Media Statements: Statements

Monthly financial figures released

Antartis, Jill — Fri, 30 Oct 2009 05:13:50 GMT

Content:

The monthly report of General Government Finances for July - August 2009 were released today, the State’s first outturn reports for the current financial year.

Treasurer Troy Buswell said the reports showed ongoing pressure on the State’s finances, particularly from the rising Australian dollar and its impact on royalty revenue.

“Spending growth has been impacted by several other extraordinary items at the start of this financial year, including Federal stimulus spending,” Mr Buswell said.

“This report is a timely reminder that Western Australia’s renewed business confidence and major forward investments will take time to flow through to the bottom line.

“The Government will continue to maximise taxpayers’ money through initiatives such as Value for Money audits in Health, Education, Environment and Commerce; Wages Policy and Full Time Equivalent (FTE) ceiling.

“This includes finalising the implementation of the corrective measures announced in the May State Budget and a further suite of corrective measures due to be announced in the mid-year review.”

A general government sector operating deficit of $687million was recorded for the two months to August 31, 2009, down from the $73million operating surplus outcome for the same period last year.

“Revenue during the first two months of this year was $110million lower than at this time in 2008‑09. This fits with the revenue trend seen through most of the second half of 2008-09,” the Treasurer said.

“The impact of the global downturn did not become evident in the State’s revenue collections until about September 2008, which is outside the period covered in these reports.”

The reports showed Federal Government GST grants and North West Shelf grants were down a combined $236million, partially offset by higher tied grants, including stimulus spending.

Taxation revenue fell $32million, or three per cent, due to this year’s later issue of Emergency Services Levy invoices.

“Expense growth of 22 per cent for July and August was driven by several extraordinary items, including Federal stimulus spending. Stripping out extraordinary items reveals spending growth of 9.9 per cent for the period,” Mr Buswell said.

Many of the extraordinary costs shown in the report were factored into the full‑year Budget estimates delivered in May.

Overall, general government expenditure increased by $650million during July and August, relative to the same period last year.

$244million of this was related to stimulus spending initiated by the Federal Government and a further $43million reflected last year’s State Government decision to increase subsidies to Synergy as part of the transition arrangements to cost‑reflective electricity tariffs.

An accounting adjustment raised in July 2009 compared with October 2008 effectively brought forward the timing of spending by about $73million in the two months to August 31, 2009.

Excluding these extraordinary items, July and August spending increased by $290million, or 9.9 per cent, relative to the same period last year.

“About $159million, or 55 per cent, of this remaining increase in spending is in higher salary costs, reflecting the timing of wage rate increases and staffing levels, particularly in Health and the Education and Training sectors,” he said.

“These rates of growth are expected to moderate in subsequent reports as some of the more significant increases, such as the impacts of the September 2008 teachers wage outcome.

“The Government is very aware of the pressure that salary increases place on State finances and is actively managing employee costs with an FTE ceiling, Wages Policy and the voluntary severance program announced in the 2009‑10 State Budget.”

Mr Buswell noted the volatility in the monthly reports and cautioned against inferring full‑year outcomes from the July and August 2009 figures.

“However, we expect the rising Australian dollar will continue to put pressure on royalty revenues,” he said.

The next update of budget projections would be provided in the mid-year review, to be released by December 31.

The monthly statement is available at http://www.dtf.wa.gov.au

Minister's office - 9222 9111

Date: 30/10/2009

Minister: Buswell

Portfolio: Treasurer

Region: All

Annual Report on State Finances confirms 2008-09 surplus

Arbouin, Shane — Thu, 24 Sep 2009 04:23:36 GMT

Content:

The ‘Annual Report on State Finances’ (ARSF) for the 2008-09 financial year has been released today by Treasurer Troy Buswell.

The ARSF is a key accountability report required by the Government Financial Responsibility Act 2000.

“I am pleased the State’s books were in the black in 2008-09, however, the results show the importance of the Government’s efforts to control unsustainable expenditure growth,” Mr Buswell said.

“Today’s report follows recent news of a rise in business confidence and the unanimous endorsement for our Triple-A credit rating from both Moody’s and Standard and Poor’s.

“These acknowledgments reflect our work implementing the Capital Works Audit, the three per cent efficiency dividend, the Economic Audit, Wages Policy and FTE ceiling.

“We will continue to carefully manage the State’s finances to ensure that Western Australia is well positioned for the next period of sustained economic growth.”

