House of Assembly Fifty-First Parliament, Third Session (51-3) 51 3 Parliament of South Australia House of Assembly published Question Time Budget Savings Targets BUDGET SAVINGS TARGETS Mr HAMILTON-SMITH House of Assembly Waite Leader of the Opposition BUDGET SAVINGS TARGETS Mr HAMILTON-SMITH (Waite—Leader of the Opposition) (14:11): My question is to the Treasurer. Which of the savings targets set in the 2008-09 budget, announced in June 2008, and the Mid-Year Budget Review, announced in January 2009, have been met, which have not been met, and why? The Hon. K.O. FOLEY House of Assembly Port Adelaide Deputy Premier Minister for Industry and Trade Minister for Federal/State Relations BUDGET SAVINGS TARGETS The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations) (14:11): I will make this a quick question because I have to get on the telephone to my son. Minister, do you cover the cost of air tickets that are cancelled? I have just made a hit with my son telling him that we cannot go to Melbourne. Rob Lucas was on the radio this morning about this. I heard that and I was quite interested in what he had to say. I had a look at what Rob Lucas's savings— Ms Chapman House of Assembly Ms Chapman: Did you have a look at the answer? The Hon. K.O. FOLEY House of Assembly The Hon. K.O. FOLEY: Rob Lucas holds himself up as some great treasurer. I had a bit of a look at what savings—because he was the one who sold ETSA and still ran up state debt. Even after selling ETSA he could not balance a budget. His paltry savings exercise when he was treasurer was pitiful. As I looked through his savings, each and every one of them appear to be—I stand to be corrected if I am wrong—savings measures that the government agencies can keep to cover cost overruns, he was such a sloppy treasurer. I am pleased to see that the Leader of the Opposition is now getting his questions from Rob Lucas, even though I am told by sources that they do not even talk. In the 2006-07 budget we brought in Mr Greg Smith to undertake a review of savings options for government. Ms Chapman interjecting: The Speaker House of Assembly The SPEAKER: Order! The deputy leader will come to order! The Hon. K.O. FOLEY House of Assembly The Hon. K.O. FOLEY: Yes, just like Dean Brown did when he brought in the Audit Commission in 1993. Was he hopeless, was he? Ms Chapman interjecting: The Speaker House of Assembly The SPEAKER: Order, the deputy leader! The Hon. K.O. FOLEY House of Assembly The Hon. K.O. FOLEY: So, Dean was hopeless in 1993, was he? Ms Chapman interjecting: The Speaker House of Assembly The SPEAKER: Order! The Hon. K.O. FOLEY House of Assembly The Hon. K.O. FOLEY: John Howard in 1996. Mr Williams interjecting: The Speaker House of Assembly The SPEAKER: The member for MacKillop! Mr Williams interjecting: The Speaker House of Assembly The SPEAKER: The member for MacKillop I have called to order! The Hon. K.O. FOLEY House of Assembly The Hon. K.O. FOLEY: Greg Smith advised government of $695.1 million of savings that he recommended over the forward estimate period for the next four years. Of that $695 million, I can report to the house, on advice, that seven measures have not been undertaken, that is, they have been reversed. That is a reduction of some $51.7 million. But the balance of savings have been delivered. So, of the savings of $695.1 million over four years, as recommended by Mr Greg Smith in the exercise four years ago, in total we have delivered 92.6 per cent of those savings. That is not a bad effort, I would have thought, not a bad effort at all. Since that time, I have required further savings because I am all about, and we are all about, efficiency and savings and good fiscal outcomes. In an earlier budget—I do not have the budget year with me—we applied a 0.25 per cent efficiency dividend. I am not sure whether that was 2008-09 or 2007-08. I think it was 2008-09. That efficiency dividend was simply the amount of money that was reduced from government outlays. Mr Griffiths interjecting: The Hon. K.O. FOLEY House of Assembly The Hon. K.O. FOLEY: Yes, that is what I just said. I was not sure whether it was— Mr Griffiths House of Assembly Mr Griffiths: You said 2008-09. The Hon. K.O. FOLEY House of Assembly The Hon. K.O. FOLEY: If you had listened, I actually said that I was not sure whether it was in the 2008-09 budget or the 2007-08 budget. Ms Chapman House of Assembly Ms Chapman: You're not sure what year. The Speaker House of Assembly The SPEAKER: Order, the deputy leader! The Hon. K.O. FOLEY House of Assembly The Hon. K.O. FOLEY: Well, I have a lot of savings initiatives in my budget. The 1,600 FTE savings in the Mid-Year Budget Review are being implemented across agencies. They have been apportioned across each of the government agencies for which those savings will be required. The further dollar savings outlined in the 2008-09 budget of $25 million in 2009-10 will be delivered and, in the budget tomorrow, those savings will be identified. The further $75 million in 2010-11 and $150 million in 2011-12 will be notified in the budget prior to each of those savings coming into play. So, some of those savings will not yet have been identified and some will have been. Agency heads know that they have to deliver, and they are required to provide that information to Treasury for inclusion, as they have done for this budget (2009-10)—the $25 million, the $75 million for 2010-11 and the $150 million in 2011-12. This government has been very upfront about its savings. It has demonstrated with the Smith review that 92-plus per cent of all savings identified have been delivered, bearing in mind that, in our first four years of government, we delivered savings upwards of $1.5 billion—delivered. So, when it comes to savings, this government has been transparent in identifying and highlighting those savings and has been absolute in delivering them. Mr Lucas, for relevance, has his budget committee upstairs. If he is not attacking people personally, as is his wont, he ferrets away in the minutiae of government. He is clearly not highly regarded by members opposite or the leader, because he is not on the front bench. He is neither shadow treasurer nor shadow finance minister nor, indeed, even leader of the upper house. I think though, in fairness to Rob Lucas, he would pick a dodgy document for a dodgy document. There are some other comments that I am just trying to put my hands on that I think are important— Ms Chapman House of Assembly Ms Chapman: If he's not going to answer the question, sit him down. The Hon. K.O. FOLEY House of Assembly The Hon. K.O. FOLEY: I have just answered it. Ms Chapman interjecting: The Speaker House of Assembly The SPEAKER: Order! The Hon. K.O. FOLEY House of Assembly The Hon. K.O. FOLEY: Why what? Ms Chapman interjecting: The Speaker House of Assembly The SPEAKER: Order! The Hon. K.O. FOLEY House of Assembly The Hon. K.O. FOLEY: She really is a special unit. I cannot put my hands on them, but I am looking for Rob Lucas's comments today about the budget. I do not appear to have them with me, but I will ensure that I have them should I get another question. He was less than enthusiastic when endorsing the current shadow treasurer.