❓ The Treasurer refutes claims of a GST revenue windfall, stating total Commonwealth grants to WA will decline and criticises the previous government's financial management and the Commonwealth's actions regarding GST revenue distribution.
AnsweredQoN 991Legislative Assembly
QuestionView source ↗
I refer to the Leader of the Opposition’s public statements to the effect that Western Australia is receiving an extra $263 million in goods and services tax revenue and that the GST is starting to pay off for the State. Can the Treasurer confirm whether this is the case? Mr RIPPER
AnswerView source ↗
We are talking about the leading economic commentator who cannot add up yet. An earlier answer referred to the sort of budget management record that the Leader of the Opposition and his colleagues delivered. One reason the previous Government had such trouble with this budget was that the Leader of the Opposition was the sort of minister who made commitments and decisions without funding them; for example, he did not provide funding for the laptop computers for teachers. We have gone over these examples on a number of occasions. Mr Barnett: Every single thing I promised I delivered. Mr RIPPER: The Leader of the Opposition announced a whole lot of things, but he did not provide the funding for them. He is equally reckless with the facts when he talks about commonwealth grants. At a quarter to eight this morning, he said on ABC radio that the GST has produced an extra $263 million in revenue to the State Government, and that it is starting to now pay off for the State. However, by five minutes to 10 he said on Paul Murray’s radio program that although it is still progressively being phased in, the GST will be a real financial windfall for the States, particularly Western Australia. In two hours, the GST windfall that we were supposed to get had turned into only a prospective windfall. I will make it clear: the total commonwealth grants to Western Australia, including the GST revenue, will decline in real terms by 1.6 per cent in 2002-03. Several members interjected. Mr RIPPER: Did the Leader of the Opposition hear that? Total commonwealth grants will decline by 1.6 per cent in real terms in the next financial year. That is due principally to Peter Costello reneging on a deal with the States and unilaterally cutting the grants to the States and Territories. Do members know what that will cost us over the next four years? It will cost us $83 million. That equates to the cost of constructing 16 new primary schools. That is the effect of Peter Costello ratting on that agreement and cutting our grants by $83 million. When the States agreed to the GST package, they had to give up various revenue streams. Western Australia had to give up financial institutions duty and stamp duty on listed shares. There was no scope for comeback if it transpired later that the revenue streams would have been better than had been forecast. Everyone knew that the deal was done on the projections at the time and that what was lost on the swings would be picked up on the roundabouts. However, there was one underlying principle: no State would be worse off under the new financial arrangements. Now we know the truth. Not only is the GST not a bonanza, but also we are worse off. In fact, we shall be dependent on commonwealth top ups to GST revenue until at least 2004-05, when we will reach break-even point. We are missing out in the total commonwealth grants to the States. That is why we have joined with New South Wales and Victoria to call for an independent review of commonwealth-state financial relations. Our share has been in decline for nine years. We have been more than $350 million worse off over that time. Even the Greens (WA) recognise that there is a problem and that the GST is not a saviour. I do not agree with their solution. They have called for a state-based income tax. I do not agree with that, but at least they recognise that there is a problem. What do we get from the Cottesloe quisling? We hear his defence of the GST, a tax that threw the State’s economy into reverse in 2000-01. The State’s economy has declined by 1.6 per cent. Not one additional cent has been delivered to Western Australia by the GST. I hope the Liberal Party changes its leader. We need a Leader of the Opposition who will at least defend Western Australia in these matters.
