Liberal/National 'alternative budget' would be in the red

21/5/02
Treasurer Eric Ripper says the 'alternative' budget - to be released today when Opposition Leader Colin Barnett gives his official Budget reply - must explain how a Liberal government would fund the promises of its members and still manage the State's finances in a sustainable way.
Mr Ripper said the Opposition parties had called for increased spending, the reversal of cuts and the abandonment of tax increases - which would sink the Budget into deficit and lose the AAA credit rating.
"There are few choices for a State Government," he said.
"The Gallop Government has chosen to cut spending in some areas and introduce targeted tax increases in order to deliver massive increases in education, health, law and order and disability services.
"It has put the State's finances on a sustainable footing to deliver Budget surpluses and manage a strong capital works program."
Mr Ripper said the former Liberal Government had a record of:

• five deficits in eight budgets;

• spending growth averaging 5.6 per cent a year, often outstripping record revenue growth;

• selling off $4.8billion worth of State assets; and

• a AAA credit rating on the brink of being lost.

"Mr Barnett's budget reply today must lay out a credible, alternative financial management plan and show the Liberal and National parties have learned the lessons of their financial management failings when in Government," the Treasurer said.
"The Liberals failed to control spending during times of record revenue growth. The spotlight will be on Mr Barnett to see if he has a fresh financial plan or whether he is still defending the indefensible.

"He must demonstrate how he will cover the cost of promises by Liberal and National members of Parliament and still deliver a balanced, sustainable budget.
"You can't simultaneously reduce debt, reduce taxes, increase spending, reverse cuts and deliver budget surpluses. Not even a financial contortionist like Richard Court could do that."
Opposition spending calls included:

• reversal of tax increases;

• a reduction in the Water Corporation dividend;

• increased funding for agriculture and agriculture protection;

• reinstatement of funding for parenting education centres;

• increased funding for the infill sewerage scheme; and

• more funding for salinity.

Treasurer's office: 9222 8788