Question regarding the Treasurer's awareness of the outgoing Reserve Bank governor's recession warning and the government's response, including criticisms of the opposition's fiscal policies and highlighting government initiatives to maintain economic growth.

AnsweredQoN 530Legislative Assembly
Asked
24 August 2006
Portfolio
Treasurer

QuestionView source ↗

RESERVE BANK GOVERNOR - RECESSION WARNING
Is the Treasurer aware that outgoing Reserve Bank governor, Ian Macfarlane, has warned of a recession within seven years? Mr E.S. RIPPER

AnswerView source ↗

I thank the member for Bassendean for the question. I am aware that Mr Macfarlane was quoted in today’s press as warning that a recession is likely within the next seven years. I do not agree with that view, but when someone of his status makes a statement such as that, it is a timely reminder that, as a community and as a government, we cannot afford to be complacent. That is why the government resists the efforts of the opposition and vested interest groups to plunder the surplus it is enjoying at the moment at, arguably, the top of the boom. We are not like the opposition; we do not dream up $1.6 billion worth of promises during the parliamentary recess in an effort to boost the sliding profile of its leader. We try to look to not only today’s circumstances, but also tomorrow’s circumstances when we make spending decisions. Several members interjected. The SPEAKER : I call the members for Dawesville, Murdoch and Vasse to order. Mr E.S. RIPPER : We cannot be complacent about spending; neither can we be complacent about public sector wages. We believe in fair and realistic outcomes for wages for public sector employees. We are not like the opposition; we do not support the full ambit of any public sector claim that is made, as the Leader of the Opposition did with the Western Australian Police Union claim. Mr P.D. Omodei : That’s not true and you know it. Mr E.S. RIPPER : The Leader of the Opposition said that the police should get a pay increase of almost 20 per cent. He should not try to run away from it. We cannot be complacent about tax. That is why there is $3.3 billion worth of tax relief in this financial year and in the forward estimates as the result of four rounds of tax cuts over two years. We cannot be complacent about infrastructure. That is why we have an $18 billion infrastructure program over four years, with the allocation in this financial year of more than $600 million each for water and electricity infrastructure. We cannot be complacent about public sector reform. Once again, I call on the opposition to support our procurement reform program. I call on the opposition to support our shared services program. We cannot be complacent about the need for continued economic reform. Once again, the opposition has a role to play. I call on the opposition also to fully support our liquor reform package. Do not run away from economic reform. Do not say that because the state is doing very well currently we do not need to worry about liquor reform. Mr T. Buswell : What about tax reform? Mr E.S. RIPPER : Tax reform is important too, which is why we have the state tax review, four rounds of tax cuts and $3.3 billion worth of tax relief in the budget and forward estimates. We want to keep the current level of economic growth going for as long as possible and we are working hard across all those areas I have mentioned to keep the growth going. We will not be complacent, and I do not want the opposition to be complacent either.
Mr E.S. RIPPER replied: I thank the member for Bassendean for the question. I am aware that Mr Macfarlane was quoted in today’s press as warning that a recession is likely within the next seven years. I do not agree with that view, but when someone of his status makes a statement such as that, it is a timely reminder that, as a community and as a government, we cannot afford to be complacent. That is why the government resists the efforts of the opposition and vested interest groups to plunder the surplus it is enjoying at the moment at, arguably, the top of the boom. We are not like the opposition; we do not dream up $1.6 billion worth of promises during the parliamentary recess in an effort to boost the sliding profile of its leader. We try to look to not only today’s circumstances, but also tomorrow’s circumstances when we make spending decisions. Several members interjected. The SPEAKER : I call the members for Dawesville, Murdoch and Vasse to order. Mr E.S. RIPPER : We cannot be complacent about spending; neither can we be complacent about public sector wages. We believe in fair and realistic outcomes for wages for public sector employees. We are not like the opposition; we do not support the full ambit of any public sector claim that is made, as the Leader of the Opposition did with the Western Australian Police Union claim. Mr P.D. Omodei : That’s not true and you know it. Mr E.S. RIPPER : The Leader of the Opposition said that the police should get a pay increase of almost 20 per cent. He should not try to run away from it. We cannot be complacent about tax. That is why there is $3.3 billion worth of tax relief in this financial year and in the forward estimates as the result of four rounds of tax cuts over two years. We cannot be complacent about infrastructure. That is why we have an $18 billion infrastructure program over four years, with the allocation in this financial year of more than $600 million each for water and electricity infrastructure. We cannot be complacent about public sector reform. Once again, I call on the opposition to support our procurement reform program. I call on the opposition to support our shared services program. We cannot be complacent about the need for continued economic reform. Once again, the opposition has a role to play. I call on the opposition also to fully support our liquor reform package. Do not run away from economic reform. Do not say that because the state is doing very well currently we do not need to worry about liquor reform. Mr T. Buswell : What about tax reform? Mr E.S. RIPPER : Tax reform is important too, which is why we have the state tax review, four rounds of tax cuts and $3.3 billion worth of tax relief in the budget and forward estimates. We want to keep the current level of economic growth going for as long as possible and we are working hard across all those areas I have mentioned to keep the growth going. We will not be complacent, and I do not want the opposition to be complacent either.
