Mr MILLS - 2011-05-03
In 2008, you said we needed to enter into deficit to ward off the impact of the global financial crisis on the Territory. In your 2008-09 mid-year review you predicted surpluses for the 2009-10 budget and for future budgets. Today, in 2011, and through to 2015, it is a sea of red. What integrity can Territorians place on your budget process when you get it so wrong?
ANSWER
Madam Speaker, what the Leader of the Opposition does not understand is that our budget is substantially reliant on the GST pool and the collections of GST nationally. Regarding the budget papers, they are forecast with the best information we have at the time from the Commonwealth of GST collections that, ultimately, flow through to the states. When the Commonwealth alters those numbers, the collections and payments to the Northern Territory change as a result. It is very simple: if the GST pool goes down, the amount of money we receive in the Northern Territory also reduces, Leader of the Opposition. That has occurred principally as a result of the global financial crisis.
If we want to talk about debt, let us talk about the debt we inherited when we came to government, in the debt to revenue ratio. Under the CLP, it was 61%. In this budget, it is 32%. It is half of what we inherited. Regarding the modesty of the debt in the budget papers presented today, if we look at nett debt as a percentage of GDP - Australia, the Northern Territory, and there is the rest of the world. This is very modest and affordable, and it protects Territory jobs and supports Territory families.
Look at the estimated cash deficits for 2011-12 in the states of Queensland, New South Wales, Victoria, Western Australia, and South Australia - very affordable, very modest for the Northern Territory. I make no apologies for protecting jobs. I make no apologies for supporting Territory families. I make no apologies for providing tax cuts for small businesses in the Northern Territory to support them maintaining their workforce.
The challenge for the opposition tomorrow is to come in here and say what they would do differently. It is obvious they need to find $295m in cuts across the budget, so let them say what infrastructure projects they will not proceed with. There were 800 public servants in the gun last time. How many public servants would they sack? What tax cuts would they reverse, or what taxes would they increase to avoid going into deficit? That is the difference between sitting in opposition being critical and the government being out in the community responding to community concerns, and listening to business, families, and non-government organisations that are supporting families who are in crisis and understanding the needs of this community.
This budget provides for jobs, provides support to families, and provides support to small businesses. As the Chief Minister, I am very proud of the budget handed down today by the Treasurer.
ANSWER
Madam Speaker, what the Leader of the Opposition does not understand is that our budget is substantially reliant on the GST pool and the collections of GST nationally. Regarding the budget papers, they are forecast with the best information we have at the time from the Commonwealth of GST collections that, ultimately, flow through to the states. When the Commonwealth alters those numbers, the collections and payments to the Northern Territory change as a result. It is very simple: if the GST pool goes down, the amount of money we receive in the Northern Territory also reduces, Leader of the Opposition. That has occurred principally as a result of the global financial crisis.
If we want to talk about debt, let us talk about the debt we inherited when we came to government, in the debt to revenue ratio. Under the CLP, it was 61%. In this budget, it is 32%. It is half of what we inherited. Regarding the modesty of the debt in the budget papers presented today, if we look at nett debt as a percentage of GDP - Australia, the Northern Territory, and there is the rest of the world. This is very modest and affordable, and it protects Territory jobs and supports Territory families.
Look at the estimated cash deficits for 2011-12 in the states of Queensland, New South Wales, Victoria, Western Australia, and South Australia - very affordable, very modest for the Northern Territory. I make no apologies for protecting jobs. I make no apologies for supporting Territory families. I make no apologies for providing tax cuts for small businesses in the Northern Territory to support them maintaining their workforce.
The challenge for the opposition tomorrow is to come in here and say what they would do differently. It is obvious they need to find $295m in cuts across the budget, so let them say what infrastructure projects they will not proceed with. There were 800 public servants in the gun last time. How many public servants would they sack? What tax cuts would they reverse, or what taxes would they increase to avoid going into deficit? That is the difference between sitting in opposition being critical and the government being out in the community responding to community concerns, and listening to business, families, and non-government organisations that are supporting families who are in crisis and understanding the needs of this community.
This budget provides for jobs, provides support to families, and provides support to small businesses. As the Chief Minister, I am very proud of the budget handed down today by the Treasurer.
Last updated: 09 Aug 2016