❓ Mr. Wyatt questions Premier Barnett about the increase in state debt, referencing a previous promise to keep it below $20 billion and concerns from credit rating agencies. The Premier acknowledges responsibility, cites asset sales and low interest rates as mitigating factors, and forecasts a return to surplus.
AnsweredQoN 402Legislative Assembly
QuestionView source ↗
STATE DEBT
402. Mr B.S. WYATT to the Premier:
My question —
Several members interjected.
The
SPEAKER : Member for Girrawheen and the Premier, if you want to have an
argument, go outside.
Withdrawal of Remark
Dr
K.D. HAMES : The member for Girrawheen called the Premier a racist.
If that is what she said, she should withdraw it.
The
SPEAKER : Member for Girrawheen, did you make that statement?
Ms
M.M. QUIRK : Yes; I withdraw that.
The SPEAKER : Thank
you very much. Member for Girrawheen, I do not want to send you out for an
early rest today. Just be aware that you are on two calls.
Questions without Notice Resumed
Mr B.S. WYATT : I
refer to the staggering increase in debt under this government which will reach
$30.9 billion in 2015–16 and $36.3 billion in 2017–18, and the
Premier's promise in September 2010 —
I have stated
that the objective of this government is to contain net debt to below $20
billion.
(1) Given the
actual revenue this government received was over $6 billion greater than
expected when that $20 billion commitment was made, why did the Premier break
his promise?
(2) Given that
credit rating agencies had discussed concerns about the state's debt
level with the Premier in 2010, does the Premier now take responsibility for
allowing state debt to blow out?
402. Mr B.S. WYATT to the Premier:
My question —
Several members interjected.
The
SPEAKER : Member for Girrawheen and the Premier, if you want to have an
argument, go outside.
Withdrawal of Remark
Dr
K.D. HAMES : The member for Girrawheen called the Premier a racist.
If that is what she said, she should withdraw it.
The
SPEAKER : Member for Girrawheen, did you make that statement?
Ms
M.M. QUIRK : Yes; I withdraw that.
The SPEAKER : Thank
you very much. Member for Girrawheen, I do not want to send you out for an
early rest today. Just be aware that you are on two calls.
Questions without Notice Resumed
Mr B.S. WYATT : I
refer to the staggering increase in debt under this government which will reach
$30.9 billion in 2015–16 and $36.3 billion in 2017–18, and the
Premier's promise in September 2010 —
I have stated
that the objective of this government is to contain net debt to below $20
billion.
(1) Given the
actual revenue this government received was over $6 billion greater than
expected when that $20 billion commitment was made, why did the Premier break
his promise?
(2) Given that
credit rating agencies had discussed concerns about the state's debt
level with the Premier in 2010, does the Premier now take responsibility for
allowing state debt to blow out?
AnswerView source ↗
(1)–(2)
I take responsibility for every single decision of this government. Debt is
currently about $25 billion. It is not $36 billion; it is $25 billion, and in
addressing that we have announced asset sales. If we look at the forward
estimates, they predict a rise in debt and debt peaking and then declining. The
forward estimates predict a rise in debt —
Mrs M.H. Roberts : You believe in the
forward estimates now, do you?
Mr C.J. BARNETT :
No, I always —
Several members interjected.
The SPEAKER :
Member for Butler, I call you to order for the first time.
Mr C.J. BARNETT :
By returning to a very strong surplus, based on what is an investable rise in
GST because of a system which is pro-cyclical not anti-cyclical, also, we have
taken a very conservative view on iron prices in the budget figures —
Mr B.S. Wyatt interjected.
Mr C.J. BARNETT :
The member for Victoria Park would concede that iron ore prices are already well
above the budget figure used. With continual reform, I expect we will achieve
that strong return to surplus. With asset sales, we will contain debt. It will
rise in the short term. But at record low long-term interest rates, it is not
such a bad position to be in.
I take responsibility for every single decision of this government. Debt is
currently about $25 billion. It is not $36 billion; it is $25 billion, and in
addressing that we have announced asset sales. If we look at the forward
estimates, they predict a rise in debt and debt peaking and then declining. The
forward estimates predict a rise in debt —
Mrs M.H. Roberts : You believe in the
forward estimates now, do you?
Mr C.J. BARNETT :
No, I always —
Several members interjected.
The SPEAKER :
Member for Butler, I call you to order for the first time.
Mr C.J. BARNETT :
By returning to a very strong surplus, based on what is an investable rise in
GST because of a system which is pro-cyclical not anti-cyclical, also, we have
taken a very conservative view on iron prices in the budget figures —
Mr B.S. Wyatt interjected.
Mr C.J. BARNETT :
The member for Victoria Park would concede that iron ore prices are already well
above the budget figure used. With continual reform, I expect we will achieve
that strong return to surplus. With asset sales, we will contain debt. It will
rise in the short term. But at record low long-term interest rates, it is not
such a bad position to be in.
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