I thank the member for Bassendean for the question. I am aware that Mr Macfarlane was quoted in today’s press as warning that a recession is likely within the next seven years. I do not agree with that view, but when someone of his status makes a statement such as that, it is a timely reminder that, as a community and as a government, we cannot afford to be complacent. That is why the government resists the efforts of the opposition and vested interest groups to plunder the surplus it is enjoying at the moment at, arguably, the top of the boom. We are not like the opposition; we do not dream up $1.6 billion worth of promises during the parliamentary recess in an effort to boost the sliding profile of its leader. We try to look to not only today’s circumstances, but also tomorrow’s circumstances when we make spending decisions. Several members interjected. The SPEAKER : I call the members for Dawesville, Murdoch and Vasse to order. Mr E.S. RIPPER : We cannot be complacent about spending; neither can we be complacent about public sector wages. We believe in fair and realistic outcomes for wages for public sector employees. We are not like the opposition; we do not support the full ambit of any public sector claim that is made, as the Leader of the Opposition did with the Western Australian Police Union claim. Mr P.D. Omodei : That’s not true and you know it. Mr E.S. RIPPER : The Leader of the Opposition said that the police should get a pay increase of almost 20 per cent. He should not try to run away from it. We cannot be complacent about tax. That is why there is $3.3 billion worth of tax relief in this financial year and in the forward estimates as the result of four rounds of tax cuts over two years. We cannot be complacent about infrastructure. That is why we have an $18 billion infrastructure program over four years, with the allocation in this financial year of more than $600 million each for water and electricity infrastructure. We cannot be complacent about public sector reform. Once again, I call on the opposition to support our procurement reform program. I call on the opposition to support our shared services program. We cannot be complacent about the need for continued economic reform. Once again, the opposition has a role to play. I call on the opposition also to fully support our liquor reform package. Do not run away from economic reform. Do not say that because the state is doing very well currently we do not need to worry about liquor reform. Mr T. Buswell : What about tax reform? Mr E.S. RIPPER : Tax reform is important too, which is why we have the state tax review, four rounds of tax cuts and $3.3 billion worth of tax relief in the budget and forward estimates. We want to keep the current level of economic growth going for as long as possible and we are working hard across all those areas I have mentioned to keep the growth going. We will not be complacent, and I do not want the opposition to be complacent either.
