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House of Assembly - Fifty-First Parliament, Third Session (51-3)
2008-10-15 Daily Xml
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AUDITOR-GENERAL'S REPORT

Mr O'BRIEN (Napier) (15:04): My question is to the Treasurer. Can the Treasurer provide an explanation of the net debt and servicing of this debt as discussed in the Auditor-General's Report?

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations) (15:05): I thank the member for Napier for his question. I listened with interest. Again, the Leader of the Opposition has said let's not talk about history but he goes back, like all Liberal leaders have done in the past, and brings out the State Bank. He has been out there making wild allegations that we are somehow as severely indebted as the government of the day was back in the State Bank days. You just come to a point where you have to correct the record, and I would hope that in terms of—

Mr Hamilton-Smith interjecting:

The Hon. K.O. FOLEY: Let's just see what the Auditor-General says of that. Today's dollars—what is the net present value of those dollars in 1989-90 dollars?

Members interjecting:

The Hon. K.O. FOLEY: Well, he has no concept of finances or economics. It is just extraordinary.

Members interjecting:

The Hon. K.O. FOLEY: No, you are right, and I know you have referred to people that apparently I am a real dunderhead because I never completed high school. Apparently the leader has told journalists that, because I left high school halfway through year 11 at 16 years of age to go out and work, I am not qualified to be treasurer. You know what I didn't do? I didn't use my time as an opposition backbencher and taxpayers' money to go off and do my MBA. I actually did my job in here.

Mr Koutsantonis: Government backbencher.

The Hon. K.O. FOLEY: Government backbencher. I did my job in here.

Mr Hamilton-Smith: Or any other time in your life.

The Hon. K.O. FOLEY: No, I haven't; you are right. Apparently I am having to cool my arrogance because I am admitting I do not have an education, and yet he is proudly presenting the fact that he has an MBA. Good on you. Well done. I am pleased for you.

Members interjecting:

The Hon. K.O. FOLEY: Exactly. I have done all right with a limited education when you think about it.

Members interjecting:

The Hon. K.O. FOLEY: Hey, let's concentrate. Let's hear what the Auditor-General has said. The Auditor-General has stated that he has examined the issue of the budget's net debt in Part C of his report at page 50. He sought information from the Department of Treasury and Finance on the matter of state debt. His report states:

In response DTF advised that although it recognised that a responsible level of net debt may be a subjective term, it was considered appropriate for reasons including:

net debt remains at historically low levels

increases in net debt reflect the major infrastructure program, aimed at improving the social and economic efficiency of the state and which results in an increase in net worth

it is supported by strong operating surpluses

when considered as part of recognised reporting ratios (eg net financial liabilities to revenue) support the continuation of the State's triple-A rating.

I refer to comments that the Leader of the Opposition made on radio today. This is what he said, referring to me, and he never has the decency to call me the Treasurer. He calls me Foley and whatever else. He said, 'He has run debt up. It is going to be $5.2 billion in this estimated period. That is almost twice the State Bank.' Before he said it was half the State Bank. Five minutes ago—and I urge observers here to read what he said in Hansard—he said that we were about half the level of the State Bank debt, yet on radio today he said we were double the State Bank debt. When are we going to put this leader under the scrutiny he should be put under? He said on radio today that we have double the State Bank's debt but, in here, five minutes ago, he said—

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: We have half the level of State Bank debt. He just says whatever comes into his head, whoever the audience is, whatever the purpose of the comment is. This man cannot be trusted when it comes to what he says on financial matters. Have a listen to this: the Auditor-General disagrees with what the Leader of the Opposition is running around. In his report, he concludes:

I note that the increase in net debt forecast is not comparable to the increase experienced from 1991 principally from the collapse of the State Bank as that increase reflected the write-off of assets associated with the collapse. I also note that net debt, as then measured, peaked at 26.9 per cent of gross state product in 1992 and 1993.

In his report, the Auditor-General stated that at the end of 2007-08 total public sector net debt is estimated to be 2.7 per cent of gross state product. So, that puts a lie to the outrageous allegations that we are back to State Bank debt levels. The Auditor-General states, and I repeat, that the increase in net debt forecast is not comparable to the increases experienced between 1991 and latter years, principally as a result of the collapse of the State Bank.

In 1992-93, state debt peaked at 26.9 per cent of gross state product. In 2007-08, it is 2.7 per cent of gross state product. From this day forward, the Leader of the Opposition has no credibility to say to the media or state in this place that we are taking the state back to State Bank debt levels because, if he does, that is untrue, misleading and an absolute fabrication of the true state of the net debt and worth of this state.

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