Opposition should explain projected CRF deficit

7/6/93

Premier Richard Court said today that Opposition Leader Dr Carmen Lawrence should explain to the people of Western Australia why the State Government is faced with a projected $48 million deficit in the Consolidated Revenue Fund this financial year.

"The State Government faces major financial problems because of the financial mismanagement of the Lawrence Government," he said.

"Dr Lawrence had assured the people of Western Australia that as part of her management of State finances she would deliver a balanced budget for the financial year 1992-1993.

"As part of her creative accounting she even took all of the State's accumulated interest savings in the Revenue Equalisation Account to help pay for this pre-election budget.

"That money is not available to the Coalition Government in framing its budget over the next four years.

"Instead of presenting the State finances in an honest way, the Labor Party continues the facade of creative accounting by suggesting that State revenues will increase by five per cent per annum over the next four years.

"This is despite the fact that Commonwealth grants, which account for around 40 per cent of WA's total revenues, are projected not to increase in real terms over the next four years.

"Indeed, as Dr Lawrence is aware, the State could be faced with cuts in real terms since the Commonwealth Grants Commission is proposing cuts of around $50 million annually in Federal revenues.

"Dr Lawrence's creative accounting has seen State debt climb by around $1 billion each year she has been in office with debt now totalling over $11 billion.

"During their period in Government, the Labor Party even went to the extent of hiding the truth about the State's financial problems by delaying proposed increases in Third Party Car Insurance until after the State election.

"Dr Lawrence's financial management was seriously flawed in Government and she continues the same trait in Opposition.

"Premier Court also reiterated his call for Dr Lawrence to distance herself and her Party from the TLC's day of action.

"If Dr Lawrence is a responsible political leader she should unreservedly condemn this strike action since it will only harm the private sector who are now only recovering from the effects of the recession."