Prophets of doom damage confidence in the State

22/1/02
The Liberal Party was sending mixed signals to the community, businesses and potential investors with its contradictory and negative statements about the State's economy, Treasurer Eric Ripper said today.
Mr Ripper said conflicting and negative statements by Opposition Leader Colin Barnett and his shadow ministers were inappropriate at a time when greater community and investor confidence was needed.
"Right now, after a very bad financial year in which the economy contracted by 1.2 per cent, the least the Liberal Party can do is talk up the strengths of the State's economy," he said.
"After all, it was their GST that inflicted enormous damage last financial year.
"Instead, the Liberal Party are becoming the prophets of doom about the State's economy, employment and finances, with little shame about the legacy they have left Western Australians.
"In recent weeks, we have had the spectacle of Shadow Tourism spokesman Sue Walker attacking the Government's assistance package to successfully attract Emirates Airlines to WA - and create up to 200 local jobs - while Mr Barnett has attacked spending on infrastructure to attract major industry - and jobs - to the Burrup Peninsula."
Mr Ripper said the Government would maintain the discipline necessary to put the State's finances on a sustainable footing. Without this, the Government would not be in a position to fund vital infrastructure, provide targeted industry assistance, maintain a competitive tax regime, or weather unexpected economic events.

"The Gallop Government will also redouble its efforts to attract business investment to WA, so that the economic growth translates into lasting jobs for our people," he said.
"This week's Access Economics forecast of five per cent growth is good news, but the work has only just begun."
CONTRADICTIONS IN GROWTH FORECASTS
In October 2001, Mr Barnett attacked Treasury's 'irresponsible forecast' of four per cent growth in the face of 'a stalling economy' and 'economic slow down' (media statement 25/10/01), instead making the gloomy prediction of economic growth of 'around two per cent or a little above' (Hansard, 17/10/01).
Yesterday, he criticised the latest Access Economics forecast of five per cent and offered another downbeat assessment, at the same time contradicting his earlier forecast: 'I think five per cent is overly optimistic, in my view, somewhere like a growth rate of around three to four per cent is probably more realistic' (ABC TV news, 21/10/01).
Mr Sullivan, (media statement 8/1/02) described Labor's four per cent budget forecast as 'an unreasonable economic growth prediction', yet a week later, in response to the Access Economics forecast of five per cent he claimed credit for the projected growth and contradicted Mr Barnett by urging the Government to revise up its Treasury forecast (media statement 14/1/02).
CONTRADICTIONS ON INFRASTRUCTURE SPENDING
Mr Barnett attacked Labor's spending on vital infrastructure, while Mr Sullivan says infrastructure spending should be maintained but borrowings reduced:
'The Labor Government seems to have priorities on gay and lesbian reform, changing electoral boundaries, apparently spending $100million to try and attract a methanol project '. Barnett, Seven News, January 5, 2002.
'The Government should.reverse the blowout in borrowings and keep up infrastructure investment'. Sullivan, The West Australian, January 21, 2002.
Minister's office: 9222 8788