The report compares the State’s financial performance for the financial year ending June 30, 2009 with the projections in the 2008-09 Budget, released on May 8, 2008. Key highlights of the 2008-09 ARSF include:

a general Government sector operating surplus of $318million, down $1.537billion on the original budget estimate
growth in general Government revenue was 0.5 per cent in 2008-09, down from the 5.5 per cent growth forecast in May 2008 reflecting the impact of the economic and financial turbulence of the past 12 months
revenue from State taxes, GST grants and royalties was down $1.6billion (or 12 per cent) compared to the Budget forecast, although these shortfalls were partly offset by a higher level of specific purpose grants from the Federal Government
general Government expense growth of 13.5 per cent was up from the 7.7 per cent growth forecast at budget-time. This includes the impact of implementing the Government’s election commitments and working with the Federal Government to implement its economic stimulus package
infrastructure spending totalled a record $5.8billion, down $691million on the original Budget estimate, but up $821million on the previous record investment of $5billion in 2007-08
total public sector net debt increased to $6.8billion at June 30, 2009, up $3.2billion from the outcome recorded a year earlier, but $1.2billion lower than the original budget estimate.

The 2008- 09 ARSF is available from the Department of Treasury and Finance website at http://www.dtf.wa.gov.au/cms/uploadedFiles/_Treasury/State_finances/arsf_2008-09.pdf.

Treasurer's office: 9222 9111

Date: 24/09/2009

Minister: Buswell

Portfolio: Treasurer

Region: All

Standard and Poor's reconfirms WA's Triple-A credit rating

Antartis, Jill — Tue, 01 Sep 2009 07:27:56 GMT

Content:

International credit ratings agency Standard and Poor’s today reconfirmed Western Australia’s Triple-A credit rating after analysing the State’s financial strategy.

Standard and Poor’s announcement stated:

“The ratings reflect the strength of the state’s balance sheet, its prudent fiscal management and Australia’s systemic support. The stable outlook reflects the current strength of the state’s financial position, and our expectation that the government will implement the corrective measures announced in the fiscal 2010 budget.”

The tick of approval of the Liberal-National Government’s financial strategy followed the recent confirmation of WA’s Triple-A credit rating by fellow ratings agency Moody’s.

Treasurer Troy Buswell said Standard and Poor’s confirmation of the State’s financial management was an endorsement of the introduction of the FTE ceiling; the Wages Policy; the Works Reform Plan; the Economic Audit; the Efficiency Dividend; the Capital Works Audit and Red Tape Reduction scheme.

“The decisions of Standard and Poor’s and Moody’s to unanimously confirm our Triple-A credit rating are great acknowledgements of the work this Government has done so far and strong endorsements of its financial management,” Mr Buswell said.

“Our ability to deliver on the financial strategy we have outlined over the past 12 months has been recognised and will underpin the next period of sustained economic growth in WA.

“Our strategy of making tough decisions and delivering on them will mean that WA can keep the cost of debt low as we invest in job-creating projects such as Gorgon, the Oakajee Port and the Ord.”

Treasurer's office - 9222 9111

Date: 1/09/2009

Minister: Buswell

Portfolio: Treasurer

Region: All

State fleet reduction under way

Antartis, Jill — Mon, 24 Aug 2009 00:53:22 GMT

Content:

The Liberal-National Government will save up to $42.2million over four years after Cabinet endorsement of a State fleet reduction strategy.

Treasurer Troy Buswell said the fleet reduction scheme would cut Government fleet costs by 10 per cent.

“The global financial crisis has put significant pressure on the finances of government and families alike,” Mr Buswell said.

“Like many WA families feeling the pinch at the moment, this Government also needs to cut its cloth to suit the economic times.

“By April 2009, there were 11,772 vehicles in the State fleet - many of these aren’t used for operational purposes.

“We expect the Government fleet size to decrease from 11,772 to 10,607 by 2012-13.”

Forecasts of vehicle reductions across different agencies indicate the fleet size of the Department of Health will decrease from 2,220 at April 2009 to 1,998 by 2012-13.

The Department of Environment and Conservation fleet will be reduced from 983 to 885 over the same period while the Water Corporation fleet will decrease from 976 to 878.

Under the scheme, which will commence immediately, vehicles will be sold through the weekly Government auction process when they finish their current lease term.

Agencies will determine which vehicles are surplus to their requirements and nominate them to be culled from their fleets at the end of their lease term.

The Treasurer said the fleet reduction strategy was part of the $1.1billion of savings measures over four years identified in the first stage of the Economic Audit.