Mr RIPPER replied: We are talking about the leading economic commentator who cannot add up yet. An earlier answer referred to the sort of budget management record that the Leader of the Opposition and his colleagues delivered. One reason the previous Government had such trouble with this budget was that the Leader of the Opposition was the sort of minister who made commitments and decisions without funding them; for example, he did not provide funding for the laptop computers for teachers. We have gone over these examples on a number of occasions. Mr Barnett: Every single thing I promised I delivered. Mr RIPPER: The Leader of the Opposition announced a whole lot of things, but he did not provide the funding for them. He is equally reckless with the facts when he talks about commonwealth grants. At a quarter to eight this morning, he said on ABC radio that the GST has produced an extra $263 million in revenue to the State Government, and that it is starting to now pay off for the State. However, by five minutes to 10 he said on Paul Murray’s radio program that although it is still progressively being phased in, the GST will be a real financial windfall for the States, particularly Western Australia. In two hours, the GST windfall that we were supposed to get had turned into only a prospective windfall. I will make it clear: the total commonwealth grants to Western Australia, including the GST revenue, will decline in real terms by 1.6 per cent in 2002-03. Several members interjected. Mr RIPPER: Did the Leader of the Opposition hear that? Total commonwealth grants will decline by 1.6 per cent in real terms in the next financial year. That is due principally to Peter Costello reneging on a deal with the States and unilaterally cutting the grants to the States and Territories. Do members know what that will cost us over the next four years? It will cost us $83 million. That equates to the cost of constructing 16 new primary schools. That is the effect of Peter Costello ratting on that agreement and cutting our grants by $83 million. When the States agreed to the GST package, they had to give up various revenue streams. Western Australia had to give up financial institutions duty and stamp duty on listed shares. There was no scope for comeback if it transpired later that the revenue streams would have been better than had been forecast. Everyone knew that the deal was done on the projections at the time and that what was lost on the swings would be picked up on the roundabouts. However, there was one underlying principle: no State would be worse off under the new financial arrangements. Now we know the truth. Not only is the GST not a bonanza, but also we are worse off. In fact, we shall be dependent on commonwealth top ups to GST revenue until at least 2004-05, when we will reach break-even point. We are missing out in the total commonwealth grants to the States. That is why we have joined with New South Wales and Victoria to call for an independent review of commonwealth-state financial relations. Our share has been in decline for nine years. We have been more than $350 million worse off over that time. Even the Greens (WA) recognise that there is a problem and that the GST is not a saviour. I do not agree with their solution. They have called for a state-based income tax. I do not agree with that, but at least they recognise that there is a problem. What do we get from the Cottesloe quisling? We hear his defence of the GST, a tax that threw the State’s economy into reverse in 2000-01. The State’s economy has declined by 1.6 per cent. Not one additional cent has been delivered to Western Australia by the GST. I hope the Liberal Party changes its leader. We need a Leader of the Opposition who will at least defend Western Australia in these matters.
We are talking about the leading economic commentator who cannot add up yet. An earlier answer referred to the sort of budget management record that the Leader of the Opposition and his colleagues delivered. One reason the previous Government had such trouble with this budget was that the Leader of the Opposition was the sort of minister who made commitments and decisions without funding them; for example, he did not provide funding for the laptop computers for teachers. We have gone over these examples on a number of occasions. Mr Barnett: Every single thing I promised I delivered. Mr RIPPER: The Leader of the Opposition announced a whole lot of things, but he did not provide the funding for them. He is equally reckless with the facts when he talks about commonwealth grants. At a quarter to eight this morning, he said on ABC radio that the GST has produced an extra $263 million in revenue to the State Government, and that it is starting to now pay off for the State. However, by five minutes to 10 he said on Paul Murray’s radio program that although it is still progressively being phased in, the GST will be a real financial windfall for the States, particularly Western Australia. In two hours, the GST windfall that we were supposed to get had turned into only a prospective windfall. I will make it clear: the total commonwealth grants to Western Australia, including the GST revenue, will decline in real terms by 1.6 per cent in 2002-03. Several members interjected. Mr RIPPER: Did the Leader of the Opposition hear that? Total commonwealth grants will decline by 1.6 per cent in real terms in the next financial year. That is due principally to Peter Costello reneging on a deal with the States and unilaterally cutting the grants to the States and Territories. Do members know what that will cost us over the next four years? It will cost us $83 million. That equates to the cost of constructing 16 new primary schools. That is the effect of Peter Costello ratting on that agreement and cutting our grants by $83 million. When the States agreed to the GST package, they had to give up various revenue streams. Western Australia had to give up financial institutions duty and stamp duty on listed shares. There was no scope for comeback if it transpired later that the revenue streams would have been better than had been forecast. Everyone knew that the deal was done on the projections at the time and that what was lost on the swings would be picked up on the roundabouts. However, there was one underlying principle: no State would be worse off under the new financial arrangements. Now we know the truth. Not only is the GST not a bonanza, but also we are worse off. In fact, we shall be dependent on commonwealth top ups to GST revenue until at least 2004-05, when we will reach break-even point. We are missing out in the total commonwealth grants to the States. That is why we have joined with New South Wales and Victoria to call for an independent review of commonwealth-state financial relations. Our share has been in decline for nine years. We have been more than $350 million worse off over that time. Even the Greens (WA) recognise that there is a problem and that the GST is not a saviour. I do not agree with their solution. They have called for a state-based income tax. I do not agree with that, but at least they recognise that there is a problem. What do we get from the Cottesloe quisling? We hear his defence of the GST, a tax that threw the State’s economy into reverse in 2000-01. The State’s economy has declined by 1.6 per cent. Not one additional cent has been delivered to Western Australia by the GST. I hope the Liberal Party changes its leader. We need a Leader of the Opposition who will at least defend Western Australia in these matters.
