CREDIT RATING

The Hon. I.F. EVANS (Davenport) (15:04): My question is again to the Treasurer. Why has the Treasurer abandoned the budget target to 'ensure the state has an effective tax regime', a target that has been in place for 10 years, including Treasurer Snelling's first budget?

The Hon. J.J. SNELLING (Playford—Treasurer, Minister for Workers Rehabilitation, Minister for Defence Industries, Minister for Veterans' Affairs) (15:05): The new fiscal targets were outlined in the Mid-Year Budget Review in December of last year. It's nice that the member for Davenport, who has been in hibernation since December last year, now, three months later, comes out to ask some questions on the MYBR.

Members interjecting:

The SPEAKER: Order!

The Hon. J.J. SNELLING: It's nice to have him back with us. The simple fact is that we had to establish new fiscal targets to reflect the current realities, and the current realities are that we have a very difficult budget to manage because of declining revenues. We wanted to ensure that, in light of that, we had a budget which was in a sustainable position and that would put us in the box seat for a return to AAA in the event that we were downgraded. As it happens, so far we haven't been downgraded, but we do acknowledge that the current revenues—particularly the net financial liabilities to revenue ratio—is not what S&P would say is consistent with the AAA credit rating.