Page 834 - Week 03 - Wednesday, 27 February 2013
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MR RATTENBURY: All road redevelopment projects, roadworks projects, have traffic management plans put in around them. They vary from project to project, as you can imagine. We discussed in annual reports hearings the other day the issue of how speed limits are set around roadworks projects. There is a whole series of things that need to be put in place. I do not have the specifics on this project yet because it is still in the design phase, but those factors will be taken into account.
Budget—superannuation
MR DOSZPOT: My question is to the Treasurer. In the budget review on page 51 it is shown that ‘Other Superannuation Expense’ was revised upwards for the current year by $116.9 million, to a total of $359.9 million. Treasurer, can you please explain this increase?
MR BARR: It would relate to the discount rate on 30 June.
MADAM SPEAKER: A supplementary question, Mr Doszpot.
MR DOSZPOT: Treasurer, why has it increased by $117 million in six months?
MR BARR: The policy setting for our superannuation liabilities is to take the long-run 10-year commonwealth bond rate as the default setting. When interest rates are lower—perhaps we are in that period at this point—and the prevailing commonwealth bond rate is therefore lower, that impacts on that valuation. It is of course a long-term liability and there will be periods when the prevailing interest rate is above the long-term average and one would then see a reduction in that particular line. So I think it is important, when considering a long-term liability, one that has, from the period of self-government until the 2030 current date, run over a 40-year period, to consider that that liability needs to be considered in that context rather than on an annualised basis.
MADAM SPEAKER: A supplementary question, Mr Smyth.
MR SMYTH: Treasurer, what steps is the government taking to ensure that all current and future superannuation liabilities will be paid when they fall due?
MR BARR: The government make provision in each budget. We have rolling actuarial reviews of our superannuation liabilities and of course we take a long-term view rather than a short-term view of that liability.
MADAM SPEAKER: Supplementary question, Mr Smyth.
MR SMYTH: Treasurer, given the current state of superannuation liabilities and expenses, how can we be assured that the government has this under control going forward?
MR BARR: As I think I have responded to this question previously, possibly not asked by Mr Smyth but by another colleague, every Australian jurisdiction is
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