Mr Barnett: Every single thing I promised I delivered. Mr RIPPER: The Leader of the Opposition announced a whole lot of things, but he did not provide the funding for them. He is equally reckless with the facts when he talks about commonwealth grants. At a quarter to eight this morning, he said on ABC radio that the GST has produced an extra $263 million in revenue to the State Government, and that it is starting to now pay off for the State. However, by five minutes to 10 he said on Paul Murray’s radio program that although it is still progressively being phased in, the GST will be a real financial windfall for the States, particularly Western Australia. In two hours, the GST windfall that we were supposed to get had turned into only a prospective windfall. I will make it clear: the total commonwealth grants to Western Australia, including the GST revenue, will decline in real terms by 1.6 per cent in 2002-03. Several members interjected. Mr RIPPER: Did the Leader of the Opposition hear that? Total commonwealth grants will decline by 1.6 per cent in real terms in the next financial year. That is due principally to Peter Costello reneging on a deal with the States and unilaterally cutting the grants to the States and Territories. Do members know what that will cost us over the next four years? It will cost us $83 million. That equates to the cost of constructing 16 new primary schools. That is the effect of Peter Costello ratting on that agreement and cutting our grants by $83 million. When the States agreed to the GST package, they had to give up various revenue streams. Western Australia had to give up financial institutions duty and stamp duty on listed shares. There was no scope for comeback if it transpired later that the revenue streams would have been better than had been forecast. Everyone knew that the deal was done on the projections at the time and that what was lost on the swings would be picked up on the roundabouts. However, there was one underlying principle: no State would be worse off under the new financial arrangements. Now we know the truth. Not only is the GST not a bonanza, but also we are worse off. In fact, we shall be dependent on commonwealth top ups to GST revenue until at least 2004-05, when we will reach break-even point. We are missing out in the total commonwealth grants to the States. That is why we have joined with New South Wales and Victoria to call for an independent review of commonwealth-state financial relations. Our share has been in decline for nine years. We have been more than $350 million worse off over that time. Even the Greens (WA) recognise that there is a problem and that the GST is not a saviour. I do not agree with their solution. They have called for a state-based income tax. I do not agree with that, but at least they recognise that there is a problem. What do we get from the Cottesloe quisling? We hear his defence of the GST, a tax that threw the State’s economy into reverse in 2000-01. The State’s economy has declined by 1.6 per cent. Not one additional cent has been delivered to Western Australia by the GST. I hope the Liberal Party changes its leader. We need a Leader of the Opposition who will at least defend Western Australia in these matters.
Mr RIPPER: The Leader of the Opposition announced a whole lot of things, but he did not provide the funding for them. He is equally reckless with the facts when he talks about commonwealth grants. At a quarter to eight this morning, he said on ABC radio that the GST has produced an extra $263 million in revenue to the State Government, and that it is starting to now pay off for the State. However, by five minutes to 10 he said on Paul Murray’s radio program that although it is still progressively being phased in, the GST will be a real financial windfall for the States, particularly Western Australia. In two hours, the GST windfall that we were supposed to get had turned into only a prospective windfall. I will make it clear: the total commonwealth grants to Western Australia, including the GST revenue, will decline in real terms by 1.6 per cent in 2002-03. Several members interjected. Mr RIPPER: Did the Leader of the Opposition hear that? Total commonwealth grants will decline by 1.6 per cent in real terms in the next financial year. That is due principally to Peter Costello reneging on a deal with the States and unilaterally cutting the grants to the States and Territories. Do members know what that will cost us over the next four years? It will cost us $83 million. That equates to the cost of constructing 16 new primary schools. That is the effect of Peter Costello ratting on that agreement and cutting our grants by $83 million. When the States agreed to the GST package, they had to give up various revenue streams. Western Australia had to give up financial institutions duty and stamp duty on listed shares. There was no scope for comeback if it transpired later that the revenue streams would have been better than had been forecast. Everyone knew that the deal was done on the projections at the time and that what was lost on the swings would be picked up on the roundabouts. However, there was one underlying principle: no State would be worse off under the new financial arrangements. Now we know the truth. Not only is the GST not a bonanza, but also we are worse off. In fact, we shall be dependent on commonwealth top ups to GST revenue until at least 2004-05, when we will reach break-even point. We are missing out in the total commonwealth grants to the States. That is why we have joined with New South Wales and Victoria to call for an independent review of commonwealth-state financial relations. Our share has been in decline for nine years. We have been more than $350 million worse off over that time. Even the Greens (WA) recognise that there is a problem and that the GST is not a saviour. I do not agree with their solution. They have called for a state-based income tax. I do not agree with that, but at least they recognise that there is a problem. What do we get from the Cottesloe quisling? We hear his defence of the GST, a tax that threw the State’s economy into reverse in 2000-01. The State’s economy has declined by 1.6 per cent. Not one additional cent has been delivered to Western Australia by the GST. I hope the Liberal Party changes its leader. We need a Leader of the Opposition who will at least defend Western Australia in these matters.
