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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2012-03-13 Daily Xml
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CREDIT RATING

The Hon. I.F. EVANS (Davenport) (15:03): My question is to the Treasurer. Why has the government abandoned the budget target to 'maintain a AAA credit rating', a target that had been in place for seven years, including Treasurer Snelling's first budget?

The SPEAKER: The Treasurer. I hope you heard that. I didn't quite hear it.

The Hon. J.J. SNELLING (Playford—Treasurer, Minister for Workers Rehabilitation, Minister for Defence Industries, Minister for Veterans' Affairs) (15:03): Simply because with the changes—particularly to superannuation—and the effect of the change in the discount rate, the net financial liabilities to revenue ratio, and the effect on the budget of declining revenues, simply meant that the targets which S&P have in place, or what we need to be to be consistent with the AAA credit rating, was only going to be achievable with a massive cutback in our infrastructure program—something that we weren't willing to do.

We've established new fiscal targets which will ensure that we have a sustainable budget and that we are in the box seat when revenues improve, should we be downgraded. We haven't been downgraded yet but, should we be downgraded, the budget will be in such a position as it can be upgraded back to AAA when things improve again.

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