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The [global financial meltdown] “is a once in a century event” – Alan Greenspan*
While prominent and highly esteemed market experts recognise the significance of the global financial meltdown, the NSW Labor Government is doing nothing to protect the State’s finances, Shadow Minister for Finance Mike Baird said today.
“Globally, well-respected commentator Alan Greenspan is describing the current financial crisis as a ‘once in a century event’*, however the NSW Premier is keeping his head firmly entrenched in the sand,” Mr Baird said.
“The Premier needs to find the ‘time and the inclination’ to explain the impact of the global credit crunch on NSW finances.
“Today the Queensland Premier confirmed that Queensland has a $376 million exposure to the insurance giant AIG and a $25 million exposure to Lehman Brothers. What is the impact of these collapses on the NSW public sector?
“The NSW Government must act immediately to assist Councils that have followed the State Government’s guidelines and suffered huge investment losses.
“Over a year ago the NSW Liberal/Nationals identified holes in the Government’s investment code and suggested a panel of experts be appointed to assist Councillors manage their million-dollar investment portfolios**.
“Instead of shirking responsibility, the Premier needs to immediately appoint a panel of experts from the NSW Treasury Corporation that Councils can call on for strategic investment advice.
“Councils such as Parkes, Manly, Wingecarribee, Woollahra, Byron and Newcastle followed the NSW Government’s Ministerial Investment Code and are watching millions in ratepayers’ funds go down the drain.
“It is unreasonable to expect Councillors without financial expertise to manage huge investment portfolios without adequate guidance,” Mr Baird said.
MEDIA: Lisa Harrington - 0406 726 880
** Mike Baird media release ‘Government Investment Code exposes ratepayers’ 21-8-07
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