Statements
Parliamentary budget office—Private member's bill
Statement
Hon Anthony Spagnolo (5:18 pm): I stand this evening to add my support to an announcement recently made by the Liberal Party shadow Treasurer and member for Cottesloe, announcing her intention on behalf of the opposition to introduce a private member's bill into the other place for the establishment of an independent parliamentary budget office in Western Australia. This is not an abstract reform. It goes to the heart of how we manage public money, how we hold governments accountable and how we restore trust in decisions on behalf of every Western Australian taxpayer.
For too long in Western Australia, campaign promises have been made from opposition without this support. Figures from opposition can often seemingly be plucked from the air, headlines written and votes sought, but only after the fact, years later into government, do Western Australians discover the true cost. By then, it is too late: the money is spent, the projects are locked in and families are left to foot the bill through higher debt, higher taxes and a higher cost of living. A parliamentary budget office would change that equation. It would provide an independent, credible and transparent costing of policies before elections are held. There will be no more blank cheques and no more "trust us, we'll make it work". Instead, voters would see the real numbers and be able to make informed decisions.
I acknowledge that these kinds of topics relating to parliamentary budget offices can be quite boring. I do not think many Western Australians get out of bed in the morning thinking about such things; they have far more pressing things on their agenda. However, the reason our shadow Treasurer; member for Cottesloe is introducing this arguably boring reform is because it is important. As I said, it is important to outline good budget practices to ensure taxpayers' money is respected and that political parties deal with the realities of the budget when making election commitments, not just the rhetoric of politics.
As I mentioned in previous comments about parliamentary budget offices, we need to look no further than the government's handling of its Metronet infrastructure pipeline for a reason this is needed. The announced figures prior to the election, prior to Labor coming to government, and the actual cost of Metronet, acknowledging there has been scope creep and other changes to that policy, have been significant. Even if we look at individual projects such as the Byford rail extension, as helpful as that infrastructure may be, the final cost of that rail extension is very different from what it would have been in an original business case. So that is Metronet.
I also suspect that history is about to repeat itself with the racetrack at Burswood. According to the budget, it has been costed at $217 million, but it is clear there is no business case and we all expect that cost to significantly increase. These are not minor oversights. Western Australians are paying the price. Debt is now climbing rapidly, as seen in the state budget handed down recently, despite large operating surpluses. This is due to infrastructure blowouts. Families are facing higher taxes and higher fees and charges, and wages are not keeping up with the cost of living. All the while, Labor ministers congratulate themselves on projects that are delivered late, over budget and without the discipline that good financial management demands. The need for an independent PBO could not be clearer.
Western Australia is also falling behind. At least 29 Organisation for Economic Cooperation and Development countries now have independent fiscal institutions such as this. Within Australia, New South Wales established its Parliamentary Budget Office in 2010, the Commonwealth followed in 2012 and the Victorian state government did the same in 2017. Offices in those jurisdictions have already proven their worth, ensuring that election promises are credible and costed. Yet here we are in WA still operating without such an institution, despite recommendation after recommendation. As the member for Cottesloe, the Liberal Party's shadow Treasurer, pointed out in her announcement, which was made on 30 July to a Business News breakfast, John Langoulant's 2018 inquiry into government programs and projects made it very clear that this is needed. He recognised that under existing arrangements, projects could be announced without proper scrutiny. Even Premier Cook has expressed support in the past. In his own words, less than two years ago, the Premier said:
The parliamentary budget office will provide absolute clarity when it comes to costings, and it will provide political parties that are trying to develop those costings with support in that process … It will raise the standard, raise the level of transparency, raise the level of accountability, and, by virtue of that, raise the level of integrity.
The opposition agrees with those comments from the Premier but we are still waiting for this to occur, which is why our shadow Treasurer has offered to take the lead to introduce a parliamentary budget office in Western Australia. It should be disappointing to all of us that Labor did not act on its commitments sooner. In my inaugural speech to this Parliament, I called for this reform. I said then that too often there is a gap between campaign promises and governing realities. Sadly, this government has proven that point time and again. The spectacular cost blowouts in Metronet, as mentioned, wasteful spending in other areas and other vanity projects are exactly why we need a PBO. They show what happens when promises are not properly tested or independently verified. My position and the position of the Liberal-led opposition is clear: we stand for fiscal discipline, responsible government and restoring public trust in our state's infrastructure program. It is about being the adults in the room. It is about saying that government is not a game of slogans or headlines, but a serious business of making choices on behalf of millions of people who deserve to have their money well spent. Let me be clear: when it comes to this reform, the Liberal Party will continue to be the adults in the room.
Several members interjected.
The President: Order, members. The member has not finished his contribution. I am calling the chamber to order because there were too many interjections and there was too much noise in the chamber to allow the member to continue his contribution. Hon Anthony Spagnolo.
Hon Anthony Spagnolo: Thank you, President. I think it is somewhat amusing that as soon as I started talking about being the adults in the room, some other members displayed some less than adult behaviour in response!
In conclusion, we will push for the establishment of an independent parliamentary budget office. We will ensure that projects are properly costed, promises are accountable and taxpayers are protected from reckless decisions. Infrastructure blowouts are a legacy of this government. The establishment of a PBO is how we can change course and help to ensure that Western Australia's finances are spent with discipline in the future. That is why I have spoken tonight in support of our shadow Treasurer's announcement.
