Bigger surplus to reduce debt burden on future generations

15/07/05
Treasurer Eric Ripper today welcomed the possibility of a bigger than expected surplus in 2004-2005.
However, Mr Ripper warned against vested interest groups wanting the money spent now, without regard for what the future might hold or the need to finance the Gallop Government's massive capital works program.
"A bigger surplus will give us the capacity to fund our record four-year $15.8billion capital works program with less reliance on borrowings," the Treasurer said.
"Less debt means less interest payments and that means more money for future spending on health, education and law and order."
Mr Ripper said while the actual surplus would not be known until September, it now seemed likely to exceed the $631million Treasury forecast.
The April Monthly Report of General Government Finances shows an operating surplus of $1.2billion for the first 10 months of 2004-2005.
The final operating surplus is expected to be less, with expenses typically accelerating in the last month or two of the financial year. In addition, tax cuts implemented in the past 12 months are still to have a full impact on revenue collections.
The Treasurer said the big surplus was the result of a strong economy and sound financial management.
"The Gallop Government is using the current good economic times to invest in WA's future prosperity," he said.
"We will not be squandering it on flying horses to the Summer Racing Carnival as put forward by the Opposition.
"In fact, the forecast $631million surplus has already been put to work improving electricity, water and road infrastructure and building new health and education facilities.
"We are also using it to retire the Public Transport Authority's Westrail Freight debt ($326million) - saving taxpayers $16million a year in servicing costs.
"This comes on top of the $481million in debt retired last year using the proceeds of the 2003-2004 surplus, with ongoing interest savings of about $32million a year.
"A bigger surplus in 2004-2005 will give us greater capacity to reduce projected debt and invest more in the infrastructure needed to sustain our growth into the future."
Treasurer's office: 9222 8788