❓ Mrs. Stojkovski asks the Treasurer about the government's financial management and its impact on business confidence and economic volatility. The Treasurer responds by highlighting improvements in the state's financial position and economic indicators since the previous government.
AnsweredQoN 12Legislative Assembly
QuestionView source ↗
STATE FINANCES —
FINANCIAL MANAGEMENT
12. Mrs J.M.C. STOJKOVSKI to the Treasurer:
I refer to the McGowan Labor
government's commitment to strong financial management and paying down
the mountain of debt it inherited from the Barnett–Harvey Liberal–National
government.
(1) Can the
Treasurer update the house on how this government's strong financial
management is providing confidence to businesses in Western Australia to create
jobs and drive the economy?
(2) Can the
Treasurer advise the house on how this strong financial management will help
the government in dealing with any global or national economic volatility?
FINANCIAL MANAGEMENT
12. Mrs J.M.C. STOJKOVSKI to the Treasurer:
I refer to the McGowan Labor
government's commitment to strong financial management and paying down
the mountain of debt it inherited from the Barnett–Harvey Liberal–National
government.
(1) Can the
Treasurer update the house on how this government's strong financial
management is providing confidence to businesses in Western Australia to create
jobs and drive the economy?
(2) Can the
Treasurer advise the house on how this strong financial management will help
the government in dealing with any global or national economic volatility?
AnswerView source ↗
(1)–(2) I
thank the member for Kingsley for her very good question. I do recall, and I have
said in this place a number of times over the last three years, that when I became
Treasurer in an economy in a recession, with the largest operating deficits on
record and net debt bursting through $42 billion, I was terrified, at the time,
that there would be a global shock that the state could not react to. We had no
capacity to react to emerging issues, whether it be another sudden decline in
the iron ore price or whatever it may be. It is worth reflecting that had
coronavirus hit over the summer of 2016–17, as opposed to over the
summer of 2019–20, whether the state would have been in a position to
actually respond—of course not. This is why we spent so much time and
effort on strong financial management. That in itself is not the end; the end
is ensuring that Western Australia, whether it be this government or future
governments, has the capacity to respond to
emerging issues. I can guarantee that had that happened in 2016–17,
there is no way we could have cut payroll tax like we have done. There
is no way we could have halved TAFE fees like we have done. There is no way we
could have spent $300 million on a maintenance spend on schools and hospitals
like we are doing, and, certainly, there is no way we could not have had a return
to a much stronger credit rating than we do at the moment.
I was interested to hear the Leader
of the Opposition reference Mr Morey, who used to be in my office before he
went down to the Chamber of Commerce and Industry of Western Australia. I taught
him all he knows. Indeed, I was delighted
with the CCI's outlook—this is what the CCI is forecasting: the
strongest economic growth in six years, the strongest growth and
business investment in seven years and the lowest unemployment rate in five years. I think those are pretty good outcomes.
When we look at all the data that we are seeing now, including what has
been an area of weakness for some time now around retail and housing, we are
starting to see better data, which is very useful for the ongoing efforts of
the McGowan government to create jobs.
One final point that I want to make
is this. The Leader of the Opposition asked the Premier a very specific
question around bankruptcies. Bankruptcies are, of course, a subset of personal
insolvencies. There are a range of other
insolvency measures one could take, such as part 9 et cetera. Between 2017–18
and 2018–19, total personal
insolvency reduced by 13 per cent. I knew I had the bankruptcy data downstairs
in my office and I had it sent up to me. In the December quarter, bankruptcies
fell by 9.4 per cent, and in annual average terms bankruptcies in WA are
falling by seven per cent. I still want put on the record that the record
increase in bankruptcies occurred under the former Barnett–Harvey
government. In 2015–16, bankruptcies grew by 22.7 per cent in annual
average terms. At no other point have bankruptcies grown by that much.
Several members interjected.
The SPEAKER : Members!
Mr B.S. WYATT : Indeed, in the
last year of the Liberal–National government bankruptcies grew by 11 per
cent. At the moment, they are falling on an annual average terms by 70 per cent.
Bankruptcies, of course, as I said, are a subset of personal insolvencies that
are also declining year on year, which is a good thing. There are a range of
reasons that feed into personal insolvencies, bankruptcies and restructures—you
name it. But the reality is after doing that under the Liberals, they are now
slowly declining under Labor.
thank the member for Kingsley for her very good question. I do recall, and I have
said in this place a number of times over the last three years, that when I became
Treasurer in an economy in a recession, with the largest operating deficits on
record and net debt bursting through $42 billion, I was terrified, at the time,
that there would be a global shock that the state could not react to. We had no
capacity to react to emerging issues, whether it be another sudden decline in
the iron ore price or whatever it may be. It is worth reflecting that had
coronavirus hit over the summer of 2016–17, as opposed to over the
summer of 2019–20, whether the state would have been in a position to
actually respond—of course not. This is why we spent so much time and
effort on strong financial management. That in itself is not the end; the end
is ensuring that Western Australia, whether it be this government or future
governments, has the capacity to respond to
emerging issues. I can guarantee that had that happened in 2016–17,
there is no way we could have cut payroll tax like we have done. There
is no way we could have halved TAFE fees like we have done. There is no way we
could have spent $300 million on a maintenance spend on schools and hospitals
like we are doing, and, certainly, there is no way we could not have had a return
to a much stronger credit rating than we do at the moment.
I was interested to hear the Leader
of the Opposition reference Mr Morey, who used to be in my office before he
went down to the Chamber of Commerce and Industry of Western Australia. I taught
him all he knows. Indeed, I was delighted
with the CCI's outlook—this is what the CCI is forecasting: the
strongest economic growth in six years, the strongest growth and
business investment in seven years and the lowest unemployment rate in five years. I think those are pretty good outcomes.
When we look at all the data that we are seeing now, including what has
been an area of weakness for some time now around retail and housing, we are
starting to see better data, which is very useful for the ongoing efforts of
the McGowan government to create jobs.
One final point that I want to make
is this. The Leader of the Opposition asked the Premier a very specific
question around bankruptcies. Bankruptcies are, of course, a subset of personal
insolvencies. There are a range of other
insolvency measures one could take, such as part 9 et cetera. Between 2017–18
and 2018–19, total personal
insolvency reduced by 13 per cent. I knew I had the bankruptcy data downstairs
in my office and I had it sent up to me. In the December quarter, bankruptcies
fell by 9.4 per cent, and in annual average terms bankruptcies in WA are
falling by seven per cent. I still want put on the record that the record
increase in bankruptcies occurred under the former Barnett–Harvey
government. In 2015–16, bankruptcies grew by 22.7 per cent in annual
average terms. At no other point have bankruptcies grown by that much.
Several members interjected.
The SPEAKER : Members!
Mr B.S. WYATT : Indeed, in the
last year of the Liberal–National government bankruptcies grew by 11 per
cent. At the moment, they are falling on an annual average terms by 70 per cent.
Bankruptcies, of course, as I said, are a subset of personal insolvencies that
are also declining year on year, which is a good thing. There are a range of
reasons that feed into personal insolvencies, bankruptcies and restructures—you
name it. But the reality is after doing that under the Liberals, they are now
slowly declining under Labor.
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