❓ Opposition questions Premier Barnett about the loss of WA's AAA credit rating, referencing his past comments. Barnett defends his government's economic performance, attributing the downgrade to declining GST revenue, population growth, and reliance on mining royalties.
AnsweredQoN 535Legislative Assembly
QuestionView source ↗
STATE
FINANCES — AAA CREDIT RATING
535. Ms R. SAFFIOTI to the Premier:
My question is to the first Premier to lose the state's
AAA credit rating in more than 20 years. I refer to the Premier's
comments on 12 September 2001, when he said that a credit rating can be easily
lost after a couple of bad budgets and bad decisions; however, it takes years
to regain the confidence of the financial sector.
(1) Can the
Premier confirm that he made those comments and does he still stand by those
comments today?
(2) Can the
Premier confirm that he has brought down many bad budgets and made many bad
decisions that have led to the loss of the AAA rating?
(3) Can the Premier confirm that it will take years to regain
the confidence of ratings agencies?
FINANCES — AAA CREDIT RATING
535. Ms R. SAFFIOTI to the Premier:
My question is to the first Premier to lose the state's
AAA credit rating in more than 20 years. I refer to the Premier's
comments on 12 September 2001, when he said that a credit rating can be easily
lost after a couple of bad budgets and bad decisions; however, it takes years
to regain the confidence of the financial sector.
(1) Can the
Premier confirm that he made those comments and does he still stand by those
comments today?
(2) Can the
Premier confirm that he has brought down many bad budgets and made many bad
decisions that have led to the loss of the AAA rating?
(3) Can the Premier confirm that it will take years to regain
the confidence of ratings agencies?
AnswerView source ↗
(1)–(3) I have no doubt I made those comments in
2001, 12 years ago.
Mr
B.S. Wyatt : As opposition member for Cottesloe.
Mr
C.J. BARNETT : Yes, no doubt about it. This government has run a strong
surplus in every year it has been in government.
Mr
B.S. Wyatt : How do you define strong?
Mr
C.J. BARNETT : The Western Australian economy last year grew at about 6.5 per
cent. We have the highest rate of population growth, we dominate Australian
exports and we have the highest rate of investment of every Australian state,
so on economic growth, population growth, investment growth, per capita income
and all criteria, Western Australia leads the country. The obvious rhetorical
question is: how can it be that this state at the same time has lost its AAA
credit rating?
Mr B.S. Wyatt :
Lack of political will to implement the fiscal action plan.
Mr C.J. BARNETT :
No. Although it is a rhetorical question, it is a searching question, because
the state leads on every economic performance indicator, yet we have had a
downgrade from the highest to the second-highest rating.
Several members interjected.
The
SPEAKER : Member for Victoria Park, I call you to order for the second time.
Member for Bassendean, I call you to order for the first time.
Mr C.J. BARNETT :
Without doubt the highest-performing state by a long margin in Australia, it is
somewhat paradoxical—ironic, if you like—that this state has
seen a credit downgrade. Standard and Poor's media release made it
clear why that occurred, and I said it yesterday: the number one factor is the
decline in GST. That is the number one underlying factor. No other state
endures what we do.
Mr
B.S. Wyatt interjected.
The
SPEAKER : I call the member for Victoria Park to order for the third time.
Mr
C.J. BARNETT : The number two factor is, as the Treasurer has just said, a
rapidly growing population. There were around 80 000 people last year from
interstate and overseas—well over 1 000 a week coming here—immediately
and properly accessing health funded by WA, and accessing education and all the
other services funded by the Western Australian government. The third factor,
as a result of the fall in the GST, is that we have become increasingly reliant
on mining royalties, which are inherently unstable. If someone is providing an
assessment for financial institutions that might lend money to this state via
Treasury bonds and advising them on what is the risk of lending to Western
Australia, they would advise them that there are some risks. They would say, ''Their
GST is falling, they have a rapidly growing population and therefore rapid
expenditure demands, and they are becoming increasingly reliant on a very
unstable source of revenue.''
Mr
P.B. Watson : And they have got you as a Premier.
The
SPEAKER : Member for Albany, I call you to order for the second time.
Mr
C.J. BARNETT : Such an agency would say that there are, without doubt, risk
factors there. That is what Standard and Poor's does; that is its
function. It made a comment about political will—that is an opinion, it
is subjective.
Dr
A.D. Buti interjected.
Mr
C.J. BARNETT : The opposition may laugh and think that, but that is not the
function of a credit rating agency. It is not. That is a value judgement.
Several members interjected.
Mr
C.J. BARNETT : That is a value judgement. It can make it, but that is not
what the markets look at.
Mr
D.J. Kelly interjected.
The
SPEAKER : Member for Bassendean, I call you to order for the second time.
Will you let the Premier finish.
Mr
C.J. BARNETT : The Labor Party carries on about how wonderful it was when it
was in government and how we have this record revenue growth and the like. I
have the facts in this table, and I will present it to the Leader of the
Opposition. Average growth of revenue during the time of the Labor government
was 9.7 per cent, and during the Liberal–National years, 6.5 per cent.
Mr
B.S. Wyatt : Healthy.
Mr
C.J. BARNETT : Healthy, but not as high as the Labor government's
revenue growth, so get the facts right.
Tabling of Paper
Mrs M.H. ROBERTS : I ask that the
Premier table the document so we can see whether he is misleading the house.
Mr C.J. BARNETT : Just ask me
nicely and you can have it. There you go.
[See paper 801.]
Questions without Notice Resumed
Mr C.J. BARNETT : We will make
the corrective measures and they will be wide ranging, deep and maybe a little
controversial in some areas, but the interesting question is: will the
opposition be up for it?
