❓ Opposition Leader McGowan questions Premier Barnett's acceptance of responsibility for WA's financial situation. Barnett denies blaming others and defends the state's economic performance, attributing challenges to GST revenue decline and falling iron ore prices.
AnsweredQoN 782Legislative Assembly
QuestionView source ↗
STATE FINANCES — RESPONSIBILITY
782. Mr M. McGOWAN to the Premier:
I refer to the Premier's complaints in recent weeks
that the state of Western Australia's finances is everyone else's
fault, including BHP Billiton, Rio Tinto, Treasury, the federal government and
the Liberal Party's goods and services tax deal. When will the Premier
accept responsibility for putting the state into the financial position it is
now in?
782. Mr M. McGOWAN to the Premier:
I refer to the Premier's complaints in recent weeks
that the state of Western Australia's finances is everyone else's
fault, including BHP Billiton, Rio Tinto, Treasury, the federal government and
the Liberal Party's goods and services tax deal. When will the Premier
accept responsibility for putting the state into the financial position it is
now in?
AnswerView source ↗
I challenge the Leader of the Opposition to find an instance
of me saying it is everyone else's fault. Can he produce a quote? This
is the style of the opposition. Members opposite just make up a comment and
throw it in there, and it is not true. I never made that comment at all. I
accept responsibility for the state's economy. I make the observation
that the Western Australian economy, on every measure—growth, exports,
investment and unemployment—is the strongest economy of any Australian
state. We have a debt of $20.7 billion, not the $28 billion that the Leader of
the Opposition talks about. It will not be easy, but we intend to contain debt
in the low 20 billions, and we will do that through asset sales, land sales and
the like. That will be a challenge. The point I make is that there is a
distinction. The opposition talks a lot about debt, which is fair enough, but
debt is not our greatest problem. We can manage the debt. Our biggest problem
is on the recurrent account—the operating balance.
Several members interjected.
The
SPEAKER : Member for Victoria Park, I call you to order for the third time.
Mr
C.J. BARNETT : Everyone is aware of the GST issue, and I think we are
finally starting to get some progress in Canberra on that. I live in hope.
Again, we could deal with the decline in the GST revenue, and we did that for a
time. We have had surpluses in every year of this government to this point,
including a $719 million surplus for the year just completed. What we cannot
deal with is a combination —
Several members interjected.
The
SPEAKER : Member for Warnbro, I call you to order for the third time.
Mr C.J. BARNETT :
We have to this point dealt with the fall in the GST to 37c in the dollar—I
remind members that when the Labor Party was in government, it oscillated
between 95c in the dollar and 105c in the dollar—but we cannot deal
with that as well as a 40 per cent fall in iron ore prices. Although there
might be some correction in the GST, it will be delayed for three years under
the current rules. That is our problem. Yes, we have a problem in our recurrent
account. The debt has been used to build capital assets for this state into the
future. As I have said on many occasions, there have been three eras of major
development in this state—the 1890s, with the gold rush; the 1960s,
with the postwar reconstruction of Japan; and this decade, with the emergence
of modern China. Had Labor been in power, it would have missed that
opportunity; it would not have grasped it. This government grasped the opportunity
for the long-term betterment of this state.
of me saying it is everyone else's fault. Can he produce a quote? This
is the style of the opposition. Members opposite just make up a comment and
throw it in there, and it is not true. I never made that comment at all. I
accept responsibility for the state's economy. I make the observation
that the Western Australian economy, on every measure—growth, exports,
investment and unemployment—is the strongest economy of any Australian
state. We have a debt of $20.7 billion, not the $28 billion that the Leader of
the Opposition talks about. It will not be easy, but we intend to contain debt
in the low 20 billions, and we will do that through asset sales, land sales and
the like. That will be a challenge. The point I make is that there is a
distinction. The opposition talks a lot about debt, which is fair enough, but
debt is not our greatest problem. We can manage the debt. Our biggest problem
is on the recurrent account—the operating balance.
Several members interjected.
The
SPEAKER : Member for Victoria Park, I call you to order for the third time.
Mr
C.J. BARNETT : Everyone is aware of the GST issue, and I think we are
finally starting to get some progress in Canberra on that. I live in hope.
Again, we could deal with the decline in the GST revenue, and we did that for a
time. We have had surpluses in every year of this government to this point,
including a $719 million surplus for the year just completed. What we cannot
deal with is a combination —
Several members interjected.
The
SPEAKER : Member for Warnbro, I call you to order for the third time.
Mr C.J. BARNETT :
We have to this point dealt with the fall in the GST to 37c in the dollar—I
remind members that when the Labor Party was in government, it oscillated
between 95c in the dollar and 105c in the dollar—but we cannot deal
with that as well as a 40 per cent fall in iron ore prices. Although there
might be some correction in the GST, it will be delayed for three years under
the current rules. That is our problem. Yes, we have a problem in our recurrent
account. The debt has been used to build capital assets for this state into the
future. As I have said on many occasions, there have been three eras of major
development in this state—the 1890s, with the gold rush; the 1960s,
with the postwar reconstruction of Japan; and this decade, with the emergence
of modern China. Had Labor been in power, it would have missed that
opportunity; it would not have grasped it. This government grasped the opportunity
for the long-term betterment of this state.
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