Mrs Roberts questions the Treasurer about the impact of the downgraded credit rating on the WA Future Fund and its underlying analysis. The Treasurer acknowledges the impact on borrowing costs but defends the Future Fund as a broader public policy tool.

AnsweredQoN 539Legislative Assembly
Asked
19 September 2013
Portfolio
Treasurer

QuestionView source ↗

STATE
FINANCES — AAA CREDIT RATING
539. Mrs M.H. ROBERTS to the Treasurer:
I have a
supplementary question. Why will the Treasurer not admit to this house that the
whole basis of his analysis for the Western Australian Future Fund is now
flawed and needs to be revised, and advise the house that the factors on which
the future fund was set up no longer exist, given our downgraded credit rating,
or is the Treasurer attempting to suggest that somehow it has made no
difference?

AnswerView source ↗

I am not attempting to suggest that somehow it made no
difference whatsoever. In fact, everybody acknowledges that when a government's
credit rating changes, or when there is a prospect of a change in the credit
rating, it has an impact on the price paid for the money borrowed. That is as
plain as the nose on your face. That was priced in by the ratings agencies last
October–November when we went on to negative watch.
My response to the member for Midland's real
principal question is this: she should broaden her horizon because the issues
around, and the benefits of, the future fund are not simply restricted to those
around a differential in interest rates. The future fund is a much broader
public policy tool—a bold decision by this government to set aside
money for future generations.
Several members interjected.
Mr T.R. BUSWELL :
We know opposition members do not like it. When they get back into government,
I am sure one of their policies will be to repeal it; but they will never be
able to because I suspect on voting trends in this state, thankfully, the
opposition will never get control of the upper house again!

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