Total public sector operating in surplus for first time

18/10/94

For the first time since records were kept, Western Australia's total public sector is operating in surplus. 

Premier Richard Court said the public sector surplus for the last financial year was $126 million as the end of year results of all Government Trading Enterprises, such as SECWA and the Western Australian Water Authority, had now been collated. 

This surplus was $81 million better than originally forecast and compared with a public sector deficit of $480 million when the Government was elected to office in early 1993.

"The significance of this surplus is highlighted by the fact that it has allowed the State Government to reduce the State's net debt by $136 million - again the first time this has occurred since records began in the early 1960s," Mr Court said. 

"This improvement in the State's financial position is in contrast to the days of WA Inc when the public sector deficit was running at $672 million and the State's debt was allowed to triple.

"Instead we have kept a tight control on Government expenditure and not squandered the opportunity to use economic growth to reduce debt as occurred in the 1980s." 

Mr Court said the Government's sound economic management came at a time when Western Australia's economy continued to go from strength to strength.

"In the last financial year, the State's economy grew by over six per cent in real terms - that was even more than 1.5 per cent higher than we had originally forecast," he said.

"This growth has, for example, seen employment rise with Western Australia having the lowest unemployment rate of all the States and business investment growing by more than double the national rate." 

Mr Court said the achievements of 1993-94 were being built on this financial year with the public sector surplus estimated to increase to $276 million and allow a further reduction in the State's net debt. 

"We are committed to putting the State's finances back on a sound footing and helping ensure that the growth being experienced in Western Australia is sustainable," he said.