Wednesday, 22 March 2023

Economic policy

Brad ROWSWELL (Sandringham) (14:25): My question is to the Treasurer. Can the Treasurer confirm that each and every day this year Victorian taxpayers are forking out $10.6 million in interest payments to service the Andrews government’s record debt?

Members interjecting.

The SPEAKER: Order! Order! I would ask members at the table to cease interjecting.

Tim PALLAS (Werribee – Treasurer, Minister for Industrial Relations, Minister for Trade and Investment) (14:25): I thank the member for his question, and I congratulate him on his new glasses. They look very accountant-like, I might say. Might I say that whilst the member is part of an opposition that did not find voice to express concern about a former federal government that managed to increase our national debt to $1 trillion, or $40,000 per head of the population of this nation, they seem to have pulled out the glasses and found the outrage that they are going to puff themselves up to.

Well, Victoria’s interest costs as a share of total revenue average 6.5 per cent over the next four years, well below levels that we saw in the early 1990s when those opposite last occupied government benches. Victoria’s net debt is dwarfed by the Commonwealth’s net debt. And of course our investment has been in Victorians, our investment has been in growth and our investment has demonstrated the value of growing an economy to ensure the debt becomes increasingly manageable.

Members interjecting.

The SPEAKER: Order! The member for Berwick can leave the chamber for 1 hour.

Member for Berwick withdrew from chamber.

Tim PALLAS: It is a strategy that is working. It is a strategy that is leading the nation in growth. It is a strategy that is putting Victorians back to work in numbers stronger than any other state in the nation. That strategy has demonstrated its worth because we put the people of Victoria and their household budgets back into the priority that they deserve. As a government, we rate their concerns, and we have used our balance sheet to look after the interests of Victorians, to ensure that they get the support and the assistance of a government that, effectively, is concerned about making sure that they get through one of the most testing economic times that has confronted this nation. We make no apology for investing in Victorians. We make no apology for prioritising their wellbeing above the wellbeing of our budget. We will manage our budget responsibly, but we will always put the interests of Victorians first.

Brad ROWSWELL (Sandringham) (14:28): By 2025 Victorian taxpayers will be paying $20.4 million each day to service the Andrews government’s record debt.

A member: How do you know that?

The SPEAKER: Order! Order!

Brad ROWSWELL: Mate, I got it from your papers. If you do not know –

The SPEAKER: The member for Sandringham will ask his question in silence.

Brad ROWSWELL: Given the Treasurer yesterday refused to rule out making GPs pay more taxes than they have previously, will the Treasurer guarantee that Victorians will not face tax increases to pay the interest on Labor’s record debt?

Tim PALLAS (Werribee – Treasurer, Minister for Industrial Relations, Minister for Trade and Investment) (14:29): Goodness me, I feel like I have been egregiously verballed by the member. Let me assure the member that he will know all about what our plans are to responsibly manage the budget of this state at the time that we produce the budget. But can I assure him that our priority will be the wellbeing of Victorians, making sure that, essentially, we continue to manage the budget in a responsible way. Of course I do note that the current Premier of New South Wales has recently indicated that that state is dealing with close to $200 billion worth of debt.

Daniel Andrews: What did he say?

Tim PALLAS: He said it would be challenging. He said it would be challenging of course. But why is that? It is because we have come through challenging times; together as a nation, we have come through them. Those opposite like to decontextualise the problems that the people of Victoria have suffered. Let me assure him, we will constantly put their interests ahead of short-term budgetary issues.