Queensland Shadow Treasurer Tim Nicholls

QTC is biggest loser

Victor P Taffa

Queensland Shadow Treasurer Tim Nicholls has today highlighted the fact that Queensland Treasury Corporation (QTC) now heads BRW’s biggest corporate loser list with $4.5953 Billion in the red* which underlines the full impact of the Bligh Government’s shift of assets set-aside to meet future superannuation liabilities over to QTC.

Shadow Treasurer Tim Nicholls said the politically expedient move was aimed at removing the volatility from the Queensland Budget bottom-line.

“However, while making the Government look better by artificially reducing the budget deficit, this move casts a negative light over Queensland’s central borrower, the Queensland Treasury Corporation.” Mr Nicholls said.

QTC borrows centrally for Queensland Government departments, statutory authorities like SunWater and all Queensland local councils. By concentrating the borrowings of more than one hundred bodies it should be able to access funds at a cheaper rate which saves taxpayers.

“The shift of assets was described by the Government as a simple accounting entry, but the reality is that the losses see the balance sheet of QTC in negative-equity with their liabilities outweighing their assets and that’s not a good look when you have to fund Labor’s massive $85 Billion debt.” Mr. Nicholls said.

“This may well mean higher borrowing costs for Queensland and more interest which will have to be funded by higher taxes or by cutting services.”

“The reality is that the $85 Billion debt Anna Bligh and her Labor Government have accrued puts at risk the future prosperity of Queensland.”

It would seem that many Government’s throughout Australia are blaming the worldwide economic meltdown for their poor financial situations however if the financial collapses of the State Banks of Victoria and South Australia in the 1990’s are worth recalling then the $85 Billion debt that has accumulated in Queensland has as much to do with the worldwide economic meltdown as outright political and administrative incompetence.

New South Wales Shadow Treasurer Mike Baird

SMALL BUSINESS GIVES KENEALLY THE THUMBS DOWN: SURVEY

Victor P Taffa

Despite a shift in confidence in the national economy, a survey of small and medium business has given the big thumbs down to Kristina Keneally and her incompetent Labor Government, Shadow Treasurer Mike Baird said today.

The March Sensis Small Business survey release this morning shows support for State Labor Government policies have plunged 12% quarter on quarter and remain the lowest in the country. Just 3% of small businesses are supportive of Kristina Keneally’s Labor Government.

The NSW Labor Government has recorded the lowest levels of support from small businesses for 23 of the last 24 quarters, the report says.

It states: “A view among SMEs (small to medium enterprises) was there was too much bureaucracy; concerns about payroll tax; and a feeling they did not know what the NSW Government was doing were the key reasons given by SMEs for feeling the Government in New South Wales was not supportive of small business.”

“It’s time the State Labor Government got off the backs of small business and started supporting this vital sector of the NSW economy,” Mr Baird said.

“That’s why the NSW Liberals & Nationals have been pushing for a cut of up to 20% in payroll tax to drive jobs and growth.” Mr. Baird said.

“Around two-thirds of the State’s employees work in companies that are levied payroll tax.”

“The NSW Labor Government’s incompetence has been holding this State back. For example, unemployment is above the national average and the tax take is the second highest in Australia, yet we don’t have the first class infrastructure to show it.”

“The NSW Liberals & Nationals want to harness the small business sector and unleash its potential to help turn this State around.” Mr Baird said.

New South Wales Shadow Treasurer Mike Baird

A WORLD CLASS CONVENTION CENTRE FOR SYDNEY: NSW LIBS & NATS TO START IT NOW

Victor P Taffa

A NSW Liberals & Nationals Government will build a world class convention and exhibition centre in Sydney as part of its plan to drive the State’s economy forward and intends to start the process immediately, NSW Opposition Leader Barry O’Farrell announced today.

“The NSW Liberals & Nationals understand the value conventions and exhibitions bring the State’s economy.” Mr O’Farrell said.

“Conventions and exhibitions provide jobs and boost the economy as the visitors eat, drink, sightsee and play.” Mr. O’ Farrell said.

“This announcement is another demonstration of the NSW Liberals & Nationals determination to restore economic growth to NSW by creating jobs and opportunities for the people across the State.”

