Mr KURRUPUWU - 2013-08-29
The Country Liberals inherited a $5.5bn debt after 11 years of Labor. Can you outline why such a high debt level is unsustainable, and is there any difference between how Territory Labor and federal Labor manage money?
ANSWER
Madam Speaker, I thank the member for Arafura for his good question. In short, the answer is no. However, let me put some meat on the bones. The previous Labor government enacted legislation called the Fiscal Integrity and Transparency Act. That was to govern the way they did business and handle money. It is a shame, but the previous government breached their own act.
There are four basic tenets contained within FITA, two of which relate directly to debt. One says current fiscal management principles are that funding for current services is to be provided by the current generation. They clearly failed that one. The other tenant is current fiscal management principles are financial risks faced by the Territory are prudently managed, having regard to economic circumstances, including the maintenance of Territory debt at prudent levels.
Madam Speaker, I put to you, and everyone in this Chamber, projected debt of $5.5bn and a revenue to debt ratio of 98% is not prudent fiscal management.
Immediately after delivering the budget there were budget replies, and the member for Casuarina belled the cat about the previous government. He said, ‘Yes we went into debt. We had to employ teachers, nurses, and a whole range of things.’ Basically, he was saying the government …
Mr VATSKALIS: A point of order, Madam Speaker! The member is misleading parliament. I did not say that, and I challenge him to bring the Hansard here ...
Madam SPEAKER: Member for Casuarina, what is your point of order?
Mr VATSKALIS: Standing Order 113: relevance, Madam Speaker. The member misquoted me with the intention of misleading parliament. I did not say anything like that and challenge him to bring the Hansard here.
Madam SPEAKER: Sit down, member for Fong Lim! Wait! Member for Casuarina, you know the process. If you feel you have been misrepresented you can make a personal statement at a later stage.
Mr ELFERINK: A point of order, Madam Speaker! There was a direct allegation the Treasurer has misled the parliament. I ask that be withdrawn or other action taken.
Madam SPEAKER: I did not hear the allegation. Member for Casuarina, if you said that please withdraw the statement.
Mr VATSKALIS: Thank you, Madam Speaker, I withdraw.
Mr TOLLNER: Madam Speaker, a quick read of the Hansard will point out exactly what the member for Casuarina said. Fundamentally, he was saying they were borrowing to pay recurrent costs; that is, this generation was not paying for the services this generation uses - a clear breach of the Fiscal Integrity and Transparency Act. They could not live within their own rules let alone anyone else’s.
I was also asked about the comparison between the previous government and federal Labor. Federal Labor inherited a budget surplus. They inherited $60bn sitting in a Future Fund, $20bn sitting in a Higher Education Endowment Fund, and another $20bn in a Telecommunications Fund. Where are we six years after federal Labor? We have a $30bn budget deficit!
Madam Speaker, I put it to you and everybody in this Chamber there is no difference in Labor whether in the Northern Territory or in the federal parliament …
Madam SPEAKER: Your time has expired, minister. Sit down.
ANSWER
Madam Speaker, I thank the member for Arafura for his good question. In short, the answer is no. However, let me put some meat on the bones. The previous Labor government enacted legislation called the Fiscal Integrity and Transparency Act. That was to govern the way they did business and handle money. It is a shame, but the previous government breached their own act.
There are four basic tenets contained within FITA, two of which relate directly to debt. One says current fiscal management principles are that funding for current services is to be provided by the current generation. They clearly failed that one. The other tenant is current fiscal management principles are financial risks faced by the Territory are prudently managed, having regard to economic circumstances, including the maintenance of Territory debt at prudent levels.
Madam Speaker, I put to you, and everyone in this Chamber, projected debt of $5.5bn and a revenue to debt ratio of 98% is not prudent fiscal management.
Immediately after delivering the budget there were budget replies, and the member for Casuarina belled the cat about the previous government. He said, ‘Yes we went into debt. We had to employ teachers, nurses, and a whole range of things.’ Basically, he was saying the government …
Mr VATSKALIS: A point of order, Madam Speaker! The member is misleading parliament. I did not say that, and I challenge him to bring the Hansard here ...
Madam SPEAKER: Member for Casuarina, what is your point of order?
Mr VATSKALIS: Standing Order 113: relevance, Madam Speaker. The member misquoted me with the intention of misleading parliament. I did not say anything like that and challenge him to bring the Hansard here.
Madam SPEAKER: Sit down, member for Fong Lim! Wait! Member for Casuarina, you know the process. If you feel you have been misrepresented you can make a personal statement at a later stage.
Mr ELFERINK: A point of order, Madam Speaker! There was a direct allegation the Treasurer has misled the parliament. I ask that be withdrawn or other action taken.
Madam SPEAKER: I did not hear the allegation. Member for Casuarina, if you said that please withdraw the statement.
Mr VATSKALIS: Thank you, Madam Speaker, I withdraw.
Mr TOLLNER: Madam Speaker, a quick read of the Hansard will point out exactly what the member for Casuarina said. Fundamentally, he was saying they were borrowing to pay recurrent costs; that is, this generation was not paying for the services this generation uses - a clear breach of the Fiscal Integrity and Transparency Act. They could not live within their own rules let alone anyone else’s.
I was also asked about the comparison between the previous government and federal Labor. Federal Labor inherited a budget surplus. They inherited $60bn sitting in a Future Fund, $20bn sitting in a Higher Education Endowment Fund, and another $20bn in a Telecommunications Fund. Where are we six years after federal Labor? We have a $30bn budget deficit!
Madam Speaker, I put it to you and everybody in this Chamber there is no difference in Labor whether in the Northern Territory or in the federal parliament …
Madam SPEAKER: Your time has expired, minister. Sit down.
Last updated: 09 Aug 2016