Mr STYLES - 2012-12-04
Before the recent election, the former Treasurer and now Leader of the Opposition hid from Territorians the true state of our finances. Can you explain to the House the steps you have taken in the first 100 days since being elected to fix this problem and ensure all Territorians have a prosperous future?
ANSWER
Madam Speaker, I thank the member for Sanderson for a very important question. Without an understanding of this answer, none of the hard decisions which have been made by a real government serving the best interests of Territorians would make sense. However, you know why we are making these decisions, Opposition Leader, for all of the games you are playing.
It is very important to outline to Territorians the size and extent of the deficit and the debt left by previous governments. However, it is not simply the debt as it now stands, but also the previous government’s ongoing unfunded programs which are having a real impact on the deficit, and which will cause the debt to continue to grow.
I suspect that 100 days ago few Territorians, like me, had any idea of the full facts about the true state of the budget. Yes, we suspected something was not quite right, but never in our wildest dreams did we think the member for Karama had cooked the books as we had discovered ...
Ms LAWRIE: A point of order, Madam Speaker! I ask he withdraw that gross and offensive allegation. The pre-election fiscal outlook gave an accurate depiction of the budget books.
Madam SPEAKER: Sit down! There is no point of order.
Mr MILLS: It grew by $100m in three months.
I take the opportunity to remind the House of some of the details I spoke of during the previous sittings. Let us look at some of the high-level figures at budget time in May, a mere seven months ago, and again at election time in August when the pre-election fiscal outlook was released. This was instructive. The non-financial public sector fiscal imbalance was $767m at budget time. However, in the pre-election financial outlook it expanded to $867m, a $100m escalation in just three months. The fact is, without intervention, the 2012-13 fiscal deficit is likely to be more than $900m compared to the May budget figure of $767m. These are big numbers to get wrong.
The impact of this, looking through the forward estimates, would see our debt rise to more than $6bn in 2016. Already, interest charges on our nett debt are costing us $750 000 every single day. If we were to do nothing, as the Leader of the Opposition would have us do, the result would be fewer jobs - particularly jobs for our children in the future - and greatly reduced services. Under Labor, these same children with reduced job prospects would bear the burden of paying the debt that is being racked up now if someone did not act.
About 100 days ago, I commissioned the Renewal Management Board to get to the bottom of this situation during the government’s first 100 days. This board has provided a detailed analysis of the real financial position of the Northern Territory, and has advised us of options for the future. We are dealing with facts in a manner which will serve the best interests of the Northern Territory. To clean up a mess, we will do it ...
Madam SPEAKER: Your time has expired, Chief Minister.
ANSWER
Madam Speaker, I thank the member for Sanderson for a very important question. Without an understanding of this answer, none of the hard decisions which have been made by a real government serving the best interests of Territorians would make sense. However, you know why we are making these decisions, Opposition Leader, for all of the games you are playing.
It is very important to outline to Territorians the size and extent of the deficit and the debt left by previous governments. However, it is not simply the debt as it now stands, but also the previous government’s ongoing unfunded programs which are having a real impact on the deficit, and which will cause the debt to continue to grow.
I suspect that 100 days ago few Territorians, like me, had any idea of the full facts about the true state of the budget. Yes, we suspected something was not quite right, but never in our wildest dreams did we think the member for Karama had cooked the books as we had discovered ...
Ms LAWRIE: A point of order, Madam Speaker! I ask he withdraw that gross and offensive allegation. The pre-election fiscal outlook gave an accurate depiction of the budget books.
Madam SPEAKER: Sit down! There is no point of order.
Mr MILLS: It grew by $100m in three months.
I take the opportunity to remind the House of some of the details I spoke of during the previous sittings. Let us look at some of the high-level figures at budget time in May, a mere seven months ago, and again at election time in August when the pre-election fiscal outlook was released. This was instructive. The non-financial public sector fiscal imbalance was $767m at budget time. However, in the pre-election financial outlook it expanded to $867m, a $100m escalation in just three months. The fact is, without intervention, the 2012-13 fiscal deficit is likely to be more than $900m compared to the May budget figure of $767m. These are big numbers to get wrong.
The impact of this, looking through the forward estimates, would see our debt rise to more than $6bn in 2016. Already, interest charges on our nett debt are costing us $750 000 every single day. If we were to do nothing, as the Leader of the Opposition would have us do, the result would be fewer jobs - particularly jobs for our children in the future - and greatly reduced services. Under Labor, these same children with reduced job prospects would bear the burden of paying the debt that is being racked up now if someone did not act.
About 100 days ago, I commissioned the Renewal Management Board to get to the bottom of this situation during the government’s first 100 days. This board has provided a detailed analysis of the real financial position of the Northern Territory, and has advised us of options for the future. We are dealing with facts in a manner which will serve the best interests of the Northern Territory. To clean up a mess, we will do it ...
Madam SPEAKER: Your time has expired, Chief Minister.
Last updated: 09 Aug 2016