To ensure construction can start as soon as possible after the State election, the NSW Liberals & Nationals will begin the process immediately by:

• Commencing an independent feasibility study on a new convention centre;

• Releasing ‘shadow’ Expressions of Interest so that the formal tendering process can be accelerated in Government;

• Appointing a three-person Sydney Conference Facility Expert Panel to oversee the initial procurement stages; 

A range of industry groups including Sydney Business Chamber, Property Council of Australia, Tourism Transport Forum, Infrastructure Partnerships Australia and Australian Tourism Export Council will oversee the independent feasibility study.

“The challenges facing NSW are large and the NSW Liberals & Nationals are determined to hit to the ground running.” Mr O’Farrell said.

“I acknowledge starting the process from Opposition is unusual, but it simply reflects the fact we are determined about starting the work to improve this State from the moment we’re elected should we be successful at next year’s election.” Mr. O’ Farrell said.

Shadow Minister for Tourism, Hospitality and Major Events George Souris said just last week Sydney missed out on a United Nations conference involving 90 countries and 1,200 delegates that went to Melbourne instead.

“There is clear evidence that Sydney is missing opportunities to host major international conferences and events:

• Between 1997 and 2007 Sydney dropped from Number 1 to Number 8 on the International Congress and Convention Association rankings for association meetings.

• It is estimated that Sydney’s convention and exhibition industry is losing the financial equivalent of one Rugby World Cup every year due to a lack of convention and exhibition facilities

• The under-provision of convention and exhibition facilities will cost Sydney $477 Million in economic activity and 3037 jobs each year.

“The NSW Liberals & Nationals will not prescribe sites to be considered, that will be up to the Sydney Conference Facility Expert Panel,” Mr Souris said.

Shadow Treasurer Mike Baird said the feasibility study would also identify an appropriate funding model and impact on the NSW Government finances. The feasibility study will be completed by the second half of 2010.

“Tourism and conventions are a major economic boost to this State.” Mr Baird said.

“It is estimated that a six-day international conference for approximately 2,000 delegates contributes an average $9 Million to the economy.” Mr. Baird said.

“With the NSW economy limping as one of the poorest performers in the country, conventions and exhibitions could and should provide a shot in the State’s financial arm.”

NSW Shadow Treasurer Mike Baird

NSW GOVERNMENT MAY CELEBRATE, BUT BUSINESS WILL FLEE

Victor P Taffa

The State Labor Government is deluding itself if it thinks the private sector is confident to invest in NSW following the Rozelle Metro debacle, Shadow Treasurer Mike Baird said today.

“While there was a rise in private sector investment from September to December last year, business confidence in NSW is completely shot to pieces following the shambles of the Rozelle Metro project.” Mr Baird said.

“Any new green shoots the Premier and Treasurer are celebrating have been well and truly scorched by the Rozelle Metro debacle.” Mr. Baird said.

“Businesses were rightly cynical that the State Labor Government would ever deliver on the Rozelle Metro so they demanded a written assurance it would go ahead.

“Even with this written assurance, the project ended up being nothing more than another hollow promise that will now cost taxpayers upwards of $330 Million.”

Infrastructure Partnerships Australia said the promising then axing of the Rozelle Metro project “shreds the credibility of the government in delivering projects and will likely make it much harder to attract investment and skills” [1].

The Sydney Business Chamber said: “Over a decade the government has released… $100 billion in projects that have never seen the light of day” [2].

The Australian Constructors Association president Wal King told the Sydney Morning Herald on 12 February: “If it’s not built the industry is going to have a serious issue with this government”.

“Eric Roozendaal and Kristina Keneally are living in a parallel universe if they think NSW is leading the economic recovery.” Mr Baird said.

“We have the highest unemployment rate in the nation and we have had the lowest business confidence in the country for the past six years.

“Investment in NSW will be undermined while the State Labor Government continues to announce unplanned and unfunded projects that are never delivered.” Mr Baird said.

The issue that the Keneally Government would have the public forget is the list of cancelled railway expansion projects dating back to 1995.

15 years is long enough to fool the public and the current State Government cannot be trusted to deliver after so many failures.

[1] ‘NSW taxpayers hit after CBD Metro project shelved’, The Australian 21-2-10

[2] ‘NSW taxpayers hit after CBD Metro project shelved’, The Australian 21-2-10

Western Australia Treasurer Troy Buswell

Western Australia short changed in Grant Commission Report

Victor P Taffa

Recommended changes announced today to the Commonwealth Grants Commission (CGC) funding formula will strip $443 Million from Western Australia’s share of GST funding next year.

Premier Colin Barnett said the cut was unfair to West Australian families and businesses.

“Under this proposal, for every dollar West Australians pay in GST they will only be receiving 68 cents back. Meanwhile people in New South Wales will receive a return of 95 cents, Victorians will receive 93 cents and Queenslanders will receive a return of 91 cents.” Mr Barnett said.

“It means that every West Australian man, woman and child will be $195 worse off under this proposal.”

“The severe cut places pressure on the State’s finances and, as a result, our capacity to deliver services in areas like health, education and other social services.” Premier Barnett said.

“Why is NSW being rewarded with an additional $277 Million and Victoria with $223 Million, when it is resources-driven States like Western Australia and Queensland that are powering Australia’s economic recovery?”

“While WA has 10.4 % of Australia’s population, our GST share will fall to 7.1% next year – in other words, for every $3 of GST that West Australians pay, we only get $2 back from Canberra.”

“If we received an equal per capita share of the GST, WA would be $1.5 Billion better off in 2010-11. WA is being short-changed.” Premier Barnett said.

Treasurer Troy Buswell said most of the decline in WA’s grant share in the CGC’s latest report reflects that commission’s decision to use an average of three data years, rather than five data years as previously. This alone costs WA $490 Million next year.

“As this change in methodology costs WA nearly half a billion dollars, I will be demanding that the Federal Treasurer, Wayne Swan, consider phasing in this change over a longer period.” Mr Buswell said.

“WA’s grant share has also suffered a modest fall due to our continuing strong revenue growth relative to other States, reducing our assessed need for support from Canberra.”

“We are pleased that the CGC will now better recognise the impact of WA’s strong population growth on our capital works program, albeit belatedly and without compensation for past impacts.” Mr. Buswell said.

“However, we are concerned the CGC has made an 11th hour change to its treatment of State’s mining royalties, which will see even more of WA’s royalties sent to other States.”

“I am meeting (Federal Treasurer) Mr. Swan at a Treasurers’ meeting in Canberra on March 26 and I will be advocating some fundamental changes to the Grants Commission process.”

I would like to see more certainty and predictability about the outcomes; more incentive for States to develop their economies by limiting the penalty for success; reduce distortions to government decision making; and improve the transparency and simplicity of the process and outcomes.

“The redistribution of GST grants through the CGC process is just one part of a much-bigger picture that shows WA providing massive subsidies to the Australian Federation, not all of which can be considered to be in the national interest.

“The latest available data shows WA contributing $8 Billion more to Commonwealth revenues each year (including company tax, personal income tax and petroleum revenues) than it received back in grants and other expenditure benefits from the Commonwealth.” Mr. Buswell said.

Western Australia Treasurer Troy Buswell

December Quarterly released

Victor P Taffa

Quarterly financial results for December 2009 showed an operating surplus for the month of $611 Million, Treasurer Troy Buswell said today.

This followed a $100 Million surplus recorded in November and included the receipt of Federal Government stimulus funding, reimbursing the State for earlier spending.

“The general government sector operating deficit has narrowed to $259 Million for the six months ended December 31, 2009, down significantly on the $778 Million deficit recorded for the September 2009 Quarter.” Mr Buswell said.

GST grants and North-West Shelf petroleum grants were down a combined $329 Million although this was offset by higher tied grants and Federal stimulus funding.

Taxation revenue grew $68 Million, primarily reflecting the recovering property market.

The Treasurer said a 13.3 % increase in expenses in the six months to December 31, 2009 had been largely driven by extraordinary items totalling $542 Million.

General Government expenditure increased by $1,221Million during the six month period to December 2009 relative to the same period last year.

However, $451 Million of this increase related to stimulus spending and other Federal Government grants that pass through the State. A further $91 Million reflected last year’s decision to adopt transition arrangements to cost reflective electricity tariffs.

“Excluding extraordinary items, expenses to December 2009 increased by 7.4 % showing that our focus on reining in spending is bearing fruit.” Mr Buswell said.

Many of the extraordinary costs shown in the report were factored into the mid-year review estimates released on December 17, 2009 and the results are consistent with the mid-year review forecast of an operating surplus for 2009-10 that will be lower than that anticipated at budget-time in May last year.

Revised estimates for the year will be reflected in the 2010-11Budget to be presented on May 20, 2010.

The December 2009 report is available from http://www.dtf.wa.gov.au/

Western Australia Premier Colin Barnett

Western Australia short changed in Grant Commission Report

Victor P Taffa

Recommended changes announced today to the Commonwealth Grants Commission (CGC) funding formula will strip $443 Million from Western Australia’s share of GST funding next year.

