Wednesday, 30 October 2019

Public Accounts and Estimates Committee

Report on the 2019–20 Budget Estimates

Mr PEARSON (Essendon) (10:30): I am delighted to make a contribution on the Report on the 2019–20 Budget Estimates. As a regular contributor to committee reports I am absolutely thrilled and delighted with the outstanding work of the Public Accounts and Estimates Committee in producing this outstanding report. It seems to be significantly thicker than the one I last presided over, which means there will be more material. Indeed these reports play a very important contribution because they enable us to have an ability to peer into and see the current state of play in relation to the state finances. It is important that you have got that ability to have a deep dive and a ready reckoner in terms of how the budget is going and how the economy is going. It is important that one is able to be numerate because it is important that someone is able to count and have a deep appreciation of the budgetary position, the finances, the state of the budget, the surplus and the like.

Being able to count is a very important skill in this place. Being able to appreciate one’s position and being able to have a deep appreciation of the current state of play is important. I do note, for example, that the member for Malvern currently has only 11 votes in the Liberal Party room. I would have thought that it is important that the member for Malvern has an appreciation of this fact, because being able to count is indeed important, because you need to—

Ms McLeish: On a point of order, Deputy Speaker, on relevance. I think the member on his feet has strayed very far from committee reports and I ask you to bring him back to the report.

Mr PEARSON: On the point of order, Deputy Speaker, would the member for Eildon be able to confirm whether she is one of the 11?

The DEPUTY SPEAKER: That is not a point of order, and I ask the member for Essendon to return to speaking on the committee report.

Members interjecting.

Mr PEARSON: If you do not ask, you do not get on in life, I have learned, Deputy Speaker.

A member interjected.

Mr PEARSON: Well, the member for Forest Hill is now in the chamber. I am sure he is one of the 11, because but for the member for Malvern he would be languishing on the backbench.

The DEPUTY SPEAKER: Order! I would ask the member for Essendon to not reply to interjections. The member for Essendon, to continue.

Members interjecting.

Mr PEARSON: Thank you, Deputy Speaker. It is always a joy to be on this side of the house. I want the record to reflect I will be happy to be a government backbencher for the rest of my days, rather than spend a single day over there, even if it is at the table and even if it is at the expense of the member for Eildon’s car.

Anyhow, it is important to have an appreciation for the current state of the books. I would draw the house’s attention to page 9 of the report where we talk about the net debt to gross state product (GSP) ratio and state that this will reach 10 per cent as of 30 June 2023. This is an increase on the previous debt levels. Although I would indicate to the house—I think the house does make an important acknowledgement of this—that debt levels actually decreased over the course of the previous term of office. In fact under the Baillieu-Napthine governments debt levels increased significantly and it was at a time when gross state product was very low. Deputy Speaker, you will also note that, in relation to this, real GSP grew by 3.5 per cent in 2017–18. This is on page 13.

Compare that to the lacklustre performance of the member for Malvern when he was Treasurer. In the last full financial year that he was Treasurer of this state, gross state product grew by a paltry 1.7 per cent, which I think demonstrates the fact that the member for Malvern has been a serial underperformer throughout his career. I suspect that the member for Malvern probably peaked when he was Peter Costello’s valet and it has been all downhill ever since.

Members interjecting.

Mr Angus: Deputy Speaker, I raise a point of order on relevance. The member is already defying your earlier instruction in relation to being relevant to the committee report and not straying off into a whole world of fantasy that he is trying to share with the rest of us. Can you bring him back to order?

The DEPUTY SPEAKER: I do encourage the member for Essendon to speak to the committee report. I do not mind comparisons, but keep it minimal.

Mr PEARSON: Thank you, Deputy Speaker. I am sure the member for Kew will ensure the member for Forest Hill keeps his place in shadow cabinet when he becomes leader.

Anyhow, this is an outstanding body of work. There is much material and there is much to be excited about. It provides a great opportunity for many of us to get up and to have a deep appreciation of the current state of the economy. As I said, it is an important skill to have, to be able to count. I note that the member for Ripon is here at the table. She has been very silent in terms of defending—

The DEPUTY SPEAKER: Order! The member’s time has expired. The time for committee reports has now concluded.