Several members interjected. Mr RIPPER: Did the Leader of the Opposition hear that? Total commonwealth grants will decline by 1.6 per cent in real terms in the next financial year. That is due principally to Peter Costello reneging on a deal with the States and unilaterally cutting the grants to the States and Territories. Do members know what that will cost us over the next four years? It will cost us $83 million. That equates to the cost of constructing 16 new primary schools. That is the effect of Peter Costello ratting on that agreement and cutting our grants by $83 million. When the States agreed to the GST package, they had to give up various revenue streams. Western Australia had to give up financial institutions duty and stamp duty on listed shares. There was no scope for comeback if it transpired later that the revenue streams would have been better than had been forecast. Everyone knew that the deal was done on the projections at the time and that what was lost on the swings would be picked up on the roundabouts. However, there was one underlying principle: no State would be worse off under the new financial arrangements. Now we know the truth. Not only is the GST not a bonanza, but also we are worse off. In fact, we shall be dependent on commonwealth top ups to GST revenue until at least 2004-05, when we will reach break-even point. We are missing out in the total commonwealth grants to the States. That is why we have joined with New South Wales and Victoria to call for an independent review of commonwealth-state financial relations. Our share has been in decline for nine years. We have been more than $350 million worse off over that time. Even the Greens (WA) recognise that there is a problem and that the GST is not a saviour. I do not agree with their solution. They have called for a state-based income tax. I do not agree with that, but at least they recognise that there is a problem. What do we get from the Cottesloe quisling? We hear his defence of the GST, a tax that threw the State’s economy into reverse in 2000-01. The State’s economy has declined by 1.6 per cent. Not one additional cent has been delivered to Western Australia by the GST. I hope the Liberal Party changes its leader. We need a Leader of the Opposition who will at least defend Western Australia in these matters.
Mr RIPPER: Did the Leader of the Opposition hear that? Total commonwealth grants will decline by 1.6 per cent in real terms in the next financial year. That is due principally to Peter Costello reneging on a deal with the States and unilaterally cutting the grants to the States and Territories. Do members know what that will cost us over the next four years? It will cost us $83 million. That equates to the cost of constructing 16 new primary schools. That is the effect of Peter Costello ratting on that agreement and cutting our grants by $83 million. When the States agreed to the GST package, they had to give up various revenue streams. Western Australia had to give up financial institutions duty and stamp duty on listed shares. There was no scope for comeback if it transpired later that the revenue streams would have been better than had been forecast. Everyone knew that the deal was done on the projections at the time and that what was lost on the swings would be picked up on the roundabouts. However, there was one underlying principle: no State would be worse off under the new financial arrangements. Now we know the truth. Not only is the GST not a bonanza, but also we are worse off. In fact, we shall be dependent on commonwealth top ups to GST revenue until at least 2004-05, when we will reach break-even point. We are missing out in the total commonwealth grants to the States. That is why we have joined with New South Wales and Victoria to call for an independent review of commonwealth-state financial relations. Our share has been in decline for nine years. We have been more than $350 million worse off over that time. Even the Greens (WA) recognise that there is a problem and that the GST is not a saviour. I do not agree with their solution. They have called for a state-based income tax. I do not agree with that, but at least they recognise that there is a problem. What do we get from the Cottesloe quisling? We hear his defence of the GST, a tax that threw the State’s economy into reverse in 2000-01. The State’s economy has declined by 1.6 per cent. Not one additional cent has been delivered to Western Australia by the GST. I hope the Liberal Party changes its leader. We need a Leader of the Opposition who will at least defend Western Australia in these matters.
