❓ Opposition asks about the timeline for repaying WA's public sector net debt, given iron ore royalty revenue. The Minister avoids providing specific dates, highlighting the government's COVID-19 response and past debt reduction efforts.
AnsweredQoN 114Legislative Council
QuestionView source ↗
IRON
ORE ROYALTY REVENUE
114. Hon Dr STEVE THOMAS to the minister representing the
Treasurer:
I refer to question without notice 2 asked on 29 April 2021
in which the Treasurer identified that $5.219 billion of iron ore royalty
income had been received in the first half of the 2020–21 financial
year.
(1) With
public sector net debt projected to reach $40.2 billion dollars by 30 June
2024, how long will it take for that net debt to be repaid?
(2) When will public sector net debt start to be reduced
every year and by how much?
(3) What average growth in gross state product is required to
meet this debt repayment time line?
(4) How much
public sector net debt has been paid down since the McGowan government was
elected in March 2017?
ORE ROYALTY REVENUE
114. Hon Dr STEVE THOMAS to the minister representing the
Treasurer:
I refer to question without notice 2 asked on 29 April 2021
in which the Treasurer identified that $5.219 billion of iron ore royalty
income had been received in the first half of the 2020–21 financial
year.
(1) With
public sector net debt projected to reach $40.2 billion dollars by 30 June
2024, how long will it take for that net debt to be repaid?
(2) When will public sector net debt start to be reduced
every year and by how much?
(3) What average growth in gross state product is required to
meet this debt repayment time line?
(4) How much
public sector net debt has been paid down since the McGowan government was
elected in March 2017?
AnswerView source ↗
I thank the
Leader of the Opposition for some notice of the question.
(1) The
Department of Treasury advises a specific date for the repayment of the current
forecast for net debt is not available. The McGowan Labor government has made
the hard decision to repair the finances. Prior to COVID-19, net debt was
around $9 billion lower than what was forecast by the previous government. This
provided the capacity to respond to COVID-19 with an unprecedented response of
more than $7 billion committed to support households and businesses and the Western
Australian economy, as well as a record $28.9 billion investment in
infrastructure. Despite this, Western Australia's economy and finances
are amongst the best in the world.
(2) Prior to COVID-19, Western Australia was the only
state with debt decreasing. Net debt declined by $2.1 billion in 2019–20,
for the first time since 2006–07. The McGowan Labor government made the responsible decision to change its focus
from repaying debt to supporting households and businesses through the
COVID-19 pandemic and our state's economy recovery. In 2023–24,
net debt is projected to begin to decline again, and may occur earlier,
something the previous Liberal–National government was never able to
achieve.
Hon Dr Steve Thomas interjected.
Hon STEPHEN DAWSON : Honourable member, I am struggling
to hear myself, and if I cannot hear myself, I am not giving the rest of the
answer.
The PRESIDENT : All right. Members, it is our last
sitting day for this Parliament. Please listen to this minister in silence.
Hon STEPHEN
DAWSON :
(3) There is no simple direct relationship between the
rate of growth in gross state product and the pace of debt retirement. There
are many factors that will determine the capacity and speed of which debt can
be repaid.
(4) See responses to (1) and (2).
Leader of the Opposition for some notice of the question.
(1) The
Department of Treasury advises a specific date for the repayment of the current
forecast for net debt is not available. The McGowan Labor government has made
the hard decision to repair the finances. Prior to COVID-19, net debt was
around $9 billion lower than what was forecast by the previous government. This
provided the capacity to respond to COVID-19 with an unprecedented response of
more than $7 billion committed to support households and businesses and the Western
Australian economy, as well as a record $28.9 billion investment in
infrastructure. Despite this, Western Australia's economy and finances
are amongst the best in the world.
(2) Prior to COVID-19, Western Australia was the only
state with debt decreasing. Net debt declined by $2.1 billion in 2019–20,
for the first time since 2006–07. The McGowan Labor government made the responsible decision to change its focus
from repaying debt to supporting households and businesses through the
COVID-19 pandemic and our state's economy recovery. In 2023–24,
net debt is projected to begin to decline again, and may occur earlier,
something the previous Liberal–National government was never able to
achieve.
Hon Dr Steve Thomas interjected.
Hon STEPHEN DAWSON : Honourable member, I am struggling
to hear myself, and if I cannot hear myself, I am not giving the rest of the
answer.
The PRESIDENT : All right. Members, it is our last
sitting day for this Parliament. Please listen to this minister in silence.
Hon STEPHEN
DAWSON :
(3) There is no simple direct relationship between the
rate of growth in gross state product and the pace of debt retirement. There
are many factors that will determine the capacity and speed of which debt can
be repaid.
(4) See responses to (1) and (2).
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