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Newly appointed NSW Treasurer Eric Roozendaal has admitted in Question Time today that his government is responsible for the State’s credit rating downgrade, said Shadow Minister for Finance Mike Baird.
“Eric Roozendaal has today confirmed what we all know – the NSW Government is to blame for putting the State’s AAA credit rating under threat,” Mr Baird said.
“The Treasurer told Parliament during Question Time that the reason the State’s AAA credit rating is in jeopardy is due to the ‘net financial liabilities of the State’*.
“Forget blaming the global economic position, forget trying to blame the Opposition, the Treasurer has admitted the debt accumulated after years under Labor has caused the State’s credit rating downgrade.
“Over the past four years, state debt in NSW has increased from $14 billion to $42 billion over the forward estimates. This is their management, no one else’s.
“While debt has rocketed, the NSW Government has reaped record revenues, with windfall taxpayer revenues totalling $17.5 billion since Labor was elected.
“It is fair for the NSW taxpayers to ask, where has the money gone? When you have no financial discipline and borrow heavily then you are exposed in difficult economic times.
“The NSW Government’s expenses have climbed by 6.5 per cent since 2004 while its revenue has increased 5.4 per cent**. That means the State’s economy has gone backwards by about $550 million each year.
“Rating agencies do not change ratings without many factors leading to that change,” Mr Baird said.
“For a long period these agencies would have been aware that the NSW Government’s expense control, together with its increasing debt, was under siege.
“The Premier needs now to confirm what his Treasurer has said and that is the credit downgrade is entirely their fault.”
MEDIA: Lisa Harrington - 0406 726 880
* Question Time, Legislative Council, 24 September 2008
** Credit ratings agency, Moody’s
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