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Charles Bukowski

WA's $1 billion black hole

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WA's $1 billion black hole

CHALPAT SONTI

November 27, 2009

The State Government's finances have taken a $1.1 billion turn for the worse on Budget forecasts, as expenses rapidly outpace income.

A summary of the State's financial position released today by the Department of Treasury and Finance shows an operating deficit of $778 million for the first three months of the financial year.

That compares to a Budget projection in May of a $409 million surplus for the period to September 30 and a $220 million surplus in the same period last year.

The turnaround was due to a 22.6 per cent increase in expenses, to about $5.379 billion, with the largest contributors being passing on Commonwealth payments such as grants to non-government schools and the First Home Owners Grant Boost.

However, even with those "extraordinary" expenses taken out of the equation, the State still recorded a $336 million deficit.

Cont'd here

http://www.watoday.com.au/wa-news/was-1-billion-black-hole-20091127-jwho.html

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If you are 'passing on' Fed govt grants how does it create a hole? Thats a money in then out scenario.

What am I missing here?

this

WA had yet to receive funds for some Commonwealth spending, such as the First Home Owners Boost, which was paid to the State in arrears.

i thought the same thing so i went to the source.

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What's the chances of all the new infrasture projects being shelved or postponed in Perth?

Northbridge Link, Foreshore development, East Perth Power Station, outdoor stadium, Perth Arena.

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What's the chances of all the new infrasture projects being shelved or postponed in Perth?

Northbridge Link, Foreshore development, East Perth Power Station, outdoor stadium, Perth Arena.

nil.

horseshoe bridge works already started.

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The turnaround was due to a 22.6 per cent increase in expenses, to about $5.379 billion, with the largest contributors being passing on Commonwealth payments such as grants to non-government schools and the First Home Owners Grant Boost.

And what are they going to do to counteract the FHOG driven deficit?

State surplus forecast slashed

CHALPAT SONTI

December 17, 2009 - 12:31PM Pensioners will have to wait an extra three months for their annual rebate, and $130 million has been sliced off the Royalties for Regions program as the Government desperately tries to keep the state's finances in the black.

Treasurer Troy Buswell today predicted the annual budget surplus would be $51 million, $358 million less than forecast in May's budget.

In an effort to keep the state out of deficit, the Government is cutting $211 million from measures announced in May.

These include deferring the senior's cost of living rebate so it is paid early in the next financial year - a "saving" of $26 million and longer-term deferrals of payroll tax relief.

But Royalties for Regions will take the biggest hit with $130 million slashed from its budget this year.

http://www.watoday.com.au/wa-news/state-surplus-forecast-slashed-20091217-kzd7.html

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And what are they going to do to counteract the FHOG driven deficit?

pull in a whole whack of stamp duty off loans being secured and funded Q3 as 9000 starts hit the ground....?

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Interesting stuff SJ.

My best mate and I(from school days) spent the best part of last week drinking the WACA members stand dry and then demolishing the various dusty dwellers of his bar at home. In the early 90s he left the Navy and spent the next few years mostly on board various vessels doing offshore Geophysical survey work around the world for a Texas based contractor to the Oil Exploration industry. He was making 6 figures USD 15 years ago so he bought some houses around South Perth and Vic Park to park some money (can't lose with bricks and mortar etc). He now consults and writes geophys software in between (including work for Chevron Gorgon).

In a drunken haze he confessed he sold all 4 houses in the last few months with the last settlement being yesterday. He just felt that the there is no more cash and the only way is down or sideways and that the oil and gas exploration business was just not in truth going the way of the spin and spruiking.

We talked about the Pilbara Iron booms and the Woodside LNG 1,2 and 3 monoliths in Dampier in the 80s and early 90s and the zero effect it had on WA housing.

He mentioned some scuttlebut that Chevron may consider bringing in SE Asian workes and housing them on a ship when Gorgon gets really going just like that Malay and Thai firms have picked up most of the initial design and construction (I dropped my McCallan onto his Persian rug at that). He said Chevron operates by layers of outsourced consultants with compartmentalised secrecy and 'need to know'. His comment was, I've worked with these f*ckers for almost 20 years its how they work. They are not Australian, its not Woodside and they have no obligations to Australia in the long run except royalties to the state.

But, a fella thats debt free, loaded and maps and defines the strata on the Ocean floor for multi billion dollar oil companies and writes software that improves the reliability of such data is probably not as bright as those in the RE selling or building industry.

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