❓ A parliamentary question on notice addresses concerns about rising interest costs in Western Australia due to revenue reduction, increased expenses, and the potential failure of government departments to meet efficiency dividend targets. It also inquires about the impact of a potential credit rating downgrade on interest costs.
AnsweredQoN 296Legislative Council
Asked
31 March 2009
Member
Portfolio
parliamentary secretary representing the Treasurer
QuestionView source ↗
EFFICIENCY DIVIDEND — INTEREST COSTS
The midyear economic review states that due to a reduction in revenue of $1.5 billion since the pre-election financial projection statements and an increase in expenses of $3.7 billion, a total of $250 million in interest costs have been added to the operating outlook. Can the parliamentary secretary advise — (1) Given that the total expenses were predicted on the success of the government’s three per cent efficiency dividend, what are the estimated interest costs now that the Treasurer has admitted that some departments will not achieve the three per cent savings stipulated in the PFPS? (2) Should the state lose its AAA credit rating, what will be the estimated interest costs that must be serviced by the state? Hon BARRY HOUSE
The midyear economic review states that due to a reduction in revenue of $1.5 billion since the pre-election financial projection statements and an increase in expenses of $3.7 billion, a total of $250 million in interest costs have been added to the operating outlook. Can the parliamentary secretary advise — (1) Given that the total expenses were predicted on the success of the government’s three per cent efficiency dividend, what are the estimated interest costs now that the Treasurer has admitted that some departments will not achieve the three per cent savings stipulated in the PFPS? (2) Should the state lose its AAA credit rating, what will be the estimated interest costs that must be serviced by the state? Hon BARRY HOUSE
AnswerView source ↗
I thank the member for some notice of this question and point out that my copy of the question read “predicated” and not “predicted”. (1) Interest costs are determined by a range of factors, including changes to the revenue outlook; changes to the forecast pattern of spending—both recurrent and capital; and prevailing interest rates. Revised interest costs for 2008-09 and the forward estimates period will be published in the 2009-10 budget. (2) The government is committed to retaining the state’s AAA credit rating and will be implementing corrective action in the 2009-10 budget consistent with this objective.
(1) Given that the total expenses were predicted on the success of the government’s three per cent efficiency dividend, what are the estimated interest costs now that the Treasurer has admitted that some departments will not achieve the three per cent savings stipulated in the PFPS? (2) Should the state lose its AAA credit rating, what will be the estimated interest costs that must be serviced by the state? Hon BARRY HOUSE replied: I thank the member for some notice of this question and point out that my copy of the question read “predicated” and not “predicted”. (1) Interest costs are determined by a range of factors, including changes to the revenue outlook; changes to the forecast pattern of spending—both recurrent and capital; and prevailing interest rates. Revised interest costs for 2008-09 and the forward estimates period will be published in the 2009-10 budget. (2) The government is committed to retaining the state’s AAA credit rating and will be implementing corrective action in the 2009-10 budget consistent with this objective.
(2) Should the state lose its AAA credit rating, what will be the estimated interest costs that must be serviced by the state? Hon BARRY HOUSE replied: I thank the member for some notice of this question and point out that my copy of the question read “predicated” and not “predicted”. (1) Interest costs are determined by a range of factors, including changes to the revenue outlook; changes to the forecast pattern of spending—both recurrent and capital; and prevailing interest rates. Revised interest costs for 2008-09 and the forward estimates period will be published in the 2009-10 budget. (2) The government is committed to retaining the state’s AAA credit rating and will be implementing corrective action in the 2009-10 budget consistent with this objective.
Hon BARRY HOUSE replied: I thank the member for some notice of this question and point out that my copy of the question read “predicated” and not “predicted”. (1) Interest costs are determined by a range of factors, including changes to the revenue outlook; changes to the forecast pattern of spending—both recurrent and capital; and prevailing interest rates. Revised interest costs for 2008-09 and the forward estimates period will be published in the 2009-10 budget. (2) The government is committed to retaining the state’s AAA credit rating and will be implementing corrective action in the 2009-10 budget consistent with this objective.
