system since, I think, the date he mentioned; that is, May 2006. That event is, of course, the global financial crisis, which I understand the Prime Minister referred to just the other day by the acronym GFC. It is a fact that the global financial crisis has impacted—as we discovered last week in Canberra—on all state governments, and, indeed, the federal government. It is impacting on a variety of revenue streams and it is impacting on Western Australia. Nobody in May 2006 would have forecast or foreseen the dramatic changes that have occurred around the world and no-one, looking forward, would have expected those impacts to flow on to our state—more so than any other Australian state—to the extent that they have. The incoming government is now attempting to deal with a truly remarkable set of financial circumstances while at the same time attempting to deal with a number of other issues including revenue volatility and the government’s desire to maintain service delivery levels in Western Australia. Speaking frankly, to do so, will be a significant challenge for the people of Western Australia. This government is also committed—a commitment that the Premier reinforced during our conversations with the Prime Minister on Saturday—to working with the commonwealth on Western Australia’s infrastructure program. The commonwealth view is that that infrastructure program will play an important role in underpinning the nation’s economy during these difficult times. We are working with a vastly different set of financial parameters in a vastly different world, attempting to maintain stability in the state’s finances, and at the same time recognising our broader responsibilities. This government has given no consideration thus far to any new revenue-raising mechanisms or any changes to any of the existing revenue raising-mechanisms—none. I do not believe such consideration will ever be the case; however, we still have a lot of work to do and we are committed to working hard. I want to close by pointing out one other issue. The most difficult challenge for this government to overcome will be to rein in the recurrent spending legacy—10 to 11 per cent per annum—that the Labor Party, in government, has left to the people of Western Australia. That was the warning every commentator and I gave the government in 2006. Do members know what has happened? It has all come home to roost. This government must deal with the issues of the former government’s blind spending, and we will do it.
Mr T.R. BUSWELL replied: (1)-(2) Firstly, I will point out to the member for Victoria Park that what we would call today a minor seismic event has occurred in the global financial system since, I think, the date he mentioned; that is, May 2006. That event is, of course, the global financial crisis, which I understand the Prime Minister referred to just the other day by the acronym GFC. It is a fact that the global financial crisis has impacted—as we discovered last week in Canberra—on all state governments, and, indeed, the federal government. It is impacting on a variety of revenue streams and it is impacting on Western Australia. Nobody in May 2006 would have forecast or foreseen the dramatic changes that have occurred around the world and no-one, looking forward, would have expected those impacts to flow on to our state—more so than any other Australian state—to the extent that they have. The incoming government is now attempting to deal with a truly remarkable set of financial circumstances while at the same time attempting to deal with a number of other issues including revenue volatility and the government’s desire to maintain service delivery levels in Western Australia. Speaking frankly, to do so, will be a significant challenge for the people of Western Australia. This government is also committed—a commitment that the Premier reinforced during our conversations with the Prime Minister on Saturday—to working with the commonwealth on Western Australia’s infrastructure program. The commonwealth view is that that infrastructure program will play an important role in underpinning the nation’s economy during these difficult times. We are working with a vastly different set of financial parameters in a vastly different world, attempting to maintain stability in the state’s finances, and at the same time recognising our broader responsibilities. This government has given no consideration thus far to any new revenue-raising mechanisms or any changes to any of the existing revenue raising-mechanisms—none. I do not believe such consideration will ever be the case; however, we still have a lot of work to do and we are committed to working hard. I want to close by pointing out one other issue. The most difficult challenge for this government to overcome will be to rein in the recurrent spending legacy—10 to 11 per cent per annum—that the Labor Party, in government, has left to the people of Western Australia. That was the warning every commentator and I gave the government in 2006. Do members know what has happened? It has all come home to roost. This government must deal with the issues of the former government’s blind spending, and we will do it.
(1)-(2) Firstly, I will point out to the member for Victoria Park that what we would call today a minor seismic event has occurred in the global financial system since, I think, the date he mentioned; that is, May 2006. That event is, of course, the global financial crisis, which I understand the Prime Minister referred to just the other day by the acronym GFC. It is a fact that the global financial crisis has impacted—as we discovered last week in Canberra—on all state governments, and, indeed, the federal government. It is impacting on a variety of revenue streams and it is impacting on Western Australia. Nobody in May 2006 would have forecast or foreseen the dramatic changes that have occurred around the world and no-one, looking forward, would have expected those impacts to flow on to our state—more so than any other Australian state—to the extent that they have. The incoming government is now attempting to deal with a truly remarkable set of financial circumstances while at the same time attempting to deal with a number of other issues including revenue volatility and the government’s desire to maintain service delivery levels in Western Australia. Speaking frankly, to do so, will be a significant challenge for the people of Western Australia. This government is also committed—a commitment that the Premier reinforced during our conversations with the Prime Minister on Saturday—to working with the commonwealth on Western Australia’s infrastructure program. The commonwealth view is that that infrastructure program will play an important role in underpinning the nation’s economy during these difficult times. We are working with a vastly different set of financial parameters in a vastly different world, attempting to maintain stability in the state’s finances, and at the same time recognising our broader responsibilities. This government has given no consideration thus far to any new revenue-raising mechanisms or any changes to any of the existing revenue raising-mechanisms—none. I do not believe such consideration will ever be the case; however, we still have a lot of work to do and we are committed to working hard. I want to close by pointing out one other issue. The most difficult challenge for this government to overcome will be to rein in the recurrent spending legacy—10 to 11 per cent per annum—that the Labor Party, in government, has left to the people of Western Australia. That was the warning every commentator and I gave the government in 2006. Do members know what has happened? It has all come home to roost. This government must deal with the issues of the former government’s blind spending, and we will do it.