Several members interjected. The SPEAKER : I call the members for Dawesville, Murdoch and Vasse to order. Mr E.S. RIPPER : We cannot be complacent about spending; neither can we be complacent about public sector wages. We believe in fair and realistic outcomes for wages for public sector employees. We are not like the opposition; we do not support the full ambit of any public sector claim that is made, as the Leader of the Opposition did with the Western Australian Police Union claim. Mr P.D. Omodei : That’s not true and you know it. Mr E.S. RIPPER : The Leader of the Opposition said that the police should get a pay increase of almost 20 per cent. He should not try to run away from it. We cannot be complacent about tax. That is why there is $3.3 billion worth of tax relief in this financial year and in the forward estimates as the result of four rounds of tax cuts over two years. We cannot be complacent about infrastructure. That is why we have an $18 billion infrastructure program over four years, with the allocation in this financial year of more than $600 million each for water and electricity infrastructure. We cannot be complacent about public sector reform. Once again, I call on the opposition to support our procurement reform program. I call on the opposition to support our shared services program. We cannot be complacent about the need for continued economic reform. Once again, the opposition has a role to play. I call on the opposition also to fully support our liquor reform package. Do not run away from economic reform. Do not say that because the state is doing very well currently we do not need to worry about liquor reform. Mr T. Buswell : What about tax reform? Mr E.S. RIPPER : Tax reform is important too, which is why we have the state tax review, four rounds of tax cuts and $3.3 billion worth of tax relief in the budget and forward estimates. We want to keep the current level of economic growth going for as long as possible and we are working hard across all those areas I have mentioned to keep the growth going. We will not be complacent, and I do not want the opposition to be complacent either.
The SPEAKER : I call the members for Dawesville, Murdoch and Vasse to order. Mr E.S. RIPPER : We cannot be complacent about spending; neither can we be complacent about public sector wages. We believe in fair and realistic outcomes for wages for public sector employees. We are not like the opposition; we do not support the full ambit of any public sector claim that is made, as the Leader of the Opposition did with the Western Australian Police Union claim. Mr P.D. Omodei : That’s not true and you know it. Mr E.S. RIPPER : The Leader of the Opposition said that the police should get a pay increase of almost 20 per cent. He should not try to run away from it. We cannot be complacent about tax. That is why there is $3.3 billion worth of tax relief in this financial year and in the forward estimates as the result of four rounds of tax cuts over two years. We cannot be complacent about infrastructure. That is why we have an $18 billion infrastructure program over four years, with the allocation in this financial year of more than $600 million each for water and electricity infrastructure. We cannot be complacent about public sector reform. Once again, I call on the opposition to support our procurement reform program. I call on the opposition to support our shared services program. We cannot be complacent about the need for continued economic reform. Once again, the opposition has a role to play. I call on the opposition also to fully support our liquor reform package. Do not run away from economic reform. Do not say that because the state is doing very well currently we do not need to worry about liquor reform. Mr T. Buswell : What about tax reform? Mr E.S. RIPPER : Tax reform is important too, which is why we have the state tax review, four rounds of tax cuts and $3.3 billion worth of tax relief in the budget and forward estimates. We want to keep the current level of economic growth going for as long as possible and we are working hard across all those areas I have mentioned to keep the growth going. We will not be complacent, and I do not want the opposition to be complacent either.
Mr E.S. RIPPER : We cannot be complacent about spending; neither can we be complacent about public sector wages. We believe in fair and realistic outcomes for wages for public sector employees. We are not like the opposition; we do not support the full ambit of any public sector claim that is made, as the Leader of the Opposition did with the Western Australian Police Union claim. Mr P.D. Omodei : That’s not true and you know it. Mr E.S. RIPPER : The Leader of the Opposition said that the police should get a pay increase of almost 20 per cent. He should not try to run away from it. We cannot be complacent about tax. That is why there is $3.3 billion worth of tax relief in this financial year and in the forward estimates as the result of four rounds of tax cuts over two years. We cannot be complacent about infrastructure. That is why we have an $18 billion infrastructure program over four years, with the allocation in this financial year of more than $600 million each for water and electricity infrastructure. We cannot be complacent about public sector reform. Once again, I call on the opposition to support our procurement reform program. I call on the opposition to support our shared services program. We cannot be complacent about the need for continued economic reform. Once again, the opposition has a role to play. I call on the opposition also to fully support our liquor reform package. Do not run away from economic reform. Do not say that because the state is doing very well currently we do not need to worry about liquor reform. Mr T. Buswell : What about tax reform? Mr E.S. RIPPER : Tax reform is important too, which is why we have the state tax review, four rounds of tax cuts and $3.3 billion worth of tax relief in the budget and forward estimates. We want to keep the current level of economic growth going for as long as possible and we are working hard across all those areas I have mentioned to keep the growth going. We will not be complacent, and I do not want the opposition to be complacent either.
