❓ Ms Freeman asks the Treasurer about the Annual Report on State Finances and the McGowan government's budget management. The Treasurer highlights improved financial performance, economic growth, and controlled expense growth compared to the previous government, while addressing GST concerns.
AnsweredQoN 738Legislative Assembly
QuestionView source ↗
STATE FINANCES — ANNUAL REPORT ON STATE
FINANCES
738. Ms J.M. FREEMAN to the Treasurer:
I refer to the Annual
Report on State Finances and the McGowan Labor government's ongoing
efforts to repair the damage inflicted upon the state's finances by the
previous Liberal–National government. Can the Treasurer outline to the
house what the annual report shows about how the responsible budget management
of this government is delivering financial benefits to the state, and can the
Treasurer advise the house whether he is aware of anyone who has had trouble
comprehending this report or cannot understand the positive results outlined in
this report?
FINANCES
738. Ms J.M. FREEMAN to the Treasurer:
I refer to the Annual
Report on State Finances and the McGowan Labor government's ongoing
efforts to repair the damage inflicted upon the state's finances by the
previous Liberal–National government. Can the Treasurer outline to the
house what the annual report shows about how the responsible budget management
of this government is delivering financial benefits to the state, and can the
Treasurer advise the house whether he is aware of anyone who has had trouble
comprehending this report or cannot understand the positive results outlined in
this report?
AnswerView source ↗
I thank the member for the question. When Parliament was not
sitting over the last couple of weeks, I hope no members missed the very, very
good news of the first full-year result of the McGowan Labor government for
2017–18. I was sitting here listening to the health minister and all
the things he is rolling out across Western Australia. One would think that
with all that effort going into health, the expense control under the state
government is doing what it used to do under the former government—that
is, rocket along on an average of about eight per cent expense growth per year.
But what discipline has shown and what the capacity to reprioritise and walk
and chew gum at the same time can actually deliver is that we now have a set of
finances that brings to book the priorities of the government whilst keeping
expense growth low. At the same time, much to the disappointment of the
opposition, we have seen a very, very encouraging return to economic growth in Western
Australia. In 2017–18, state final demand grew by 1.3 per cent. I want
to make the point that this is the first time we have grown in a full year
since 2013. That is a good outcome. All members of this place should be very
pleased that our domestic economy has returned to growth.
In the previous year, we had a contraction of 7.2 per cent to
growth of 1.3 per cent. I remind everybody that the last year of the former
government was the first recession on record in Western Australia. Although
people celebrate this return to growth—I hear the dour comments of my
friends on the other side of the chamber—I was particularly pleased to
see the brand-new commonwealth Treasurer, Josh Frydenberg, make this point, and
I quote —
� the WA economy
remain sound and we've seen an improvement in some of the key economic
indicators like unemployment,'' �
That is what happens when we turn to economic growth; there
are more opportunities for people to secure jobs or more hours, which is what
drives confidence and investment, as most people in this place should know.
Importantly, despite the fact that a huge effort went into a range of things,
including increased spending in the health, education and police budgets and
all budgets, headline expense growth is at 0.9 per cent—the lowest
expense growth since 1994–95. When we strip out the one-off costs of
the voluntary targeted separation scheme and the amalgamation of some agencies,
underlying expense growth is 0.2 per cent. That is an extraordinary performance
and I want to thank all members of cabinet for the effort that they went to to
deliver that. That has been a difficult period, particularly when we came off a
period when we were humming along at about eight per cent expense growth with
really no care about where the finances were heading under the former Liberal
government. Although the former government projected that net debt was going to
get to $29 billion by 2017–18 and then eventually get to $38 billion by
2017–18, we have brought that back to $34.5 billion. That is the impact
we have when we control the finances.
I want to conclude with one point. Much has been said around
the GST debate. I am hoping that very shortly we will be able to resolve this
issue and will never have to talk about GST ever again, but one of the things
that is always thrown in my face by my Treasurer colleagues from all over the
country is the performance of the former Liberal–National government.
Several members interjected.
The SPEAKER : Members!
