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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
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FEDERAL BUDGET

Mr MARSHALL (Norwood—Leader of the Opposition) (14:09): In this analysis, has the Premier determined yet what the average growth rate in GST is over the forward estimates coming from the federal government?

The SPEAKER: Well, that's not a supplementary, but I will give it to you as a second question.

The Hon. J.W. WEATHERILL (Cheltenham—Premier, Treasurer, Minister for State Development, Minister for the Public Sector, Minister for the Arts) (14:09): What we do know, which is readily apparent on the figures, is that over the forward estimates there will be $300 million less—in the order of that amount—in the forward estimates as a consequence of the federal budget revealing the GST figures. Those opposite seem to be peddling this idea that somehow, because GST modestly improves over the forward estimates, that reflects some improvement in the position. This is a very substantial reduction on both the information that was published in the last update by the commonwealth and, of course, the figures that we relied upon for our update.

Remember that we are talking about numbers here which are to compensate not only for the cost of growth in goods and services but also for the growth in the use of those services. As our population grows and demand for services grows because of an ageing population (demands on our healthcare system), an increased number of children coming into schools and an increased number of people requiring our disability services, we need to see growth in revenues.

What we now have, at this point in our history, is less revenue as a proportion of our economy than we did back in 2002. That is the fundamental question and that is the fundamental challenge that we face in framing this budget. The numbers today just underscore the nature of that challenge. We will receive $300 million less over the forward estimates than we were projected to receive which would otherwise assist us in meeting those pressures.

I know those opposite like to disparage our spending on these services but we see this as supporting people—supporting people for the basic needs in the community, whether they be children at schools, people with disability support needs, people sick in hospital or people at home who need support to get on with the ordinary activities of living because they are aged. All of those matters receive our attention and our investments.

They continue to grow and we continue to support those people, but we need a revenue source to be able to support those South Australians. That is the challenge that we face. We will make every effort to ensure that we protect people in our budget. That is our focus. That is why we put budgets together—prudently managing our finances but supporting people.

Mr MARSHALL: I have a supplementary question.

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