The incoming government is now attempting to deal with a truly remarkable set of financial circumstances while at the same time attempting to deal with a number of other issues including revenue volatility and the government’s desire to maintain service delivery levels in Western Australia. Speaking frankly, to do so, will be a significant challenge for the people of Western Australia. This government is also committed—a commitment that the Premier reinforced during our conversations with the Prime Minister on Saturday—to working with the commonwealth on Western Australia’s infrastructure program. The commonwealth view is that that infrastructure program will play an important role in underpinning the nation’s economy during these difficult times. We are working with a vastly different set of financial parameters in a vastly different world, attempting to maintain stability in the state’s finances, and at the same time recognising our broader responsibilities. This government has given no consideration thus far to any new revenue-raising mechanisms or any changes to any of the existing revenue raising-mechanisms—none. I do not believe such consideration will ever be the case; however, we still have a lot of work to do and we are committed to working hard.
This government is also committed—a commitment that the Premier reinforced during our conversations with the Prime Minister on Saturday—to working with the commonwealth on Western Australia’s infrastructure program. The commonwealth view is that that infrastructure program will play an important role in underpinning the nation’s economy during these difficult times. We are working with a vastly different set of financial parameters in a vastly different world, attempting to maintain stability in the state’s finances, and at the same time recognising our broader responsibilities. This government has given no consideration thus far to any new revenue-raising mechanisms or any changes to any of the existing revenue raising-mechanisms—none. I do not believe such consideration will ever be the case; however, we still have a lot of work to do and we are committed to working hard.
This government has given no consideration thus far to any new revenue-raising mechanisms or any changes to any of the existing revenue raising-mechanisms—none. I do not believe such consideration will ever be the case; however, we still have a lot of work to do and we are committed to working hard.
(2) Can the Treasurer confirm that, in addition to making draconian cuts to government expenditure, he will also be increasing taxes and supporting the Premier as he needlessly drives the state into deficit? Mr T.R. BUSWELL replied: (1)-(2) Firstly, I will point out to the member for Victoria Park that what we would call today a minor seismic event has occurred in the global financial system since, I think, the date he mentioned; that is, May 2006. That event is, of course, the global financial crisis, which I understand the Prime Minister referred to just the other day by the acronym GFC. It is a fact that the global financial crisis has impacted—as we discovered last week in Canberra—on all state governments, and, indeed, the federal government. It is impacting on a variety of revenue streams and it is impacting on Western Australia. Nobody in May 2006 would have forecast or foreseen the dramatic changes that have occurred around the world and no-one, looking forward, would have expected those impacts to flow on to our state—more so than any other Australian state—to the extent that they have. The incoming government is now attempting to deal with a truly remarkable set of financial circumstances while at the same time attempting to deal with a number of other issues including revenue volatility and the government’s desire to maintain service delivery levels in Western Australia. Speaking frankly, to do so, will be a significant challenge for the people of Western Australia. This government is also committed—a commitment that the Premier reinforced during our conversations with the Prime Minister on Saturday—to working with the commonwealth on Western Australia’s infrastructure program. The commonwealth view is that that infrastructure program will play an important role in underpinning the nation’s economy during these difficult times. We are working with a vastly different set of financial parameters in a vastly different world, attempting to maintain stability in the state’s finances, and at the same time recognising our broader responsibilities. This government has given no consideration thus far to any new revenue-raising mechanisms or any changes to any of the existing revenue raising-mechanisms—none. I do not believe such consideration will ever be the case; however, we still have a lot of work to do and we are committed to working hard. I want to close by pointing out one other issue. The most difficult challenge for this government to overcome will be to rein in the recurrent spending legacy—10 to 11 per cent per annum—that the Labor Party, in government, has left to the people of Western Australia. That was the warning every commentator and I gave the government in 2006. Do members know what has happened? It has all come home to roost. This government must deal with the issues of the former government’s blind spending, and we will do it.
