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Standard & Poor's lowers Australia's credit outlook from stable to negative – politics live
Scott Morrison uses S&P downgrade to push crossbench to cooperate – politics live
(35 minutes later)
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Here is a snippet from the S&P statement:
Chris Bowen: Today is a sombre day for the Australian economy
2.57am BST
There is a whole lot more of Scott Morrison which I will bring you in a minute but Chris Bowen is on now.
02:57
Today is a sombre day for the Australian economy. Of course, Australia’s AAA credit rating is not being downgraded today but there is a clear indication from Standard and Poor’s that they are deeply concerned about the fiscal situation. And it has made the likelihood of a downgrade increase. Of course, during the recent election campaign, on behalf of the Labor Party, I warned the AAA credit rating was under real pressure. I said that no matter who was receiving the incoming treasurer’s briefing, it would contain the same information, that action was needed to deal with the AAA credit rating.
Standard and Poor's moves Australia's credit outlook from stable to negative
3.32am BST
The ABC is reporting credit ratings agency Standard & Poor’s has lowered Australia’s credit outlook from stable to negative on its triple A credit rating “as the political uncertainty extends”.
03:32
So the key point here is it is not a lower credit rating but it is a warning that the credit rating is on watch.
Wouldn’t fiscal consolidation, Treasurer, though, be helped if you would embrace tax reform and look to boost the revenue outlook highlighted by S&P with measures to broaden the base of GST or increase the rate in other tax reform measures to increase the revenue?
Morrison:
The budget actually had a number of those and particularly in relation to superannuation which, again, was clearly not a measure we put out there because we thought it would be popular. We put it out there because we thought it was necessary.
On the GST, he says the Coalition looked at it and the numbers didn’t add up.
3.29am BST
03:29
What prospect is there for budget repair given you will have to talk straight with the cross-benchers to get bills through parliament?
Morrison:
S&P are saying that they’re concerned about that, clearly. They’re concerned that the outcome of the election - not the budget, not the policies in the budget or the actions of the government - but the outcome of the election makes them concerned that the pace of fiscal consolidation may be post-poned and that’s why I say, as an invitation more than anything else to the parliament as a whole, is this is something we have to work on together.
(I’ll do a factcheck on this claim.)
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03:27
Great kid.
Morrison note to parliament: credit agencies are watching
2.27am BST
Scott Morrison:
02:27
The parliament will return once a government is formed, budgets will be taken through the parliament and there will be keen eyes watching in rating agencies to see how the parliament responds to ensure that we can maintain the trajectory that the government has set out so that is the consequence of today.
If they speak, Xenophon says will talk to Katter about the following: manufacturing jobs, boosting the agricultural sector, “how do we ensure that the regions develop, how to ensure that manufacturing in this country is not hollowed out”.
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02:24
Q to Morrison: Is this your banana republic moment?
Nick Xenophon says his focus is the steel industry.
No, I don’t think it’s a time for those sort of alarmist type comments.
Q: Do you believe the budget will have to be radically overhauled given the make-up of the Senate and many of these measures may not get through?
3.24am BST
I think the inevitable consequence of the election result – and this affects both sides of politics – is to to move the country to the political centre. I think that is a good thing.
03:24
Scott Morrison: this is why we have to live within our means
Scott Morrison says the S&P statement provided “important context” for an incoming government, setting out the reality of fiscal and global economic environment.
This is why we have been saying we need to live within our means, says Morrison. It is an important reminder.
Fiscal consolidation cannot be postponed or slowed...
What they’re saying here today so what this means is that our credit rating remains at AAA. That is unchanged as of today...I think it is important then that the parliament and the government, which ever should be formed, bears this keenly in mind as they work through these issues over the weeks and months ahead.
3.15am BST
03:15
Ben Raue
3.12am BST
03:12
Scott Morrison is coming up shortly. So is Chris Bowen, in a different room obviously.
On an entirely separate matter, our election analyst Ben Raue has called Chisholm for the Liberal party. That means our count is Coalition 71, Labor 66, with five independents/minors. The rest in doubt.
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John Howard is speaking on the Chilcot report at 1pm.
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Nick Xenophon has said he is keeping in touch with other crossbenchers including Bob Katter and Jacqui Lambie.
Here is a snippet from the S&P statement:
He wants a “clear national interest test when it comes to our foreign investment”.
He makes the point that any deal he makes with Malcolm Turnbull would be in consultation with Rebekha Sharkie:
Unlike some other micro-parties we have seen in the parliament, we do things differently. We have a strong consultative approach.
(This goes to previous criticism of Xenophon caucusing “in the mirror” while shaving. This is the new Nick.)
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02:06
Andrew Wilkie: Howard, Blair and Bush should be in an international court
Andrew Wilkie on the 2003 Iraq invasion:
We know this now more clearly than ever that the Howard government took us to war on a lie. Every time it said that Iraq had a massive arsenal of weapons of mass destruction and it was cooperating with al-Qaida it knew that that was not the case, that it was either clearly not the case or at best for them it was ambiguous. They took us to war on a lie. No wonder John Howard and Tony Blair and George W. Bush do stand accused of war crimes. I’d like them to see an international court. I would like them to defend their position and try to prove their innocence because all of those people who do accuse them of war crimes, I think make a pretty compelling case.
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02:02
Andrew Wilkie: no deal because more important to be a man of my word
Wilkie has been asked whether he will do a deal – notwithstanding his election promise to do no deals with a minority government.
It seems we can’t avoid the election so we might as well go there. I have made it absolutely clear and I’m steadfast in this that I will not enter into any formal deal with any party to allow them to form government.
I went to the 2013 election with that commitment. I went to the 2016 – this year’s election – with that commitment. It featured prominently in a lot of my advertising material, campaign material. And, as tempting as it is, as beneficial as it might be for me to enter into some sort of deal, more important, much more important, is that I be a man of my word.
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Wilkie: the decisions to wage war are not made entirely on intelligence advice
Andrew Wilkie did not talk about an Iraq invasion inquiry with Malcolm Turnbull in his recent chat but he made the point that the prime minister already knows his views.
I will make a point in the parliament of highlighting the Chilcot inquiry and its findings and try to use that as something to leverage off, to bring about an Australian inquiry. There have been two Australian inquiries. But of course the terms of reference of both of those inquiries were very narrow, they were basically prepared by the Howard government. And they both had some success in shifting the blame to the intelligence agencies. And, yes, there were problems withthe intelligence material that was provided to government. But decisions to wage war are not made entirely on intelligence advice. They’re based on the advice of a whole lot of people and a whole lot of stake holders. So we need a broader inquiry.
1.54am BST
01:54
Malcolm Turnbull is currently meeting with Queensland independent Bob Katter.
