Mr KIELY - 2002-11-26
The latest gross state product economic growth data was released recently by the Australian Bureau of Statistics. What do these statistics tell Territorians about the Martin government’s management of the economy?
ANSWER
Madam Speaker, I thank the member for Sanderson for his question, my first question as Treasurer, and I am absolutely delighted. I am delighted to have that portfolio behind my name because they are a great bunch of people to work with. They are superb public servants, our 220-odd public servants sitting over there in Treasury. They are a delight to work with, they are highly professional and I am enjoying being Treasurer which I always saw as a bit dry and dusty. I have to tell you it is the most exciting area of government that I have had to work in so far because it is whole-of-government. They have their heads around it; I know they are going to get my head around it fairly quickly, and I look forward to that.
The latest gross state product figures for the Territory do show a great story and real economic growth in 2001-02 of 4.8%, up from 4.1% the previous year, and just 0.3% in the year 1999-2000. This government has been able to deliver the strongest percentage economic growth figures for the last three years. Our first year in government produced the strongest figures in the last three years.
Mr Baldwin: Tell the Chamber of Commerce.
Mr Dunham: So everything’s okay?
Mr STIRLING: Well, you ought to listen because this tells the story of where your government was taking us and taking the Territory and where this government is.
Members interjecting.
Madam SPEAKER: Order!
Mr STIRLING: Madam Speaker, of course it does stand in stark contrast to the gloom and doom of the now opposition that the CLP government used to say: ‘God help us if Labor is elected; it will be all gloom and doom’. The figures tell a different story, and the further you look into the figures, the more encouraging they are because they show a broad based recovery in activity through 2001-02, and most sectors of the onshore economic activity are significantly stronger in 2001-02 compared with the previous year.
Household consumption: 6.8% in 2001-02. It was 1.8% in 2001. Government consumption up 5.1% compared with 3.4% the previous year. Private fixed capital investment up 43.4%, a decline of 9.5% in 2000-01. As a consequence, GSP total surpassed the $9bn for the first time in 2001-02, and that was with some decline in oil exports from the Timor Sea. So excluding exports and imports, state final demand, which has a focus on that onshore activity, grew by 13.8% in 2001-02 compared with a rise of just 1.8% the year before. The Territory’s economic growth rate at 4.8% is some 0.9 percentage points ahead of the national average.
They are good figures and they are going to get better. Of course, this government has spelt out its economic blueprint to build a better Territory and the economic upturn that was seen over this last year is expected to broaden and gain further momentum. We have a record level of capital works spending out there in the community, as a result of our budget, occurring through 2002-03. We did deliberately put all the additional cash we could muster into the capital works program last year because the construction industry had been out on its feet; it said goodnight two years earlier.
If we go back that previous two years, a deficit budget that came in at something like $225m - $225m they spent more than revenue received by them when they were in government. At the same time, the construction industry was reeling, spiralling down hill. The next year, when they told us that we were headed for a $12m deficit, still had done nothing for the construction industry and, of course, when we had a very close look at the figures - and it was within about 10 days of gaining government - we were told the budget position was ‘unsustainable’. We found we were headed for another $126m deficit on top of that. So you have a $225m blow-out, $126m projected blow-out that financial year, and nothing at all out there in capital works.
We have addressed that and we have them back in place. In fact, someone said to me the other day that the Leader of the Opposition stepped into the lift and he said to one of the staffers: ‘When are you going to get the place going?’ I thought: ‘My God! Doesn’t he walk down Mitchell Street? Doesn’t he see those big things?’ He has forgotten what they look like. They are called cranes. He has forgotten what they look like because they didn’t have any. They didn’t have any in the years that he was Chief Minister, and still running a budget deficit of $225m in one financial year. That is a disgrace! You burdened Territorians with the greatest debt levels in Australia. They already were, but you and your mate beside you, and now this bloke over here - it’s the Burke and Mills show lately. We haven’t heard of Reed. It used to be Burke and Reed. It is the Burke and Mills show lately. He has been jumping into police stories and everything else. I am wondering when he is going to jump up on the Treasury.
Mr Baldwin interjecting.
Madam SPEAKER: Order, member for Daly!
Mr STIRLING: Madam Speaker, we put in place QuickStart II to tide the local construction industry over the last Wet Season and this year, moved to significantly increase the First Home Buyer’s Stamp Duty Concession to $3640 as well as introduce the Principal Place of Residence Rebate for all home buyers of $1500. We abolished taxes on wet hires as well as substantially reducing the stamp duty payable on franchises when they are initially undertaken and when they are renewed.
As a government, we are spending money on the towns and in the remote areas. There is no point in having one part of the Territory boom while the rest misses out. The railway has made a significant contribution, and we acknowledge that to onshore activity, but it is not the only factor at play. Housing is expected to recover from its lows of early 2001 and there is every likelihood of the LNG plant proceeding and the arrival of gas onshore from a range of fields in the Timor Sea. What this government has done is demonstrate that it can manage the economy and it can manage the Territory’s funding.