Mr P.D. Omodei : That’s not true and you know it. Mr E.S. RIPPER : The Leader of the Opposition said that the police should get a pay increase of almost 20 per cent. He should not try to run away from it. We cannot be complacent about tax. That is why there is $3.3 billion worth of tax relief in this financial year and in the forward estimates as the result of four rounds of tax cuts over two years. We cannot be complacent about infrastructure. That is why we have an $18 billion infrastructure program over four years, with the allocation in this financial year of more than $600 million each for water and electricity infrastructure. We cannot be complacent about public sector reform. Once again, I call on the opposition to support our procurement reform program. I call on the opposition to support our shared services program. We cannot be complacent about the need for continued economic reform. Once again, the opposition has a role to play. I call on the opposition also to fully support our liquor reform package. Do not run away from economic reform. Do not say that because the state is doing very well currently we do not need to worry about liquor reform. Mr T. Buswell : What about tax reform? Mr E.S. RIPPER : Tax reform is important too, which is why we have the state tax review, four rounds of tax cuts and $3.3 billion worth of tax relief in the budget and forward estimates. We want to keep the current level of economic growth going for as long as possible and we are working hard across all those areas I have mentioned to keep the growth going. We will not be complacent, and I do not want the opposition to be complacent either.
Mr E.S. RIPPER : The Leader of the Opposition said that the police should get a pay increase of almost 20 per cent. He should not try to run away from it. We cannot be complacent about tax. That is why there is $3.3 billion worth of tax relief in this financial year and in the forward estimates as the result of four rounds of tax cuts over two years. We cannot be complacent about infrastructure. That is why we have an $18 billion infrastructure program over four years, with the allocation in this financial year of more than $600 million each for water and electricity infrastructure. We cannot be complacent about public sector reform. Once again, I call on the opposition to support our procurement reform program. I call on the opposition to support our shared services program. We cannot be complacent about the need for continued economic reform. Once again, the opposition has a role to play. I call on the opposition also to fully support our liquor reform package. Do not run away from economic reform. Do not say that because the state is doing very well currently we do not need to worry about liquor reform. Mr T. Buswell : What about tax reform? Mr E.S. RIPPER : Tax reform is important too, which is why we have the state tax review, four rounds of tax cuts and $3.3 billion worth of tax relief in the budget and forward estimates. We want to keep the current level of economic growth going for as long as possible and we are working hard across all those areas I have mentioned to keep the growth going. We will not be complacent, and I do not want the opposition to be complacent either.
We cannot be complacent about tax. That is why there is $3.3 billion worth of tax relief in this financial year and in the forward estimates as the result of four rounds of tax cuts over two years. We cannot be complacent about infrastructure. That is why we have an $18 billion infrastructure program over four years, with the allocation in this financial year of more than $600 million each for water and electricity infrastructure. We cannot be complacent about public sector reform. Once again, I call on the opposition to support our procurement reform program. I call on the opposition to support our shared services program. We cannot be complacent about the need for continued economic reform. Once again, the opposition has a role to play. I call on the opposition also to fully support our liquor reform package. Do not run away from economic reform. Do not say that because the state is doing very well currently we do not need to worry about liquor reform. Mr T. Buswell : What about tax reform? Mr E.S. RIPPER : Tax reform is important too, which is why we have the state tax review, four rounds of tax cuts and $3.3 billion worth of tax relief in the budget and forward estimates. We want to keep the current level of economic growth going for as long as possible and we are working hard across all those areas I have mentioned to keep the growth going. We will not be complacent, and I do not want the opposition to be complacent either.
Mr T. Buswell : What about tax reform? Mr E.S. RIPPER : Tax reform is important too, which is why we have the state tax review, four rounds of tax cuts and $3.3 billion worth of tax relief in the budget and forward estimates. We want to keep the current level of economic growth going for as long as possible and we are working hard across all those areas I have mentioned to keep the growth going. We will not be complacent, and I do not want the opposition to be complacent either.
Mr E.S. RIPPER : Tax reform is important too, which is why we have the state tax review, four rounds of tax cuts and $3.3 billion worth of tax relief in the budget and forward estimates. We want to keep the current level of economic growth going for as long as possible and we are working hard across all those areas I have mentioned to keep the growth going. We will not be complacent, and I do not want the opposition to be complacent either.

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