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Labor blames Coalition strategy for post-election credit rating warning | Labor blames Coalition strategy for post-election credit rating warning |
(about 2 months later) | |
Labor has blamed the Coalition for the instability of a possible hung parliament after ratings agencies raised concerns about Australia’s AAA credit rating. | Labor has blamed the Coalition for the instability of a possible hung parliament after ratings agencies raised concerns about Australia’s AAA credit rating. |
On Monday two credit agencies warned political gridlock and the inability to pass budget savings in the medium term could result in increased debt and lower Australia’s rating. | On Monday two credit agencies warned political gridlock and the inability to pass budget savings in the medium term could result in increased debt and lower Australia’s rating. |
But the attorney general, George Brandis, has moved to allay concerns, arguing the Coalition could still pass legislation because minority government was “not unusual” and not having a majority in the Senate was “situation normal”. | But the attorney general, George Brandis, has moved to allay concerns, arguing the Coalition could still pass legislation because minority government was “not unusual” and not having a majority in the Senate was “situation normal”. |
On Monday, the credit rating agency Fitch said Australia’s levels of public debt were still consistent with a AAA rating, but warned political instability after the inconclusive federal election could risk the rating in time. | On Monday, the credit rating agency Fitch said Australia’s levels of public debt were still consistent with a AAA rating, but warned political instability after the inconclusive federal election could risk the rating in time. |
“Fitch views Australia’s overall credit profile as still consistent with a triple-A rating, but political gridlock that leads to a sustained widening of the deficit would put downward pressure on the rating, particularly if the economic environment deteriorates,” it said. | “Fitch views Australia’s overall credit profile as still consistent with a triple-A rating, but political gridlock that leads to a sustained widening of the deficit would put downward pressure on the rating, particularly if the economic environment deteriorates,” it said. |
So far neither the Coalition nor Labor has secured a majority, although the Coalition might do so if absentee and postal votes swing the majority of the 10 still-undecided contests in its favour. | So far neither the Coalition nor Labor has secured a majority, although the Coalition might do so if absentee and postal votes swing the majority of the 10 still-undecided contests in its favour. |
On Monday, the rating agency Moody’s said the short-lived uncertainty would have “limited” implications for Australia but the outcome could be worrying if it “changed broad policy priorities and the effectiveness of their implementation”. | On Monday, the rating agency Moody’s said the short-lived uncertainty would have “limited” implications for Australia but the outcome could be worrying if it “changed broad policy priorities and the effectiveness of their implementation”. |
Speaking on the ABC’s AM radio program on Tuesday the shadow treasurer, Chris Bowen, renewed Labor’s attack on the Coalition’s $50bn tax plan. He said it would “put the AAA credit rating under further pressure” and Labor had argued as much before the election. | Speaking on the ABC’s AM radio program on Tuesday the shadow treasurer, Chris Bowen, renewed Labor’s attack on the Coalition’s $50bn tax plan. He said it would “put the AAA credit rating under further pressure” and Labor had argued as much before the election. |
“We had a plan which we took to the election … for budget repair over the medium term which saw our budget surpluses grow strongly over the decade, return to balance at the same time as the government. | “We had a plan which we took to the election … for budget repair over the medium term which saw our budget surpluses grow strongly over the decade, return to balance at the same time as the government. |
“We did that with our AAA credit rating in mind. Obviously if we were to form government, we’d interact with the rating agencies about our plans.” | “We did that with our AAA credit rating in mind. Obviously if we were to form government, we’d interact with the rating agencies about our plans.” |
Asked about the difficulty of passing measures to repair the budget through the Senate, Bowen said it “underlined the fallacy of Malcolm Turnbull’s strategy” to recall parliament, and rush to a two-month election immediately after the budget without a “coherent agenda”. | Asked about the difficulty of passing measures to repair the budget through the Senate, Bowen said it “underlined the fallacy of Malcolm Turnbull’s strategy” to recall parliament, and rush to a two-month election immediately after the budget without a “coherent agenda”. |
“Part of his campaign was that only the Liberal party could provide stable majority government – I’m not sure how that’s working out for him.” | “Part of his campaign was that only the Liberal party could provide stable majority government – I’m not sure how that’s working out for him.” |
Bowen said Turnbull’s leadership was “effectively over” and he had “lost moral authority in the nation and all authority in the Liberal party”. | Bowen said Turnbull’s leadership was “effectively over” and he had “lost moral authority in the nation and all authority in the Liberal party”. |
He said Labor would continue to act in the national interest in assessing savings proposed by the Coalition but would continue to push its own platform. | He said Labor would continue to act in the national interest in assessing savings proposed by the Coalition but would continue to push its own platform. |
Brandis called for calm and to “draw breath and wait” until the count finished. | Brandis called for calm and to “draw breath and wait” until the count finished. |
“The fact is we will know within a matter of days if a majority of seats has been won by government or not. | “The fact is we will know within a matter of days if a majority of seats has been won by government or not. |
“In my own view it is likely that due to inbuilt advantage on postal and absentee votes, that most of the remaining marginal seats will be won by the government.” | “In my own view it is likely that due to inbuilt advantage on postal and absentee votes, that most of the remaining marginal seats will be won by the government.” |
Brandis said “we’re not at the point yet of a hung parliament” but argued that there was “nothing unusual” about minority government. | Brandis said “we’re not at the point yet of a hung parliament” but argued that there was “nothing unusual” about minority government. |
Brandis said it was still possible to pass Coalition legislation through a Senate despite the diverse views of new senators including those from the Nick Xenophon Team, Pauline Hanson and Derryn Hinch. | Brandis said it was still possible to pass Coalition legislation through a Senate despite the diverse views of new senators including those from the Nick Xenophon Team, Pauline Hanson and Derryn Hinch. |
“It’s what I’ve been doing ever since I’ve been Senate leader … The idea the government needs to negotiate its legislation through the crossbench of the Senate is commonplace. | “It’s what I’ve been doing ever since I’ve been Senate leader … The idea the government needs to negotiate its legislation through the crossbench of the Senate is commonplace. |
“In all the years I’ve been in parliament there was only three years where the government, of either side, did have a majority in the Senate, so [having no Senate majority] is situation normal.” | “In all the years I’ve been in parliament there was only three years where the government, of either side, did have a majority in the Senate, so [having no Senate majority] is situation normal.” |
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