When the States agreed to the GST package, they had to give up various revenue streams. Western Australia had to give up financial institutions duty and stamp duty on listed shares. There was no scope for comeback if it transpired later that the revenue streams would have been better than had been forecast. Everyone knew that the deal was done on the projections at the time and that what was lost on the swings would be picked up on the roundabouts. However, there was one underlying principle: no State would be worse off under the new financial arrangements. Now we know the truth. Not only is the GST not a bonanza, but also we are worse off. In fact, we shall be dependent on commonwealth top ups to GST revenue until at least 2004-05, when we will reach break-even point. We are missing out in the total commonwealth grants to the States. That is why we have joined with New South Wales and Victoria to call for an independent review of commonwealth-state financial relations. Our share has been in decline for nine years. We have been more than $350 million worse off over that time. Even the Greens (WA) recognise that there is a problem and that the GST is not a saviour. I do not agree with their solution. They have called for a state-based income tax. I do not agree with that, but at least they recognise that there is a problem. What do we get from the Cottesloe quisling? We hear his defence of the GST, a tax that threw the State’s economy into reverse in 2000-01. The State’s economy has declined by 1.6 per cent. Not one additional cent has been delivered to Western Australia by the GST. I hope the Liberal Party changes its leader. We need a Leader of the Opposition who will at least defend Western Australia in these matters.
Even the Greens (WA) recognise that there is a problem and that the GST is not a saviour. I do not agree with their solution. They have called for a state-based income tax. I do not agree with that, but at least they recognise that there is a problem. What do we get from the Cottesloe quisling? We hear his defence of the GST, a tax that threw the State’s economy into reverse in 2000-01. The State’s economy has declined by 1.6 per cent. Not one additional cent has been delivered to Western Australia by the GST. I hope the Liberal Party changes its leader. We need a Leader of the Opposition who will at least defend Western Australia in these matters.
Mr RIPPER replied: We are talking about the leading economic commentator who cannot add up yet. An earlier answer referred to the sort of budget management record that the Leader of the Opposition and his colleagues delivered. One reason the previous Government had such trouble with this budget was that the Leader of the Opposition was the sort of minister who made commitments and decisions without funding them; for example, he did not provide funding for the laptop computers for teachers. We have gone over these examples on a number of occasions. Mr Barnett: Every single thing I promised I delivered. Mr RIPPER: The Leader of the Opposition announced a whole lot of things, but he did not provide the funding for them. He is equally reckless with the facts when he talks about commonwealth grants. At a quarter to eight this morning, he said on ABC radio that the GST has produced an extra $263 million in revenue to the State Government, and that it is starting to now pay off for the State. However, by five minutes to 10 he said on Paul Murray’s radio program that although it is still progressively being phased in, the GST will be a real financial windfall for the States, particularly Western Australia. In two hours, the GST windfall that we were supposed to get had turned into only a prospective windfall. I will make it clear: the total commonwealth grants to Western Australia, including the GST revenue, will decline in real terms by 1.6 per cent in 2002-03. Several members interjected. Mr RIPPER: Did the Leader of the Opposition hear that? Total commonwealth grants will decline by 1.6 per cent in real terms in the next financial year. That is due principally to Peter Costello reneging on a deal with the States and unilaterally cutting the grants to the States and Territories. Do members know what that will cost us over the next four years? It will cost us $83 million. That equates to the cost of constructing 16 new primary schools. That is the effect of Peter Costello ratting on that agreement and cutting our grants by $83 million. When the States agreed to the GST package, they had to give up various revenue streams. Western Australia had to give up financial institutions duty and stamp duty on listed shares. There was no scope for comeback if it transpired later that the revenue streams would have been better than had been forecast. Everyone knew that the deal was done on the projections at the time and that what was lost on the swings would be picked up on the roundabouts. However, there was one underlying principle: no State would be worse off under the new financial arrangements. Now we know the truth. Not only is the GST not a bonanza, but also we are worse off. In fact, we shall be dependent on commonwealth top ups to GST revenue until at least 2004-05, when we will reach break-even point. We are missing out in the total commonwealth grants to the States. That is why we have joined with New South Wales and Victoria to call for an independent review of commonwealth-state financial relations. Our share has been in decline for nine years. We have been more than $350 million worse off over that time. Even the Greens (WA) recognise that there is a problem and that the GST is not a saviour. I do not agree with their solution. They have called for a state-based income tax. I do not agree with that, but at least they recognise that there is a problem. What do we get from the Cottesloe quisling? We hear his defence of the GST, a tax that threw the State’s economy into reverse in 2000-01. The State’s economy has declined by 1.6 per cent. Not one additional cent has been delivered to Western Australia by the GST. I hope the Liberal Party changes its leader. We need a Leader of the Opposition who will at least defend Western Australia in these matters.
