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House of Assembly - Fifty-Second Parliament, First Session (52-1)
2010-07-22 Daily Xml
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STATE SAVINGS TARGET

The Hon. I.F. EVANS (Davenport) (14:59): My question—

The Hon. A. Koutsantonis interjecting:

The SPEAKER: Order! The Minister for Industry and Trade will be quiet. The member for Davenport.

The Hon. I.F. EVANS: Thank you, Madam Speaker. My question is to the Treasurer. In the April cabinet submission that dealt with the new $1.3 billion savings measure, did the cabinet submission suggest that the reason that the cabinet had to agree to the new $1.3 billion savings measure was that, without this new savings target, the state's AAA credit rating could be at risk?

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Federal/State Relations, Minister for Defence Industries) (15:00): There is no doubt, if we do not achieve the required savings necessary to sustain our budget going forward, we will lose our AAA credit rating. That is obvious. But what we should also take into account is that the April cabinet meeting did set a number of targets in terms of what the situation was as at 6 April. What was required, as I said yesterday, was—

Mr Williams interjecting:

The Hon. K.O. FOLEY: Yes. The worst day in government is always better than the best day in opposition.

Mr Williams interjecting:

The Hon. K.O. FOLEY: After 8½ years and another 3½ ahead of you!

The Hon. P.F. Conlon interjecting:

The Hon. K.O. FOLEY: Minimum, 7½. The savings requirement has not been decided and will not be decided until such time as I formulate the final draft of the budget. That is, as I said yesterday, the parameters that were mentioned in that budget submission of 6 April will vary and have varied, and I said yesterday that there are inputs and outputs. By that I mean that there is more revenue or less revenue, there is more expenditure or less expenditure, and the mix means that we deal with the scenario and the situation when we come to frame the budget. The inference yesterday of some $2 billion worth, I assume, of recurrent expenditure cuts on a yearly basis is a nonsense figure. What the quantum is—

The Hon. I.F. Evans interjecting:

The Hon. K.O. FOLEY: Are what?

The Hon. I.F. Evans interjecting:

The SPEAKER: Order!

The Hon. I.F. Evans interjecting:

The Hon. K.O. FOLEY: Qualified what?

The SPEAKER: Order!

The Hon. K.O. FOLEY: Yes, well, Madam Speaker, the $2 billion figure that the Leader of the Opposition interjected with yesterday is a nonsense figure. The quantum of savings in aggregate terms over the four-year forward estimate period will be a figure determined ultimately by what is required in the budget.

Mrs Redmond interjecting:

The Hon. K.O. FOLEY: In what sense?

Mrs Redmond interjecting:

The SPEAKER: Order! The Treasurer will continue with his answer. We have still got a question to go, and we have only three minutes left.

The Hon. K.O. FOLEY: I'm not the sharpest tool?

An honourable member: That's right.

The Hon. K.O. FOLEY: Madam Speaker, the $1.3 billion figure—

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: —the leader mentions, in aggregate terms over the forward estimates, is a figure that does not necessarily have relevance now as we formulate the budget.

Mr Pisoni interjecting:

The SPEAKER: Order! The member for Unley will stop displaying material in the chamber. Member for Unley, you will put that material away.

The Hon. K.O. FOLEY: The savings target is a significant ask of government, and it will be a significant task for us to meet the savings needs of this budget across the forward estimates. This is not new. We had a commitment for over $900 million in our first and subsequent budgets throughout the term of this government. We have had significant savings required. There are still savings from previous budgets that have not yet been achieved, and they will be incorporated in this mix. But the actual numbers and the parameters set on 6 April were the parameters as they were at that point. The parameters when we come to finalise the budget some three months later will be vastly different. That is the nature of framing a budget. So, in terms of the quantum of savings, you will need to wait until you see the budget.

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