“In order to ensure the State’s capacity to respond effectively is not compromised during emergency situations, the scheme will not affect frontline operational and emergency services vehicles,” he said.

Mr Buswell said agencies would provide regular updates on the reduction progress.

Fleet numbers are expected to begin to fall from early 2010 because of seasonal variations in the disposal process and the long lead times for new vehicle orders.

Indicative Vehicle Numbers and Projected Cost Savings:

	Total	2009-10	2010-11	2011-12	2012-13
Total Fleet	11,772	11,333	10,875	10,607	10,607
Expected Reduction	1,165	439	458	268	-
Cost savings	$42.2m	$5.1m	$10.3m	$13.4m	$13.4m

Treasurer's office - 9222 9111

Date: 23/08/2009

Minister: Buswell

Portfolio: Treasurer

Region: All

Moody's reaffirm Western Australia's Triple-A credit rating

Arbouin, Shane — Fri, 21 Aug 2009 03:15:56 GMT

Content:

International ratings agency Moody’s has confirmed Western Australia’s Triple-A credit rating after analysing the Liberal-National Government’s financial strategy.

Moody’s ranking of WA at the lowest possible level of risk follows careful management of the State’s finances by the Liberal-National Government, including the introduction of an FTE ceiling; a Wages Policy; the Works Reform Plan; the Economic Audit; the Efficiency Dividend; a Capital Works Audit; and a Red Tape Reduction scheme.

Moody’s announcement stated:

‘We are evaluating the government’s proposed plans to achieve budgetary redress in order to assess to what extent there is a clear, detailed and credible path towards reversing erosion of financial and debt positions. Over the longer term we will also be monitoring governments’ resolve to implement tough measures that might be required depending on the pace of recovery of state revenues.’

Treasurer Troy Buswell said the announcement vindicated the tough decisions taken by the State Government to ensure WA can keep the cost of debt low as it invests in job-creating projects such as Gorgon, the Oakajee Port and the Ord.

“We want every dollar the State spends to go towards supporting jobs,” Mr Buswell said.

“This is a great acknowledgement of the work done so far and a strong endorsement of the approach we have taken to position WA for the next economic upswing.

“The Opposition are not up to the task of offering leadership in this complex area; instead taking the lazy road of carping from the sidelines on every tough decision we’ve had to make.

“Today’s decision by Moody’s to reaffirm our Triple-A credit rating vindicates the Liberal-National Government’s approach to managing the State’s finances.”

Treasurer's office: 9222 9111

Date: 21/08/2009

Minister: Buswell

Portfolio: Treasurer

Region: All

Joint Statement - Resource States call for greater recognition

Antartis, Jill — Thu, 13 Aug 2009 00:48:22 GMT

Content:


Treasurer Troy Buswell	Queensland Treasurer Andrew Fraser

Joint Media Statement - WA and QLD Treasurers

The debate about GST allocations between States should be a debate about what is best for the nation, not just a debate between the States.

It is about recognising the cost of infrastructure delivery to cater for population growth - and recognising the States where this presents the greatest challenge.

Queensland and Western Australia were Australia’s economic engine rooms leading into the global recession, and we are best-placed to lead the nation out of it.

Both have outpaced the national rate of economic growth over the last dozen years, and both have had lower unemployment rates than the national average.

However, Queensland and Western Australia are both donor States.

On a per capita basis, Queensland and Western Australia will both receive a GST allocation well below the average per capita GST distribution.

And despite the protests of the southern States, Queensland and Western Australia will both receive a lower GST per capita than both NSW and Victoria.

Presently Western Australia receives around $910million less than its per capita share while Queensland misses out on $700million.

The current formula recognises the provision of services - but common sense would suggest that the provision of services requires not just people, but buildings and other infrastructure too.

The proposed recommendations of the independent Commonwealth Grants Commission reflect this.

The ability of our growth States to lift national economic performance is dependent on our ability to fund the infrastructure that growth - both economic and population - requires.

The current inequity has been addressed by the independent body in its draft 2010 review - and its reform we support. It helps ensure that the costs of supporting growth, as well as the revenue benefits, are fully recognised by the Grants Commission. The review of the methodology is an important national debate.

It must recognise that our States have led the nation’s prosperity.

It must recognise that our States are best placed to lead the recovery.

It must recognise that reform will ultimately bolster the national economic recovery.

