Statement from the Shadow Treasurer - Labor flying blind on credit rating downgrade

Statement from the Shadow Treasurer – Labor flying blind on credit rating downgrade

James Newbury, Shadow Treasurer

In a shocking admission during today’s Public Accounts and Estimates Committee (PAEC) hearing, the Allan Labor Government has revealed it has not modelled the impact of a credit rating downgrade on Victoria’s economy.

Despite Victoria’s ballooning debt forecast to hit a record $194 billion by 2029, Treasury Secretary, Chris Barrett, conceded that no modelling has been undertaken on the consequences of a downgrade from the state’s already nation-low AA credit rating.

Shadow Treasurer, James Newbury, said the revelation shows Labor is governing by hope, not by sound economic management.

“It is economically reckless that the Allan Labor Government has failed to prepare for the very real risk of a credit downgrade. With Victoria’s debt spiralling out of control, Labor is flying blind,” Mr Newbury said.

“Victorians deserve a government that is honest about the economic risks our state faces and is doing the hard work to protect future generations. Instead, we see a Treasurer asleep at the wheel and a government utterly unprepared.”

The admission comes as Treasurer, Jaclyn Symes, prepares to jet off to New York on an expensive taxpayer-funded trip to beg ratings agencies to maintain Victoria’s credit rating, which is already the worst in the nation. Despite this, she had no answers when asked what impact a downgrade would have on Victoria’s finances.

The Treasurer’s evasive performance at PAEC exposed the government’s lack of credibility. Under questioning, Ms Symes even refused to rule out using Treasury advances to cover budget blowouts.

“Labor’s only strategy to manage its record debt is to cross its fingers and hope for the best. That’s not responsibility—that’s negligence,” Mr Newbury said.

“Only a change of government will bring the fiscal discipline Victoria needs, because Labor cannot manage money and Victorians are paying the price.”