We are talking about the leading economic commentator who cannot add up yet. An earlier answer referred to the sort of budget management record that the Leader of the Opposition and his colleagues delivered. One reason the previous Government had such trouble with this budget was that the Leader of the Opposition was the sort of minister who made commitments and decisions without funding them; for example, he did not provide funding for the laptop computers for teachers. We have gone over these examples on a number of occasions. Mr Barnett: Every single thing I promised I delivered. Mr RIPPER: The Leader of the Opposition announced a whole lot of things, but he did not provide the funding for them. He is equally reckless with the facts when he talks about commonwealth grants. At a quarter to eight this morning, he said on ABC radio that the GST has produced an extra $263 million in revenue to the State Government, and that it is starting to now pay off for the State. However, by five minutes to 10 he said on Paul Murray’s radio program that although it is still progressively being phased in, the GST will be a real financial windfall for the States, particularly Western Australia. In two hours, the GST windfall that we were supposed to get had turned into only a prospective windfall. I will make it clear: the total commonwealth grants to Western Australia, including the GST revenue, will decline in real terms by 1.6 per cent in 2002-03. Several members interjected. Mr RIPPER: Did the Leader of the Opposition hear that? Total commonwealth grants will decline by 1.6 per cent in real terms in the next financial year. That is due principally to Peter Costello reneging on a deal with the States and unilaterally cutting the grants to the States and Territories. Do members know what that will cost us over the next four years? It will cost us $83 million. That equates to the cost of constructing 16 new primary schools. That is the effect of Peter Costello ratting on that agreement and cutting our grants by $83 million. When the States agreed to the GST package, they had to give up various revenue streams. Western Australia had to give up financial institutions duty and stamp duty on listed shares. There was no scope for comeback if it transpired later that the revenue streams would have been better than had been forecast. Everyone knew that the deal was done on the projections at the time and that what was lost on the swings would be picked up on the roundabouts. However, there was one underlying principle: no State would be worse off under the new financial arrangements. Now we know the truth. Not only is the GST not a bonanza, but also we are worse off. In fact, we shall be dependent on commonwealth top ups to GST revenue until at least 2004-05, when we will reach break-even point. We are missing out in the total commonwealth grants to the States. That is why we have joined with New South Wales and Victoria to call for an independent review of commonwealth-state financial relations. Our share has been in decline for nine years. We have been more than $350 million worse off over that time. Even the Greens (WA) recognise that there is a problem and that the GST is not a saviour. I do not agree with their solution. They have called for a state-based income tax. I do not agree with that, but at least they recognise that there is a problem. What do we get from the Cottesloe quisling? We hear his defence of the GST, a tax that threw the State’s economy into reverse in 2000-01. The State’s economy has declined by 1.6 per cent. Not one additional cent has been delivered to Western Australia by the GST. I hope the Liberal Party changes its leader. We need a Leader of the Opposition who will at least defend Western Australia in these matters.
Mr Barnett: Every single thing I promised I delivered. Mr RIPPER: The Leader of the Opposition announced a whole lot of things, but he did not provide the funding for them. He is equally reckless with the facts when he talks about commonwealth grants. At a quarter to eight this morning, he said on ABC radio that the GST has produced an extra $263 million in revenue to the State Government, and that it is starting to now pay off for the State. However, by five minutes to 10 he said on Paul Murray’s radio program that although it is still progressively being phased in, the GST will be a real financial windfall for the States, particularly Western Australia. In two hours, the GST windfall that we were supposed to get had turned into only a prospective windfall. I will make it clear: the total commonwealth grants to Western Australia, including the GST revenue, will decline in real terms by 1.6 per cent in 2002-03. Several members interjected. Mr RIPPER: Did the Leader of the Opposition hear that? Total commonwealth grants will decline by 1.6 per cent in real terms in the next financial year. That is due principally to Peter Costello reneging on a deal with the States and unilaterally cutting the grants to the States and Territories. Do members know what that will cost us over the next four years? It will cost us $83 million. That equates to the cost of constructing 16 new primary schools. That is the effect of Peter Costello ratting on that agreement and cutting our grants by $83 million. When the States agreed to the GST package, they had to give up various revenue streams. Western Australia had to give up financial institutions duty and stamp duty on listed shares. There was no scope for comeback if it transpired later that the revenue streams would have been better than had been forecast. Everyone knew that the deal was done on the projections at the time and that what was lost on the swings would be picked up on the roundabouts. However, there was one underlying principle: no State would be worse off under the new financial arrangements. Now we know the truth. Not only is the GST not a bonanza, but also we are worse off. In fact, we shall be dependent on commonwealth top ups to GST revenue until at least 2004-05, when we will reach break-even point. We are missing out in the total commonwealth grants to the States. That is why we have joined with New South Wales and Victoria to call for an independent review of commonwealth-state financial relations. Our share has been in decline for nine years. We have been more than $350 million worse off over that time. Even the Greens (WA) recognise that there is a problem and that the GST is not a saviour. I do not agree with their solution. They have called for a state-based income tax. I do not agree with that, but at least they recognise that there is a problem. What do we get from the Cottesloe quisling? We hear his defence of the GST, a tax that threw the State’s economy into reverse in 2000-01. The State’s economy has declined by 1.6 per cent. Not one additional cent has been delivered to Western Australia by the GST. I hope the Liberal Party changes its leader. We need a Leader of the Opposition who will at least defend Western Australia in these matters.
