Balanced Budget focusses on capital works

BUDGET STATEMENT

30/4/98

FOCUS ON CAPITAL WORKS IN BALANCED BUDGET

A massive capital works program and increased spending in core areas such as health, education and law and order are key features of the State Budget handed down today by Premier Richard Court.

Mr Court said the Budget, which would be in balance for the fifth successive year, combined initiatives to significantly reduce State debt with spending on programs across a range of portfolios aimed at securing Western Australia's future.

"The cornerstone of this year's Budget has been to use $1.8 billion from the sale of the Dampier-to-Bunbury Gas Pipeline to reduce public sector debt, but this also means big savings on interest payments which frees up funds for core areas," he said.

"Today we are saving $408 million annually in interest payments compared with when the Coalition came to office in 1993."

Mr Court said that as a result of good financial management there were a number of portfolio areas with increased funding allocations, including record levels to ensure better health services.

Increases included:

·      health up $90.5 million;

·      education up $70.7 million;

·      law and order up $31.9 million;

·      transport up $109 million;

·      environment up $11.5 million; and -

·      community development up $8.9 million.

Mr Court said there would also be many new job-creating capital works projects undertaken across Government.

"In 1998-99, a record $2.74 billion had been earmarked across Government for capital works. The total value of Government works from this budget until 2001-2002 would exceed $11 billion," the Premier said.

"This coming financial year alone, it is estimated that more than 27,000 new jobs will be created in WA. At the same time, we will be building infrastructure that will meet the needs of our growing State, now and in the future."

Major capital works projects to be undertaken in 1998-99 include:

·      $100 million for a convention and exhibition centre;

·      $21.2 million on the construction of six new primary schools;

·      $8 million to begin work on the new $34.9 million Police Academy;

·      $29.9 million for new justice centres at Fremantle, Rockingham, Busselton and South Hedland.

·      $18 million for infrastructure related to the development of the Jervoise Bay Marine facility; and -

·      $263 million for infill sewerage projects throughout the State.

Mr Court said a key feature of the Budget was the Coalition's continued commitment to give WA children the tools and skills they would need to confidently meet the challenges of the 21st century.

"One of the most exciting aspects of this Budget is the commitment to spend an extra $100 million on computers, information technology and associated training in our schools over the next four years," he said.

"The computers program is a passport into the world's fastest growing industry.

"Within four years we will achieve one computer to every five students in public high schools and one for every 10 in primary schools.

"These ratios will be among the best in the world."

Mr Court said the Budget was for all Western Australians and there was significant spending earmarked for regional areas.

"Funding will be shared across a range of areas, from $10 million for a communications network to link regional WA to the new information age, to $30 million for the ongoing fight against the ravages of salinity, to $6.5 million for the Batavia Museum project in Geraldton. These initiatives are just the tip of the iceberg," he said.

Mr Court said that even with the State Government's constraint and careful management, there had been a need for a number of revenue measures in this year's Budget.

The Government had already announced a number of changes to charges with as many increases as possible kept to a minimum.

Mr Court said that as part of the 1998-99 Budget there would be some changes to stamp duty rates.

Rates on general insurance premiums would be increased from five per cent to eight per cent - bringing them more in line with the rest of the country.

At the same time, the concessional rate of three per cent applicable to workers' compensation insurance would be increased to five per cent.

Stamp duty rates on property conveyances would be increased by an average of 12.5 per cent.

These increases would be partially offset by major concessions for home buyers.

The $500 rebate for first home buyers will be extended from $85,000 to $135,000 and the concessional rate of 1.5 per cent will apply to $100,000 and then graduate to the full amount at $135,000.

"For example, a buyer of a first home valued at $100,000 will save $900 - from $1,900 currently to $1,000 under these concessions," Mr Court said.

At the same time, land tax rates would fall by about seven per cent. This was the fifth reduction in rates since the Coalition came to office.

Mr Court said the increases in taxes and charges contained in the Budget represented only one per cent of all revenue in the total Budget of $7 billion.

This year's Budget papers were also being presented differently to provide a clearer picture of the State's finances.

"The comprehensive nature of the new Budget statements will bring financial accountability and transparency in WA to levels unrivalled elsewhere in Australia," the Premier said.

"We have become the first State in australia to report our Budget and the forward estimate years in accordance with Australian Accounting Standards.

"For the first time, the Budget and forward estimates will be based on a statement of cashflow, a balance sheet and an operating statement.

"The papers will now reflect the major reform that has occurred with the Government's change to accrual accounting procedures."

Mr Court said the 1998-99 Budget was a responsible one that again demonstrated that the Coalition would not put short-term political gain before the best interests of the people of WA.

"I believe the people of this State do not want reckless spending - and we have responded to this by striking a balance between debt reduction and spending targeted to key areas and initiatives across Government and throughout WA."

Media contact: Casey Cahill 9222 9475