Treasury confirms that WA Labor policies affordableThursday 07 Mar 2013
Ben Wyatt, Shadow Treasurer
Treasury tonight has released the impact of WA Labor's estimated net cost of its election commitments against the State's financial aggregates, Shadow Treasurer Ben Wyatt said today.
Mr Wyatt said Treasury analysis shows the impact of WA Labor's estimated net cost of its election commitments to be $1.7billion in net debt terms to 30 June 2016.
"Importantly, Treasury confirms that the key financial ratios mean that the State's credit rating will stay intact even as WA Labor embarks on the construction of its integrated public transport plan, METRONET," Mr Wyatt said.
"Last week, WA Labor submitted METRONET to Treasury for costing. WA Labor has accepted the costing from Treasury and has incorporated the Treasury cash flows into its aggregates.
"Taking into account the saving measures announced by WA Labor earlier in the election campaign, WA Labor's estimated net cost of its election commitments for recurrent spending came to $1.22billion and for capital works came to $446million.
"This brings WA Labor's estimated net cost of its election commitments to $1.66billion.
"Treasury has also included the indirect cost of interest on higher debt due to proposed new spending.
"Whilst operating surpluses across the forward estimates are lower than estimated in the Pre-Election Financial Statements, Western Australia will remain in surplus each year across the forward estimates.
"WA Labor also takes particular note of the warning from Treasury that the forward estimates of Western Australia are highly sensitive to volatile commodity prices."