Every savings measure found by the State Government takes the budget one step closer to surplus, says WA’s peak business advocate.
Chamber of Commerce and Industry of Western Australia (CCI) Chief Economist Rick Newnham said given WA’s budget debt and deficit, the adjustment to the home owners grant announced today by the State Government was a sensible, measured decision.
“Given the perilous state of WA’s budget position, the extra $20 million saved by discontinuing the temporary first home owner grant boost should not be undervalued – every savings measure is one step closer towards a stable budget position,” Mr Newnham said.
“It is also important to remember that lower house prices in Western Australia have also made it easier for first home buyers to enter the local housing market.
“It is critical that the State Government leaves no stone unturned in finding budget savings –savings will be required from all areas of government expenditure to achieve substantial improvements to the overall budget position.
“A reduction in spending across the board will also increase WA’s standing in the eyes of ratings agencies, making it more likely our state will regain the AAA rating and be increasingly regarded as a stable investment environment. This is critical to attracting business investment, which fuels economic growth and job creation.
"CCI and the Western Australian business community congratulate the State Government for their vigorous approach to reining in spending and look forward to working together on further savings measures in future.”
Media contact: Kate Hodges – 0448 928 227