The following information shows that Labor do not have a real plan to reduce debt in WA, it wouldn’t even raise a cent.
In an ABC news article the Shadow Treasurer Ben Wyatt of the Labor party stated this: “In 2010–11 and 2011–12, royalties were above $4 billion each year some $8.5 billion in total. You allow for your 25 per cent Royalties for Regions which leaves you with just over $6 billion left, of that we propose to capture 50 per cent for the debt reduction account, that comes to around $3.2 billion that we would have captured and not just simply spent during the good times that we’re now suffering from now.
“Mr Barnett assumed that brief spike in iron ore prices was here to stay and he spent accordingly, that’s why we have record debt.”
Treasurer Mike Nahan said the strategy would not raise a cent.
Mike Nahan shows how ridiculous Ben Wyatt’s plan is here:
“The reality is our share of GST is 30 per cent and in the pre-election forecast released the other day it maxes out at 60 and more importantly if iron ore prices went to 85, by definition the share would be below 60,” Dr Nahan said.
“The whole strategy of using windfall revenue to put into a bucket of money, the windfalls, even if they existed, they would be redistributed by the GST to interstate therefore it will never raise any money.”
Mr Wyatt did not outline a clear plan for dealing with debt if GST and iron ore did not rise. He also did not rule out tax increases.
Ben Wyatt effectively saying there will be tax increases under Labor here:
“There’s no question it’s going to be tough, which is why I’ve made it crystal clear I’m not going to make commitments like no tax increases, I’m not going to make commitments like no cuts, I’m not going to make commitments that are not believable,” he said.
Check out the whole article here: