❓ A parliamentary question and answer regarding WA's return to a budget surplus under the McGowan Labor government. The Treasurer highlights the government's responsible financial management, GST reform, and investments in job-creating projects, while contrasting it with the previous Liberal-National government's spending and economic performance.
AnsweredQoN 866Legislative Assembly
QuestionView source ↗
STATE FINANCES —
SURPLUS
866. Mr T.J. HEALY to the Treasurer:
I refer to the responsible
financial management of the McGowan Labor government, which has turned around record deficits of the former Liberal–National
government and delivered WA's first surplus in five years. Can the Treasurer
outline to the house what this surplus means for this government's
ability to continue to invest in job-creating projects and initiatives that
boost the economy, and can the Treasurer advise how this surplus will help
protect the state against any financial risks or volatility?
SURPLUS
866. Mr T.J. HEALY to the Treasurer:
I refer to the responsible
financial management of the McGowan Labor government, which has turned around record deficits of the former Liberal–National
government and delivered WA's first surplus in five years. Can the Treasurer
outline to the house what this surplus means for this government's
ability to continue to invest in job-creating projects and initiatives that
boost the economy, and can the Treasurer advise how this surplus will help
protect the state against any financial risks or volatility?
AnswerView source ↗
I thank the member for Southern
River for that question. Before I answer it, I also acknowledge the work done
by John and Kate Delaney. My first child was stillborn, and I want to thank
them for the work that they do.
The Annual Report on State
Finances was a watershed moment in the finances of the last decade. For the
first time in five years, the state is now back in a surplus position. There
are a number of reasons for that. I know the opposition
will complain that it is all revenue, and I will say that revenue has been
helpful. One reason is the GST reform negotiated by the Premier with
former Prime Minister Turnbull and Scott Morrison. It was a good effort. In
fact, I think that when Premier McGowan looks back on his time as a successful
Premier, that will be one of the more significant reforms that the state will
benefit from for many years to come. That is the reality. That stings the
opposition—I understand that—but that is the reality. For eight
and a half years, I watched Colin Barnett stand there and complain about the
GST, but he did not get any reform done. That was something very much delivered
by this state Labor government.
Of course, there was the other
component: the former government spent in a way that I think shocked pretty
much any political observer in the country. No-one had seen that sort of spend.
I remind the opposition that in the first two years of the former government,
spending grew by 26 per cent. The efforts of this government have kept growth
in expenditure in its first two years to 4.4 per cent. That is a lot of work.
Why did we have to do that? When we came into government, the economy was in
recession, jobs were being shed and revenue was rapidly declining, so we had to
react—and we did. As a result, we have got the state in a very good
position. That is why we have seen an upgrade to our credit rating. Let us not
forget that the former government lost two notches of our credit rating. As the
Premier has already pointed out, it had the largest operating deficits in the
history of Western Australia, and there was no peak in sight for net debt.
In
2018–19, we have brought in net debt that is $4.5 billion less than
expected at the time of the Pre-election Financial Projections
Statement . This is a good outcome. Why? It is because it means that we can
deliver for our community and our children. It is why we can spend $281 million
on hospital and health maintenance and make the largest injection into school
maintenance that we have seen in at least 20 years. That is very, very
significant. I think communities will enjoy that. I was surprised that the
opposition complained about it when we were last in Parliament. It is why we
can do what the previous government did not do. At the time, it was racking up
spending like nobody had seen before—as I said, it increased by 26 per
cent in two years. It increased TAFE fees by up to 500 per cent; we have now
reduced that by 50 per cent. That is a big return to Western Australians.
How can we do things such as
ensuring that people get the advantage of economic growth and get jobs to
ensure that they do not end up homeless? It is by giving them affordable
training opportunities that they can take up to ensure that they, too, can get
the benefit of what we now have in WA—economic growth. I know that the
member for Dawesville does not like to hear this, but economic growth has a real
human impact. When the previous government had a recession, they lost jobs,
they drove youth unemployment up, and they drove people out of their houses.
That is the impact of an economic recession.
I want to conclude with this. I know
that the opposition does not like the fact that its record on fiscal and
economic management is so appalling. I want to quote a media statement from the
Chamber of Commerce and Industry of Western Australia when its annual report
was released. It is a little bit embarrassing, to be honest, but I will quote
it nonetheless —
Western Australia's footy
teams may not have made it to the grand final this year, but it's safe
to say that the release of today's updated State Finances clarify that
WA is up near the top of the table for astute budget management.
That
is not a bad outcome. I never got that sort of commentary when I was actually
playing footy; nonetheless, I will take it. We have delivered for
households of Western Australia, and we have delivered for Western Australians
who want a job in this state, because now they can get affordable training, and
we will continue to ensure that the spend of this government goes directly
towards benefitting Western Australians.
River for that question. Before I answer it, I also acknowledge the work done
by John and Kate Delaney. My first child was stillborn, and I want to thank
them for the work that they do.
The Annual Report on State
Finances was a watershed moment in the finances of the last decade. For the
first time in five years, the state is now back in a surplus position. There
are a number of reasons for that. I know the opposition
will complain that it is all revenue, and I will say that revenue has been
helpful. One reason is the GST reform negotiated by the Premier with
former Prime Minister Turnbull and Scott Morrison. It was a good effort. In
fact, I think that when Premier McGowan looks back on his time as a successful
Premier, that will be one of the more significant reforms that the state will
benefit from for many years to come. That is the reality. That stings the
opposition—I understand that—but that is the reality. For eight
and a half years, I watched Colin Barnett stand there and complain about the
GST, but he did not get any reform done. That was something very much delivered
by this state Labor government.
Of course, there was the other
component: the former government spent in a way that I think shocked pretty
much any political observer in the country. No-one had seen that sort of spend.
I remind the opposition that in the first two years of the former government,
spending grew by 26 per cent. The efforts of this government have kept growth
in expenditure in its first two years to 4.4 per cent. That is a lot of work.
Why did we have to do that? When we came into government, the economy was in
recession, jobs were being shed and revenue was rapidly declining, so we had to
react—and we did. As a result, we have got the state in a very good
position. That is why we have seen an upgrade to our credit rating. Let us not
forget that the former government lost two notches of our credit rating. As the
Premier has already pointed out, it had the largest operating deficits in the
history of Western Australia, and there was no peak in sight for net debt.
In
2018–19, we have brought in net debt that is $4.5 billion less than
expected at the time of the Pre-election Financial Projections
Statement . This is a good outcome. Why? It is because it means that we can
deliver for our community and our children. It is why we can spend $281 million
on hospital and health maintenance and make the largest injection into school
maintenance that we have seen in at least 20 years. That is very, very
significant. I think communities will enjoy that. I was surprised that the
opposition complained about it when we were last in Parliament. It is why we
can do what the previous government did not do. At the time, it was racking up
spending like nobody had seen before—as I said, it increased by 26 per
cent in two years. It increased TAFE fees by up to 500 per cent; we have now
reduced that by 50 per cent. That is a big return to Western Australians.
How can we do things such as
ensuring that people get the advantage of economic growth and get jobs to
ensure that they do not end up homeless? It is by giving them affordable
training opportunities that they can take up to ensure that they, too, can get
the benefit of what we now have in WA—economic growth. I know that the
member for Dawesville does not like to hear this, but economic growth has a real
human impact. When the previous government had a recession, they lost jobs,
they drove youth unemployment up, and they drove people out of their houses.
That is the impact of an economic recession.
I want to conclude with this. I know
that the opposition does not like the fact that its record on fiscal and
economic management is so appalling. I want to quote a media statement from the
Chamber of Commerce and Industry of Western Australia when its annual report
was released. It is a little bit embarrassing, to be honest, but I will quote
it nonetheless —
Western Australia's footy
teams may not have made it to the grand final this year, but it's safe
to say that the release of today's updated State Finances clarify that
WA is up near the top of the table for astute budget management.
That
is not a bad outcome. I never got that sort of commentary when I was actually
playing footy; nonetheless, I will take it. We have delivered for
households of Western Australia, and we have delivered for Western Australians
who want a job in this state, because now they can get affordable training, and
we will continue to ensure that the spend of this government goes directly
towards benefitting Western Australians.
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