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    Coat of ArmsMedia Release
    Treasurer and Minister for Trade
    The Honourable Tim Nicholls

    Moody’s validates Government’s fiscal repair plan

    Treasurer and Minister for Trade
    The Honourable Tim Nicholls

    Thursday, August 16, 2012

    Moody’s validates Government’s fiscal repair plan

    A report released by ratings agency Moody’s has highlighted a negative outlook for the fiscal position of Australia’s states on the back of ever widening deficits, backing the position of the Newman Government.

    Queensland Treasurer Tim Nicholls said Moody’s urged the States to reduce expenditure in the face of less robust revenue growth.

    “This is consistent with the recommendations of the Independent Commission of Audit and has formed the basis of the Government’s plans for fiscal repair,” Mr Nicholls said.

    “The report shows that at 14.9 per cent per year Queensland has the largest deficits relative to revenue, more than twice the national average.

    Mr Nicholls said the report warns that any weakening in political resolve to restore sound fiscal management could result in “negative pressures on ratings”.

    “The Newman Government is committed to fixing the state of Queensland’s finances to ensure the Government can continue to invest in services and infrastructure for Queenslanders in the long term,” he said.

    “Moody’s has used information contained in the Commission of Audit’s Interim Report. This validates the independent report as an accurate representation of the state’s fiscal position.

    “This is why the Newman Government has committed to a $4 billion savings target over three years to stabilise debt and get the state’s finances back on track.”

    [ENDS] 16 August, 2012

    Media Contact: Treasurer’s Office – 3224 6900