Borrowings balloon as Barnett binges on baubles
"He's never said no to the shiny baubles." That was shadow treasurer Ben Wyatt yesterday critiquing Colin Barnett's financial management.
At about the same time, the Premier was taking the gift-wrapping off another shiny bauble, opening the new $34 million elite training facility for the WA Institute of Sport.
"(Former sport and recreation minister) Terry (Waldron) came to me about four years ago and said, 'We need to rebuild and provide a new specialist centre for WAIS'," Mr Barnett told luminaries at the opening.
"I said to Terry, 'We're running out of money, mate - we can't do that'. I now know we have run out of money but we did it, so there you go."
The punchline to the gag delivered at his own expense got quite the laugh but it did rather illustrate the point.
Later in the day, the Government introduced into Parliament a Bill to increase its borrowing limit for the general government sector (as distinct to the publicly-owned corporations, which have their own borrowing arrangements) for the third time since coming to power.
The Government's first loan Bill, in 2009, authorised $8.3 billion of borrowing.
It was an historic authorisation at the time and it followed just one loan Bill in the previous Labor government's two terms, which was worth just $250 million.
The $8.3 billion was supposed to see the Government through until June 2013 - four years.
In May 2012, the second loan Bill, authorising an extra $5 billion, was brought forth. Only $1 billion was left from the first Bill, but the Budget required $3 billion in borrowings.
Again, the $5 billion was supposed to last four years, to June 2016. And yet here we are again.
In question time, Treasurer Mike Nahan was unable to answer a Wyatt question that this Government has not been able to answer: in what year will debt peak, and at what amount?
Its track record says net debt will continue to grow - probably past $35 billion - as long as it remains in office.
Gareth Parker
