|
Wed Feb 25 - NSW’s AAA credit rating is at risk because of the incompetence and mismanagement of the Labor Government, said Shadow Treasurer Mike Baird MP.
“The admission from Premier Rees that the budget is likely to go into further deficit, will no doubt have the credit agencies looking at downgrading the state.(1)
“Standard & Poor’s has given a clear warning that other states are likely to follow Queensland in losing their AAA rating.
“The financial mismanagement in NSW, where we have a Premier who keeps changing positions on his economic strategies is likely to cost NSW its AAA status.
“This is the Premier who said we needed a tough mini-budget when every other government leader was doing the opposite to meet the global financial crisis.
“Unfortunately it’s the people of NSW who have to pay for his error.
“A credit rating fall will result in additional costs to taxpayers in funding any major infrastructure projects and indeed may now make future funding impossible.
“It’s important to note that Standard & Poors put the state’s credit rating on watch before the impact of the global financial crisis was felt in NSW. So any attempt to by Labor to blame the economic climate will be another attempt to cover up the real problem – their lack of economic skills and mismanagement.
“An additional and significant factor in determining any downgrade is the Labor Government’s exposure to its unfunded superannuation liabilities.
“The Labor government has used unfunded superannuation as a budget balancing item.
“This has minimised the need to invest more cash in the short term, but in the longer term NSW is facing a major liability which has now come back to haunt them.
“Not only could this cost us our credit rating but may put at risk future infrastructure”, said Mr Baird.
(1) Australian Financial Review, p.1, 23 Feb 09
MEDIA CONTACT: Wendy Black 0418 532 534
|
