❓ The Treasurer criticizes the previous government's economic forecasts and performance, highlighting a significant discrepancy between their projected growth and the actual economic decline in Western Australia. He attributes the poor performance to falls in business and dwelling investment, exacerbated by the introduction of the GST.
AnsweredQoN 577Legislative Assembly
QuestionView source ↗
BUDGET FORECASTS, PREVIOUS GOVERNMENT
I refer the Treasurer to the Leader of the Opposition’s claims in October that the Government’s economic assumptions in the budget are not sound and that the Government has its economic approach wrong. Can the Treasurer provide a comparison of the economic forecasts contained in the last budget of the previous Government with the actual figures? Mr RIPPER
I refer the Treasurer to the Leader of the Opposition’s claims in October that the Government’s economic assumptions in the budget are not sound and that the Government has its economic approach wrong. Can the Treasurer provide a comparison of the economic forecasts contained in the last budget of the previous Government with the actual figures? Mr RIPPER
AnswerView source ↗
Remarkably, I am able to provide that information sought by the member for Rockingham. When we make an assessment of the credibility of comments of that sort from the Opposition, it is important to consider how its forecasts turned out in practice and its economic record. The last budget of the Court Government forecast four per cent economic growth in Western Australia in 2000-01. However, the figures from the Australian Bureau of Statistics show a different story; that is, the economy in Western Australia fell by 1.2 per cent over 2000-01. The former coalition Government forecast four per cent economic growth, but the reality was a decline of 1.2 per cent. That was the weakest result of all the States. Only Tasmania had negative growth, and Tasmania’s decline was half a per cent. Western Australia could not even beat Tasmania in the last financial year. New South Wales, Victoria and Queensland all recorded growth above the national average of 1.9 per cent. They had growth of 2.7 per cent, 2.4 per cent and two per cent respectively. South Australia’s economic growth was 0.7 per cent. This Government was faced with a difficult economic inheritance from the previous Government. That result was driven by a fall of one per cent in state final demand, driven again by falls in both business investment and dwelling investment. We know that the economy of this country was mugged by the goods and services tax. Mr Barnett: Are you talking about state final demand or state product? Mr RIPPER: That fall of one per cent related to state final demand. Mr Barnett: Shouldn’t you be talking about state product? Mr RIPPER: I spoke about the gross state product earlier with a fall of 1.2 per cent. The Leader of the Opposition should not think he can catch me out on that. The GST was clearly a factor in economic growth. However, it also applied in the other States, so it cannot explain why Western Australia was not able to beat Tasmania and South Australia, the stereotypical economic battlers of the States. In fact, we must conclude that when members opposite were running the State’s economy they could not forecast the results accurately. More importantly from the point of view of the people of Western Australia, the coalition Government could not deliver a result. It left Western Australia with an economy that had declined by 1.2 per cent.
Mr RIPPER replied: Remarkably, I am able to provide that information sought by the member for Rockingham. When we make an assessment of the credibility of comments of that sort from the Opposition, it is important to consider how its forecasts turned out in practice and its economic record. The last budget of the Court Government forecast four per cent economic growth in Western Australia in 2000-01. However, the figures from the Australian Bureau of Statistics show a different story; that is, the economy in Western Australia fell by 1.2 per cent over 2000-01. The former coalition Government forecast four per cent economic growth, but the reality was a decline of 1.2 per cent. That was the weakest result of all the States. Only Tasmania had negative growth, and Tasmania’s decline was half a per cent. Western Australia could not even beat Tasmania in the last financial year. New South Wales, Victoria and Queensland all recorded growth above the national average of 1.9 per cent. They had growth of 2.7 per cent, 2.4 per cent and two per cent respectively. South Australia’s economic growth was 0.7 per cent. This Government was faced with a difficult economic inheritance from the previous Government. That result was driven by a fall of one per cent in state final demand, driven again by falls in both business investment and dwelling investment. We know that the economy of this country was mugged by the goods and services tax. Mr Barnett: Are you talking about state final demand or state product? Mr RIPPER: That fall of one per cent related to state final demand. Mr Barnett: Shouldn’t you be talking about state product? Mr RIPPER: I spoke about the gross state product earlier with a fall of 1.2 per cent. The Leader of the Opposition should not think he can catch me out on that. The GST was clearly a factor in economic growth. However, it also applied in the other States, so it cannot explain why Western Australia was not able to beat Tasmania and South Australia, the stereotypical economic battlers of the States. In fact, we must conclude that when members opposite were running the State’s economy they could not forecast the results accurately. More importantly from the point of view of the people of Western Australia, the coalition Government could not deliver a result. It left Western Australia with an economy that had declined by 1.2 per cent.
