Mr. Wyatt questions the Treasurer on how the government plans to reduce expenditure growth from 9% to 3.5%. The Treasurer responds by highlighting wage increases in the past and new reforms to control wage growth at the inflation rate.

AnsweredQoN 334Legislative Assembly
Asked
13 May 2014
Portfolio
Treasurer

QuestionView source ↗

STATE
BUDGET 2014–15 — FORECASTS
334. Mr B.S. WYATT to the
Treasurer:
I have a supplementary question. In light of the fact that
expenditure has grown at an average of nine per cent over the last five years
and the Treasurer is assuming three and a half per cent over the next four
years, how does he anticipate keeping it that low?

AnswerView source ↗

A lot of reforms put in place in the
last budget are coming through. In past years, particularly when we came into government
in 2008, we did. Importantly, 45 per cent of total expenditure is for wages. We
had to meet the market with wages, so we gave our public servants very large
wage increases to match the market, and the market demands were twofold. To get
teachers in front of classrooms and people in Western Power to build the
powerlines or people to work in Water Corp or other organisations, we had to
match the wage rates in the private sector in WA and match the wage rates in
the eastern states. We did more than that.
Mr
B.S. Wyatt : Yes, absolutely!
Dr
M.D. NAHAN : Yes, our public servants are the highest paid in the nation. We
are not running away from that. By the way, our plumbers, electricians and
builder's labourers are also the highest paid in the nation. In the
last budget we put in place a wages program to hold wage increases in
enterprise bargaining agreements to the inflation rate, which is 2.75 per cent.
We are going to hold to that. I expect people on the opposite side to support
this. With our Workforce Reform Bill 2013, what did they do? They voted against
every effort to control wage rates and costs in this state—every one!
Several members interjected.
Dr
M.D. NAHAN : I do not know why. But it is a party that is owned, managed and
controlled by the union movement, so why would we expect them to control wage
rates? Do members remember that in his previous life the now member for
Bassendean was out here banging on about higher and higher wages? Now he is
criticising us for giving them!
Several members interjected.
The SPEAKER :
Member for Willagee, I call you to order for the second time.
Dr M.D. NAHAN : We
have put in place a whole series of reforms that drive efficiencies in the
public sector, including maintaining wage rates at 2.75 per cent or the inflation
rate going forward. That is what has to be done, and that is what we are
planning to do.

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