Financial statement by Under Treasurer welcomed

18/11/96

Premier Richard Court today said he welcomed the financial statement by the Under Treasurer which showed Western Australia's current financial position and the updated forward estimates for the next four years.

"This is the first time that the State's financial books have been opened during an election in Australia and the challenge is now for the Labor Party to release its costings immediately so that the public can judge the financial credibility of their plans," Mr Court said.

He added that the Labor Party last Friday promised to implement a responsible financial management strategy and now they had a responsibility to detail how they intended to achieve their financial objectives of:

·   returning the State to a AAA rating;

·   reducing net State debt; and -

·   keeping the State Budget in balance.

"If we are to have a credible debate on financial management, then the Labor Party must now spell out how they intend to achieve these three key financial objectives, yet at the same time meet their major spending commitments," the Premier said.

"There should be no reason why the Labor Party cannot now immediately release their detailed financial plan, following today's financial statement by Treasury.

Treasury's financial statement clearly shows that under a Coalition Government there would be continued commitment to good financial management in the State.

"I am confident that the financial plan we have released today and our track record over the past four years will ensure that WA is returned to a AAA credit rating," Mr Court said.

"The AAA credit rating was lost during the previous Labor Government because of a blowout in State debt and poor financial management.

"During our first term in government, we have reduced State net debt by $1.9 billion and WA is now on a positive credit watch.

"This commitment to good financial management is critical to delivering improved community services, because if State debt levels rise as under the previous Labor Government, then public money is diverted to meeting interest payments.

"In contrast, lower debt levels under the Coalition have meant that we have been able to spend an additional $82 million on community services, such as disability services, during the 1996-97 financial year.

"Today is a watershed in Australian political history, because the release of these financial figures is a safeguard for the public that there can no longer be extravagant promises being made on financial management and at the same time on spending.

"The political spotlight is now on the Labor Party, who have made these commitments and now they must have the political honesty to detail in public their financial plan for the next four years."

Media contact: Casey Cahill 222 9475