Page 193 - Week 01 - Wednesday, 15 February 2012
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MR BARR: to understand even the most basic of economic concepts, the difference between a structural deficit and otherwise. I was particularly amused by the outstanding level of ignorance displayed by the shadow treasurer this morning on ABC radio in relation to GST relativities. It would appear that the shadow treasurer does not understand the basis of the GST or the basis of the calculation of GST relativities. To suggest, as he did on ABC radio this morning, that we get back “1.15 of what we put in” is a fundamental misunderstanding of the GST relativities process as to be so embarrassing for the shadow treasurer that I suggest some remedial classes are necessary and that all commentary from the shadow treasurer in relation to the establishment of the GST—
Mrs Dunne: Point of order, Mr Speaker.
MR SPEAKER: Yes. Stop the clocks, thank you. Mrs Dunne.
Mrs Dunne: Mr Speaker, the question was about structural changes or temporary changes in the ACT budget, and a critique of Mr Smyth’s performance on radio is not a relevant answer to the question. I would ask you to get the Treasurer to answer the question.
MR SPEAKER: The point of order is upheld. Mr Barr, we do not need a commentary on Mr Smyth—on the budget position would be sufficient, thank you.
MR BARR: Thank you, Mr Speaker. The question of structural or temporary deficits relates particularly to the question of GST revenue, undoubtedly. Mr Smyth in his question in fact referred to that—
Mrs Dunne: Amongst other things.
MR BARR: amongst other things. There are a number of factors in relation to the revenue side of the budget that are cyclical in nature. One would hope that the shadow treasurer would understand that but it would appear not, and his comments this morning demonstrated that.
MR SPEAKER: Mr Barr, the matter at hand.
MR BARR: Which is the matter of whether the deficit is temporary or structural, and the point that I am making is that the question itself displays a particular ignorance of those economic concepts, and we saw that demonstrated in the commentary this morning.
I repeat in relation to GST relativities that they are determined by the Commonwealth Grants Commission on the basis of a state or territory’s capacity to deliver an average level of services, that these relativities are adjusted on an annual basis and that nothing can be inferred in the way that Mr Smyth did in relation to future projections from the commonwealth in their midyear update as to the annual deliberations of the Grants Commission.
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