Tuesday, 4 February 2025

 David DAVIS (Southern Metropolitan) (13:17): (773) My question is to the Treasurer. Treasurer, today Standard & Poor’s have issued a warning that Victoria faces a credit downgrade if it fails to curb rising operating costs and cost blowouts. S&P blamed lax financial discipline, operating revenues of nearly $150 billion higher than pre-COVID expectations and $200 billion in spending blowouts. Minister, you were a member of the expenditure review committee for five years, as you told the Herald Sun. Do you accept a share of responsibility for the serious financial deterioration of Victoria’s accounts, or is it entirely the responsibility of Daniel Andrews, Jacinta Allan and Tim Pallas?

 Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (13:18): I thank Mr Davis for his question and my first question as the newly appointed Treasurer. It is an honour to take on this role for the Allan Labor government. Mr Davis, in the usual style I see that not much has changed over the summer. You selectively choose what to point out in an article and fit it to your own narrative. Of course the financial position is different to what it was pre COVID, because we had to respond to COVID; we had to ensure that we protected households, lives and businesses. We make no apologies for ensuring that the economy of Victoria was able to bounce back after the pandemic. I think it is really disappointing that you like to ignore the fact that we saved lives during a pandemic.

You referred to the credit ratings. When credit rating agencies are looking at governments, they look to see whether governments are doing what they say they will do. What we are doing is we have a fiscal strategy to return to a better position. We are sticking to that fiscal strategy. We have ticked off steps 1 and 2. It is all there to see in the budget updates. What I will do is point you to some of the comments that the rating agencies have made, direct quotes in relation to our state, not the broad statements that you have referred to in your question:

The Fitch rating affirms a stable outlook for Victoria and states our ‘strong and diverse economy’ will support a continued recovery in the state’s fiscal position …

The Moody’s rating comes with a stable and positive outlook, and I quote Moody’s:

… the “stable outlook reflects our expectation that the state’s large and diverse economy will remain resilient”.

Just last week S&P confirmed their stable outlook for Victoria, with an expectation that Victoria’s operating balance will improve and its infrastructure spending will decline. We make no apologies for making the investments in productive infrastructure in this state. This is what Victorians are benefiting from now. We have two major projects opening this year. Future infrastructure in –

David Davis: On a point of order, President, it was a very reasonable question. The minister has been on the expenditure review committee for five years, as she told the Herald Sun, and I asked: does she accept a share of the responsibility or is she going to point at others?

The PRESIDENT: Mr Davis, we all heard the question, and the minister was relevant in her answer.

Jaclyn SYMES: I will have responsibility to be part of a really strong year for Victoria, with Deloitte forecasting that our state will have the highest economic growth of the east coast states and the Commonwealth Bank forecasting the biggest improvement in economic activity in all the states.

Mr Davis, right now Victorian families are closely watching every dollar. We think they rightly expect the government to do so. That is what I am bringing to this role. But our focus for 2025 will be making sure that every dollar of investment is focused on supporting families and the growth of the Victorian economy.

 David DAVIS (Southern Metropolitan) (13:21): The Treasurer did not clearly accept a share of the responsibility, and that was the point of the question. She did not accept a share of responsibility, despite having been a member of the expenditure review committee for five years. I therefore ask: Treasurer, will you heed the advice of the S&P rating agency – and if so, how – or will you thumb your nose at the serious warnings delivered in Victoria again today?

 Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (13:22): Mr Davis, I have confirmed my commitment to the Victorian community. Right now they are focused on cost of living, they are focused on their households and they are watching every single dollar. As Treasurer, I intend to take the same approach to the state’s finances.