Ratings agency reaffirms fiscal repair efforts

Ratings agency Standard & Poor’s has again endorsed the Newman Government’s economic plan for Queensland, by reaffirming Queensland’s AA+ credit rating with a stable outlook.

Treasurer Tim Nicholls said the announcement showed the LNP was living up to its election commitments to grow a four-pillar economy, repair the State’s finances and deal with Labor’s debt legacy.

“This CanDo Government has been working every day to cut waste and restore the state’s finances and our policies are having a real impact,” Mr Nicholls said.

“Standard & Poor’s now considers Queensland’s financial management to be a positive factor and it suggests our credit rating could improve in the medium term.

“We are reducing debt, which is now set to stabilise around $80 billion in 2014-15, much lower than the comparable estimate in the Commission of Audit and $5.2 billion lower than the previous Labor Government’s own estimates.

“That represents a $750 million saving on interest – meaning there is more money to go into providing frontline services.

“We have been successful in restraining expenses growth.  Expenses growth in the first year of the Newman Government was just 0.2 per cent, compared to an average of 8.9 per cent in the last decade of Labor.

“Standard and Poor’s has endorsed the strategies in this year’s Budget that cemented our commitment to get the State’s finances back on track.

“Next year we are forecast to deliver a Budget with a $2 billion operating surplus, the first operating surplus since 2008-09.

“No longer will the Government need to borrow to keep the lights on, pay public servants or to put fuel in ambulances.”

Mr Nicholls said today’s result was an endorsement of the Newman Government’s plans for Queensland.

“The Newman Government is committed to paying down the debt we inherited from the previous Labor Government so we can keep the cost of living down and deliver the services and infrastructure Queensland needs in the future,” he said.

[ENDS] 25 November 2013

Media Contact: Treasurer’s Office 07 3719 7200