Remarkably, I am able to provide that information sought by the member for Rockingham. When we make an assessment of the credibility of comments of that sort from the Opposition, it is important to consider how its forecasts turned out in practice and its economic record. The last budget of the Court Government forecast four per cent economic growth in Western Australia in 2000-01. However, the figures from the Australian Bureau of Statistics show a different story; that is, the economy in Western Australia fell by 1.2 per cent over 2000-01. The former coalition Government forecast four per cent economic growth, but the reality was a decline of 1.2 per cent. That was the weakest result of all the States. Only Tasmania had negative growth, and Tasmania’s decline was half a per cent. Western Australia could not even beat Tasmania in the last financial year. New South Wales, Victoria and Queensland all recorded growth above the national average of 1.9 per cent. They had growth of 2.7 per cent, 2.4 per cent and two per cent respectively. South Australia’s economic growth was 0.7 per cent. This Government was faced with a difficult economic inheritance from the previous Government. That result was driven by a fall of one per cent in state final demand, driven again by falls in both business investment and dwelling investment. We know that the economy of this country was mugged by the goods and services tax. Mr Barnett: Are you talking about state final demand or state product? Mr RIPPER: That fall of one per cent related to state final demand. Mr Barnett: Shouldn’t you be talking about state product? Mr RIPPER: I spoke about the gross state product earlier with a fall of 1.2 per cent. The Leader of the Opposition should not think he can catch me out on that. The GST was clearly a factor in economic growth. However, it also applied in the other States, so it cannot explain why Western Australia was not able to beat Tasmania and South Australia, the stereotypical economic battlers of the States. In fact, we must conclude that when members opposite were running the State’s economy they could not forecast the results accurately. More importantly from the point of view of the people of Western Australia, the coalition Government could not deliver a result. It left Western Australia with an economy that had declined by 1.2 per cent.
Mr Barnett: Are you talking about state final demand or state product? Mr RIPPER: That fall of one per cent related to state final demand. Mr Barnett: Shouldn’t you be talking about state product? Mr RIPPER: I spoke about the gross state product earlier with a fall of 1.2 per cent. The Leader of the Opposition should not think he can catch me out on that. The GST was clearly a factor in economic growth. However, it also applied in the other States, so it cannot explain why Western Australia was not able to beat Tasmania and South Australia, the stereotypical economic battlers of the States. In fact, we must conclude that when members opposite were running the State’s economy they could not forecast the results accurately. More importantly from the point of view of the people of Western Australia, the coalition Government could not deliver a result. It left Western Australia with an economy that had declined by 1.2 per cent.
Mr RIPPER: That fall of one per cent related to state final demand. Mr Barnett: Shouldn’t you be talking about state product? Mr RIPPER: I spoke about the gross state product earlier with a fall of 1.2 per cent. The Leader of the Opposition should not think he can catch me out on that. The GST was clearly a factor in economic growth. However, it also applied in the other States, so it cannot explain why Western Australia was not able to beat Tasmania and South Australia, the stereotypical economic battlers of the States. In fact, we must conclude that when members opposite were running the State’s economy they could not forecast the results accurately. More importantly from the point of view of the people of Western Australia, the coalition Government could not deliver a result. It left Western Australia with an economy that had declined by 1.2 per cent.