Premier Colin Barnett said the cut was unfair to West Australian families and businesses.

“Under this proposal, for every dollar West Australians pay in G.S.T. they will only be receiving 68 cents back. Meanwhile people in New South Wales will receive a return of 95 cents, Victorians will receive 93 cents and Queenslanders will receive a return of 91 cents.” Mr Barnett said.

“It means that every West Australian man, woman and child will be $195 worse off under this proposal.

“The severe cut places pressure on the State’s finances and, as a result, our capacity to deliver services in areas like health, education and other social services.” Premier Barnett said.

“Why is NSW being rewarded with an additional $277 Million and Victoria with $223 Million, when it is resources-driven States like Western Australia and Queensland that are powering Australia’s economic recovery?”

“While WA has 10.4 % of Australia’s population, our GST share will fall to 7.1 % next year – in other words, for every $3 of GST that West Australians pay, we only get $2 back from Canberra.”

“If we received an equal per capita share of the GST, WA would be $1.5 Billion better off in 2010-11. WA is being short-changed.” Premier Barnett said.

Treasurer Troy Buswell said most of the decline in WA’s grant share in the CGC’s latest report reflects that commission’s decision to use an average of three data years, rather than five data years as previously. This alone costs WA $490 Million next year.

“As this change in methodology costs WA nearly half a billion dollars, I will be demanding that the Federal Treasurer, Wayne Swan, consider phasing in this change over a longer period.” Mr Buswell said.

“WA’s grant share has also suffered a modest fall due to our continuing strong revenue growth relative to other States, reducing our assessed need for support from Canberra.”

“We are pleased that the CGC will now better recognise the impact of WA’s strong population growth on our capital works program, albeit belatedly and without compensation for past impacts.” the Treasurer said.

“However, we are concerned the CGC has made an 11th hour change to its treatment of State’s mining royalties, which will see even more of WA’s royalties sent to other States.”

“I am meeting (Federal Treasurer) Mr. Swan at a Treasurers’ meeting in Canberra on March 26 and I will be advocating some fundamental changes to the Grants Commission process.”

“I would like to see more certainty and predictability about the outcomes; more incentive for States to develop their economies by limiting the penalty for success; reduce distortions to government decision making; and improve the transparency and simplicity of the process and outcomes.” Mr. Buswell said.

“The redistribution of GST grants through the CGC process is just one part of a much-bigger picture that shows WA providing massive subsidies to the Australian Federation, not all of which can be considered to be in the national interest.”

“The latest available data shows WA contributing $8 Billion more to Commonwealth revenues each year (including company tax, personal income tax and petroleum revenues) than it received back in grants and other expenditure benefits from the Commonwealth.” Mr. Buswell said.

Western Australia Premier Colin Barnett

Economy

Victor P Taffa

Western Australia Premier Colin Barnett has addressed State Parliament and has outlined the achievements of the first 17 months in office. In a series of extracts from the complete speech to the House Premier Barnett highlighted key policy commitments that have been delivered or on the way to delivery.

I rise today to provide the House with an outline of the Liberal National Government’s policy and legislative priorities for the forthcoming year. In doing so, I will take the opportunity to highlight some of what this Government has achieved in its first 17 months in office.

As Members are well aware, the first year of government coincided with the global financial crisis. As a result, the Government’s priority has been to protect the State’s finances against the impact of the economic downturn, and make decisions that build confidence, attract investment, create jobs and set up the Western Australian economy for the long term.

While the Government will continue to hold a disciplined fiscal line and drive economic growth this year, it will increasingly focus on social and environmental policy. This has already begun with significant initiatives to improve community safety, transform mental health services, give greater independence to some of our public schools, improve water quality in the Swan and Canning Rivers, and start work on a new children’s hospital.

Mr Speaker, as Members are well aware, 2009 ended on a devastating note for Toodyay, after fire destroyed 38 homes on December 29. Before I begin outlining the Government’s agenda, I would like to take the opportunity to thank the volunteers and the many people from State Government agencies who performed so admirably in responding to the fire, both immediately and in the aftermath. It was a remarkable effort and we are all thankful that, despite the loss of homes and treasured possessions, no lives were lost.

Economy

Mr Speaker, I want to briefly reflect on the State’s economy. Last year began with many of the world’s major economies in recession and the Australian economy contracting. While the IMF has revised up its growth forecasts for both Australia and the world for 2010, it warns there are significant downside risks to global growth.

