Labor welcomes Standard & Poor’s report affirming Tasmania’s AA+ credit rating.
In contrast to the Liberals’ spin that Labor left a Budget emergency, the report credits the former Government’s fiscal discipline for our stable economic outlook.
Shadow Treasurer Scott Bacon said the report acknowledges the fiscal restraint shown by the Tasmanian Government in recent years.
“Labor dealt with a significant decrease in revenue after the GFC by bringing spending growth under control,” Mr Bacon said.
“The report acknowledges Tasmania’s ‘demonstrated fiscal discipline; the state’s exceptional liquidity resulting from its strong market access; and its strong economy’ as the reasons for the stable outlook.
“But whilst this result is pleasing, the report does raise some serious challenges.
“The state’s budgetary performance has been downgraded from strong to average under the Hodgman Government and Tasmania’s weak budgetary flexibility remains a concern.
“The report confirms that the Liberals’ pre-election spending spree of over $400 million means that a A$1 billion in savings need to be found elsewhere and these savings will largely come from reduced staff numbers.
“This highlights the Government prioritising its spending promises over frontline services.”
Scott Bacon MP Shadow Treasurer
