Mr STIRLING - 2000-05-17
Two years ago on budget day the Treasurer told the Assembly: ‘Part of responsible government is to ensure there is sufficient revenue to cover expenditure and prevent an escalation of debt’. We agree. Last year he said: ‘The government’s commitment to reducing the level of debt is further proof that the government is living within it’s means’. Yesterday’s budget blew that commitment with $166m over 2 years whacked on the bankcard. Given that the Treasurer said it was vital for revenue to cover expenditure in 1998, and then he said ‘live within our means’ in 1999, will he now confirm to Territorians that he has more fiscal positions than the Karma Sutra?
ANSWER
Mr Speaker, the closing remarks of the honourable member demonstrate just how serious they are in relation to these matters. Do you want the Territory to progress? Do you want jobs to be created? Do you want services to be maintained? Do you want Territorians to be able to enjoy the absolutely wonderful lifestyle that we’re here to enjoy and have that safeguarded?
Your obvious alternative to this would be to tax the people of today to the hilt so that every capital works item you did, every activity of government, was completely funded today - and we had that option, of course. We had the option of increasing taxation, increasing payroll tax, increasing stamp duties to the extent that we would be able to recover the costs to meet the emerging needs of Territorians. It was a most unreasonable option, and we wouldn’t place that burden on business. But what you can do, quite logically, if you have the capacity to pay, is to take borrowings and spread the burden over a number of years. Not only does it spread the burden over a number of years, it provides the opportunity for those people now and well into the future who will enjoy the new infrastructure that was put in place to contribute to its cost, and that’s what responsible government is all about.
In terms of borrowings, why can’t you think back a bit and work through where we have come from. You will recall that only a few years ago I went to Europe and the UK with Treasury officers, I have done two visits …
Mr Stirling: $2000 a night at the hotel in Paris.
Mr REED: I will pick up the point gladly. Thank you for the interjection. It gives me the opportunity to answer and again put it in context. As you don’t even remember, the objective of those visits to financial institutions was to enable us to look at our debt structure and to restructure it so that we could reduce our commitments in terms of interest payments, put the Territory’s finances on a much more responsible footing, and take advantage of the current low interest rates. We did that, and you will recall that when I was speaking to the Bank of London and other major financial institutions in London, I got into trouble for staying – as the member interjected – at the Savoy, because he wanted me to, when in talking to the Bank of London, say: ‘Could you come down to the youth hostels or the backpackers and I’ll just have a talk to you about this couple of million dollars we want to do in relation to finances’. That’s the level that he thinks at. They have no idea of the scope of …
Members interjecting.
Mr SPEAKER: Order! Would the Treasurer just cease for a moment. There is far too much interjection and general discussion in the Chamber at the present time. I am finding it ...
Members interjecting.
Mr SPEAKER: Order! The member for Nhulunbuy and the member for Stuart, I am speaking and I expect you to listen. I am warning you, keep it down.
Mr REED: They do not even know about the fundamentals of sitting in the boardrooms with major financial institutions around the world, and we are pretty small fry, I have to say, in terms of the borrowings that we seek to put in place with some of these institutions. We are looking to borrow $91m this year and they have funds of $50bn available to lend.
That is the scope of the people who we are talking to. You do not invite those people back to the backpackers lodge to have a bit of a chat about the business you want to put in place. You do stay at a reasonable hotel. Of course, the member for Nhulunbuy is very cute because he stayed in a similar class hotel when he himself visited New York. So let him not try and talk ...
Members interjecting.
Mr REED: Don’t go too red, Syd, don’t go too red, okay? Let him not try to put the blame on me ...
Mr Stirling interjecting.
Mr REED: ... when of course, he enjoyed - you are going red. You are going red, I can see it. I can see it rising. You had better undo the collar, you will burst in a minute.
Let’s keep it in context. The fact is that we have the capacity to take out the loans, we have the capacity to respond to the needs of Territorians, and this government has the responsibility to do it.
ANSWER
Mr Speaker, the closing remarks of the honourable member demonstrate just how serious they are in relation to these matters. Do you want the Territory to progress? Do you want jobs to be created? Do you want services to be maintained? Do you want Territorians to be able to enjoy the absolutely wonderful lifestyle that we’re here to enjoy and have that safeguarded?
Your obvious alternative to this would be to tax the people of today to the hilt so that every capital works item you did, every activity of government, was completely funded today - and we had that option, of course. We had the option of increasing taxation, increasing payroll tax, increasing stamp duties to the extent that we would be able to recover the costs to meet the emerging needs of Territorians. It was a most unreasonable option, and we wouldn’t place that burden on business. But what you can do, quite logically, if you have the capacity to pay, is to take borrowings and spread the burden over a number of years. Not only does it spread the burden over a number of years, it provides the opportunity for those people now and well into the future who will enjoy the new infrastructure that was put in place to contribute to its cost, and that’s what responsible government is all about.
In terms of borrowings, why can’t you think back a bit and work through where we have come from. You will recall that only a few years ago I went to Europe and the UK with Treasury officers, I have done two visits …
Mr Stirling: $2000 a night at the hotel in Paris.
Mr REED: I will pick up the point gladly. Thank you for the interjection. It gives me the opportunity to answer and again put it in context. As you don’t even remember, the objective of those visits to financial institutions was to enable us to look at our debt structure and to restructure it so that we could reduce our commitments in terms of interest payments, put the Territory’s finances on a much more responsible footing, and take advantage of the current low interest rates. We did that, and you will recall that when I was speaking to the Bank of London and other major financial institutions in London, I got into trouble for staying – as the member interjected – at the Savoy, because he wanted me to, when in talking to the Bank of London, say: ‘Could you come down to the youth hostels or the backpackers and I’ll just have a talk to you about this couple of million dollars we want to do in relation to finances’. That’s the level that he thinks at. They have no idea of the scope of …
Members interjecting.
Mr SPEAKER: Order! Would the Treasurer just cease for a moment. There is far too much interjection and general discussion in the Chamber at the present time. I am finding it ...
Members interjecting.
Mr SPEAKER: Order! The member for Nhulunbuy and the member for Stuart, I am speaking and I expect you to listen. I am warning you, keep it down.
Mr REED: They do not even know about the fundamentals of sitting in the boardrooms with major financial institutions around the world, and we are pretty small fry, I have to say, in terms of the borrowings that we seek to put in place with some of these institutions. We are looking to borrow $91m this year and they have funds of $50bn available to lend.
That is the scope of the people who we are talking to. You do not invite those people back to the backpackers lodge to have a bit of a chat about the business you want to put in place. You do stay at a reasonable hotel. Of course, the member for Nhulunbuy is very cute because he stayed in a similar class hotel when he himself visited New York. So let him not try and talk ...
Members interjecting.
Mr REED: Don’t go too red, Syd, don’t go too red, okay? Let him not try to put the blame on me ...
Mr Stirling interjecting.
Mr REED: ... when of course, he enjoyed - you are going red. You are going red, I can see it. I can see it rising. You had better undo the collar, you will burst in a minute.
Let’s keep it in context. The fact is that we have the capacity to take out the loans, we have the capacity to respond to the needs of Territorians, and this government has the responsibility to do it.
Last updated: 09 Aug 2016