S&P boss tells Bligh ‘Qld’s robust economy has few peers’ worldwide

New York - USA: Queensland’s economic performance is the envy of governments across the world, Deputy Premier and Treasurer Anna Bligh was told today by a world ratings leader.

Global Head of Standard & Poor's Corporate and Government Ratings, Paul Coughlin, told today’s meeting that: “Among state and regional governments around the globe it (Queensland) has few peers in terms of its commitment to funding current spending and pension obligations from current revenues, and strictly limiting debt usage."

In further praising the State’s financial management Mr Coughlin noted: "The State of Queensland has benefited from the far-sighted financial management of successive governments”.

“Standard & Poor's has released a number of studies over the past year or two in Europe and America highlighting a potential crisis in public finances caused by the growing burden of retirement benefits as the population ages.

"By comparison many state governments in the United States and Europe have substantial debt together with a heavy burden of unfunded or underfunded pension and health care obligations.

“Policy makers in Europe and America and elsewhere are only now beginning to confront the costs of an aging population, and that against the background of substantial debt and often structural budget deficits.

“Queensland, by contrast, has a legacy of financial discipline, the full funding of its pension obligations and a robust economy.

“This enables the State to approach the expansion of investment in infrastructure and health care facilities from a position of strength.

“No doubt other state governments around the world wish they shared the same legacy of financial prudence," Mr. Coughlin said.

Ms Bligh said that for the past eight years the Beattie Government has worked hard to ensure that the Queensland economy was in this envied position.

“We retain a best-possible Triple-A credit rating, today we’re being more-than-favourably compared with international economies and we continue to be a low tax state.

“This sits well with Queensland having for more than a decade economic growth greater than the national average,” she said.

“The Beattie Government’s acknowledged fiscal responsibility record means we are better placed to respond to issues like dealing with the worst drought in 100 years.

“Our rating and reactions like today’s means that when we go to the market seeking finance we get the best rates.

“Our envied rating means we get more bang for our buck. That means better outcomes for the likes of our schools and hospitals,” she said.

Ms Bligh is in New York meeting with financiers.

27 October 2006

Media contact: Deputy Premier’s Office Steve Keating 0408 720 081