 |
Legislative
Council |
|
 |
||
| Mike Elliott Leader Australian Democrats Member of the Legislative Council |
Parliament Index |
|
|
Legislative
Council |
|
|
||
| Mike Elliott Leader Australian Democrats Member of the Legislative Council |
Parliament Index |
|
The Hon. M.J. ELLIOTT: I seek leave to make a brief explanation before asking the Treasurer a question about net debt and SAFA.
Leave granted.
The Hon. M.J. ELLIOTT: My question relates to the exclusion of SAFA and universities from net state debt calculations. The 2000-01 budget papers show that between 1990 and 1997 South Australian net debt was calculated with the inclusion of the net worth of universities and SAFA to the South Australian government. During that period, the state net debt grew from $4.6 billion to $7.5 billion. The budget papers also show that since 1997 net debt has been calculated without the inclusion of SAFA and the universities. The impact on the net debt bottom line of this change was approximately $500 million in 1997 and $350 million in 1998, because there was a period of only two years in which to establish the net effect of those two. This change is explained in the Auditor-General's Report to be due to an ABS reclassification. However, I have been informed that this reclassification has not changed the fact that the re-inclusion of SAFA, in accordance with former ABS conventions, would currently improve the state's net debt bottom line by an estimated $300 million. My questions are:
1. What is the current financial net worth to the state government of SAFA which has been put to me as being in the order of $300 million?
2. If the net worth of SAFA to the government is not included as an asset in the state's net debt where is it included in the state's accounts?
The Hon. R.I. LUCAS (Treasurer): As I alluded to in response to an earlier question last week or the week before, this issue is an important one. The ABS changed its series on net debt in and around 1997. So, if you want to compare apples with apples it is clearly, is the most sensible comparison that you should look at. The current $3 billion net debt that we have (approximately $3 billion) is compared to a $10.1 billion net debt that we inherited in June 1993 in real terms. If you make the adjustments, the ABS-
The Hon. M.J. Elliott interjecting:
The Hon. R.I. LUCAS: As you make the adjustments from the ABS to get an apples with apples comparison and, if you do as the Auditor-General does, that is, compare real prices in year 2000 dollars rather than 1993 prices with the year 2000, then, in real terms, the net debt has been reduced from $10.1 billion to about $3 billion by this government. It is a-
The Hon. M.J. Elliott: Where do you get the 10.1 from? The Auditor-General gives us nine point something, as I recall.
An honourable member: In real terms.
The Hon. R.I. LUCAS: Yes, in real terms. Yes, but the Auditor-General has not adjusted the earlier figures for the SAFA adjustment which the honourable member has just raised-that is the difference. If we are both talking about the same table, the $9.3 billion, $9.4 billion figure that the Auditor-General has does not make the adjustment for the SAFA and university adjustment. If you do that and do as the Auditor-General does outside debt in real terms, the actual improvement is from $10.1 billion in debt down to $3 billion by this government. This government has achieved a very significant reduction in debt and one I am sure that all members, including the Democrats, would warmly embrace, endorse and support. In relation to the issue- In relation to which particular account line the SAFA figures are included in, I am happy to take that on notice. Clearly, we would have to report the SAFA figures in a number of budget lines, and I am happy to find the appropriate line for the honourable member and bring back an answer for him. In relation to the earlier part of his question as to whether or not his estimate of $300 million is correct, I am happy to take that on notice and bring back a reply.
See Government Response (13 March 2001)