Western Australian Treasurer’s office - 9222 9111

Queensland Treasurer’s office - 07 3224 6361

Date: 13/08/2009

Minister: Buswell

Portfolio: Treasurer

Region: All

Economic Audit Discussion Paper released

Arbouin, Shane — Thu, 30 Jul 2009 01:30:01 GMT

Content:

Treasurer Troy Buswell today released an Economic Audit Discussion Paper as part of the Liberal-National Government’s ongoing drive for public service reform.

The paper outlines six reform areas to potentially improve the operational and financial performance of the Western Australian public sector.

“Value for money for taxpayers and quality service delivery underpin our drive for better public sector performance,” Mr Buswell said.

“The recent global economic downturn has amplified the need for significant and wide-ranging public sector reform rather than short-term quick fix measures.

“Throwing more money at agencies will not lead to better outcomes.”

The earlier work of the Economic Audit led to the adoption of $1.25billion in corrective measures in the 2009-10 State Budget and was the catalyst for the State Government’s new Wages Policy, the Works Reform agenda and the FTE ceiling.

“The Economic Audit is an important tool for advancing and directing our broader reform agenda alongside our planned value-for-money audits which will examine spending on an agency-by-agency basis,” the Treasurer said.

“Reform is needed to ensure WA does not fall behind other jurisdictions in key areas such as health, education, training and law and order.

“The need for cultural change across the public service cannot be underestimated - the bad old days of the former Labor government writing blank cheques are over.

“We want to prepare Western Australia to capture the benefits of the next economic upswing by making decisions today that will help our State in the future.

“I welcome the committee’s efforts to stimulate debate on this important issue and encourage interested parties to provide their own input into the reform process.”

The six areas of reform are:

· Delivering on Priorities

· Services to Meet Citizens’ Needs

· Maximising Value through Planning, Competition and Innovation

· Realising Western Australia’s Economic Potential

· Modernising the Public Sector

· Making Change Happen.

The discussion paper reflects the work of the Economic Audit Committee’s first tranche of work and is open for submissions until August 31.

The discussion paper is available at: http://www.dtf.wa.gov.au

Treasurer's office: 9222 9111

Date: 30/07/2009

Minister: Buswell

Portfolio: Treasurer

Region: Eastern Metropolitan;Northern Metro & Perth CBD;South Eastern Suburbs;South Western Suburbs;Western Suburbs

Independent review commissioned to reinvigorate superannuation reforms

Antartis, Jill — Thu, 23 Jul 2009 06:10:00 GMT

Content:

Treasurer Troy Buswell today announced the appointment of an independent adviser to review the mutualisation of GESB, the public sector superannuation fund.

Mr Buswell said Mr Rod Whithear, a Federal public servant currently working on superannuation policy in the Federal Department of Finance and Deregulation, had been seconded to the Western Australian public service to review all aspects of the proposed mutualisation reforms.

The Treasurer said mutualisation had been delayed by the global financial crisis and questions over the tax implications of mutualisation.

“The global downturn in financial markets has reduced the level of GESB’s reserves, raising issues about the costs to taxpayers of mutualisation,” he said.

“The Federal Government has also flagged that GESB’s largest fund, West State Super, may be subject to higher taxation if mutualisation proceeds. I am not prepared to expose GESB members or WA taxpayers to that risk.

“The Whithear Review will provide independent advice to me on how we can reinvigorate the stalled reform process and ensure that choice of superannuation fund can be delivered while the State’s and members’ interests are protected.”

Mr Whithear has had more than 20 years’ experience serving successive Federal governments. He recently completed a Scoping Study to determine the structure and future of the Federal Government’s public sector superannuation arrangements.

The Federal Department of Finance and Deregulation agreed to second Mr Whithear so that WA could utilise the contemporary knowledge of Federal and State Government superannuation arrangements gained through the Commonwealth Scoping Study.

Mr Whithear will commence on July 27, 2009, with his review and recommendations to be delivered in a confidential report to the Treasurer by the end of 2009.

“I look forward to providing advice to the Government on the most efficient and effective arrangements for State Government superannuation that work in the interests of State taxpayers and members of Government superannuation schemes,” Mr Whithear said.

Treasurer's office - 9222 9111

Date: 23/07/2009

Minister: Buswell

Portfolio: Treasurer

Region: Eastern Metropolitan;Gascoyne;Goldfields/Esperance;Great Southern;Kimberley;Mid West;Northern Metro & Perth CBD;Peel;Pilbara;South Eastern Suburbs;South West;South Western Suburbs;Western Suburbs;Wheatbelt

Royalties for Regions providing more GROH at Tom Price

Antartis, Jill — Wed, 22 Jul 2009 01:10:17 GMT

Content:

The first of more than 400 new homes for Liberal-National Government employees in regional Western Australia are almost ready for their first tenants.