Mr B.S. WYATT : Indeed, my friend Dominic Perrottet,
the Liberal Treasurer for New South Wales—suffice to say we have had
some exchanges of late—had this to say in The Daily Telegraph just last week —
Mr Perrottet said
NSW, � was being punished for running a tight ship while dud states Queensland
and Western Australia were being rewarded for racking up debt and stuffing
their economies.
When I go over there and try to get a fairer return on the
GST, I am confronted with commentary by the Liberal Parties in other states
saying, ''Why should we change anything when the former Liberal
government didn't care about the finances, didn't care about
the economy and left the place in such a mess?'' I am hoping, though,
that we are managing to push through that argument and the sometimes strong
logic of the argument and reflections on the former Liberal–National
government to finally deliver a good GST outcome. Combined with the efforts of
this government and an economy that is returning to growth, we can hopefully
return the finances to a much more sustainable long-term footing.
sitting over the last couple of weeks, I hope no members missed the very, very
good news of the first full-year result of the McGowan Labor government for
2017–18. I was sitting here listening to the health minister and all
the things he is rolling out across Western Australia. One would think that
with all that effort going into health, the expense control under the state
government is doing what it used to do under the former government—that
is, rocket along on an average of about eight per cent expense growth per year.
But what discipline has shown and what the capacity to reprioritise and walk
and chew gum at the same time can actually deliver is that we now have a set of
finances that brings to book the priorities of the government whilst keeping
expense growth low. At the same time, much to the disappointment of the
opposition, we have seen a very, very encouraging return to economic growth in Western
Australia. In 2017–18, state final demand grew by 1.3 per cent. I want
to make the point that this is the first time we have grown in a full year
since 2013. That is a good outcome. All members of this place should be very
pleased that our domestic economy has returned to growth.
In the previous year, we had a contraction of 7.2 per cent to
growth of 1.3 per cent. I remind everybody that the last year of the former
government was the first recession on record in Western Australia. Although
people celebrate this return to growth—I hear the dour comments of my
friends on the other side of the chamber—I was particularly pleased to
see the brand-new commonwealth Treasurer, Josh Frydenberg, make this point, and
I quote —
� the WA economy
remain sound and we've seen an improvement in some of the key economic
indicators like unemployment,'' �
That is what happens when we turn to economic growth; there
are more opportunities for people to secure jobs or more hours, which is what
drives confidence and investment, as most people in this place should know.
Importantly, despite the fact that a huge effort went into a range of things,
including increased spending in the health, education and police budgets and
all budgets, headline expense growth is at 0.9 per cent—the lowest
expense growth since 1994–95. When we strip out the one-off costs of
the voluntary targeted separation scheme and the amalgamation of some agencies,
underlying expense growth is 0.2 per cent. That is an extraordinary performance
and I want to thank all members of cabinet for the effort that they went to to
deliver that. That has been a difficult period, particularly when we came off a
period when we were humming along at about eight per cent expense growth with
really no care about where the finances were heading under the former Liberal
government. Although the former government projected that net debt was going to
get to $29 billion by 2017–18 and then eventually get to $38 billion by
2017–18, we have brought that back to $34.5 billion. That is the impact
we have when we control the finances.
I want to conclude with one point. Much has been said around
the GST debate. I am hoping that very shortly we will be able to resolve this
issue and will never have to talk about GST ever again, but one of the things
that is always thrown in my face by my Treasurer colleagues from all over the
country is the performance of the former Liberal–National government.
Several members interjected.
The SPEAKER : Members!
Mr B.S. WYATT : Indeed, my friend Dominic Perrottet,
the Liberal Treasurer for New South Wales—suffice to say we have had
some exchanges of late—had this to say in The Daily Telegraph just last week —
Mr Perrottet said
NSW, � was being punished for running a tight ship while dud states Queensland
and Western Australia were being rewarded for racking up debt and stuffing
their economies.
When I go over there and try to get a fairer return on the
GST, I am confronted with commentary by the Liberal Parties in other states
saying, ''Why should we change anything when the former Liberal
government didn't care about the finances, didn't care about
the economy and left the place in such a mess?'' I am hoping, though,
that we are managing to push through that argument and the sometimes strong
logic of the argument and reflections on the former Liberal–National
government to finally deliver a good GST outcome. Combined with the efforts of
this government and an economy that is returning to growth, we can hopefully
return the finances to a much more sustainable long-term footing.
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