Hon Colin Barnett MEc MLA

Hon Colin Barnett MEc MLA

Former Premier; Minister for Tourism; Science

Hon Christian Porter BA(Hons) BEc LLB(UWA) MSc(Dist)(LSE) MLA

Hon Christian Porter BA(Hons) BEc LLB(UWA) MSc(Dist)(LSE) MLA

Former Treasurer; Attorney General

    Money set aside for new hospital and stadium (Video)

    22/09/2011 12:00 AM
     
    • 2010-11 general Government operating surplus increased to $1.6billion
    • General Government sector growth in salary costs at lowest rate in nine years
    • General Government expense growth at lowest rate in seven years
    • $100million into future fund for construction of Perth Stadium
    • Additional $70million towards the $1.18billion New Children’s Hospital - now half pre-paid
    The Liberal-National Government’s record of strong financial management has been reinforced following today’s release of the 2010-11 Annual Report on State Finances (ARSF).

    Treasurer Christian Porter said the State Government had recorded a general Government operating surplus of $1.6billion for 2010-11, $820million higher than estimated in the 2011-12 State Budget.

    Mr Porter said the stronger than expected surplus was not driven by substantial increases in revenue but was largely the result of a range of spending being pushed out from 2010-11 to the present financial year.

    The Premier and Treasurer announced that the stronger than expected revenue has allowed the Government to put more money aside for Perth Stadium and the New Children’s Hospital.

    The Government will direct $70million of the 2010-11 operating surplus to the Special Purpose Account supporting construction of the $1.18billion New Children’s Hospital, due to commence in 2012 and completed in 2015.

    The Government will also commit to creating a Special Purpose Account for Perth Stadium and allocating a further $100million to the account.

    “While the surplus was larger than expected this was largely because of restraining wasteful expenditure and the roll-over timeframes for some expenses which did not occur in 2010-11 but will occur in 2011-12,” Mr Porter said.

    “General Government expenses grew by only 5.2 per cent in 2010-11 - the lowest rate of growth since 2003-04.  This was $675million lower than the recent Budget estimate.

    “General Government sector salaries (which make up 40 per cent of total expenses) grew by only 6.6 per cent in 2010-11 - the lowest rate in nine years.

    “This Government has reined in costs through voluntary separations, a ceiling on public sector staff numbers, and the public sector wages policy.”

    Mr Porter said revenue was also $145million higher than expected.

    Iron ore royalties and North West Shelf grants were up $101million, due to higher prices and production volumes; transfer duty revenue was up $59million, mainly as a result of timing changes in the Duties Act.

    Mr Porter said that while the Government had controlled agency expense growth, the 2010-11 surplus was not extra money in the bank because most of the increase simply reflects spending that was pushed out from one financial year to the next.

    Premier Colin Barnett said the report also highlighted the ongoing penalty Western Australia received in relation to GST revenue grants.

    “WA received the same dollar amount of GST grants ($3.2billion) in 2010-11 as it did in 2003- 04, despite the national GST pool increasing by a massive 35 per cent” Mr Barnett said.  

    “The State Government will continue to fight for a better deal for Western Australia, as the nation’s economic stronghold. We deserve our fair share and this Government will continue to make that clear to the Gillard Government.”

    Importantly, the report shows net debt levels in 2010-11 were $1.36billion lower than estimated in the 2011-12 Budget, and $1.98billion lower than estimated at the time of the mid-year review.
      
           Fact File
    • The 2010-11 Annual Report on State Finances is available from the Department of Treasury website at http://www.treasury.wa.gov.au/
    • The annual report is a requirement of the Government Financial Responsibility Act 2000 and focuses on the differences between the final financial results for 2010-11 and the original Budget handed down on May 20, 2010
    • Perth Stadium information
    Premier’s office - 9222 9475
    Treasurer’s office - 9222 8800