Mr RIPPER: The Leader of the Opposition announced a whole lot of things, but he did not provide the funding for them. He is equally reckless with the facts when he talks about commonwealth grants. At a quarter to eight this morning, he said on ABC radio that the GST has produced an extra $263 million in revenue to the State Government, and that it is starting to now pay off for the State. However, by five minutes to 10 he said on Paul Murray’s radio program that although it is still progressively being phased in, the GST will be a real financial windfall for the States, particularly Western Australia. In two hours, the GST windfall that we were supposed to get had turned into only a prospective windfall. I will make it clear: the total commonwealth grants to Western Australia, including the GST revenue, will decline in real terms by 1.6 per cent in 2002-03. Several members interjected. Mr RIPPER: Did the Leader of the Opposition hear that? Total commonwealth grants will decline by 1.6 per cent in real terms in the next financial year. That is due principally to Peter Costello reneging on a deal with the States and unilaterally cutting the grants to the States and Territories. Do members know what that will cost us over the next four years? It will cost us $83 million. That equates to the cost of constructing 16 new primary schools. That is the effect of Peter Costello ratting on that agreement and cutting our grants by $83 million. When the States agreed to the GST package, they had to give up various revenue streams. Western Australia had to give up financial institutions duty and stamp duty on listed shares. There was no scope for comeback if it transpired later that the revenue streams would have been better than had been forecast. Everyone knew that the deal was done on the projections at the time and that what was lost on the swings would be picked up on the roundabouts. However, there was one underlying principle: no State would be worse off under the new financial arrangements. Now we know the truth. Not only is the GST not a bonanza, but also we are worse off. In fact, we shall be dependent on commonwealth top ups to GST revenue until at least 2004-05, when we will reach break-even point. We are missing out in the total commonwealth grants to the States. That is why we have joined with New South Wales and Victoria to call for an independent review of commonwealth-state financial relations. Our share has been in decline for nine years. We have been more than $350 million worse off over that time. Even the Greens (WA) recognise that there is a problem and that the GST is not a saviour. I do not agree with their solution. They have called for a state-based income tax. I do not agree with that, but at least they recognise that there is a problem. What do we get from the Cottesloe quisling? We hear his defence of the GST, a tax that threw the State’s economy into reverse in 2000-01. The State’s economy has declined by 1.6 per cent. Not one additional cent has been delivered to Western Australia by the GST. I hope the Liberal Party changes its leader. We need a Leader of the Opposition who will at least defend Western Australia in these matters.
Several members interjected. Mr RIPPER: Did the Leader of the Opposition hear that? Total commonwealth grants will decline by 1.6 per cent in real terms in the next financial year. That is due principally to Peter Costello reneging on a deal with the States and unilaterally cutting the grants to the States and Territories. Do members know what that will cost us over the next four years? It will cost us $83 million. That equates to the cost of constructing 16 new primary schools. That is the effect of Peter Costello ratting on that agreement and cutting our grants by $83 million. When the States agreed to the GST package, they had to give up various revenue streams. Western Australia had to give up financial institutions duty and stamp duty on listed shares. There was no scope for comeback if it transpired later that the revenue streams would have been better than had been forecast. Everyone knew that the deal was done on the projections at the time and that what was lost on the swings would be picked up on the roundabouts. However, there was one underlying principle: no State would be worse off under the new financial arrangements. Now we know the truth. Not only is the GST not a bonanza, but also we are worse off. In fact, we shall be dependent on commonwealth top ups to GST revenue until at least 2004-05, when we will reach break-even point. We are missing out in the total commonwealth grants to the States. That is why we have joined with New South Wales and Victoria to call for an independent review of commonwealth-state financial relations. Our share has been in decline for nine years. We have been more than $350 million worse off over that time. Even the Greens (WA) recognise that there is a problem and that the GST is not a saviour. I do not agree with their solution. They have called for a state-based income tax. I do not agree with that, but at least they recognise that there is a problem. What do we get from the Cottesloe quisling? We hear his defence of the GST, a tax that threw the State’s economy into reverse in 2000-01. The State’s economy has declined by 1.6 per cent. Not one additional cent has been delivered to Western Australia by the GST. I hope the Liberal Party changes its leader. We need a Leader of the Opposition who will at least defend Western Australia in these matters.
