PUBLIC SECTOR WAGES POLICY
443. Ms A.E. KENT to the Premier:
I refer to the McGowan Labor
government's commitment to supporting households and providing
cost-of-living relief to Western Australians. Can the Premier update the house
on the updated public sector wages policy, and outline how it will responsibly
deliver significant pay increases for the 150 000 workers in the public sector?
Mr M.
McGOWAN replied:
I thank the member for Kalgoorlie
for her question.
We are very aware that households
across Western Australia are facing many cost pressures. That is why we have
provided a $400 household electricity credit for every household. We are the
only state in Australia that is doing that. We have the free rapid antigen test
program, and we are the only state in Australia that is doing that. We have
capped regional airfares and Perth public transport fares as well, to assist
families across the state. We have also put in place a new public sector wages
policy. That will include a three per cent per annum wage increase over two years,
plus for every public sector worker, a sector-wide $2 500 cost-of-living
payment where an agreement has been reached. There is also the already
legislated 0.5 per cent guaranteed superannuation increase per annum; that will
come into effect as well.
This means that many public sector
workers will this year receive a pay increase significantly above inflation,
and for many public sector workers, that will be a pay increase of way above
eight per cent. Although the policy is generous,
it is also responsible. It is significantly above inflation for most public
sector workers. Members also have to understand that our inflation rate
was recently artificially elevated because of the $600 household electricity
credit we provided to every household in late 2020; it artificially elevated
the inflation rate over the past financial year. Without the electricity
subindex included, the figure would actually be a 5.1 per cent inflation rate.
We
can do this because we have had good financial management over our time in
office. The cost of the entire wages policy is $2.54 billion over the
next four years. We can do that because of strong financial management. I remind
the house that we have restored Western Australia's AAA credit rating.
We did a lot of work to repair the state's finances. We are the only
government in Australia paying down debt and the only one in surplus. S&P
Global has upgraded our rating to AAA for the first time in nine years—since
the Liberal Party lost it when it was in office. S&P stated that its upgrade
was supported by Western Australia's track record of robust financial
management, a very high income economy and exceptional liquidity. It stated
that Western Australia's financial management is very strong and that the current government has
displayed a track record of robust cost control. That is very different
from what Standard and Poor's had to say about the last government.
We
need to continue to be responsible and ensure that we continue on the track we
are on, particularly in the high–interest rate environment. The
wages policy strikes the right balance. It rewards every single public sector
worker, especially lower paid workers, across the state, and ensures everyone
gets a significant pay increase.