The homes are being funded through the State Government’s Royalties for Regions initiative to help reduce the shortage of housing for government officers around the State.

Regional Development Minister Brendon Grylls was on site today to inspect one of eight modular homes that will go to Tom Price and watched as it was loaded onto three trucks for the journey north.

Finishing touches including verandahs and carports will be added once the home is sited on an 800 square metre block in the town.

Mr Grylls said he was pleased to see the high standard of the home which would help make it easier to encourage government employees and their families to live and work in the regions.

“The State Government has committed $200million through Royalties for Regions to boost the Government Regional Officers Housing program and these first homes are good examples of what can be achieved,” he said.

The eight homes are being built under contract by Maddington-based Quality Builders and will be leased to government regional officers by the Department of Housing when they are completed.

Treasurer and Housing and Works Minister Troy Buswell said the homes built for Tom Price were energy efficient 5-Star Plus compliant homes.

“They have a cyclone region C rating and meet the demanding cyclone proofing requirements of the Tom Price region,” Mr Buswell said.

“Six of the homes have three bedrooms and two bathrooms and the other two have four bedrooms and two bathrooms. They will all be located on 800 square metre blocks with an alfresco area and carport.”

The Treasurer said four of the houses were already on site in Tom Price where the final work was being done before tenants moved in.

The construction manager for Quality Builders, Paul Rintoul, said the Royalties for Regions program had been important for manufacturers like them.

“Rather than downsizing as a result of the recession, we’ve actually been recruiting trades people and other staff to keep up with demand,” Mr Rintoul said.

Mr Buswell said the eight modular homes would also generate employment at their destination.

“Five carpenters, four sparkies, three plumbers and three grano workers will complete the homes at Tom Price,” he said.

“Wherever possible, builders use local tradesmen at the destination - which makes it a win-win proposition for everyone.”

The Treasurer said another 51 modular and prefabricated properties were under construction as part of the housing program through Royalties for Regions, providing work for a number of other development and building companies across the State.

Regional Development Minister’s office - 9213 7000

Treasurer, Housing and Works Minister’s office - 9222 9111

Date: 22/07/2009

Minister: Grylls;Buswell

Portfolio: Regional Development;Treasurer;Housing and Works

Region: Pilbara

208 Contracts Awards for 'Building the Education Revolution’

Arbouin, Shane — Fri, 03 Jul 2009 04:39:35 GMT

Content:

The State Government reached a major milestone in the ‘Building the Education Revolution’ (BER) program today with the awarding of contracts worth $342million to 20 builders for the construction and refurbishment of major infrastructure, including libraries and multi-purpose halls, at State primary school sites.

The contracts awarded today comprise 208 metropolitan projects funded under rounds one and two of the ‘Primary Schools for the 21st Century’ program, which forms part of the Federal Government’s BER program.

Treasurer Troy Buswell said the awarding of the contracts was an achievement on several fronts.

“The Federal Government has set very tight deadlines for the commencement of construction, and to have contracts now awarded for projects under rounds one and two of the BER program actually puts us ahead of most of the other States in terms of progressing works,” Mr Buswell said.

“I’m also delighted that the vital criteria of value for money has been met in all these contracts and that we haven’t had to compromise the scope of what will be delivered.

“Department of Treasury and Finance’s Building Management and Works has worked closely with the Department of Education and Training to negotiate exceptionally good value in all these contracts and get the best possible outcomes for our schools.”

The Treasurer said the BER program was also good news for the building industry.

“The BER program forms a key part of the Federal Government’s Nation Building - Economic Stimulus Plan and will provide economic stimulus through the rapid construction and refurbishment of school infrastructure,” he said.

The simultaneous award of rounds one and two contracts follows 83 contractors last month being awarded about $64million for maintenance and repair works at nearly 500 Western Australian public primary and secondary schools.

“Apart from providing much-needed improvements to many schools, the National School Pride program will provide many opportunities for businesses of all sizes, particularly small and medium-sized businesses which may not have previously undertaken work for the State Government,” Mr Buswell said.

Treasurer's office: 9222 9111

Date: 3/07/2009

Minister: Buswell

Portfolio: Treasurer

Region: Eastern Metropolitan;Northern Metro & Perth CBD;South Eastern Suburbs;South Western Suburbs;Western Suburbs

Attachments: http://www.mediastatements.wa.gov.au/Lists/Statements/Attachments/132166/bercontractawards.pdf