Thursday 2 September 2010

Queensland rating - stuck on an AA1

Moody’s rating agency today confirmed Queensland is stuck on an AA1 rating more than 12 months after the Labor Government lost the State’s AAA credit rating.

Queensland’s financial performance continues to deteriorate, with Moody’s saying ‘as a result, large deficits are expected to persist… leading to further increases in the debt burden.

Queensland's debt still tops the nation at $83.5 billion, more than most other States combined.

Moody’s pointed out that the Queensland budget continues to deteriorate, showing the State government is still failing to control costs.


Alison Alloway said...

Australia has one of the most mobile populations in the world.
If we don't develop a proper population policy, monitoring where people move to and plan ahead, inadequate infrastructure, reactive planning and budget blow-outs, like the above, will occur.
Next year, the first of the boomers retire, and then each year for another 17 years after. A sizeable proportion will be heading for Queensland to retire in the sun. There has been no forward planning for this increase.

KitchenSlut said...

Australia's mobile flexible demographics are actually a huge advantage we have had in recent times along with the flexible exchange rate!

This is a reason why the Eurozone don't work with the ultra efficient export german economy currently going gangbusters while Greece is in crisis! Although we do have a bit of this with Cairns floundering while Melburn booms?!

However this obsesssion with credit ratings and budgets is a bit overdone! The power of 'BIG NUMBERS' has meant that now any budget numbers get multiplied by 4 or so and annopunced as a single number over the forecast period.

Both sides live and die by this in a zero sum outcome for society. This was illustrated by media covergae of todays "hole" in coalition budget costings. However looked at in the totality of the Treasury outcome in 4 years time the differences in outcome are like comparing the size of a bees dick with the Sahara Desert? It just dont matter and wont for anyone in reality!

In terms of Queesnland as a growth state the credit rating is less importamt than the way the credit is spent! The problem is that there is not a creditable record especially when it comes to splurging on bureaucrats and public service growth? No .... this is not police and nurses it is administrators worthwhile iindividuals that they are .....


Cairns resident said...

Absolutely KitchenSlut - we are being beaten to death by bureaucracy at all levels - council, state, federal. Not only beaten (ie. taxed) to death, but also bored & Nanny-Stated to death by the buggers. Even the bureaucrats hand-servants, one example would be the goodly folk that make up the Traffic Control Army - at (apparently) $50-60 an hour !!

And as you point out, it's not the 'on the ground' civil servants such as nurses, home care people & yes, cops, who are increasing, it's the mad bureaucrats 'administering' (ie. stuffing up) the regulations from new legislation.

The other interesting thing about Qld's debt is of course, that Ms. Bligh was the bloody State Treasurer under Beattie - when we had a mining boom. Yeah, good one Anna.

It will indeed be interesting next State election to see if the North Qld Party gets up some candidates & policy. I would like to see them appearing now.

Because as much as Bligh is hopeless (& I hope she's chucked out soon), I am definitely not convinced Jean-Paul & more importantly, Springbored have a grip on the Qld situation either.