❓ Mr. Mubarakai questions the Treasurer on the state's finances five years prior, contrasting the current government's strategy with the previous Liberal-National government's approach, particularly regarding the loss of the AAA credit rating. The Treasurer responds by criticizing the previous government's financial management and highlighting improvements under the current government.
AnsweredQoN 669Legislative Assembly
QuestionView source ↗
STATE FINANCES
669. Mr Y. MUBARAKAI to the Treasurer:
I refer to the McGowan Labor
government's commitment to responsible financial management. Can the
Treasurer remind the house what happened to the state's finances on
this day five years ago and advise the house how this government's
strategy to restore confidence in the state's finances compares with
the reckless approach taken by the previous Liberal–National government
five years ago?
669. Mr Y. MUBARAKAI to the Treasurer:
I refer to the McGowan Labor
government's commitment to responsible financial management. Can the
Treasurer remind the house what happened to the state's finances on
this day five years ago and advise the house how this government's
strategy to restore confidence in the state's finances compares with
the reckless approach taken by the previous Liberal–National government
five years ago?
AnswerView source ↗
I thank the member for Jandakot for
that very good question. Five years ago, on this very day, in one of the
proudest achievements of the former Liberal–National government, we lost
our AAA credit rating. In fact, perhaps one of the longest lasting legacies of
the former Liberal–National government was the downgrade from AAA.
Mr D.C. Nalder interjected.
Mr B.S. WYATT : Sorry, I thought there was an
interjection I was looking forward to taking.
Happy fifth anniversary to the
member for Riverton on what is without doubt one of the standout achievements
of his time in office. During the time afterwards I recall the member for
Riverton, the Leader of the Opposition, and a range of different ministers, who
now find themselves on the shadow frontbench, saying that no-one could have
foreseen what was going to happen. That was despite the fact that everybody was
warning the then government around its spending proclivities and the levels of
net debt—I remind all members that net debt at the time of the
downgrade was $15 billion. If only they had done what they said they were going
to do with that downgrade. I want to quote the then member for Cottesloe, the
former Premier, when the downgrade came. He said —
You
can expect there will have to be further belt tightening across all areas of
government. There will be pressure across the WA community and I regret that �
debt is real money and has to be repaid and serviced.
Two years prior to that—actually,
12 months prior to that—the then leader of that government said that
debt never had to be repaid. He changed his mind and what happened? Two and a half
years later, on 8 February 2016, we got another downgrade because of that firm
behaviour of the former government to control its own spending. Now that the
grown-ups are finally in charge, what is the latest from the credit rating
agencies? On 28 August, Moody's stated that it acknowledged Western Australia's
stated commitment to limiting spending within targeted ranges, as well as its
recent achievements in lowering the rate of expenditure growth. The reason is
that on this side of the house we understand that debt is real money, it has to
be repaid and governments cannot simply run operating deficits as large as
members opposite left the people of Western Australia upon their electoral
defeat. We are seeing now that strong fiscal management blossoms into other
areas, which is why we are seeing confidence return to the Western Australian
economy, and business investment, for the first time since 2013, starting to
grow again. Both consumer and business confidence, compared with the dying days
of the former government, when it was at the level of economic Armageddon, is
now growing. Despite the fact that in the last year of the former government we
had our first recession on record, we are seeing economic growth. At every
turn, things are getting better. Next week, with the Annual Report on State
Finances for 2017–18, members will see more of that effort now
providing very well earnt rewards to the people of Western Australia. I say to
the Liberal and National Parties, ''Happy anniversary on your AAA credit
rating downgrade!'' It is something that I suspect will be part of their
legacy for a long time to come.
that very good question. Five years ago, on this very day, in one of the
proudest achievements of the former Liberal–National government, we lost
our AAA credit rating. In fact, perhaps one of the longest lasting legacies of
the former Liberal–National government was the downgrade from AAA.
Mr D.C. Nalder interjected.
Mr B.S. WYATT : Sorry, I thought there was an
interjection I was looking forward to taking.
Happy fifth anniversary to the
member for Riverton on what is without doubt one of the standout achievements
of his time in office. During the time afterwards I recall the member for
Riverton, the Leader of the Opposition, and a range of different ministers, who
now find themselves on the shadow frontbench, saying that no-one could have
foreseen what was going to happen. That was despite the fact that everybody was
warning the then government around its spending proclivities and the levels of
net debt—I remind all members that net debt at the time of the
downgrade was $15 billion. If only they had done what they said they were going
to do with that downgrade. I want to quote the then member for Cottesloe, the
former Premier, when the downgrade came. He said —
You
can expect there will have to be further belt tightening across all areas of
government. There will be pressure across the WA community and I regret that �
debt is real money and has to be repaid and serviced.
Two years prior to that—actually,
12 months prior to that—the then leader of that government said that
debt never had to be repaid. He changed his mind and what happened? Two and a half
years later, on 8 February 2016, we got another downgrade because of that firm
behaviour of the former government to control its own spending. Now that the
grown-ups are finally in charge, what is the latest from the credit rating
agencies? On 28 August, Moody's stated that it acknowledged Western Australia's
stated commitment to limiting spending within targeted ranges, as well as its
recent achievements in lowering the rate of expenditure growth. The reason is
that on this side of the house we understand that debt is real money, it has to
be repaid and governments cannot simply run operating deficits as large as
members opposite left the people of Western Australia upon their electoral
defeat. We are seeing now that strong fiscal management blossoms into other
areas, which is why we are seeing confidence return to the Western Australian
economy, and business investment, for the first time since 2013, starting to
grow again. Both consumer and business confidence, compared with the dying days
of the former government, when it was at the level of economic Armageddon, is
now growing. Despite the fact that in the last year of the former government we
had our first recession on record, we are seeing economic growth. At every
turn, things are getting better. Next week, with the Annual Report on State
Finances for 2017–18, members will see more of that effort now
providing very well earnt rewards to the people of Western Australia. I say to
the Liberal and National Parties, ''Happy anniversary on your AAA credit
rating downgrade!'' It is something that I suspect will be part of their
legacy for a long time to come.
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