Mr STIRLING - 1998-04-29
Last year, he promised Territorians that he would increase net debt by only $25m. Yesterday, he announced his failure to keep his word by stating that he had put a further $146m on the government credit card. He says he will put another $12m on the credit card this year, increasing net debt again. His budget blow-out and continued failure to address the Territory's net debt problem is a disaster for both current and future Territorians. When will he resign?
ANSWER
Madam Speaker, I think it is historic that, on the day following the delivery of the budget, we are halfway through Question Time before the Treasurer is asked a question. That demonstrates just how capable - or should I say incapable? - my opponents are.
As the budget speech and the budget papers clearly demonstrated, last year ...
Mr Stirling interjecting.
Mr REED: Do you want to hear the answer or not? I am sure the people in the galleries and those listening to this broadcast do. If you would be a little better mannered, they might hear the answer.
From the information that was provided, both in the budget speech and the budget papers, it is clear that this financial year has been a period of extreme demand. The government has responded to the needs of Territorians and an increase in debt has been required to achieve that. Honourable members may remember that a series of factors contributed to that increased demand.
Mrs Hickey: Superannuation?
Mr REED: We had to make unforeseen payments in relation to superannuation, as the Leader of the Opposition interjects. Expenditure related to the Katherine flood was unforeseen of course, as amusing as honourable members opposite may find that very serious matter. This government did not want to delay providing assistance to the people of Katherine, the people in the member for Arnhem's electorate and the people in the member for Victoria River's electorate to help them recover from the flood. We took the decision...
Mr Stirling interjecting.
Madam SPEAKER: Order! Member for Nhulunbuy.
Mrs Hickey: The Commonwealth has borne the brunt of that.
Madam SPEAKER: Order!
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Mr REED: I pick up the interjection from the Leader of the Opposition. Yesterday or the day before, she had a member of her staff contact the office of the Minister for Finance and Administration in Canberra to obtain the details of natural disaster relief arrangements. What does that indicate? It means that the member for Arnhem should be in Katherine. That is where his former office was, but now he sits in the splendid isolation of his new office in urban Darwin. If he had been on the spot, he would have known what the situation was, and his leader would not have needed to ring Canberra and ask about the Katherine flood relief arrangements. She would have had a Labor-elected member in his rightful place and able to tell her the position.
Mr STIRLING: A point of order, Madam Speaker! I recall a direction from you, given quite recently, that ministers' answers should be relevant to the questions asked. My question was clearly about net debt and the Treasurer's failure to reduce it, as he promised last year. In fact, it will be blown out again this year.
Madam SPEAKER: I agree that answers sometimes go off the track because of the number of interjections. Perhaps we could have fewer interjections, and answers which are directed more clearly to the question.
Mr REED: Precisely, Madam Speaker. If members interject with superfluous comments, they have to be responded to. That is precisely what I did.
In relation to the net debt, there was the carry-over from the previous financial year which certainly contributed to those circumstances. The full details have been made available to the member opposite. The Territory is in a period of population growth which in itself places extra pressure on the government. We have to respond with the provision of additional services in high-cost areas such as health, education and the extension of electricity, sewerage and water services to meet the needs of an increasing population. We will do this because we are committed to meeting the needs of Territorians.
The real point is that gross debt has been reduced in this year's budget a year ahead of the 3-year target. We made a commitment to reduce gross debt below $2000m by 1998-99. We achieved that target a year early. We have done it this year by committing $70m to debt reduction. That is an incredible achievement. As I indicated in the budget presentation yesterday, we have now embarked on a further 3-year debt reduction program to reduce gross debt further and to decrease the interest payments required in the budget. This means that the money that was going formerly to meet interest payments can be redirected to more beneficial programs to the advantage of Territorians.
This budget will take us into the next decade of very strong growth. The fact is that members opposite cannot see further than the end of their noses. They cannot see that, although the capital works program is smaller, it is still a healthy one. They cannot see that we have put an extra $28m into repairs and maintenance to maintain the $8000m of assets that we have built up since self-government. Members opposite cannot see that we will be constructing a railway next year. There will be 3 or 4 years of very strong activity on that national program. It will deliver great benefits to Territorians. Members opposite cannot see that we are on the verge of quadrupling our oil production from natural resources with the largest floating oil production platform in the world. That will advantage Territorians. They cannot see that, within the next 5 to 8 years, utilisation of gas reserves will see a gas pipeline brought onshore, domestic reticulation of natural gas and the construction of an LNG plant. The budget that was delivered yesterday by this CLP government puts the Territory in a very sound position. Territorians will be able to look forward to the future with confidence. They will have jobs for their kids and still enjoy their wonderful lifestyle. Members opposite are incompetent.