Western Australia was not, and still is not, immune from the effects of the global financial crisis – some people have lost jobs and houses, and businesses have folded. We have experienced weaker than expected growth in Gross State Product. Revenue from mining royalties, North West Shelf petroleum grants and property taxes have declined significantly.

This is a government that believes prudent financial management and strong economic growth provide the foundation from which we can best support the whole community. The Government has ensured the State has retained its triple A credit rating. The State Budget returned a surplus last year – one of only three States to do so.

The State’s economy is slowly recovering. Treasury forecasts modest growth of 2.25% this year. While the economic outlook is improving, this does not immediately flow through to the State’s finances and maintaining a budget surplus will be a challenge. Nonetheless, we aim to achieve a surplus this year.

The Liberal National Government will continue to keep a tight rein on the State’s finances and focus on delivering services more efficiently, effectively and fairly.

Through the independent Economic Audit Committee, the Government has delivered on its election commitment to conduct a wide-ranging review of the operational and financial performance of the Western Australian public sector. This year, we will start implementing recommendations contained in the Committee’s final report, including those that will drive reform in the social and community sector to ensure more effective delivery of support services.

Conclusion

Mr Speaker, I believe the record of the Liberal National Government to date shows it is not afraid to make hard decisions in the interests of all West Australians.

We have a responsibility to all members of our community. While the Government is committed to helping people help themselves, we recognise that not everyone has the same capacity to lead better or more prosperous lives on their own. That is why the Liberal National Government will focus on empowering those who have been neglected, hurt or marginalised to live with dignity, confidence and security. Social justice will be a hallmark of the Liberal National Government.

The Government’s commitment to considered reform will build stronger communities throughout the State. This will be achieved through both policy and legislation.

I look forward to a year of robust and informed debate in the Parliament this year. It is incumbent upon all Members to take seriously the responsibility of framing laws that shape the way we live in Western Australia.

Mr Speaker, I wish all Members well for the 2010 Parliamentary year.

WA Treasurer Troy Buswell

Victor P Taffa

TENS OF MILLIONS LOST IN UNCOLLECTED FINES

According to Shadow Treasurer Mike Baird, the Auditor General has revealed the Rees Labor Government wrote off $62.4 million in fines last year after failing to collect most of these fines for more than seven years, said today.

“Tens of millions of dollars are being lost because of a lack of financial discipline from a broken Rees Labor Government,” Mr Baird said.

NSW Lottery

“With the State Budget almost a billion dollars in deficit, you would think Eric Roozendaal would insist on discipline and rigour across government.

“Instead the Treasurer has forfeited more than $60 million in revenue owed to the taxpayers.”

Treasurer Eric Roozendaal

The Auditor-General’s Report to Parliament 2009 Volume Five has found that during 2008-09, the State Debt Recovery Office identified and wrote off 305,770 fines valued at $62.4 million.

“That’s tens of millions of dollars that should have been invested into front-line services and into building a long list of promised infrastructure,” Mr Baird said.

Shadow Treasurer Mike Baird

“Not only did the Rees Labor Government fail to collect more than 300,000 fines last year – most of these fines were overdue for more than seven years.

“This incompetence would not be found in any other organisation or business, yet it is commonplace in the Rees Labor Government.”

In 2007-08 the NSW Government failed to collect $56.5 million in uncollected fines, rising by $5.6 million in the last financial year.

Not only does the Rees Government fail to collect millions from fines it also has overseen the following:

• Devaluation of the Electricity Industry.
• Sale of the State Lotteries at a LOSS of $50 million
• TCARD electronic ticketing at a LOSS of $90 million
• Transport administration amendment (rail trails) bill 2009 if passed would ensure that the New South Wales Railways have no chance of expansion in the future and the financial LOSS to the State is unable to be estimated. Railway expansion expands the economy. Railway contraction contracts the economy.

John Bradfield

 “As the NSW economy slid into recession and families across the State tightened their belts, the Rees Labor Government’s financial discipline deteriorated even further.

“If Nathan Rees and Eric Roozendaal insisted on rigour and discipline across their government, there’s no doubt NSW taxpayers would be tens of millions of dollars better off,” Mr Baird said.

When Treasurer Eric Roozendaal oversaw fundraising for Labor’s Sussex Street Head Office, party finances boomed. However when Treasurer Eric Roozendaal transferred to the Treasury Benches the question that must be asked is was this financial wizardry left behind?