BUDGET EXPENDITURE

Mr GRIFFITHS (Goyder) (14:41): My question is to the Treasurer. Will the Treasurer commit to reducing inflationary pressures by not increasing state taxes and charges to compensate for lost budget revenues and instead concentrate on the budget's expenditure blow-outs? Yesterday, the Prime Minister warned that inflation was a core economic problem and that governments needed to address their levels of expenditure.

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations) (14:42): Fancy a Liberal opposition talking about cutting expenditure! They have never cut expenditure, ever.

An honourable member interjecting:

The Hon. K.O. FOLEY: Talk to whom?

The Hon. P.F. Conlon interjecting:

The Hon. K.O. FOLEY: Steve Baker?

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: You can always tell a leader of the opposition is struggling when he has to revert to the old State Bank as an issue.

An honourable member interjecting:

The Hon. K.O. FOLEY: No; happy to. I am quite happy with this government's financial and economic record.

An honourable member interjecting:

The Hon. K.O. FOLEY: Well, provided you—

The SPEAKER: Order!

The Hon. K.O. FOLEY: I know the Leader of the Opposition is running out there telling business people, as I have had it reported to me: 'Look; we're just going to give Labor a bit of time, put a bit of pressure on them and let the unions mount a campaign.' But do you know what the leader is telling business, sir? He is telling business that they are going to support the WorkCover legislation. That is Martin Hamilton-Smith walking both sides of the road.

Mr Hamilton-Smith interjecting:

The Hon. K.O. FOLEY: Have you told business—

The SPEAKER: Order!

Members interjecting:

The SPEAKER: Order! Members will stop interjecting and the Deputy Premier will return to the substance of the question. The Deputy Premier.

The Hon. K.O. FOLEY: I am happy to withdraw and apologise for the allegation that the Leader of the Opposition has been telling some business people that he intends to support the legislation, because I have had business people tell me that.

An honourable member interjecting:

The Hon. K.O. FOLEY: No, no intention.

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: No intention. The Liberal opposition talks about fixing up WorkCover: 'We've got a plan to fix it, to support it: fixed,' right. That's all that has to be done: support the legislation, WorkCover problem fixed. But the opposition, of course, is not capable of making hard decisions. Coming back to the member for Goyder, is the member honestly suggesting that we should not raise taxes and charges—charges, at least—in line with CPI?

Mr Griffiths interjecting:

The Hon. K.O. FOLEY: So, the Liberal Party policy now is that in this budget we should not increase charges by the rate of inflation.

Members interjecting:

The Hon. K.O. FOLEY: No, no; that is now your policy. We now have a budget policy—

Members interjecting:

The Hon. K.O. FOLEY: Well, you just announced it.

Members interjecting:

The Hon. K.O. FOLEY: You just announced that your view is that we should not raise charges by the rate of inflation, which would cost the budget tens of millions of dollars. So, yet again, we have financial and fiscal policy at a state level made on the run by this very, very ordinary outfit, which could never balance a budget. It was not within its ability to retain the state's AAA credit rating. I am happy to put this government's financial record against you lot any day.