State economy
240. Mrs Lisa Mundayto theTreasurer:
I refer to the release of the state budget last week.
(1) Can the Treasurer please outline to the house how this budget cements Western Australia's position as the economic powerhouse of the nation?
(2) Can the Treasurer also please advise if she is aware of any threat to the state's strong financial position?
Ms Rita Saffioti replied:
(1)–(2) It is indeed with great pride that Western Australia continues to be both the economic powerhouse of the nation and the most responsible financial managers of the nation. Last week we presented our budget. We basically said that in this very significant time of global turmoil, we are investing like never before in the economic infrastructure of this state to create more jobs and make sure WA continues to manage its finances responsibly, to worry about not only today but also the future and take care of the future with responsible financial management together with helping to grow the economy. We have seen some very good feedback from that budget so far. I refer, initially, to the two key rating agencies that came out within 24 hours to comment on the state budget. I quote in relation to Moody's:
Western Australia has built strong fiscal buffers from recent strength in iron ore prices and robust debt management such that it can accommodate higher spending without denting overall fiscal strength. This ensures Western Australia continues to have the lowest debt burden and highest debt affordability among …
All the states. Despite the incredible demand we have on spending, and we have significant demands on spending, we continue to manage the state's finances responsibly. Standard and Poor's also went out and said:
Western Australia's fiscal strength continues to set it apart from domestic peers. Solid operating surpluses, along with a debt burden half that of most east-coast states, enable it to manage billions in election promises and cost-of-living relief funded in today's annual budget.
The two rating agencies have come out to support our fiscal strategy. Of course, it is also about the economy and that is why we continue to focus on new job generation in this state.
In relation to the other states, we have seen a couple of budgets being presented over the past week: Queensland, New South Wales and Victoria. All of them delivered deficits and all of them have a lot of commentary about the incredible explosion of debt across the nation. In relation to the New South Wales budget that was released today, I have to say that I was very interested to see the New South Wales Treasurer's focus on economic infrastructure. The New South Wales Treasurer said something that may sound very similar to something we said:
It's the poles and it's the pipes and it's not particularly glamorous.
We used the word "sexy", but "glamourous" is probably a better word to use in the media. We, again, support economic infrastructure in that state. He was asked to compare his state to other states. He noted that New South Wales was the second best performing state after WA. The New South Wales Treasurer quickly added "I don't really count WA". That is because we are just too far ahead for them to include in their analysis, members. We are too far ahead and the envy of the nation, with strong financial management. Yes, we are spending across the state on economic infrastructure, cost-of-living support and services, while still maintaining that financial discipline. We will continue along that strategy. Of course, this does bring again the GST into some debate and we are seeing the other states, the other commentators, come out after our reduction of our state budget trying to claw back that GST agreement. Members, that GST agreement is fundamental to our continued success. Our ability to continue to drive economic growth is something we will fight for and we will continue to make sure that WA gets its fair share, so we can support the infrastructure that supports new jobs and new investment in this state.