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ANSWER
Madam Speaker, I think it is historic that, on the day following the delivery of the budget, we are halfway through Question Time before the Treasurer is asked a question. That demonstrates just how capable - or should I say incapable? - my opponents are.
As the budget speech and the budget papers clearly demonstrated, last year ...
Mr Stirling interjecting.
Mr REED: Do you want to hear the answer or not? I am sure the people in the galleries and those listening to this broadcast do. If you would be a little better mannered, they might hear the answer.
From the information that was provided, both in the budget speech and the budget papers, it is clear that this financial year has been a period of extreme demand. The government has responded to the needs of Territorians and an increase in debt has been required to achieve that. Honourable members may remember that a series of factors contributed to that increased demand.
Mrs Hickey: Superannuation?
Mr REED: We had to make unforeseen payments in relation to superannuation, as the Leader of the Opposition interjects. Expenditure related to the Katherine flood was unforeseen of course, as amusing as honourable members opposite may find that very serious matter. This government did not want to delay providing assistance to the people of Katherine, the people in the member for Arnhem's electorate and the people in the member for Victoria River's electorate to help them recover from the flood. We took the decision...
Mr Stirling interjecting.
Madam SPEAKER: Order! Member for Nhulunbuy.
Mrs Hickey: The Commonwealth has borne the brunt of that.
Madam SPEAKER: Order!
Page 220
Mr REED: I pick up the interjection from the Leader of the Opposition. Yesterday or the day before, she had a member of her staff contact the office of the Minister for Finance and Administration in Canberra to obtain the details of natural disaster relief arrangements. What does that indicate? It means that the member for Arnhem should be in Katherine. That is where his former office was, but now he sits in the splendid isolation of his new office in urban Darwin. If he had been on the spot, he would have known what the situation was, and his leader would not have needed to ring Canberra and ask about the Katherine flood relief arrangements. She would have had a Labor-elected member in his rightful place and able to tell her the position.
Mr STIRLING: A point of order, Madam Speaker! I recall a direction from you, given quite recently, that ministers' answers should be relevant to the questions asked. My question was clearly about net debt and the Treasurer's failure to reduce it, as he promised last year. In fact, it will be blown out again this year.
Madam SPEAKER: I agree that answers sometimes go off the track because of the number of interjections. Perhaps we could have fewer interjections, and answers which are directed more clearly to the question.
Mr REED: Precisely, Madam Speaker. If members interject with superfluous comments, they have to be responded to. That is precisely what I did.
In relation to the net debt, there was the carry-over from the previous financial year which certainly contributed to those circumstances. The full details have been made available to the member opposite. The Territory is in a period of population growth which in itself places extra pressure on the government. We have to respond with the provision of additional services in high-cost areas such as health, education and the extension of electricity, sewerage and water services to meet the needs of an increasing population. We will do this because we are committed to meeting the needs of Territorians.
The real point is that gross debt has been reduced in this year's budget a year ahead of the 3-year target. We made a commitment to reduce gross debt below $2000m by 1998-99. We achieved that target a year early. We have done it this year by committing $70m to debt reduction. That is an incredible achievement. As I indicated in the budget presentation yesterday, we have now embarked on a further 3-year debt reduction program to reduce gross debt further and to decrease the interest payments required in the budget. This means that the money that was going formerly to meet interest payments can be redirected to more beneficial programs to the advantage of Territorians.
This budget will take us into the next decade of very strong growth. The fact is that members opposite cannot see further than the end of their noses. They cannot see that, although the capital works program is smaller, it is still a healthy one. They cannot see that we have put an extra $28m into repairs and maintenance to maintain the $8000m of assets that we have built up since self-government. Members opposite cannot see that we will be constructing a railway next year. There will be 3 or 4 years of very strong activity on that national program. It will deliver great benefits to Territorians. Members opposite cannot see that we are on the verge of quadrupling our oil production from natural resources with the largest floating oil production platform in the world. That will advantage Territorians. They cannot see that, within the next 5 to 8 years, utilisation of gas reserves will see a gas pipeline brought onshore, domestic reticulation of natural gas and the construction of an LNG plant. The budget that was delivered yesterday by this CLP government puts the Territory in a very sound position. Territorians will be able to look forward to the future with confidence. They will have jobs for their kids and still enjoy their wonderful lifestyle. Members opposite are incompetent.
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Last updated: 09 Aug 2016