❓ Ms. Collins asks about the McGowan government's financial management amid global economic uncertainty, prompting the Premier to highlight the government's achievements in reducing debt and improving the state's financial position compared to the previous Liberal-National government.
AnsweredQoN 37Legislative Assembly
QuestionView source ↗
M c GOWAN
GOVERNMENT — FINANCIAL MANAGEMENT
37. Ms C.M. COLLINS to the Premier:
I refer to the McGowan Labor
government's responsible financial management, particularly amid global
economic uncertainty.
(1) Can the Premier
advise the house how this government's strong management of the state's
finances has positioned the state to appropriately respond to challenges that
may arise?
(2) Can the
Premier outline to the house how this government's sensible budget
management compares with that of the previous Liberal–National
government?
GOVERNMENT — FINANCIAL MANAGEMENT
37. Ms C.M. COLLINS to the Premier:
I refer to the McGowan Labor
government's responsible financial management, particularly amid global
economic uncertainty.
(1) Can the Premier
advise the house how this government's strong management of the state's
finances has positioned the state to appropriately respond to challenges that
may arise?
(2) Can the
Premier outline to the house how this government's sensible budget
management compares with that of the previous Liberal–National
government?
AnswerView source ↗
I thank the
member for Hillarys for the question.
(1)–(2) When
we came to office in 2017, we came with a commitment to managing the state's
finances properly, because the state had been through eight and a half years of
disastrous financial management—the worst financial management in the
history of Western Australia. Debt had climbed from around $4 billion across the forward estimates to $44 billion, so do
the maths on that. We were in our first recession in living memory in Western
Australia when we came to office, so when we came to office, we worked hard to
manage the state's finances and did some difficult things in order to
achieve that outcome. That has meant that we
are the best placed of any government in Australia to deal with the situation
that now confronts us.
There is high inflation around the
world and high interest rates around the world—a hangover of COVID and
the situation in Ukraine and Russia and its effect on global supply chains and
the cost of certain goods globally. That has been a difficult thing for
governments around the world to manage. It means that in that high interest
rate environment, governments are like households: they have to pay interest on
their debt. Governments in other states of Australia, nationally, and in other
countries around the world obviously have to pay high interest on their debt.
The Western Australian government, by reducing debt—the only government
in Australia to do so—has actually reduced the interest burden on the
people of Western Australia. That means we are better placed to invest in
response to disasters or to the needs of the community. We are better placed to
invest and better placed to deal with what is coming at us.
The other day we saw the New South
Wales Liberal government post an $11.4 billion deficit. Our surplus this
financial year, at this point in time, is predicted to be $1.9 billion. It is a
very different situation here than in the other states. I advise the member—advisedly—that
when I met with the other Premiers, they would much rather be in our position
than in their position.
We get criticism from the Liberals
and Nationals WA; they want us to go into deficit and they want debt.
Everything they say and everything they commit to is that we should be in the
position of having wrecked the state's finances, but we are not going
to do that because that would not be responsible. Since we have been in office,
debt has gone down to $29 billion; it was tracking to $44 billion under the
last government. We managed COVID with a significant
spend to deal with that situation, but despite that, we still have debt down to $29 billion. We have recovered our AAA
credit rating from Standard and Poor's, we have recovered an
upgrade in our credit rating from Moody's and, at the same time, we
have created 200 000 jobs.
I urge all Western Australians to
beware of the Liberals and Nationals and their financial management. Their
record is there for all to see and it is this government that has got this
state back into the strong position we are now in.
member for Hillarys for the question.
(1)–(2) When
we came to office in 2017, we came with a commitment to managing the state's
finances properly, because the state had been through eight and a half years of
disastrous financial management—the worst financial management in the
history of Western Australia. Debt had climbed from around $4 billion across the forward estimates to $44 billion, so do
the maths on that. We were in our first recession in living memory in Western
Australia when we came to office, so when we came to office, we worked hard to
manage the state's finances and did some difficult things in order to
achieve that outcome. That has meant that we
are the best placed of any government in Australia to deal with the situation
that now confronts us.
There is high inflation around the
world and high interest rates around the world—a hangover of COVID and
the situation in Ukraine and Russia and its effect on global supply chains and
the cost of certain goods globally. That has been a difficult thing for
governments around the world to manage. It means that in that high interest
rate environment, governments are like households: they have to pay interest on
their debt. Governments in other states of Australia, nationally, and in other
countries around the world obviously have to pay high interest on their debt.
The Western Australian government, by reducing debt—the only government
in Australia to do so—has actually reduced the interest burden on the
people of Western Australia. That means we are better placed to invest in
response to disasters or to the needs of the community. We are better placed to
invest and better placed to deal with what is coming at us.
The other day we saw the New South
Wales Liberal government post an $11.4 billion deficit. Our surplus this
financial year, at this point in time, is predicted to be $1.9 billion. It is a
very different situation here than in the other states. I advise the member—advisedly—that
when I met with the other Premiers, they would much rather be in our position
than in their position.
We get criticism from the Liberals
and Nationals WA; they want us to go into deficit and they want debt.
Everything they say and everything they commit to is that we should be in the
position of having wrecked the state's finances, but we are not going
to do that because that would not be responsible. Since we have been in office,
debt has gone down to $29 billion; it was tracking to $44 billion under the
last government. We managed COVID with a significant
spend to deal with that situation, but despite that, we still have debt down to $29 billion. We have recovered our AAA
credit rating from Standard and Poor's, we have recovered an
upgrade in our credit rating from Moody's and, at the same time, we
have created 200 000 jobs.
I urge all Western Australians to
beware of the Liberals and Nationals and their financial management. Their
record is there for all to see and it is this government that has got this
state back into the strong position we are now in.
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