Question Time

STATE BUDGET

Mr HAMILTON-SMITH (Waite—Leader of the Opposition) (14:09): My question is to the Treasurer. Is it his failure to responsibly manage Treasury over seven budgets which has left the government with little choice other than to slash spending on transport, prisons, education or health infrastructure in the face of an inevitable economic downturn?

In the past seven years, the Treasurer has received buoyant tax revenues which have increased government income from around $8 billion in 2002 to almost $15 billion within this estimates period. The Treasurer has increased taxes by over 65 per cent, with some property taxes, such as land tax, up by 247 per cent. The Commonwealth Grants Commission has described South Australia as working its tax base more than any other state.

The Treasurer's surplus is only 1.2 per cent of revenue. The Treasurer told the house yesterday that his net asset to liabilities ratio has exceeded 80 per cent—the highest in the nation and beyond the trigger at which Standard & Poor's would review the state's AAA rating. Budget papers further show that borrowings will reach $5.2 billion within the estimates period.

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations) (14:10): I heard the Leader of the Opposition on the radio today saying that he could deliver a football stadium to South Australia—

The Hon. P.F. Conlon: A billion-dollar one.

The Hon. K.O. FOLEY: —for a billion dollars plus, without any taxpayer money, because that is what they did at the Telstra Dome. Honestly, is this guy seriously suggesting that he could manage the state's finances?

Mr Hamilton-Smith: You are a good-time Treasurer; that's it.

The Hon. K.O. FOLEY: A good-time Treasurer. For information purposes I have Budget Paper 3 of the 2008-09 budget—Treasury compiled documentation on the financial performance of the last government and this government—so let us just go through this and let an objective assessment of our financial performance give the picture.

Members interjecting:

The SPEAKER: Order!

Members interjecting:

The Hon. K.O. FOLEY: No; I am happy to acknowledge—

Mr Williams interjecting:

The SPEAKER: The member for MacKillop will come to order! The Treasurer has the call.

The Hon. K.O. FOLEY: I am happy to acknowledge the post-sale of ETSA period because, whether we agreed or disagreed (and obviously we disagreed with that decision), you sold ETSA. So, in fairness to the former government let us look at the budget performance post the sale of ETSA.

In 1988-89 the net operating balance under the Liberals was minus $208 million. The 1999-2000 budget result under Rob Lucas and the Liberals was a deficit of $330 million. The 2000-01 deficit was $297 million under the Lucas and Hamilton-Smith government, and in 2001-02 there was a $174 million net operating deficit under the Liberals. That is post the sale of ETSA, so let us put the State Bank behind us. They sold ETSA—

Members interjecting:

The SPEAKER: Order!

Members interjecting:

The Hon. K.O. FOLEY: Iain Evans, how are you doing up there? Are you reinventing yourself up there?

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: When this government took office, in our first budget in 2002-03 there was a surplus of $448 million. In 2003-04 there was a surplus of $385 million, and in 2004-05 there was a surplus of $224 million. In 2005-06 there was a surplus of $202 million, and then in 2006-07 there was a surplus of $209 million. In 2007-08 there was a $373 million net operating surplus, and this year we are budgeting for $160 million. Of course, events have changed, with the surplus rising to in excess of $400 million in the out years.

It is a demonstrable fact that under Labor governments the budget positions of the state have been strong operating surpluses; under Liberals, strong operating deficits.

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: I can tell you, they are in good shape now.

An honourable member interjecting:

The Hon. K.O. FOLEY: He wants me to pay the teachers; 'Pay the teachers,' he says. The leader is out there saying we are spending too much money, and the genius over here says to give the teachers $2.5 billion. That is what they are asking for. There is no consistency of message—

Mr Pisoni interjecting:

The Hon. K.O. FOLEY: So, we pay them $2.5 billion?

Mr Pisoni interjecting:

The Hon. K.O. FOLEY: So, we pay the teachers what they are asking for?

Mr Pisoni interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: The shadow education minister is saying that we should pay the teachers what they are asking for: $2.5 billion. Leader, do you agree?

Mr Hamilton-Smith interjecting:

The Hon. K.O. FOLEY: Do you agree with him?

Members interjecting:

The SPEAKER: Order!

Members interjecting:

The SPEAKER: Order! I call the house to order. I expect the house to come to order. The Treasurer.

The Hon. K.O. FOLEY: Thank you, sir. Well, we are clearly—

Mr Hamilton-Smith interjecting:

The Hon. K.O. FOLEY: I'm a clown? Well, do you agree with him?

Members interjecting:

The SPEAKER: Order!

An honourable member: He won't agree.

The Hon. K.O. FOLEY: Of course he won't agree. We have division on the frontbench of the Liberal Party over fiscal policy—over what they will pay teachers. I can say to the shadow minister that, if we were to agree to what the teachers are asking for, this state would be in huge deficit and would be in serious, serious financial difficulty.

Ms Chapman: We are already.

The Hon. K.O. FOLEY: Oh, righto. So, you agree with your colleague?

Ms Chapman interjecting:

The SPEAKER: Order! The Deputy Leader of the Opposition will come to order.

The Hon. K.O. FOLEY: I just find it hard to follow their line of argument. They are saying that we are spending too much—

Mr Williams interjecting:

The SPEAKER: Order! The member for MacKillop will come to order.

The Hon. K.O. FOLEY: They say we are spending too much, but then we get these calls for a new stadium for $1 billion, and we have the genius over there saying we should give the teachers $2½ billion. I mean, honestly, they will walk both sides of the street. They will say whatever they need to say to whatever interest group they are talking to. But, when it comes down to proper, tough budget management, this outfit over there is left wanting.

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: What I have said is that we have delivered surplus after surplus after surplus, and what did we recover under our government? The AAA credit rating. So, play all the politics you like, but the truth is that we have the track record, we have the performance, and we have the confidence of the people of South Australia.