South Australia’s Poor Economic Performance

South Australia’s Poor Economic Performance

South Australia Shadow Treasurer Iain Evans

South Australia – Credit Rating Downgrade

Victor P Taffa

After ten years of Labor’s economic mismanagement the chickens are coming home to roost with Standard and Poors today announcing South Australia’s credit rating has been downgraded from stable to negative.

Shadow Treasurer Iain Evans said Treasurer Snelling and his Cabinet colleagues have no one to blame but themselves because Labor has implemented high debt, big spending policies that have put the credit rating under pressure.

Labor’s mismanagement of what is now the worst worker’s compensation scheme in Australia has added further pressure to the State’s credit rating and Standard and Poors suggest that as WorkCover’s liability continues to grow even more pressure will be put on the credit rating.

The downgrade comes as Labor is living beyond its means with South Australia exceeding Standard and Poors net financial liabilities to revenue trigger ratio of 80-90 %.

The South Australian budget indicates our ratio is increasing from 114.6 to 116.7 %.

Standard and Poors have also raised concerns that a failure to deliver all of the savings targets on time could see a further downgrade.

The Liberal Party has been warning that increasing debt from approximately $3 Billion (2002) to the predicted $8.2 Billion in 2014 combined with budget deficits of $233 Million (08-09), $427 Million (2010-11) and $263 Million (2011-12) would put the credit rating at risk. Labor ignored our warnings.

“South Australians should remember this downgrade comes after taking into consideration the fact that we are the highest taxing state in the nation and Labor is selling the forward rotations of SA forests and the lotteries commission.” Mr. Evans said.

“After all that South Australia still gets a credit downgrade from stable to negative.”

“Treasurer Snelling should spend less time “downgrading” the Premier Rann and more time managing South Australia’s budget.” Mr. Evans said.