Yesterday’s announcement that the Queensland Budget will suffer a further $3 billion in revenue write-downs confirmed what I have been saying for a while now about Queensland’s under-performing economy. I am quoted in today’s Courier-Mail (pay-walled, sorry) noting that the news reinforces the need to be prudent in spending and to consider privatisation of government-owned businesses. The ratings agencies (Moody’s, S&P, etc) will take a dim view of our fiscal performance if we cannot control spending and show a credible path to a fiscal surplus. I am quoted this morning as follows:
Former Commonwealth Treasury official Gene Tunny said the revenue writedowns delay hopes of Queensland reclaiming a AAA credit rating and highlight the need to sell or lease state-owned assets.
“I think the rating agencies will take a very dim view of that,” he said.
“It just underlines the need for prudent spending and the consideration of asset sales.”
Gene, in case your interested cut and paste this link. It is yesterdays program where I interviewed Nick Behrend’s on the budget write downs.
Yes, I listened to it. It was a very good interview.