Mr KIELY - 2001-10-17
Chief Minister, in your ministerial report this morning on the Allan report, you mentioned that Treasury had advised that the sale of the NT Fleet as proposed by the former government should not proceed. What were the reasons?
ANSWER
I thank the member for Sanderson for his question. When we came to government, the Under Treasurer advised that, in the light of the emerging budget situation - and we know what that emerging budget situation was - this year’s budget included the sale of at least the light vehicle component of NT Fleet. That is something like 2200 vehicles. The Under Treasurer also advised that its inclusion in the budget was a last minute matter. It was something that the then Treasurer said: ‘How can we do something about the deficit? I do not like it. We are running up to an election. What do I do about it?’ He and his back pocket pulled the sale of the NT Fleet - the sale of the fleet, and the details had only been investigated after the budget. Now, this is great budget management. We put initiatives into the budget, then after we have put them in and proudly stood on this side of the House and said what a great initiative it is, then we go: ‘Whoops! Does it work?’ Well, let me say that whoops was, it did not work. Conditions have changed since other governments went down the leasing path.
Mr Burke: So you won’t sell it?
Ms MARTIN: I would like the Leader of the Opposition to listen because its important. Obviously you did not understand at the time. So you do not listen to your mate, or you just did not understand. So, let me tell you.
Conditions have changed since three years ago when the previous administration actually looked at the sale of NT Fleet. These factors are – do you know about the GST? - the introduction of the GST, which removed the public sector’s advantage through the previous sales tax exemption; a change in the tax treatment for replacement assets – I am sure the then Treasurer spelt it out to you; lower company tax rates so that lessors no longer get the same tax advantage from deductability of interest and depreciation; a reduction in prevailing interest rates, further lowering the tax saving available to lessors; and increasing use of finance leases rather than operating leases which are treated as debt of the lessee. A whole range of factors, and yet none of them considered before the announcement was made of the sale of NT Fleet in the last budget.
Fundamentally, the decision to include the sale in the budget was premature, it was ill-conceived and, I would add, deceitful. The decision had more to do with the precious government’s deceitful budget processes. The Treasurer picked a budget bottom-line and sent Treasury away to publish the results, making whatever adjustments were necessary along the way. There was no assessment of whether the measures involved made sense or were in the Territory’s long-term interest. It was simply a ploy to get through the election and it was another CLP fraud on Territorians.
ANSWER
I thank the member for Sanderson for his question. When we came to government, the Under Treasurer advised that, in the light of the emerging budget situation - and we know what that emerging budget situation was - this year’s budget included the sale of at least the light vehicle component of NT Fleet. That is something like 2200 vehicles. The Under Treasurer also advised that its inclusion in the budget was a last minute matter. It was something that the then Treasurer said: ‘How can we do something about the deficit? I do not like it. We are running up to an election. What do I do about it?’ He and his back pocket pulled the sale of the NT Fleet - the sale of the fleet, and the details had only been investigated after the budget. Now, this is great budget management. We put initiatives into the budget, then after we have put them in and proudly stood on this side of the House and said what a great initiative it is, then we go: ‘Whoops! Does it work?’ Well, let me say that whoops was, it did not work. Conditions have changed since other governments went down the leasing path.
Mr Burke: So you won’t sell it?
Ms MARTIN: I would like the Leader of the Opposition to listen because its important. Obviously you did not understand at the time. So you do not listen to your mate, or you just did not understand. So, let me tell you.
Conditions have changed since three years ago when the previous administration actually looked at the sale of NT Fleet. These factors are – do you know about the GST? - the introduction of the GST, which removed the public sector’s advantage through the previous sales tax exemption; a change in the tax treatment for replacement assets – I am sure the then Treasurer spelt it out to you; lower company tax rates so that lessors no longer get the same tax advantage from deductability of interest and depreciation; a reduction in prevailing interest rates, further lowering the tax saving available to lessors; and increasing use of finance leases rather than operating leases which are treated as debt of the lessee. A whole range of factors, and yet none of them considered before the announcement was made of the sale of NT Fleet in the last budget.
Fundamentally, the decision to include the sale in the budget was premature, it was ill-conceived and, I would add, deceitful. The decision had more to do with the precious government’s deceitful budget processes. The Treasurer picked a budget bottom-line and sent Treasury away to publish the results, making whatever adjustments were necessary along the way. There was no assessment of whether the measures involved made sense or were in the Territory’s long-term interest. It was simply a ploy to get through the election and it was another CLP fraud on Territorians.
Last updated: 09 Aug 2016