Mr Barnett: Shouldn’t you be talking about state product? Mr RIPPER: I spoke about the gross state product earlier with a fall of 1.2 per cent. The Leader of the Opposition should not think he can catch me out on that. The GST was clearly a factor in economic growth. However, it also applied in the other States, so it cannot explain why Western Australia was not able to beat Tasmania and South Australia, the stereotypical economic battlers of the States. In fact, we must conclude that when members opposite were running the State’s economy they could not forecast the results accurately. More importantly from the point of view of the people of Western Australia, the coalition Government could not deliver a result. It left Western Australia with an economy that had declined by 1.2 per cent.
Mr RIPPER: I spoke about the gross state product earlier with a fall of 1.2 per cent. The Leader of the Opposition should not think he can catch me out on that. The GST was clearly a factor in economic growth. However, it also applied in the other States, so it cannot explain why Western Australia was not able to beat Tasmania and South Australia, the stereotypical economic battlers of the States. In fact, we must conclude that when members opposite were running the State’s economy they could not forecast the results accurately. More importantly from the point of view of the people of Western Australia, the coalition Government could not deliver a result. It left Western Australia with an economy that had declined by 1.2 per cent.
The GST was clearly a factor in economic growth. However, it also applied in the other States, so it cannot explain why Western Australia was not able to beat Tasmania and South Australia, the stereotypical economic battlers of the States. In fact, we must conclude that when members opposite were running the State’s economy they could not forecast the results accurately. More importantly from the point of view of the people of Western Australia, the coalition Government could not deliver a result. It left Western Australia with an economy that had declined by 1.2 per cent.
Mr RIPPER replied: Remarkably, I am able to provide that information sought by the member for Rockingham. When we make an assessment of the credibility of comments of that sort from the Opposition, it is important to consider how its forecasts turned out in practice and its economic record. The last budget of the Court Government forecast four per cent economic growth in Western Australia in 2000-01. However, the figures from the Australian Bureau of Statistics show a different story; that is, the economy in Western Australia fell by 1.2 per cent over 2000-01. The former coalition Government forecast four per cent economic growth, but the reality was a decline of 1.2 per cent. That was the weakest result of all the States. Only Tasmania had negative growth, and Tasmania’s decline was half a per cent. Western Australia could not even beat Tasmania in the last financial year. New South Wales, Victoria and Queensland all recorded growth above the national average of 1.9 per cent. They had growth of 2.7 per cent, 2.4 per cent and two per cent respectively. South Australia’s economic growth was 0.7 per cent. This Government was faced with a difficult economic inheritance from the previous Government. That result was driven by a fall of one per cent in state final demand, driven again by falls in both business investment and dwelling investment. We know that the economy of this country was mugged by the goods and services tax. Mr Barnett: Are you talking about state final demand or state product? Mr RIPPER: That fall of one per cent related to state final demand. Mr Barnett: Shouldn’t you be talking about state product? Mr RIPPER: I spoke about the gross state product earlier with a fall of 1.2 per cent. The Leader of the Opposition should not think he can catch me out on that. The GST was clearly a factor in economic growth. However, it also applied in the other States, so it cannot explain why Western Australia was not able to beat Tasmania and South Australia, the stereotypical economic battlers of the States. In fact, we must conclude that when members opposite were running the State’s economy they could not forecast the results accurately. More importantly from the point of view of the people of Western Australia, the coalition Government could not deliver a result. It left Western Australia with an economy that had declined by 1.2 per cent.