Madam SPEAKER: I will remind ministers that we have only had five questions.
ANSWER
Madam Speaker, I thank the member for Sanderson for his question, my first question as Treasurer, and I am absolutely delighted. I am delighted to have that portfolio behind my name because they are a great bunch of people to work with. They are superb public servants, our 220-odd public servants sitting over there in Treasury. They are a delight to work with, they are highly professional and I am enjoying being Treasurer which I always saw as a bit dry and dusty. I have to tell you it is the most exciting area of government that I have had to work in so far because it is whole-of-government. They have their heads around it; I know they are going to get my head around it fairly quickly, and I look forward to that.
The latest gross state product figures for the Territory do show a great story and real economic growth in 2001-02 of 4.8%, up from 4.1% the previous year, and just 0.3% in the year 1999-2000. This government has been able to deliver the strongest percentage economic growth figures for the last three years. Our first year in government produced the strongest figures in the last three years.
Mr Baldwin: Tell the Chamber of Commerce.
Mr Dunham: So everything’s okay?
Mr STIRLING: Well, you ought to listen because this tells the story of where your government was taking us and taking the Territory and where this government is.
Members interjecting.
Madam SPEAKER: Order!
Mr STIRLING: Madam Speaker, of course it does stand in stark contrast to the gloom and doom of the now opposition that the CLP government used to say: ‘God help us if Labor is elected; it will be all gloom and doom’. The figures tell a different story, and the further you look into the figures, the more encouraging they are because they show a broad based recovery in activity through 2001-02, and most sectors of the onshore economic activity are significantly stronger in 2001-02 compared with the previous year.
Household consumption: 6.8% in 2001-02. It was 1.8% in 2001. Government consumption up 5.1% compared with 3.4% the previous year. Private fixed capital investment up 43.4%, a decline of 9.5% in 2000-01. As a consequence, GSP total surpassed the $9bn for the first time in 2001-02, and that was with some decline in oil exports from the Timor Sea. So excluding exports and imports, state final demand, which has a focus on that onshore activity, grew by 13.8% in 2001-02 compared with a rise of just 1.8% the year before. The Territory’s economic growth rate at 4.8% is some 0.9 percentage points ahead of the national average.
They are good figures and they are going to get better. Of course, this government has spelt out its economic blueprint to build a better Territory and the economic upturn that was seen over this last year is expected to broaden and gain further momentum. We have a record level of capital works spending out there in the community, as a result of our budget, occurring through 2002-03. We did deliberately put all the additional cash we could muster into the capital works program last year because the construction industry had been out on its feet; it said goodnight two years earlier.
If we go back that previous two years, a deficit budget that came in at something like $225m - $225m they spent more than revenue received by them when they were in government. At the same time, the construction industry was reeling, spiralling down hill. The next year, when they told us that we were headed for a $12m deficit, still had done nothing for the construction industry and, of course, when we had a very close look at the figures - and it was within about 10 days of gaining government - we were told the budget position was ‘unsustainable’. We found we were headed for another $126m deficit on top of that. So you have a $225m blow-out, $126m projected blow-out that financial year, and nothing at all out there in capital works.
We have addressed that and we have them back in place. In fact, someone said to me the other day that the Leader of the Opposition stepped into the lift and he said to one of the staffers: ‘When are you going to get the place going?’ I thought: ‘My God! Doesn’t he walk down Mitchell Street? Doesn’t he see those big things?’ He has forgotten what they look like. They are called cranes. He has forgotten what they look like because they didn’t have any. They didn’t have any in the years that he was Chief Minister, and still running a budget deficit of $225m in one financial year. That is a disgrace! You burdened Territorians with the greatest debt levels in Australia. They already were, but you and your mate beside you, and now this bloke over here - it’s the Burke and Mills show lately. We haven’t heard of Reed. It used to be Burke and Reed. It is the Burke and Mills show lately. He has been jumping into police stories and everything else. I am wondering when he is going to jump up on the Treasury.
Mr Baldwin interjecting.
Madam SPEAKER: Order, member for Daly!
Mr STIRLING: Madam Speaker, we put in place QuickStart II to tide the local construction industry over the last Wet Season and this year, moved to significantly increase the First Home Buyer’s Stamp Duty Concession to $3640 as well as introduce the Principal Place of Residence Rebate for all home buyers of $1500. We abolished taxes on wet hires as well as substantially reducing the stamp duty payable on franchises when they are initially undertaken and when they are renewed.
As a government, we are spending money on the towns and in the remote areas. There is no point in having one part of the Territory boom while the rest misses out. The railway has made a significant contribution, and we acknowledge that to onshore activity, but it is not the only factor at play. Housing is expected to recover from its lows of early 2001 and there is every likelihood of the LNG plant proceeding and the arrival of gas onshore from a range of fields in the Timor Sea. What this government has done is demonstrate that it can manage the economy and it can manage the Territory’s funding.
Madam SPEAKER: I will remind ministers that we have only had five questions.
Last updated: 09 Aug 2016