❓ Treasurer Saffioti defends the Cook Labor government's economic management, highlighting the AAA credit rating and contrasting it with the previous Liberal-National government's debt. She emphasizes economic diversification and strong financial performance.
AnsweredQoN 474Legislative Assembly
QuestionView source ↗
State economy—Government performance
474. Mr Daniel Pastorelli to the Treasurer:
I refer the
Treasurer to the Cook Labor government's commitment to diversifying the Western
Australian economy to ensure it remains the strongest in the nation.
(1) Can the Treasurer outline to the house how the
government is delivering for Western Australians by responsibly managing the
state's finances?
(2) Can the Treasurer advise the house of any
threats to our economic performance?
474. Mr Daniel Pastorelli to the Treasurer:
I refer the
Treasurer to the Cook Labor government's commitment to diversifying the Western
Australian economy to ensure it remains the strongest in the nation.
(1) Can the Treasurer outline to the house how the
government is delivering for Western Australians by responsibly managing the
state's finances?
(2) Can the Treasurer advise the house of any
threats to our economic performance?
AnswerView source ↗
(1)–(2) I thank the member for the
question. Of course, as just outlined by the Premier, a key goal of this
government is to continue to grow and diversify the state's economy, and that
is why projects like AUKUS in particular are so important to the state's
future. The unemployment rate that came out today goes back to WA's performance,
with an unemployment rate of 3.8% for the annual average terms, which is the
lowest of all states in Australia. Last week, we also got some great news from
the rating agency Standard & Poor's. It is always a hard challenge meeting
the rating agencies' criteria. As I said, it is like the principal marking your
work. Standard & Poor's has again affirmed our AAA credit rating. A note
from that rating agency states:
Western Australia's budgetary
performance will remain superior to that of most domestic and global peers. We
expect the state's operating surplus to average about 7% of operating revenues
over the next three years.
As I said, regaining the AAA
credit rating took a long time and a lot of work from this government over many
years. Over 2022–23, we regained the AAA credit ratings from both Moody's
and Standard & Poor's. We remain the only state in the nation to have a AAA
credit rating from both rating agencies. It is tough work managing the
incredible demands across the nation, the state and our economy and the
delivery of services and infrastructure while retaining that AAA credit rating.
I note how that contrasts to what happened under the previous Liberal–National
government. Net debt climbed from $3.6 billion to a projected $44 billion. That
is an incredible increase in the net debt. When the Liberal–National
government lost the AAA credit rating, the previous Premier, Colin Barnett,
said:
The most immediate and direct
way of reducing debt is to sell something, or sell several things. There will
be a program of asset sales and that will be introduced very quickly.
That just shows the chaotic
nature of its budget management. It then went out to try and sell Utah Point
and Fremantle Port and, of course—
Mr Shane Love interjected.
The Speaker: Leader of the National Party!
Several members
interjected.
The Speaker: Members!
Ms Rita Saffioti: They still take no responsibility
for what they did. There were two Expenditure Review Committee processes, one
from the National Party and one from the Liberal Party. The Liberal–National
government built in assumptions that were, frankly, very optimistic and some
would say completely ridiculous. Then it said, "Oh, well, we didn't deliver
on those assumptions with the iron ore forecast." It built in the US$115
forecast in its iron ore assumptions. The member's government did that. Again,
we have a strong economy and strong management of the state's finances.
Mr Shane Love interjected.
The Speaker: Leader of the National Party, if you want
to ask a question, you might get the opportunity.
Ms Rita Saffioti: Does the member accept that his
government increased net debt from $3.6 billion to $44 billion?
Several members
interjected.
The Speaker: Members!
Ms Rita Saffioti: The opposition still cannot accept
it. This is what is so amazing about this opposition. Even after eight years of
our government demonstrating exactly how bad it was, it still will not accept
it. The credit rating agencies ridiculed it. Everybody
ridiculed it. It still cannot accept that it increased net debt from $3.6 billion
to a projected $44 billion. It did that. Our net debt is still much lower
than what it would have delivered in 2020.
Mr Shane Love interjected.
The Speaker: Leader of the National Party!