Remarkably, I am able to provide that information sought by the member for Rockingham. When we make an assessment of the credibility of comments of that sort from the Opposition, it is important to consider how its forecasts turned out in practice and its economic record. The last budget of the Court Government forecast four per cent economic growth in Western Australia in 2000-01. However, the figures from the Australian Bureau of Statistics show a different story; that is, the economy in Western Australia fell by 1.2 per cent over 2000-01. The former coalition Government forecast four per cent economic growth, but the reality was a decline of 1.2 per cent. That was the weakest result of all the States. Only Tasmania had negative growth, and Tasmania’s decline was half a per cent. Western Australia could not even beat Tasmania in the last financial year. New South Wales, Victoria and Queensland all recorded growth above the national average of 1.9 per cent. They had growth of 2.7 per cent, 2.4 per cent and two per cent respectively. South Australia’s economic growth was 0.7 per cent. This Government was faced with a difficult economic inheritance from the previous Government. That result was driven by a fall of one per cent in state final demand, driven again by falls in both business investment and dwelling investment. We know that the economy of this country was mugged by the goods and services tax. Mr Barnett: Are you talking about state final demand or state product? Mr RIPPER: That fall of one per cent related to state final demand. Mr Barnett: Shouldn’t you be talking about state product? Mr RIPPER: I spoke about the gross state product earlier with a fall of 1.2 per cent. The Leader of the Opposition should not think he can catch me out on that. The GST was clearly a factor in economic growth. However, it also applied in the other States, so it cannot explain why Western Australia was not able to beat Tasmania and South Australia, the stereotypical economic battlers of the States. In fact, we must conclude that when members opposite were running the State’s economy they could not forecast the results accurately. More importantly from the point of view of the people of Western Australia, the coalition Government could not deliver a result. It left Western Australia with an economy that had declined by 1.2 per cent.
Mr Barnett: Are you talking about state final demand or state product? Mr RIPPER: That fall of one per cent related to state final demand. Mr Barnett: Shouldn’t you be talking about state product? Mr RIPPER: I spoke about the gross state product earlier with a fall of 1.2 per cent. The Leader of the Opposition should not think he can catch me out on that. The GST was clearly a factor in economic growth. However, it also applied in the other States, so it cannot explain why Western Australia was not able to beat Tasmania and South Australia, the stereotypical economic battlers of the States. In fact, we must conclude that when members opposite were running the State’s economy they could not forecast the results accurately. More importantly from the point of view of the people of Western Australia, the coalition Government could not deliver a result. It left Western Australia with an economy that had declined by 1.2 per cent.
Mr RIPPER: That fall of one per cent related to state final demand. Mr Barnett: Shouldn’t you be talking about state product? Mr RIPPER: I spoke about the gross state product earlier with a fall of 1.2 per cent. The Leader of the Opposition should not think he can catch me out on that. The GST was clearly a factor in economic growth. However, it also applied in the other States, so it cannot explain why Western Australia was not able to beat Tasmania and South Australia, the stereotypical economic battlers of the States. In fact, we must conclude that when members opposite were running the State’s economy they could not forecast the results accurately. More importantly from the point of view of the people of Western Australia, the coalition Government could not deliver a result. It left Western Australia with an economy that had declined by 1.2 per cent.
Mr Barnett: Shouldn’t you be talking about state product? Mr RIPPER: I spoke about the gross state product earlier with a fall of 1.2 per cent. The Leader of the Opposition should not think he can catch me out on that. The GST was clearly a factor in economic growth. However, it also applied in the other States, so it cannot explain why Western Australia was not able to beat Tasmania and South Australia, the stereotypical economic battlers of the States. In fact, we must conclude that when members opposite were running the State’s economy they could not forecast the results accurately. More importantly from the point of view of the people of Western Australia, the coalition Government could not deliver a result. It left Western Australia with an economy that had declined by 1.2 per cent.
Mr RIPPER: I spoke about the gross state product earlier with a fall of 1.2 per cent. The Leader of the Opposition should not think he can catch me out on that. The GST was clearly a factor in economic growth. However, it also applied in the other States, so it cannot explain why Western Australia was not able to beat Tasmania and South Australia, the stereotypical economic battlers of the States. In fact, we must conclude that when members opposite were running the State’s economy they could not forecast the results accurately. More importantly from the point of view of the people of Western Australia, the coalition Government could not deliver a result. It left Western Australia with an economy that had declined by 1.2 per cent.
The GST was clearly a factor in economic growth. However, it also applied in the other States, so it cannot explain why Western Australia was not able to beat Tasmania and South Australia, the stereotypical economic battlers of the States. In fact, we must conclude that when members opposite were running the State’s economy they could not forecast the results accurately. More importantly from the point of view of the people of Western Australia, the coalition Government could not deliver a result. It left Western Australia with an economy that had declined by 1.2 per cent.
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