Mr RIPPER: Did the Leader of the Opposition hear that? Total commonwealth grants will decline by 1.6 per cent in real terms in the next financial year. That is due principally to Peter Costello reneging on a deal with the States and unilaterally cutting the grants to the States and Territories. Do members know what that will cost us over the next four years? It will cost us $83 million. That equates to the cost of constructing 16 new primary schools. That is the effect of Peter Costello ratting on that agreement and cutting our grants by $83 million. When the States agreed to the GST package, they had to give up various revenue streams. Western Australia had to give up financial institutions duty and stamp duty on listed shares. There was no scope for comeback if it transpired later that the revenue streams would have been better than had been forecast. Everyone knew that the deal was done on the projections at the time and that what was lost on the swings would be picked up on the roundabouts. However, there was one underlying principle: no State would be worse off under the new financial arrangements. Now we know the truth. Not only is the GST not a bonanza, but also we are worse off. In fact, we shall be dependent on commonwealth top ups to GST revenue until at least 2004-05, when we will reach break-even point. We are missing out in the total commonwealth grants to the States. That is why we have joined with New South Wales and Victoria to call for an independent review of commonwealth-state financial relations. Our share has been in decline for nine years. We have been more than $350 million worse off over that time. Even the Greens (WA) recognise that there is a problem and that the GST is not a saviour. I do not agree with their solution. They have called for a state-based income tax. I do not agree with that, but at least they recognise that there is a problem. What do we get from the Cottesloe quisling? We hear his defence of the GST, a tax that threw the State’s economy into reverse in 2000-01. The State’s economy has declined by 1.6 per cent. Not one additional cent has been delivered to Western Australia by the GST. I hope the Liberal Party changes its leader. We need a Leader of the Opposition who will at least defend Western Australia in these matters.
When the States agreed to the GST package, they had to give up various revenue streams. Western Australia had to give up financial institutions duty and stamp duty on listed shares. There was no scope for comeback if it transpired later that the revenue streams would have been better than had been forecast. Everyone knew that the deal was done on the projections at the time and that what was lost on the swings would be picked up on the roundabouts. However, there was one underlying principle: no State would be worse off under the new financial arrangements. Now we know the truth. Not only is the GST not a bonanza, but also we are worse off. In fact, we shall be dependent on commonwealth top ups to GST revenue until at least 2004-05, when we will reach break-even point. We are missing out in the total commonwealth grants to the States. That is why we have joined with New South Wales and Victoria to call for an independent review of commonwealth-state financial relations. Our share has been in decline for nine years. We have been more than $350 million worse off over that time. Even the Greens (WA) recognise that there is a problem and that the GST is not a saviour. I do not agree with their solution. They have called for a state-based income tax. I do not agree with that, but at least they recognise that there is a problem. What do we get from the Cottesloe quisling? We hear his defence of the GST, a tax that threw the State’s economy into reverse in 2000-01. The State’s economy has declined by 1.6 per cent. Not one additional cent has been delivered to Western Australia by the GST. I hope the Liberal Party changes its leader. We need a Leader of the Opposition who will at least defend Western Australia in these matters.
Even the Greens (WA) recognise that there is a problem and that the GST is not a saviour. I do not agree with their solution. They have called for a state-based income tax. I do not agree with that, but at least they recognise that there is a problem. What do we get from the Cottesloe quisling? We hear his defence of the GST, a tax that threw the State’s economy into reverse in 2000-01. The State’s economy has declined by 1.6 per cent. Not one additional cent has been delivered to Western Australia by the GST. I hope the Liberal Party changes its leader. We need a Leader of the Opposition who will at least defend Western Australia in these matters.
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