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The government blew the books finances are tight, McGowan said. The states deficit is $3.3bn this year, while debt is tipped to hit $41bn by 2020, with the man who will likely be the states new treasurer saying it wont be paid down by the time of the next state election in 2021. The debt issue is obviously going to be a long-term issue to deal with, Ben Wyatt told ABC radio on Monday. He said asset sales, as proposed by the Barnett government with the part-privatisation of Western Power, were not the answer to the problem. Wyatt said Labor would focus on cutting spending in the general government sector including in the public service where most of the debt was being generated. The Barnett government, he said, had allowed recurrent spending in the government sector to get out of control and become permanent during the mining boom, a mistake the McGowan government would not repeat. The point is to ensure that if that happens again [a mining boom] that revenue wont become part of recurrent government spending and be used to offset debt, Wyatt said. He said Labor had a responsibility not to put a time frame on paying down debt. Weve seen, particularly at a federal level, various treasurers say we will be back to surplus at this point and weve seen how that unwound rather embarrassingly for various treasurers, Wyatt said.

2017-03-16 / Posted in