Mr T.R. BUSWELL replied: (1)-(2) Firstly, I will point out to the member for Victoria Park that what we would call today a minor seismic event has occurred in the global financial system since, I think, the date he mentioned; that is, May 2006. That event is, of course, the global financial crisis, which I understand the Prime Minister referred to just the other day by the acronym GFC. It is a fact that the global financial crisis has impacted—as we discovered last week in Canberra—on all state governments, and, indeed, the federal government. It is impacting on a variety of revenue streams and it is impacting on Western Australia. Nobody in May 2006 would have forecast or foreseen the dramatic changes that have occurred around the world and no-one, looking forward, would have expected those impacts to flow on to our state—more so than any other Australian state—to the extent that they have. The incoming government is now attempting to deal with a truly remarkable set of financial circumstances while at the same time attempting to deal with a number of other issues including revenue volatility and the government’s desire to maintain service delivery levels in Western Australia. Speaking frankly, to do so, will be a significant challenge for the people of Western Australia. This government is also committed—a commitment that the Premier reinforced during our conversations with the Prime Minister on Saturday—to working with the commonwealth on Western Australia’s infrastructure program. The commonwealth view is that that infrastructure program will play an important role in underpinning the nation’s economy during these difficult times. We are working with a vastly different set of financial parameters in a vastly different world, attempting to maintain stability in the state’s finances, and at the same time recognising our broader responsibilities. This government has given no consideration thus far to any new revenue-raising mechanisms or any changes to any of the existing revenue raising-mechanisms—none. I do not believe such consideration will ever be the case; however, we still have a lot of work to do and we are committed to working hard. I want to close by pointing out one other issue. The most difficult challenge for this government to overcome will be to rein in the recurrent spending legacy—10 to 11 per cent per annum—that the Labor Party, in government, has left to the people of Western Australia. That was the warning every commentator and I gave the government in 2006. Do members know what has happened? It has all come home to roost. This government must deal with the issues of the former government’s blind spending, and we will do it.
(1)-(2) Firstly, I will point out to the member for Victoria Park that what we would call today a minor seismic event has occurred in the global financial system since, I think, the date he mentioned; that is, May 2006. That event is, of course, the global financial crisis, which I understand the Prime Minister referred to just the other day by the acronym GFC. It is a fact that the global financial crisis has impacted—as we discovered last week in Canberra—on all state governments, and, indeed, the federal government. It is impacting on a variety of revenue streams and it is impacting on Western Australia. Nobody in May 2006 would have forecast or foreseen the dramatic changes that have occurred around the world and no-one, looking forward, would have expected those impacts to flow on to our state—more so than any other Australian state—to the extent that they have. The incoming government is now attempting to deal with a truly remarkable set of financial circumstances while at the same time attempting to deal with a number of other issues including revenue volatility and the government’s desire to maintain service delivery levels in Western Australia. Speaking frankly, to do so, will be a significant challenge for the people of Western Australia. This government is also committed—a commitment that the Premier reinforced during our conversations with the Prime Minister on Saturday—to working with the commonwealth on Western Australia’s infrastructure program. The commonwealth view is that that infrastructure program will play an important role in underpinning the nation’s economy during these difficult times. We are working with a vastly different set of financial parameters in a vastly different world, attempting to maintain stability in the state’s finances, and at the same time recognising our broader responsibilities. This government has given no consideration thus far to any new revenue-raising mechanisms or any changes to any of the existing revenue raising-mechanisms—none. I do not believe such consideration will ever be the case; however, we still have a lot of work to do and we are committed to working hard. I want to close by pointing out one other issue. The most difficult challenge for this government to overcome will be to rein in the recurrent spending legacy—10 to 11 per cent per annum—that the Labor Party, in government, has left to the people of Western Australia. That was the warning every commentator and I gave the government in 2006. Do members know what has happened? It has all come home to roost. This government must deal with the issues of the former government’s blind spending, and we will do it.
The incoming government is now attempting to deal with a truly remarkable set of financial circumstances while at the same time attempting to deal with a number of other issues including revenue volatility and the government’s desire to maintain service delivery levels in Western Australia. Speaking frankly, to do so, will be a significant challenge for the people of Western Australia. This government is also committed—a commitment that the Premier reinforced during our conversations with the Prime Minister on Saturday—to working with the commonwealth on Western Australia’s infrastructure program. The commonwealth view is that that infrastructure program will play an important role in underpinning the nation’s economy during these difficult times. We are working with a vastly different set of financial parameters in a vastly different world, attempting to maintain stability in the state’s finances, and at the same time recognising our broader responsibilities. This government has given no consideration thus far to any new revenue-raising mechanisms or any changes to any of the existing revenue raising-mechanisms—none. I do not believe such consideration will ever be the case; however, we still have a lot of work to do and we are committed to working hard.
This government is also committed—a commitment that the Premier reinforced during our conversations with the Prime Minister on Saturday—to working with the commonwealth on Western Australia’s infrastructure program. The commonwealth view is that that infrastructure program will play an important role in underpinning the nation’s economy during these difficult times. We are working with a vastly different set of financial parameters in a vastly different world, attempting to maintain stability in the state’s finances, and at the same time recognising our broader responsibilities. This government has given no consideration thus far to any new revenue-raising mechanisms or any changes to any of the existing revenue raising-mechanisms—none. I do not believe such consideration will ever be the case; however, we still have a lot of work to do and we are committed to working hard.
This government has given no consideration thus far to any new revenue-raising mechanisms or any changes to any of the existing revenue raising-mechanisms—none. I do not believe such consideration will ever be the case; however, we still have a lot of work to do and we are committed to working hard.
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