I thank the member for some notice of this question and point out that my copy of the question read “predicated” and not “predicted”. (1) Interest costs are determined by a range of factors, including changes to the revenue outlook; changes to the forecast pattern of spending—both recurrent and capital; and prevailing interest rates. Revised interest costs for 2008-09 and the forward estimates period will be published in the 2009-10 budget. (2) The government is committed to retaining the state’s AAA credit rating and will be implementing corrective action in the 2009-10 budget consistent with this objective.
(1) Interest costs are determined by a range of factors, including changes to the revenue outlook; changes to the forecast pattern of spending—both recurrent and capital; and prevailing interest rates. Revised interest costs for 2008-09 and the forward estimates period will be published in the 2009-10 budget. (2) The government is committed to retaining the state’s AAA credit rating and will be implementing corrective action in the 2009-10 budget consistent with this objective.
(2) The government is committed to retaining the state’s AAA credit rating and will be implementing corrective action in the 2009-10 budget consistent with this objective.
(1) Given that the total expenses were predicted on the success of the government’s three per cent efficiency dividend, what are the estimated interest costs now that the Treasurer has admitted that some departments will not achieve the three per cent savings stipulated in the PFPS? (2) Should the state lose its AAA credit rating, what will be the estimated interest costs that must be serviced by the state? Hon BARRY HOUSE replied: I thank the member for some notice of this question and point out that my copy of the question read “predicated” and not “predicted”. (1) Interest costs are determined by a range of factors, including changes to the revenue outlook; changes to the forecast pattern of spending—both recurrent and capital; and prevailing interest rates. Revised interest costs for 2008-09 and the forward estimates period will be published in the 2009-10 budget. (2) The government is committed to retaining the state’s AAA credit rating and will be implementing corrective action in the 2009-10 budget consistent with this objective.
(2) Should the state lose its AAA credit rating, what will be the estimated interest costs that must be serviced by the state? Hon BARRY HOUSE replied: I thank the member for some notice of this question and point out that my copy of the question read “predicated” and not “predicted”. (1) Interest costs are determined by a range of factors, including changes to the revenue outlook; changes to the forecast pattern of spending—both recurrent and capital; and prevailing interest rates. Revised interest costs for 2008-09 and the forward estimates period will be published in the 2009-10 budget. (2) The government is committed to retaining the state’s AAA credit rating and will be implementing corrective action in the 2009-10 budget consistent with this objective.
Hon BARRY HOUSE replied: I thank the member for some notice of this question and point out that my copy of the question read “predicated” and not “predicted”. (1) Interest costs are determined by a range of factors, including changes to the revenue outlook; changes to the forecast pattern of spending—both recurrent and capital; and prevailing interest rates. Revised interest costs for 2008-09 and the forward estimates period will be published in the 2009-10 budget. (2) The government is committed to retaining the state’s AAA credit rating and will be implementing corrective action in the 2009-10 budget consistent with this objective.
I thank the member for some notice of this question and point out that my copy of the question read “predicated” and not “predicted”. (1) Interest costs are determined by a range of factors, including changes to the revenue outlook; changes to the forecast pattern of spending—both recurrent and capital; and prevailing interest rates. Revised interest costs for 2008-09 and the forward estimates period will be published in the 2009-10 budget. (2) The government is committed to retaining the state’s AAA credit rating and will be implementing corrective action in the 2009-10 budget consistent with this objective.
(1) Interest costs are determined by a range of factors, including changes to the revenue outlook; changes to the forecast pattern of spending—both recurrent and capital; and prevailing interest rates. Revised interest costs for 2008-09 and the forward estimates period will be published in the 2009-10 budget. (2) The government is committed to retaining the state’s AAA credit rating and will be implementing corrective action in the 2009-10 budget consistent with this objective.
(2) The government is committed to retaining the state’s AAA credit rating and will be implementing corrective action in the 2009-10 budget consistent with this objective.
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