House of Assembly Fifty-Second Parliament, First Session (52-1) 52 1 Parliament of South Australia House of Assembly published Question Time State Finances STATE FINANCES The Hon. I.F. EVANS House of Assembly Davenport STATE FINANCES The Hon. I.F. EVANS (Davenport) (15:12): My question is to the Treasurer. How does the Treasurer claim the cost to the budget of losing the AAA credit rating would be between $2 million and $4 million a year when former treasurer Foley told the estimates committee in June 2009 that it would cost $6 million to $7 million a year on what was then a much smaller debt? In 2008-09 the general government debt was $475 million and the whole-of-government debt was just $2.9 billion. The then treasurer Foley told parliament the annual cost of losing the AAA credit rating at that point was $6 million to $7 million a year. This year the general government debt is $3.8 billion, not $475 million, and the whole-of-government debt is $7.9 billion, not $2.9 billion, yet the Treasurer is telling the public that the annual cost of losing the AAA credit rating is only $2 million to $4 million. The Hon. J.J. SNELLING House of Assembly Playford Minister for Workers Rehabilitation Minister for Defence Industries Minister for Veterans' Affairs STATE FINANCES The Hon. J.J. SNELLING (Playford—Treasurer, Minister for Workers Rehabilitation, Minister for Defence Industries, Minister for Veterans' Affairs) (15:13): Simply because the difference between the way the markets will price the AAA and the AA+ credit rating changes all the time. In fact, different jurisdictions may have the same credit rating but they may pay a very different interest rate on the debt which they have issued. There is a range of states with AAA credit ratings. A state like Western Australia is a AAA-rated state and along with the commonwealth it has around the lowest interest that it has to pay on its borrowings in the country. Other states with AAA credit ratings, such as South Australia, for example—even though Western Australia and South Australia are both rated AAA we still— Mr Marshall interjecting: The Speaker House of Assembly The SPEAKER: Order! The Hon. J.J. SNELLING House of Assembly The Hon. J.J. SNELLING: Well, just because the member for Norwood doesn't understand words of more than one syllable— Mr Marshall interjecting: The Speaker House of Assembly The SPEAKER: Order, member for Norwood! The Hon. J.J. SNELLING House of Assembly The Hon. J.J. SNELLING: Just because he doesn't understand words of more than one syllable doesn't mean— Mr Marshall interjecting: The Speaker House of Assembly The SPEAKER: Order! The Hon. J.J. SNELLING House of Assembly The Hon. J.J. SNELLING: —he needs to scream out and try to interject and disrupt. Mr Marshall interjecting: The Speaker House of Assembly The SPEAKER: Member for Norwood, you are warned! The Hon. J.J. SNELLING House of Assembly The Hon. J.J. SNELLING: I know the member for Norwood is preparing himself for his ascension to great office on the other side of the chamber— Mr PENGILLY House of Assembly Mr PENGILLY: Point of order, ma'am. The Speaker House of Assembly The SPEAKER: Order! Point of order. Member for Finniss. Mr PENGILLY House of Assembly Mr PENGILLY: Relevance, I think. The Speaker House of Assembly The SPEAKER: Order! Thank you. The minister will get back to the question. The Hon. P.F. CONLON House of Assembly The Hon. P.F. CONLON: I have a further point of order, Madam Speaker. The Speaker House of Assembly The SPEAKER: Point of order. The Hon. P.F. CONLON House of Assembly The Hon. P.F. CONLON: I understand the reason the Treasurer was led into that minor sin was the interjections from the member for Norwood, which were totally out of order. The Speaker House of Assembly The SPEAKER: Order! Yes, I uphold that also. Members interjecting: The Speaker House of Assembly The SPEAKER: Order! Treasurer. The Hon. J.J. SNELLING House of Assembly The Hon. J.J. SNELLING: So the advice that I gave to the chamber last week about the $2 million to $4 million was as I was advised by Treasury, or by SAFA, at that time; but it does change from time to time and I presume that former treasurer Foley, when he gave that advice to the estimates committee, or wherever it was, would have done that based upon what was current at the time.