Geoff Gallop

Geoff Gallop

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    Call for Opposition to explain costing of election promises

    24/01/1993 12:00 AM
     
     
    The Minister Assisting the Treasurer, Dr Geoff Gallop, today called on the Opposition to explain how it would fund its election promises without big increases in taxes and charges.
     
    Dr Gallop said promised additional spending by the Opposition next financial year totalled $548 million.
     
    Releasing an analysis costing of the Opposition's election promises to date, Dr Gallop said in a full four-year term the Opposition's additional expenditure commitments would blow out to $4.446 billion.
     
    "Under a Federal Hewson Government, the hole in the State Budget would be even worse because of the funding cutbacks to the States contained in Fightback Mark One and Two in general purpose grants, and in funding for roads, public housing, health and education," Dr Gallop said.
     
    "Under a Hewson Government, Western Australia would have to sacrifice $362 million a year through cutbacks in Federal funding."
     
    The Minister Assisting the Treasurer said the Opposition's spending commitments, coupled to the Hewson cuts in State funds, would leave WA with a budget shortfall of $758 million in 1993/94.
     
    "On the other hand under a Federal Labor Government, the State Opposition has pledged to phase out payroll tax over eight years. In the first year this would mean a reduction in revenue of $75 million and by the fourth year - $300 million," Dr Gallop said.
     
    "The analysis shows although it would be better off under a Federal Labor Government, the State Opposition would create a budget deficit of $471 million in 1993-94.
     
    "Just where is the money going to come from?"
     
    Dr Gallop said the costings indicated the Opposition's real plans for Western Australian electors.
     
    "Taxes and charges on families and business will have to be substantially increased to fund the pledges.
     
    "The Opposition has made promises which can not possibly be funded through existing Government revenue, even allowing for the projected growth in WA's economy.
     
    "The Opposition has made no attempt to cost its promises, or to explain how they will be funded."
     
    Dr Gallop said the Government had carefully funded its programs last week and released details.