Ms PURICK - 2012-05-01
In 2010, you told Territorians that the nett debt of the Territory would be $1.68bn by 2013-14. You are now telling Territorians by that time the figure will be $3.1bn of nett debt. That is nearly twice as much as you said it would be two years ago. If you get it that wrong in just two years, why should Territorians have any faith or confidence in your ability as a Treasurer now and into the near future?
ANSWER
Madam Speaker, it seems I am somewhat on the repeat, but I will keep stepping through it so the opposition might just understand it.
From the Commonwealth handing down the May budget in 2011-12, just last year obviously, the GST pool has contracted by $3.1bn. The loss in GST revenue to the Territory has been $770m, and we are forecasting a further $480m loss in GST. That is because, month on month, the pool has been revised downwards, so our main source of revenue has been contracting and being revised downwards month on month.
Obviously, budget figures are predictions. They are forecast based on the latest data available. The data my Treasury and the Territory relies on for that forecast is Commonwealth data. It is probably no surprise to anyone who understands what is happening regarding the global financial crisis and the impact it is having, not just on the consumer sentiment I have talked about in relation to the GST, but also the high cost of credit and the difficulty of getting finance for projects and the dampening effect it is having on private investment. It has been no surprise that not only our revenue is being hit, but the Commonwealth revenues are being hit as well in regard to its tax basis. Whilst going into the early post-global financial crisis period when everyone was doing their estimates and their forecasts, we were doing it off best data available at the time.
Since then we have seen the rebounding and greater impacting effects flowing through. We have not seen a recovery to the strength that people back then - not me as Treasurer - but all the Commonwealth data and the Territory picking up that Commonwealth data analysis – just listen to economic commentators. The GFC impacts are still lingering and being felt longer than people predicted. Equally, we have the European sovereign debt crisis. That is a whole new wave of impact coming through, suppressing investment in the private sector, reducing revenues and bringing a further dampening down on consumer confidence.
I have talked about the impact with regard to job losses, particularly in that manufacturing sector across the eastern seaboard. They all have flow-through effects on our figures. I look forward to being in the Chamber in a future budget announcing a stronger recovery. However, at this stage, we have to go off data provided to us out of the Commonwealth Treasury. We are giving you an accurate assessment: a $3.1bn reduction in the national GST collection in the 2011-12 year alone.
ANSWER
Madam Speaker, it seems I am somewhat on the repeat, but I will keep stepping through it so the opposition might just understand it.
From the Commonwealth handing down the May budget in 2011-12, just last year obviously, the GST pool has contracted by $3.1bn. The loss in GST revenue to the Territory has been $770m, and we are forecasting a further $480m loss in GST. That is because, month on month, the pool has been revised downwards, so our main source of revenue has been contracting and being revised downwards month on month.
Obviously, budget figures are predictions. They are forecast based on the latest data available. The data my Treasury and the Territory relies on for that forecast is Commonwealth data. It is probably no surprise to anyone who understands what is happening regarding the global financial crisis and the impact it is having, not just on the consumer sentiment I have talked about in relation to the GST, but also the high cost of credit and the difficulty of getting finance for projects and the dampening effect it is having on private investment. It has been no surprise that not only our revenue is being hit, but the Commonwealth revenues are being hit as well in regard to its tax basis. Whilst going into the early post-global financial crisis period when everyone was doing their estimates and their forecasts, we were doing it off best data available at the time.
Since then we have seen the rebounding and greater impacting effects flowing through. We have not seen a recovery to the strength that people back then - not me as Treasurer - but all the Commonwealth data and the Territory picking up that Commonwealth data analysis – just listen to economic commentators. The GFC impacts are still lingering and being felt longer than people predicted. Equally, we have the European sovereign debt crisis. That is a whole new wave of impact coming through, suppressing investment in the private sector, reducing revenues and bringing a further dampening down on consumer confidence.
I have talked about the impact with regard to job losses, particularly in that manufacturing sector across the eastern seaboard. They all have flow-through effects on our figures. I look forward to being in the Chamber in a future budget announcing a stronger recovery. However, at this stage, we have to go off data provided to us out of the Commonwealth Treasury. We are giving you an accurate assessment: a $3.1bn reduction in the national GST collection in the 2011-12 year alone.
Last updated: 09 Aug 2016