❓ Ms. Freeman asks about the benefits of debt reduction and WA's fiscal resolve compared to other states. The Treasurer responds by highlighting WA's debt reduction compared to other states and criticizes the previous government's financial management.
AnsweredQoN 490Legislative Assembly
QuestionView source ↗
STATE
FINANCES — FINANCIAL MANAGEMENT
490. Ms J.M. FREEMAN to the Treasurer:
I refer to the responsible financial
management of the McGowan Labor government, which has already seen a $4.1 billion
reduction in the debt it inherited from the previous Liberal–National
government.
(1) Can the
Treasurer outline to the house how driving down debt will benefit all Western Australians?
(2) Can the Treasurer advise the
house how this government's strong fiscal resolve to reducing net debt
compares with that of other states?
FINANCES — FINANCIAL MANAGEMENT
490. Ms J.M. FREEMAN to the Treasurer:
I refer to the responsible financial
management of the McGowan Labor government, which has already seen a $4.1 billion
reduction in the debt it inherited from the previous Liberal–National
government.
(1) Can the
Treasurer outline to the house how driving down debt will benefit all Western Australians?
(2) Can the Treasurer advise the
house how this government's strong fiscal resolve to reducing net debt
compares with that of other states?
AnswerView source ↗
(1)–(2) Yesterday's The Australian carried on the front page a story about the level of debt
that has been taken on by the states of our nation under the headline ''States
climb $180bn debt mountain''. It included a nice colourful graph highlighting the net debt of all the states now, and the
net debt they are expected to have in 2022–23. Only one state had the
2022–23 graph smaller than the 2017–18 graph. Of course, that was
Western Australia. I am intrigued by the growing reference by the opposition to
the term ''domestic recession'' and its complaints about that. In
the years 2012–13, 2013–14, 2014–15, 2015–16 and 2016–17 the state final demand of this
nation did not grow—not once. Into that economy the Leader of the Opposition and the then Minister for Finance, the member for Bateman,
introduced three increases in land tax, which is why historically we see rates
of negative equity, as the member for Bateman likes to talk about, increase
more rapidly for owner–occupiers. We see that increase more rapidly now
in investment properties. Why is that? It is because of the three increases in
land tax that the Leader of the Opposition and the then finance minister, the
member for Bateman, introduced into that domestic recession—five years
thereof. In the last two years of the former government the state economy
shrank by 11 per cent. It stripped out over $6 billion from the domestic
economy. They talk about state final demand and the fact that turning that ship
has been an enormous effort by this government, and it is turning. That is why Western
Australia's domestic economy and gross state product are expected to
grow the strongest across the forward estimates compared with all other states.
The state is also expected to have
the strongest employment growth across the forward estimates compared with all
states in the nation, as opposed to the former government whose entire second
term lost a net 670 jobs. In four years of government it did not increase the
workforce at all. That is the record of the former Liberal–National
government. I know members opposite are agitated by the fact that the Premier
has been able to secure a fairer GST arrangement for WA, but of course it is
not all about revenue, and that is the fundamental problem. Already,
commitments have been made by the Leader of the Opposition. She has already
said that we should give the wage rise as asked—just a lazy $850 million
impact across the forwards. She has already committed to Roe 8 and Roe 9; a $1.8
billion impact because the state will have to fund its component of those
projects as well. However, it is not just about revenue; it is also about what
we do with what we can control. That is why, as the Premier outlined yesterday,
Chris Rodwell, the head of the Chamber of Commerce and Industry of Western Australia,
says —
''Western Australia is � the
only state managing to reduce its debt over the forward estimates.''
Puts in perspective expenditure control and debt reduction strategy of WA
Government. Not just about iron ore royalties and GST distribution.
That is correct. I suspect that with
the rhetoric being run by the Leader of the Opposition, the DNA built into the
mob opposite over 20 years in government highlights the fact that regardless of
what the revenue of the state will be, they will always spend above and beyond
it. That is what we know about the Liberals: they cannot find a bucket of money
that they cannot spend more than once. That is what they do. They always have the response: find yourself a problem
and you can always spend your way out. Those days are over. That is why we are getting credit rating
upgrades. That is why organisations such as the Chamber o f Minerals and
Energy and the CCI make those sorts of positive comments about the financial
management of this government. It is always in comparison. It is a comparison
to the eight and a half years of what the Liberal–National government
left us in 2017.
that has been taken on by the states of our nation under the headline ''States
climb $180bn debt mountain''. It included a nice colourful graph highlighting the net debt of all the states now, and the
net debt they are expected to have in 2022–23. Only one state had the
2022–23 graph smaller than the 2017–18 graph. Of course, that was
Western Australia. I am intrigued by the growing reference by the opposition to
the term ''domestic recession'' and its complaints about that. In
the years 2012–13, 2013–14, 2014–15, 2015–16 and 2016–17 the state final demand of this
nation did not grow—not once. Into that economy the Leader of the Opposition and the then Minister for Finance, the member for Bateman,
introduced three increases in land tax, which is why historically we see rates
of negative equity, as the member for Bateman likes to talk about, increase
more rapidly for owner–occupiers. We see that increase more rapidly now
in investment properties. Why is that? It is because of the three increases in
land tax that the Leader of the Opposition and the then finance minister, the
member for Bateman, introduced into that domestic recession—five years
thereof. In the last two years of the former government the state economy
shrank by 11 per cent. It stripped out over $6 billion from the domestic
economy. They talk about state final demand and the fact that turning that ship
has been an enormous effort by this government, and it is turning. That is why Western
Australia's domestic economy and gross state product are expected to
grow the strongest across the forward estimates compared with all other states.
The state is also expected to have
the strongest employment growth across the forward estimates compared with all
states in the nation, as opposed to the former government whose entire second
term lost a net 670 jobs. In four years of government it did not increase the
workforce at all. That is the record of the former Liberal–National
government. I know members opposite are agitated by the fact that the Premier
has been able to secure a fairer GST arrangement for WA, but of course it is
not all about revenue, and that is the fundamental problem. Already,
commitments have been made by the Leader of the Opposition. She has already
said that we should give the wage rise as asked—just a lazy $850 million
impact across the forwards. She has already committed to Roe 8 and Roe 9; a $1.8
billion impact because the state will have to fund its component of those
projects as well. However, it is not just about revenue; it is also about what
we do with what we can control. That is why, as the Premier outlined yesterday,
Chris Rodwell, the head of the Chamber of Commerce and Industry of Western Australia,
says —
''Western Australia is � the
only state managing to reduce its debt over the forward estimates.''
Puts in perspective expenditure control and debt reduction strategy of WA
Government. Not just about iron ore royalties and GST distribution.
That is correct. I suspect that with
the rhetoric being run by the Leader of the Opposition, the DNA built into the
mob opposite over 20 years in government highlights the fact that regardless of
what the revenue of the state will be, they will always spend above and beyond
it. That is what we know about the Liberals: they cannot find a bucket of money
that they cannot spend more than once. That is what they do. They always have the response: find yourself a problem
and you can always spend your way out. Those days are over. That is why we are getting credit rating
upgrades. That is why organisations such as the Chamber o f Minerals and
Energy and the CCI make those sorts of positive comments about the financial
management of this government. It is always in comparison. It is a comparison
to the eight and a half years of what the Liberal–National government
left us in 2017.
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