State finances ship-shape

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."

Get our daily business news

Sign up to our free email news updates.

 
Whitefox Recruitment founder Luke Hemmings making strides as a careers leader
Partner Content
After relocating his Canberra-founded company Whitefox Recruitment to the Gold Coast la...
Whitefox Recruitment
Advertisement

Related Stories

ASIC secures its first court win for greenwashing against US giant Vanguard

ASIC secures its first court win for greenwashing against US giant Vanguard

The Australian corporate watchdog has caught out one of the world&r...

Medicinal cannabis group Althea shaves $1.5m from its cost base through staff cutbacks

Medicinal cannabis group Althea shaves $1.5m from its cost base through staff cutbacks

Australian-founded medicinal cannabis company Althea Group (ASX: AG...

Charter Hall snares 15pc stake in Hotel Property Investments for $97m from 360 Capital

Charter Hall snares 15pc stake in Hotel Property Investments for $97m from 360 Capital

Listed funds manager 360 Capital Group (ASX: TGP) has offloaded its...

The party’s over: Splendour in the Grass festival cancelled for 2024

The party’s over: Splendour in the Grass festival cancelled for 2024

Splendour in the Grass, Australia’s largest winter music fest...