State finances ship-shape

Written on the 30 November -1

S&P boss tells Tresurer our robust economy has 'few peers'

QUEENSLAND'S economic performance has been praised by a world ratings leader, during Deputy Premier and Treasurer Anna Bligh's visit to the US.

Global Head of Standard & Poor's Corporate and Government Ratings, Paul Coughlin was glowing in his report to
Ms Bligh.

"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.," said Mr Coughlin.

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," he said.

"By comparison, many state governments in the US 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 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," he said.

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

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

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

"This sits well with Queensland having - for more than a decade - economic growth greater than the national average.

"Our rating and reactions like this means that when we go to the market seeking finance, we get the best rates."


Latest News

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CRITICS CALL FOR MORE INDEPENDENT DIRECTORS ON BLUE SKY BOARD

BLUE Sky Alternative Investments (ASX: BLA) has defended its governance and valuation processes in response to severa...

BEGA PAYS $460 MILLION FOR VEGEMITE TO BRING THE ICONIC BRAND BACK UNDER AUSTRALIAN OWNERSHIP

VEGEMITE is back under Australian ownership after Bega Cheese (ASX: BGA) agreed to buy Mondelez International's A...

GUVERA ESCAPES WIND-UP ORDER

GUVERA has avoided being wound up after a claim for a $1.78 million debt by Kwong Properties was dismissed at the ...

Related News

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

SMES TAKE RETAIL MARKET SHARE AS CONSUMERS CHOOSE PERSONALISATION

IN a battle for the hearts and wallets of Australian consumers, it appears that small and medium retail businesses...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter