❓ Opposition Leader McGowan questions Premier Barnett about the state's downgraded credit rating and financial management. Premier Barnett dismisses the questions as opinion and defends the state's economic strength, blaming GST distribution and commodity price volatility.
AnsweredQoN 21Legislative Assembly
QuestionView source ↗
STATE FINANCES — CREDIT RATING
21. Mr M. McGOWAN to the Premier:
I refer to the latest
evidence of the Liberal–National government trashing Western Australia's
financial future, with Moody's Investor Service once again downgrading
the state's credit rating to AA2.
(1) Is the Premier proud that, according to
Moody's, WA's financial management report card has gone from
the best in the country to the worst?
(2) Has not his constant disregard for the
forward estimates and bad financial management resulted in Western Australia's
economy now being ranked below that of Tasmania and equal to that of Bermuda?
21. Mr M. McGOWAN to the Premier:
I refer to the latest
evidence of the Liberal–National government trashing Western Australia's
financial future, with Moody's Investor Service once again downgrading
the state's credit rating to AA2.
(1) Is the Premier proud that, according to
Moody's, WA's financial management report card has gone from
the best in the country to the worst?
(2) Has not his constant disregard for the
forward estimates and bad financial management resulted in Western Australia's
economy now being ranked below that of Tasmania and equal to that of Bermuda?
AnswerView source ↗
(1)–(2) That
is not a question; it was a point of view.
Mr M. McGowan : It was a question.
Mr C.J. BARNETT : No, it was not.
The SPEAKER : Members!
Mr C.J. BARNETT : If people look at the wording of it, they
will see that it was not a question, but I am happy to comment.
Mrs M.H. Roberts interjected.
Mr C.J. BARNETT : It was not. I do not need an explanation; I
know the Leader of the Opposition was struggling to make a comment. Of course I
am not pleased about the second downgrade in our credit rating, but I make the
observation, Leader of the Opposition, that fundamentally, the Western
Australian economy is the strongest of any state in Australia. I have been
critical of credit rating agencies because the ones the Leader of the
Opposition puts so much reliance on are the same ones that gave top credit ratings
to Freddie Mac and Fanny Mae in America—the junk bonds. They gave them
the top credit ratings possible and they were junk bonds, so I think we have to
be a little bit careful about it. Everyone knows, and I hope members opposite
do, that we are an export and commodity driven economy. We are by nature
volatile and as I have said before, even though we have gone through a super
cycle and are now probably at the bottom of the cycle —
An opposition member
interjected.
Mr C.J. BARNETT : Yes, we will wait and see. Western Australia
has been through a number of cycles. They are always more extreme here because
we are export dominated and tied to Asia and commodity prices. The swings are
bigger here. Western Australian people in industry inherently understand that.
What we cannot deal with is that plus the GST situation this state faces, which
no other state in Australian history has ever faced. That is the problem. We
can handle one of the issues, but we cannot handle two. The Leader of the
Opposition talks about crashing. There is only one thing crashing in Western
Australia and that is the Labor Party when its only three federal members all
quit within a matter of weeks. That is crashing.
is not a question; it was a point of view.
Mr M. McGowan : It was a question.
Mr C.J. BARNETT : No, it was not.
The SPEAKER : Members!
Mr C.J. BARNETT : If people look at the wording of it, they
will see that it was not a question, but I am happy to comment.
Mrs M.H. Roberts interjected.
Mr C.J. BARNETT : It was not. I do not need an explanation; I
know the Leader of the Opposition was struggling to make a comment. Of course I
am not pleased about the second downgrade in our credit rating, but I make the
observation, Leader of the Opposition, that fundamentally, the Western
Australian economy is the strongest of any state in Australia. I have been
critical of credit rating agencies because the ones the Leader of the
Opposition puts so much reliance on are the same ones that gave top credit ratings
to Freddie Mac and Fanny Mae in America—the junk bonds. They gave them
the top credit ratings possible and they were junk bonds, so I think we have to
be a little bit careful about it. Everyone knows, and I hope members opposite
do, that we are an export and commodity driven economy. We are by nature
volatile and as I have said before, even though we have gone through a super
cycle and are now probably at the bottom of the cycle —
An opposition member
interjected.
Mr C.J. BARNETT : Yes, we will wait and see. Western Australia
has been through a number of cycles. They are always more extreme here because
we are export dominated and tied to Asia and commodity prices. The swings are
bigger here. Western Australian people in industry inherently understand that.
What we cannot deal with is that plus the GST situation this state faces, which
no other state in Australian history has ever faced. That is the problem. We
can handle one of the issues, but we cannot handle two. The Leader of the
Opposition talks about crashing. There is only one thing crashing in Western
Australia and that is the Labor Party when its only three federal members all
quit within a matter of weeks. That is crashing.
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