Several members interjected.
Suspension of Member
The SPEAKER : Member for Victoria
Park, a member whose conduct has made it necessary for the Speaker to formally
call the member to order more than three times during the course of one sitting
for a significant breach of the rules may, by order at the discretion of the
Speaker, be suspended from the service of the Assembly until the adjournment of
that sitting. Will you please leave the chamber.
[The member for Victoria Park left
the chamber.]
2001, 12 years ago.
Mr
B.S. Wyatt : As opposition member for Cottesloe.
Mr
C.J. BARNETT : Yes, no doubt about it. This government has run a strong
surplus in every year it has been in government.
Mr
B.S. Wyatt : How do you define strong?
Mr
C.J. BARNETT : The Western Australian economy last year grew at about 6.5 per
cent. We have the highest rate of population growth, we dominate Australian
exports and we have the highest rate of investment of every Australian state,
so on economic growth, population growth, investment growth, per capita income
and all criteria, Western Australia leads the country. The obvious rhetorical
question is: how can it be that this state at the same time has lost its AAA
credit rating?
Mr B.S. Wyatt :
Lack of political will to implement the fiscal action plan.
Mr C.J. BARNETT :
No. Although it is a rhetorical question, it is a searching question, because
the state leads on every economic performance indicator, yet we have had a
downgrade from the highest to the second-highest rating.
Several members interjected.
The
SPEAKER : Member for Victoria Park, I call you to order for the second time.
Member for Bassendean, I call you to order for the first time.
Mr C.J. BARNETT :
Without doubt the highest-performing state by a long margin in Australia, it is
somewhat paradoxical—ironic, if you like—that this state has
seen a credit downgrade. Standard and Poor's media release made it
clear why that occurred, and I said it yesterday: the number one factor is the
decline in GST. That is the number one underlying factor. No other state
endures what we do.
Mr
B.S. Wyatt interjected.
The
SPEAKER : I call the member for Victoria Park to order for the third time.
Mr
C.J. BARNETT : The number two factor is, as the Treasurer has just said, a
rapidly growing population. There were around 80 000 people last year from
interstate and overseas—well over 1 000 a week coming here—immediately
and properly accessing health funded by WA, and accessing education and all the
other services funded by the Western Australian government. The third factor,
as a result of the fall in the GST, is that we have become increasingly reliant
on mining royalties, which are inherently unstable. If someone is providing an
assessment for financial institutions that might lend money to this state via
Treasury bonds and advising them on what is the risk of lending to Western
Australia, they would advise them that there are some risks. They would say, ''Their
GST is falling, they have a rapidly growing population and therefore rapid
expenditure demands, and they are becoming increasingly reliant on a very
unstable source of revenue.''
Mr
P.B. Watson : And they have got you as a Premier.
The
SPEAKER : Member for Albany, I call you to order for the second time.
Mr
C.J. BARNETT : Such an agency would say that there are, without doubt, risk
factors there. That is what Standard and Poor's does; that is its
function. It made a comment about political will—that is an opinion, it
is subjective.
Dr
A.D. Buti interjected.
Mr
C.J. BARNETT : The opposition may laugh and think that, but that is not the
function of a credit rating agency. It is not. That is a value judgement.
Several members interjected.
Mr
C.J. BARNETT : That is a value judgement. It can make it, but that is not
what the markets look at.
Mr
D.J. Kelly interjected.
The
SPEAKER : Member for Bassendean, I call you to order for the second time.
Will you let the Premier finish.
Mr
C.J. BARNETT : The Labor Party carries on about how wonderful it was when it
was in government and how we have this record revenue growth and the like. I
have the facts in this table, and I will present it to the Leader of the
Opposition. Average growth of revenue during the time of the Labor government
was 9.7 per cent, and during the Liberal–National years, 6.5 per cent.
Mr
B.S. Wyatt : Healthy.
Mr
C.J. BARNETT : Healthy, but not as high as the Labor government's
revenue growth, so get the facts right.
Tabling of Paper
Mrs M.H. ROBERTS : I ask that the
Premier table the document so we can see whether he is misleading the house.
Mr C.J. BARNETT : Just ask me
nicely and you can have it. There you go.
[See paper 801.]
Questions without Notice Resumed
Mr C.J. BARNETT : We will make
the corrective measures and they will be wide ranging, deep and maybe a little
controversial in some areas, but the interesting question is: will the
opposition be up for it?
Several members interjected.
Suspension of Member
The SPEAKER : Member for Victoria
Park, a member whose conduct has made it necessary for the Speaker to formally
call the member to order more than three times during the course of one sitting
for a significant breach of the rules may, by order at the discretion of the
Speaker, be suspended from the service of the Assembly until the adjournment of
that sitting. Will you please leave the chamber.
[The member for Victoria Park left
the chamber.]
Explore WA Government Data
Search the full archive in the free dashboard, or query programmatically via API.
Explore more
Government Gazette
Appointments, regulatory notices, planning changes.
Hansard
Debates, questions, speeches and sentiment.
Tabled Papers
Reports and documents tabled in Parliament.
Committees
Committee profiles and recent reports.
Regulations
Subsidiary legislation with filters and summaries.
Bills
Proposed laws and parliamentary progress.
Acts
Current WA legislation and summaries.
Explanatory Memoranda
Bills with EMs (text/PDF) available.
Members
MP profiles, party breakdown and rankings.
Pollie Rankings
Data-driven rankings across 19 categories.
Amendment Chains
Track how schemes and regulations evolve over time.