Ms Rita Saffioti: It still does not accept it. In
fact, Standard & Poor's commented on our budget surpluses. The very
interesting thing about the opposition—I go through all its comments—and
the contribution from the member for Nedlands when he approached the middle of
this chamber to give his budget speech reply is that he claimed there is a myth
of a budget surplus. The member does not even believe there is a budget surplus.
I am glad that Standard & Poor's does not listen to the member for Nedlands
but in fact looks at our finances and what we deliver compared with what we
budget. Year upon year, we make sure that we have the best set of books in the
nation.
question. Of course, as just outlined by the Premier, a key goal of this
government is to continue to grow and diversify the state's economy, and that
is why projects like AUKUS in particular are so important to the state's
future. The unemployment rate that came out today goes back to WA's performance,
with an unemployment rate of 3.8% for the annual average terms, which is the
lowest of all states in Australia. Last week, we also got some great news from
the rating agency Standard & Poor's. It is always a hard challenge meeting
the rating agencies' criteria. As I said, it is like the principal marking your
work. Standard & Poor's has again affirmed our AAA credit rating. A note
from that rating agency states:
Western Australia's budgetary
performance will remain superior to that of most domestic and global peers. We
expect the state's operating surplus to average about 7% of operating revenues
over the next three years.
As I said, regaining the AAA
credit rating took a long time and a lot of work from this government over many
years. Over 2022–23, we regained the AAA credit ratings from both Moody's
and Standard & Poor's. We remain the only state in the nation to have a AAA
credit rating from both rating agencies. It is tough work managing the
incredible demands across the nation, the state and our economy and the
delivery of services and infrastructure while retaining that AAA credit rating.
I note how that contrasts to what happened under the previous Liberal–National
government. Net debt climbed from $3.6 billion to a projected $44 billion. That
is an incredible increase in the net debt. When the Liberal–National
government lost the AAA credit rating, the previous Premier, Colin Barnett,
said:
The most immediate and direct
way of reducing debt is to sell something, or sell several things. There will
be a program of asset sales and that will be introduced very quickly.
That just shows the chaotic
nature of its budget management. It then went out to try and sell Utah Point
and Fremantle Port and, of course—
Mr Shane Love interjected.
The Speaker: Leader of the National Party!
Several members
interjected.
The Speaker: Members!
Ms Rita Saffioti: They still take no responsibility
for what they did. There were two Expenditure Review Committee processes, one
from the National Party and one from the Liberal Party. The Liberal–National
government built in assumptions that were, frankly, very optimistic and some
would say completely ridiculous. Then it said, "Oh, well, we didn't deliver
on those assumptions with the iron ore forecast." It built in the US$115
forecast in its iron ore assumptions. The member's government did that. Again,
we have a strong economy and strong management of the state's finances.
Mr Shane Love interjected.
The Speaker: Leader of the National Party, if you want
to ask a question, you might get the opportunity.
Ms Rita Saffioti: Does the member accept that his
government increased net debt from $3.6 billion to $44 billion?
Several members
interjected.
The Speaker: Members!
Ms Rita Saffioti: The opposition still cannot accept
it. This is what is so amazing about this opposition. Even after eight years of
our government demonstrating exactly how bad it was, it still will not accept
it. The credit rating agencies ridiculed it. Everybody
ridiculed it. It still cannot accept that it increased net debt from $3.6 billion
to a projected $44 billion. It did that. Our net debt is still much lower
than what it would have delivered in 2020.
Mr Shane Love interjected.
The Speaker: Leader of the National Party!
Ms Rita Saffioti: It still does not accept it. In
fact, Standard & Poor's commented on our budget surpluses. The very
interesting thing about the opposition—I go through all its comments—and
the contribution from the member for Nedlands when he approached the middle of
this chamber to give his budget speech reply is that he claimed there is a myth
of a budget surplus. The member does not even believe there is a budget surplus.
I am glad that Standard & Poor's does not listen to the member for Nedlands
but in fact looks at our finances and what we deliver compared with what we
budget. Year upon year, we make sure that we have the best set of books in the
nation.
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