❓ The Treasurer updates the house on credit rating upgrades from Moody's and Standard & Poor's, attributing them to the government's financial management and budget repair efforts, positioning WA strongly for global economic uncertainty.
AnsweredQoN 802Legislative Assembly
QuestionView source ↗
STATE FINANCES
802. Mr D.R. MICHAEL to the Treasurer:
I refer to the McGowan Labor
government's commitment to strong financial management and repairing
the budget mess left by the previous Liberal–National government. Can
the Premier update the house on how the credit rating agencies have responded
to the hard work of this government to restore the state's finances and
outline how these sustained efforts have put WA in a strong position heading
into a period of global economic uncertainty?
802. Mr D.R. MICHAEL to the Treasurer:
I refer to the McGowan Labor
government's commitment to strong financial management and repairing
the budget mess left by the previous Liberal–National government. Can
the Premier update the house on how the credit rating agencies have responded
to the hard work of this government to restore the state's finances and
outline how these sustained efforts have put WA in a strong position heading
into a period of global economic uncertainty?
AnswerView source ↗
I thank the member for the question.
Yesterday
we saw Moody's hand down a credit rating upgrade for Western Australia.
This is on top of the credit rating upgrade provided by Standard and Poor's
back in June for the state's finances. When we came to office, of
course, the previous government had had multiple credit rating downgrades, the
state was in recession and there was a 6.5 per cent unemployment rate.
Obviously, we have turned all that around. In Moody's assessment
yesterday, it said —
''The State recorded excellent
revenue growth and improving revenue diversity through the successful
management of the pandemic combined with sustained spending discipline.''
Moody's acknowledged that we had put in the hard
yards to repair the state's finances, as we said we would before we
came to office. In its assessment, it said that it reflects Western Australia's
significant financial strengths, stemming from sustained fiscal discipline and
budget repair, which commenced in 2018, leaving the state well positioned for
the future. It went on to say that weakening global conditions are expected
next year. As I have said repeatedly, some parts of the world are already in
recession. This will mean that many governments will have difficulty meeting
their debt obligations, with interest rates increasing. By having Western Australia
in a strong financial position, we are better placed to ride out the storm that
is coming next year. That is what I continually say. That is the benefit of six
years of good management of the state's finances and the state's
economy.
Moody's
also went on to note—I think this is an important point as well—that
we have affordable housing compared with New South Wales and Victoria.
If people want to come somewhere that is affordable, with less expensive
mortgages, the place to move to is Western Australia.
Yesterday
we saw Moody's hand down a credit rating upgrade for Western Australia.
This is on top of the credit rating upgrade provided by Standard and Poor's
back in June for the state's finances. When we came to office, of
course, the previous government had had multiple credit rating downgrades, the
state was in recession and there was a 6.5 per cent unemployment rate.
Obviously, we have turned all that around. In Moody's assessment
yesterday, it said —
''The State recorded excellent
revenue growth and improving revenue diversity through the successful
management of the pandemic combined with sustained spending discipline.''
Moody's acknowledged that we had put in the hard
yards to repair the state's finances, as we said we would before we
came to office. In its assessment, it said that it reflects Western Australia's
significant financial strengths, stemming from sustained fiscal discipline and
budget repair, which commenced in 2018, leaving the state well positioned for
the future. It went on to say that weakening global conditions are expected
next year. As I have said repeatedly, some parts of the world are already in
recession. This will mean that many governments will have difficulty meeting
their debt obligations, with interest rates increasing. By having Western Australia
in a strong financial position, we are better placed to ride out the storm that
is coming next year. That is what I continually say. That is the benefit of six
years of good management of the state's finances and the state's
economy.
Moody's
also went on to note—I think this is an important point as well—that
we have affordable housing compared with New South Wales and Victoria.
If people want to come somewhere that is affordable, with less expensive
mortgages, the place to move to is Western Australia.
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